DermTech (DMTKQ) 10-Q 13 May 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	May 07, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Entity Registrant Name	DERMTECH, INC.
Entity Central Index Key	0001651944
Current Fiscal Year End Date	--12-31
Entity File Number	001-38118
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	84-2870849
Entity Address, Address Line One	11099 N. Torrey Pines Road
Entity Address, Address Line Two	Suite 100
Entity Address, City or Town	La Jolla
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92037
City Area Code	858
Local Phone Number	450-4222
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Document Quarterly Report	true
Document Transition Report	false
Entity Common Stock, Shares Outstanding		14,907,305
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	DMTK
Security Exchange Name	NASDAQ

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 67,922	$ 15,374
Accounts receivable	1,175	680
Inventory	75	35
Prepaid expenses and other current assets	892	1,061
Total current assets	70,064	17,150
Property and equipment, net	1,736	977
Other assets	167	84
Total assets	71,967	18,211
Current liabilities:
Accounts payable	1,561	1,609
Accrued compensation	1,120	1,142
Accrued liabilities	200	218
Deferred revenue	1,093	1,390
Deferred underwriting fees	1,363	1,363
Total current and total liabilities	5,337	5,722
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.0001 par value per share; 50,000,000 shares authorized as of March 31, 2020 and December 31, 2019; 14,899,701 and 12,344,818 shares issued and outstanding at March 31, 2020 and December 31, 2019	1	1
Additional paid-in capital	164,741	103,599
Accumulated deficit	(98,112)	(91,111)
Total stockholders’ equity	66,630	12,489
Total liabilities, convertible preferred stock and stockholders’ equity	71,967	18,211
Series A Convertible Preferred Stock
Current liabilities:
Convertible preferred stock
Series B-1 Convertible Preferred Stock
Current liabilities:
Convertible preferred stock
Series B-2 Convertible Preferred Stock
Current liabilities:
Convertible preferred stock

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Convertible preferred stock, par value	$ 0.0001
Convertible preferred stock, shares authorized	5,000,000
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	14,899,701	12,344,818
Common stock, shares outstanding	14,899,701	12,344,818
Series A Convertible Preferred Stock
Convertible preferred stock, par value	$ 0.0001	$ 0.0001
Convertible preferred stock, shares authorized	1,250	1,250
Convertible preferred stock, shares issued	1,231	1,231
Convertible preferred stock, shares outstanding	1,231	1,231
Convertible preferred stock, liquidation preference	$ 6,900,000	$ 7,600,000
Series B-1 Convertible Preferred Stock
Convertible preferred stock, par value	$ 0.0001	$ 0.0001
Convertible preferred stock, shares authorized	3,200	0
Convertible preferred stock, shares issued	3,199	0
Convertible preferred stock, shares outstanding	3,199	0
Convertible preferred stock, liquidation preference	$ 36,000,000	$ 0
Series B-2 Convertible Preferred Stock
Convertible preferred stock, par value	$ 0.0001	$ 0.0001
Convertible preferred stock, shares authorized	525	0
Convertible preferred stock, shares issued	524	0
Convertible preferred stock, shares outstanding	524	0
Convertible preferred stock, liquidation preference	$ 5,900,000	$ 0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenues:
Total revenues	$ 1,557	$ 596
Cost of revenues	1,203	635
Gross profit/(loss)	354	(39)
Operating expenses:
Sales and marketing	2,944	864
Research and development	897	572
General and administrative	3,514	1,528
Total operating expenses	7,355	2,964
Loss from operations	(7,001)	(3,003)
Other expense:
Interest expense, net		(1,968)
Other expense		(185)
Total other expense		(2,153)
Net loss and comprehensive loss	$ (7,001)	$ (5,156)
Weighted average shares outstanding used in computing net loss per share, basic and diluted	13,100,642	4,411,279
Net loss per common share outstanding, basic and diluted	$ (0.53)	$ (1.17)
Assay Revenue
Revenues:
Total revenues	$ 796	$ 235
Contract Revenue
Revenues:
Total revenues	$ 761	$ 361

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands	Total	Private placement	Series C convertible preferred stock	Series A convertible preferred stock	Series B-1 Convertible Preferred Stock	Series B-2 Convertible Preferred Stock	Common stock	Common stockPrivate placement	Additional paid-in capital	Additional paid-in capitalPrivate placement	Accumulated deficit
Balance at Dec. 31, 2018	$ (5,355)						$ 1		$ 66,021		$ (71,377)
Balance, Shares at Dec. 31, 2018			1,524,122				4,411,567
Cumulative effect adjustment of accounting method change	(45)										(45)
Stock-based compensation	258								258
Net loss	(5,156)										(5,156)
Balance at Mar. 31, 2019	(10,298)						$ 1		66,279		(76,578)
Balance, Shares at Mar. 31, 2019			1,524,122				4,411,567
Balance at Dec. 31, 2019	12,489						$ 1		103,599		(91,111)
Balance, Shares at Dec. 31, 2019				1,231			12,344,818
Issuance of stock, net of issuance costs		$ 23,891								$ 23,891
Issuance of common and preferred stock, net of issuance costs, Shares					3,199	524		2,467,724
Issuance of Series B-1 preferred stock	30,971								30,971
Issuance of Series B-2 preferred stock	5,071								5,071
Issuance of common stock from option exercises	253								253
Issuance of common stock from option exercises, Shares							85,061
Issuance of common stock from warrant exercises	11								11
Issuance of common stock from warrant exercises, Shares							2,098
Issuance costs in connection with Form S-1 registration statement	(77)								(77)
Stock-based compensation	1,022								1,022
Net loss	(7,001)										(7,001)
Balance at Mar. 31, 2020	$ 66,630						$ 1		$ 164,741		$ (98,112)
Balance, Shares at Mar. 31, 2020				1,231	3,199	524	14,899,701

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) (Unaudited) (Parenthetical) $ in Millions	3 Months Ended
	Mar. 31, 2020USD ($)$ / shares
Common Stock
Issuance price per share | $ / shares	$ 10.50
Issuance costs | $	$ 2
Series B-1 Convertible Preferred Stock
Issuance price per share | $ / shares	$ 10,500
Issuance costs | $	$ 2.6
Series B-2 Convertible Preferred Stock
Issuance price per share | $ / shares	$ 10,500
Issuance costs | $	$ 0.4

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net loss	$ (7,001,000)	$ (5,156,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	60,000	19,000
Stock-based compensation	1,022,000	258,000
Amortization of debt discount and issuance costs		1,781,000
Change in fair value of derivative liability		185,000
Changes in operating assets and liabilities:
Accounts receivable	(495,000)	302,000
Inventory	(40,000)	1,000
Prepaid expenses and other current assets	86,000	(72,000)
Accounts payable and accrued compensation	(714,000)	49,000
Accrued liabilities and deferred revenue	(315,000)	(73,000)
Net cash used in operating activities	(7,397,000)	(2,706,000)
Cash flows from investing activities:
Purchases of property and equipment	(175,000)	(6,000)
Net cash used in investing activities	(175,000)	(6,000)
Cash flows from financing activities:
Payments of issuance costs in connection with Form S-1 registration statement	(77,000)
Proceeds from exercise of common stock warrants	11,000
Proceeds from exercise of stock options	253,000
Net cash provided by financing activities	60,120,000
Net increase/(decrease) in cash and cash equivalents	52,548,000	(2,712,000)
Cash and cash equivalents, beginning of period	15,374,000	4,753,000
Cash and cash equivalents, end of period	67,922,000	2,041,000
Supplemental cash flow information:
Purchases of property and equipment recorded in accounts payable	644,000	$ 4,000
Private placement
Cash flows from financing activities:
Proceeds from issuance of common stock in connection with private placement offering, net	23,891,000
Series B-1 Convertible Preferred Stock
Cash flows from financing activities:
Proceeds from issuance of Convertible Preferred Stock, net	30,971,000
Series B-2 Convertible Preferred Stock
Cash flows from financing activities:
Proceeds from issuance of Convertible Preferred Stock, net	$ 5,071,000

The Company and a Summary of it

The Company and a Summary of its Significant Accounting Policies	3 Months Ended
	Mar. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
The Company and a Summary of its Significant Accounting Policies	1. The Company and a Summary of its Significant Accounting Policies (a) On August 29, 2019, DermTech, Inc., formerly known as Constellation Alpha Capital Corp, (the “Company”), and DermTech Operations, Inc., formerly known as DermTech, Inc., (“DermTech Operations”), consummated the transactions contemplated by the Agreement and Plan of Merger, dated as of May 29, 2019, by and among the Company, DT Merger Sub, Inc., a wholly owned subsidiary of the Company (“Merger Sub”), and DermTech Operations. The Company refers to this agreement, as amended by that certain First Amendment to Agreement and Plan of Merger dated as of August 1, 2019, as the Merger Agreement. Pursuant to the Merger Agreement, Merger Sub merged with and into DermTech Operations, with DermTech Operations surviving as a wholly-owned subsidiary of the Company. The Company refers to this transaction as the Business Combination. In connection with and two days prior to the completion of the Business Combination, the Company domesticated from the British Virgin Islands to Delaware. DermTech Operations changed its name from DermTech, Inc. to DermTech Operations, Inc. shortly before the completion of the Business Combination. On August 29, 2019, immediately following the completion of the Business Combination, the Company changed its name from Constellation Alpha Capital Corp. to DermTech, Inc., and then effected a one-for-two reverse stock split of its common stock (“Reverse Stock Split”). The Company is an emerging growth molecular diagnostic company developing and marketing its Clinical Laboratory Improvement Amendments of 1988 (“CLIA”) laboratory services including molecular pathology tests to facilitate the diagnosis of dermatologic conditions including melanoma. The Company has developed a proprietary, non-invasive technique for sampling the surface layers of the skin using an adhesive patch in order to collect individual biological information for commercial applications in the medical diagnostic field. During and following the first quarter of 2020, there has been a widespread worldwide impact from the COVID-19 pandemic. The Company is considered an essential business due to the importance for early melanoma detection, which has allowed the Company’s CLIA laboratory to remain fully operational. The Company has implemented additional safety measures and social distancing with its CLIA laboratory operations and has transitioned administrative functions to working remotely. Beginning in March 2020, the ongoing COVID-19 pandemic has reduced patient access to clinician offices for in-person testing, which has resulted in a reduced volume of billable samples received. Additionally, the Company expects that the ongoing COVID-19 pandemic will have an effect on its pharmaceutical customers’ clinical trials. The extent of such effect on the Company’s future revenue is uncertain and will depend on the duration and extent of the effects of the ongoing COVID-19 pandemic. (b) These condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). In the opinion of management, all adjustments, which include only normal recurring adjustments considered necessary for a fair presentation, have been included. (c) The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the amounts of revenues and expenses reported during the period. On an ongoing basis, management evaluates these estimates and judgments, including those related to assay revenue, stock-based compensation, accounts receivable and the realization of deferred tax assets. Actual results may differ from those estimates. (d) The Company considers all highly liquid investments with remaining maturities of three months or less when purchased to be cash equivalents. The Company maintains its cash balances at banks and financial institutions. The balances are insured up to the legal limit. The Company maintains cash balances that may, at times, exceed this insured limit. (e) Property and equipment is recorded at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which range from two to five years. Leasehold improvements are depreciated over the shorter of the remaining term of the lease or the useful life of the asset. The Company recorded depreciation expense of $0.1 million and $19,000 for the three months ended March 31, 2020 and 2019, respectively. No property or equipment was disposed of during the three months ended March 31, 2020 and 2019. The Company assesses its long-lived assets, consisting primarily of property and equipment, for impairment when material events or changes in circumstances indicate that the carrying value may not be recoverable. There were no impairment losses for the three months ended March 31, 2020 and 2019. (f) Costs incurred in connection with research and development (“R&D”) activities are expensed as incurred. R&D expenses consist of (i) employee-related expenses, including salaries, benefits, travel and stock compensation expense; (ii) and facilities and other expenses, which include direct and allocated expenses for rent and maintenance of facilities and laboratory and other supplies. The Company expenses all costs as incurred in connection with patent applications (including direct application fees and the legal and consulting expenses related to making such applications), and such costs are included in general and administrative expenses. (g) Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents. As of March 31, 2020, the Company maintained $67.9 million in a bank deposit account, which is in excess of the $250,000 insurance provided by the Federal Deposit Insurance Corporation in one federally insured financial institution. The Company has not experienced any losses in such accounts. (h) The Company provides for federal and state income taxes on the asset and liability approach which requires deferred tax assets and liabilities to be recognized based on temporary differences between the condensed consolidated financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the temporary differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance when, in management’s opinion, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. The Company’s valuation allowance is based on available evidence, including its current year and prior year operating losses, evaluation of positive and negative evidence with respect to certain specific deferred tax assets including evaluation sources of future taxable income to support the realization of the deferred tax assets. The Company has established a full valuation allowance on the deferred tax assets as of March 31, 2020. Current and deferred tax assets and liabilities are recognized based on the tax positions taken or expected to be taken in the Company’s income tax returns. U.S. GAAP requires that the tax benefits of an uncertain tax position can only be recognized when it is more likely than not that the tax position will be sustained upon examination by the relevant taxing authority. Tax benefits related to tax positions that do not meet this criterion are not recognized in the condensed consolidated financial statements, of which there are none. The Company recognizes interest and penalties related to income tax matters in income tax expense. ( i ) The Company’s revenue is generated from two revenue streams: contract revenue and assay revenue. The Company accounts for revenue in accordance with Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) The Company recognizes revenue from its contract and assay goods and service in accordance with the core principles and key aspects considered by the Company. These considerations are described below, first for Contract Revenue and then for Assay Revenue. Contract Revenue Contract revenue is generated from the sale of laboratory services and adhesive sample collection kits to third party companies through contract research agreements. Revenues are generated from providing gene expression tests to facilitate the development of drugs designed to treat dermatologic conditions. The provision of gene expression services may include sample collection using the Company’s patented adhesive patch biopsy devices, assay development for research partners, ribonucleic acid (“RNA”) isolation, expression, amplification and detection, including data analysis and reporting. Assay Revenue The Company generates revenues from its Pigmented Lesion Assay (“PLA”) and Nevome services it provides to healthcare physicians in various states throughout the United States to assist in a clinician’s diagnosis of melanoma. The Company provides prescribing clinicians with its adhesive sample collection kits to perform non-invasive skin biopsies of clinically ambiguous pigmented skin lesions on patients. Once the sample is collected by the healthcare clinician, it is returned to the Company’s CLIA laboratory for analysis. The patient RNA and deoxyribonucleic acid (“DNA”) is extracted from the adhesive patch collection kit and analyzed using gene expression technology to determine if the pigmented skin lesion contains certain genomic features indicative of melanoma. Upon completion of the gene expression analysis, a final report is drafted and provided to the dermatologists detailing the test results for the pigmented skin lesion indicating whether the sample collected is indicative of melanoma or not. (a) Disaggregation of Revenue The following table presents the Company’s revenues disaggregated by revenue source during the three months ended March 31, 2020 and 2019, respectively, (in thousands): Three Months Ended March 31, 2020 2019 Assay Revenue PLA Test $ 796 $ 235 Contract Revenue Adhesive Patch kits 14 167 RNA Extractions 671 115 Project Management Fees 76 78 Other — 1 Total Revenue $ 1,557 $ 596 (b) Contract Balances and Deferred Revenue The timing of revenue recognition, billings and cash collections results in billed accounts receivable and deferred revenue on the condensed consolidated balance sheets. Generally, contract revenue has a majority of agreements in which the Company receives a substantial up-front payment upon various milestones over the life of the agreement. This results in deferred revenue and is relieved upon delivery of the applicable adhesive patch kits or RNA extraction results. Changes in accounts receivable and deferred revenue were not materially impacted by any other factors. The Company records a deferred revenue liability if a customer pays consideration before the Company transfers a good or service to the customer. Deferred revenue primarily represents upfront milestone payments, for which consideration is received prior to when goods/services are completed or delivered. Deferred revenue at March 31, 2020 and December 31, 2019 was $1.1 million and $1.4 million, respectively. (j) Contract Accounts Receivable Contract accounts receivable are recorded at the net invoice value and are not interest bearing. The Company reserves specific receivables if collectability is no longer reasonably assured, and as of March 31, 2020, the Company did not maintain any reserve over contract receivables as they deal with large established credit worthy customers. The Company re-evaluates such reserves on a regular basis and adjusts its reserves as needed. Once a receivable is deemed to be uncollectible, such balance is charged against the reserve. The Company recorded $0.4 million and $0.3 million of contract accounts receivable as of March 31, 2020 and December 31, 2019, respectively. Assay Accounts Receivable Due to the nature of the Company’s assay revenue, it can take a significant amount of time to collect upon billed PLA services. The Company prepares an analysis on reimbursement collections and data obtained for each financial reporting period to determine the amount of receivables to be recorded relating to PLA services performed in the applicable period. The Company generally does not perform evaluations of customers’ financial condition and generally does not require collateral. Accounts receivable are written off when all efforts to collect the balance have been exhausted. Adjustments for implicit price concessions attributable to variable consideration are incorporated into the measurement of the accounts receivable balances. (k) The Company records outbound freight and shipping costs for its contract and assay revenues in cost of revenues. (l) Comprehensive income / (loss) is defined as a change in equity during a period from transactions and other events and circumstances from non-owner sources. The Company’s comprehensive loss was the same as its reported net loss for all periods presented. (m) Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision-making group, in making decisions on how to allocate resources and assess performance. The Company views its operations and manages its business as one operating segment. (n) Basic and diluted net loss per common share is determined by dividing net loss applicable to common shareholders by the weighted average common shares outstanding during the period. Because there is a net loss attributable to common shareholders during the three months ended March 31, 2020 and 2019, the outstanding common stock warrants, stock options, restricted stock units and preferred stock have been excluded from the calculation of diluted loss per common share because their effect would be anti-dilutive. Therefore, the weighted average shares used to calculate both basic and diluted loss per share are the same. Diluted net loss per common share for the three months ended March 31, 2020 excludes the effect of anti-dilutive equity instruments including 4,338,136 shares of common stock issuable upon conversion of the Company’s the Company’s (o) Effective January 1, 2020, the Company elected an accounting policy change to no longer estimate forfeitures in connection with expense recognition of stock options and RSUs. All stock options and RSUs granted on or subsequent to January 1, 2020 will recognize forfeitures when they occur in accordance with Accounting Standards Update (“ASU”) 2016-09, Compensation - Stock Compensation (Topic 718) Compensation costs associated with stock option awards and other forms of equity compensation are measured at the grant-date fair value of the awards and recognized over the requisite service period of the awards on a ratable basis. The Company grants stock options to purchase common stock to employees with exercise prices equal to the fair market value of the underlying stock, as determined by the board of directors, management and outside valuation experts prior to the Business Combination. The board of directors and outside valuation experts determined the fair value of the underlying stock by considering a number of factors, including historical and projected financial results, the risks the Company faced at the time, the preferences of the Company’s debt holders and preferred stockholders, and the lack of liquidity of the Company’s common stock. Subsequent to the close of the Business Combination, the fair market value of stock options is based on the closing stock price on the grant date. The fair value of each stock option award is estimated using the Black-Scholes-Merton valuation model. Such value is recognized as expense over the requisite service period using the ratable method. The expected term of options is based on the simplified method which defines the expected term as the average of the contractual term of the options and the weighted average vesting period for all option tranches. The expected volatility of stock options is based upon the historical volatility of a number of related publicly traded companies in similar stages of development as well as the volatility of the Company’s common stock. The risk-free interest rate is based on the average yield of U.S. Treasury securities with remaining terms similar to the expected term of the share-based awards. The assumed dividend yield was based on the Company’s expectation of not paying dividends in the foreseeable future. The Company accounts for stock options to non-employees using the fair value approach. The fair value of these options is measured using the Black-Scholes-Merton option pricing model, reflecting the same assumptions applied to employee options, other than expected life, which is assumed to be the remaining contractual life of the award. Options that are granted to employees generally have a requisite service period of three to four years. Equity instruments awarded to non-employees are periodically re-measured as the underlying awards vest unless the instruments are fully vested, immediately exercisable, and non-forfeitable on the date of grant. Restricted stock units (“RSUs”), are considered restricted stock. The fair value of restricted stock is equal to the fair market value of the underlying stock, as determined by the board of directors, management and input from outside valuation experts prior to the Business Combination. Subsequent to the close of the Business Combination, the fair market value of RSUs is based on the closing stock price on the grant date. The Company recognizes stock-based compensation expense based on the fair value on a ratable basis over the requisite service periods of the awards. RSUs that are granted to employees have a requisite service period between two and four years. All stock options and RSUs granted prior to January 1, 2020 will maintain the estimated forfeiture approach and will be recognized over the requisite service period using the straight line method. The fair value of each option for employees was estimated on the date of grant using the following assumptions: Three Months Ended March 31, 2020 2019 Assumed risk-free interest rate 0.79% - 1.69% 2.51% Assumed volatility 64.03% - 65.92% 72.30% Expected option term 5.04 - 6.08 6.04 Expected dividend yield — — The Company recorded stock-based compensation expense for employee options, RSUs, common stock warrants, and consultant options of $1.0 million and $0.3 million for the three months ended March 31, 2020 and 2019, respectively. The total compensation cost related to non-vested awards not yet recognized at March 31, 2020 was $7.8 million, ( p ) The Company uses a three-tier fair value hierarchy to prioritize the inputs used in the Company’s fair value measurements. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets for identical assets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. There were no other assets or liabilities that were measured at fair value on a recurring basis as of March 31, 2020 or December 31, 2019. The Company believes the carrying amount of cash and cash equivalents, accounts payable and accrued expenses approximate their estimated fair values due to the short-term nature of these accounts. ( q ) In June 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-07, Compensation-Stock Compensation (Topic 718) – Improvements to Nonemployee Share-Based Payment Accounting In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement ( r ) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) Codification Improvements to Topic 842, Leases Leases (Topic 842): Targeted Improvements Narrow-Scope Improvements for Lessors Lease (Topic 842): Codification Improvements In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes

Balance Sheet Details

Balance Sheet Details	3 Months Ended
	Mar. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Balance Sheet Details	2. Balance Sheet Details Condensed consolidated balance sheet details are as follows (in thousands): March 31, 2020 December 31, 2019 Prepaid expenses and other current assets: Prepaid insurance $ 678 $ 951 Prepaid trade shows 87 85 Other current assets 127 25 Total prepaid expenses and other current assets $ 892 $ 1,061 Property and equipment, gross: Laboratory equipment $ 1,586 $ 1,135 Computer equipment 41 15 Furniture and fixtures 34 34 Leasehold improvements 32 32 Construction in progress 343 — Total property and equipment, gross 2,036 1,216 Less accumulated depreciation (300 ) (239 ) Total property and equipment, net $ 1,736 $ 977 March 31, 2020 December 31, 2019 Accrued compensation: Accrued paid time off $ 357 $ 309 Accrued bonus and deferred compensation 452 465 Accrued severance 311 368 Total accrued compensation $ 1,120 $ 1,142 Accrued liabilities: Accrued consulting services $ 98 $ 37 Accrued printing fees — 55 Deferred rent 83 88 Other accrued expenses 19 38 Total accrued liabilities $ 200 $ 218

Debt

Debt	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
Debt	3. Debt 2018 Convertible Bridge Notes From August to November 2018, DermTech Operations issued $6.8 million aggregate principal amount of convertible bridge notes (“2018 Bridge Notes”), resulting in $6.6 million in net proceeds. The 2018 Bridge Notes carried a 10% interest rate and matured on March 31, 2019. Since the 2018 Bridge Notes were not paid or converted by March 31, 2019, the interest rate increased to 15%. The 2018 Bridge Notes were subject to automatic conversion into equity securities of DermTech Operations at the closing of a single capital raising transaction or series of related capital raising transactions in which DermTech Operations issued equity securities with aggregate gross proceeds to DermTech Operations of at least $20 million (“Qualified Financing”) that occurred on or prior to the maturity date. Upon automatic conversion of these 2018 Bridge Notes, the note holders were entitled to receive shares of DermTech Operations’ equity securities equal to the quotient obtained by dividing the unpaid principal amount of these 2018 Bridge Notes plus interest accrued but unpaid by the lesser of: 1) the lowest price per share of the new stock paid in the Qualified Financing by investors multiplied by 2) the price per share obtained by dividing $ Several of the embedded features of the 2018 Bridge Notes were identified as meeting the criteria of a derivative and ultimately bifurcated from the host contract. DermTech Operations accounted for this by separating the derivative component of the 2018 Bridge Notes as a derivative liability on the condensed consolidated balance sheet. DermTech Operations assigned a value to the debt component of the 2018 Bridge Notes equal to the difference between the estimated fair value of the 2018 Bridge Notes with and without the conversion features, which resulted in DermTech Operations recording the 2018 Bridge Notes at a discount. The total debt discount amount as of the respective date of issuance of the 2018 Bridge Notes was determined to be $2.5 million. DermTech Operations amortized the debt discount over the contractual life (i.e., March 31, 2019) of the 2018 Bridge Notes as additional non-cash interest expense utilizing the effective interest method. At each financial reporting period, DermTech Operations remeasured the fair value of the embedded features bifurcated from the 2018 Bridge Notes (i.e., the derivative liability) and changes in the fair value are recognized in earnings. Losses relating to the change in fair value of the derivative liability recognized as other expense on the Statement of Operations were zero and $0.2 million for the three months ended March 31, 2020 and 2019, respectively. On May 23, 2019, DermTech Operations DermTech Operations; In addition, immediately prior to the consummation of a DermTech Operations DermTech Operations share equal to 70% of the Merger Consideration. For purposes of the preceding sentence, the “Merger Consideration” means (i) the lesser of $6.46 and (ii) the offering price per share of the private investment in public equity (“PIPE”) transaction to be consummated concurrently with the consummation of the Qualifying Merger multiplied by the Conversion Ratio. For the purposes of the preceding sentence, the “Conversion Ratio” means the quotient resulting from dividing 8,000,000 by the number of fully diluted shares of the Company as of immediately after the conversion of the notes. This new embedded Qualifying Merger feature of the 2018 Bridge Notes was identified as meeting the criteria of a derivative and ultimately bifurcated from the host contract with the previously identified embedded features that met the criteria of being a derivative. In addition, this amendment was accounted for as a debt modification of the existing 2018 Bridge Notes. 2019 Convertible Bridge Notes Between June 5 th th DermTech Operations DermTech Operations DermTech Operations The unpaid principal amount of these convertible bridge notes together with any interest accrued but unpaid thereon, would automatically be converted into shares of DermTech Operations’ DermTech Operations DermTech Operations’ DermTech Operations Several of the embedded features of the 2019 Bridge Notes were identified as meeting the criteria of a derivative and ultimately bifurcated from the host contract. DermTech Operations DermTech Operations DermTech Operations DermTech Operations Exchange of Convertible Debt for Common Shares On August 29, 2019, immediately prior to the completion of the Business Combination, all unpaid principal and interest on the 2019 Bridge Notes and the 2018 Bridge Notes (collectively, “the Bridge Notes”) was converted into 2,267,042 common shares of DermTech Operations The conversion of the Bridge Notes debt for common shares of DermTech Operations DermTech Operations DermTech Operations’ The net carrying amounts of the Bridge Notes, including remaining unamortized debt discount and issuance costs, and the bifurcated embedded derivative liability were extinguished on the date of the Business Combination. A gain on debt extinguishment of $0.9 million was recognized, which represented the unamortized debt discounts and issuance costs remaining at the time of the debt extinguishment. There was no liability balance for the Company’s 2019 Bridge Notes or 2018 Bridge Notes as of March 31, 2020 and December 31, 2019.

Convertible Preferred Stock and

Convertible Preferred Stock and Stockholders’ Equity	3 Months Ended
	Mar. 31, 2020
Stockholders Equity Note [Abstract]
Convertible Preferred Stock and Stockholders’ Equity	4. Convertible Preferred Stock and Stockholders’ Equity (a) The Company’s amended and restated certificate of incorporation authorizes it to issue 50,000,000 shares of common stock and 5,000,000 shares of preferred stock. Both classes of stock have a par value of $0.0001 per share. Pursuant to the Business Combination, the Company issued shares of its common stock to DermTech Operations common stockholders at an exchange ratio of approximately 1.16 shares of the Company’s common stock for each share of DermTech Operations common stock. In connection with and immediately following the Business Combination, the Company filed a certificate of amendment to its amended and restated certificate of incorporation to affect a one-for-two reverse stock split of its common stock. All stock information presented throughout this document have been adjusted to reflect these capital structure changes. (b) Series C Convertible Preferred Stock Financing DermTech Operations conducted a Series C Convertible Preferred Stock private offering in August of 2016 for a total offering amount of $15 million at a price per share of $9.54. During 2017, 559,849 shares of Series C Convertible Preferred Stock were issued for gross cash proceeds of $5.3 million, reduced by issuance costs of $0.4 million. In addition, 102,740 common stock warrants were issued in connection with this offering, exclusive of compensatory warrants issued to the placement agent. During 2018, 506,539 shares of Series C Convertible Preferred Stock were issued for gross cash proceeds of $4.8 million, reduced by issuance costs of $0.3 million. On May 23, 2019, agreed to an amendment with the Series C Convertible Preferred Stockholders that immediately prior the consummation of a merger with or into the Company or any of its subsidiaries on or before September 24, 2019, the outstanding Series C Convertible Preferred Stock would convert into common stock at a one to one ratio in accordance with amended and restated certificate of incorporation. ( c ) In connection with the PIPE transaction and on August 29, 2019, immediately following the completion of the Business Combination, the Company filed a Certificate of Designation of Preferences, Rights and Limitations for the Company’s Series A Convertible Preferred Stock (the “Series A Certificate of Designation”). An aggregate of 1,231 shares of Series A Convertible Preferred Stock for an aggregate purchase price of $4.0 million were issued to certain accredited investors. Preferred Dividends Holders of the Company’s Series A Convertible Preferred Stock (the “Series A Convertible Preferred Stock”) are entitled to receive dividends on an as-converted basis equal to and in the same form as dividends paid on shares of the Company’s common stock when, as and if these dividends are paid on the Company’s common stock. Preferred Liquidation Preference Holders of the Series A Convertible Preferred Stock will participate pari passu with the holders of the Company’s common stock on an as-converted basis in the event of dissolution, liquidation or winding up of the Company. Redemption The Series A Convertible Preferred Stock does not contain any mandatory redemption features. The Series A Convertible Preferred Stock has been classified as temporary equity in the accompanying condensed consolidated balance sheets in accordance with authoritative guidance for the classification and measurement of potentially redeemable securities whose redemption is based upon certain change in beneficial ownership events outside of the Company’s control. The Company has determined not to adjust the carrying values of the convertible preferred stock to the liquidation preferences of such shares because of the uncertainty of whether or when such events would occur. Conversion Each share of the Company’s Series A Convertible Preferred Stock is convertible into 500 shares of the Company’s common stock at a conversion price, as adjusted for the Reverse Stock Split, of $6.50 per share, subject to adjustment as set forth in the Series A Certificate of Designation, and provided that in no event may any shares of the Series A Convertible Preferred Stock be convertible if the conversion would result in the holder beneficially owning more than 9.99% of the Company’s then-outstanding shares of common stock. Voting Rights The shares of the Series A Convertible Preferred Stock have no voting rights, except with respect to certain protective provisions set forth in the Series A Certificate of Designation relating to the powers, preferences and rights of such shares. ( d ) 2020 PIPE Financing On February 28, 2020, the Company, entered into a securities purchase agreement with certain institutional investors for a private placement of the Company’s equity securities (the “2020 PIPE Financing”). Cowen and Company, LLC served as lead placement agent for the 2020 PIPE Financing, with William Blair & Company, L.L.C. acting as joint placement agent. Lake Street Capital Markets, LLC acted as co-placement agent. The 2020 PIPE Financing closed on March 4, 2020. The 2020 PIPE Financing consisted of 2,467,724 shares of common stock at a price of $10.50 per share, 3,199 shares of Series B-1 Convertible Preferred Stock (the “Series B-1 Shares”) at a price of $10,500 per share, and 524 shares of Series B-2 Convertible Preferred Stock (the “Series B-2 Shares”) at a price of $10,500 per share, for aggregate gross proceeds of approximately $65.0 million, reduced by $5.1 million in issuance costs. Prior to the closing of the 2020 PIPE Financing, the Company designated (i) 3,200 shares of its authorized and unissued preferred stock as Series B-1 Convertible Preferred Stock by filing the Series B-1 Certificate of Designation with the Delaware Secretary of State and (ii) 525 shares of its authorized and unissued preferred stock as Series B-2 Convertible Preferred Stock by filing the Series B-2 Certificate of Designation with the Delaware Secretary of State. ( e ) Series B-1 Convertible Preferred Stock Issued in Connection with 2020 PIPE Financing In connection with the 2020 PIPE Financing transaction and on March 2, 2020, the Company filed a Certificate of Designation of Preferences, Rights and Limitations for the Company’s Series B-1 Convertible Preferred Stock (the “Series B-1 Certificate of Designation”). An aggregate of 3,199 shares of Series B-1 Convertible Preferred Stock for an aggregate purchase price of $33.6 million were issued to certain accredited investors. Preferred Dividends Holders of the Company’s Series B-1 Convertible Preferred Stock (the “Series B-1 Convertible Preferred Stock”) are entitled to receive dividends on an as-converted basis equal to and in the same form as dividends paid on shares of the Company’s common stock when, as and if these dividends are paid on the Company’s common stock. Preferred Liquidation Preference Holders of the Series B-1 Convertible Preferred Stock will participate pari passu with the holders of the Company’s common stock on an as-converted basis in the event of dissolution, liquidation or winding up of the Company. Redemption The Series B-1 Convertible Preferred Stock does not contain any mandatory redemption features. The Series B-1 Convertible Preferred Stock has been classified as temporary equity in the accompanying condensed consolidated balance sheets in accordance with authoritative guidance for the classification and measurement of potentially redeemable securities whose redemption is based upon certain change in beneficial ownership events outside of the Company’s control. The Company has determined not to adjust the carrying values of the convertible preferred stock to the liquidation preferences of such shares because of the uncertainty of whether or when such events would occur. Conversion Each Series B-1 Share will be convertible into 1,000 shares of the Company’s common stock at a conversion price of $10.50, subject to adjustment as provided in the Series B-1 Certificate of Designation. Each Series B-1 Share will automatically convert into Company common stock on the first trading day after the approval of the 2020 PIPE Financing by the stockholders of the Company (the “Stockholder Approval”) which the Company has agreed to seek at a stockholder meeting to be held on or before June 30, 2020, and which is currently scheduled for May 26, 2020. The Company will not undertake any conversion of the Series B-1 Convertible Preferred Stock, and no stockholder will have the right to convert any portion of its Series B-1 Convertible Preferred Stock, until after the Company obtains the Stockholder Approval. Voting Rights The Series B-1 Shares have no voting rights, except with respect to certain protective provisions set forth in the Series B-1 Certificate of Designation relating to the powers, preferences and rights of such shares. ( f ) Series B-2 Convertible Preferred Stock Issued in Connection with 2020 PIPE Financing In connection with the 2020 PIPE Financing transaction and on March 2, 2020, the Company filed a Certificate of Designation of Preferences, Rights and Limitations for the Company’s Series B-2 Convertible Preferred Stock (the “Series B-2 Certificate of Designation”). An aggregate of 524 shares of Series B-2 Convertible Preferred Stock for an aggregate purchase price of $5.5 million were issued to certain accredited investors. Preferred Dividends Holders of the Company’s Series B-2 Convertible Preferred Stock (the “Series B-2 Convertible Preferred Stock”) are entitled to receive dividends on an as-converted basis equal to and in the same form as dividends paid on shares of the Company’s common stock when, as and if these dividends are paid on the Company’s common stock. Preferred Liquidation Preference Holders of the Series B-2 Convertible Preferred Stock will participate pari passu with the holders of the Company’s common stock on an as-converted basis in the event of dissolution, liquidation or winding up of the Company. Redemption The Series B-2 Convertible Preferred Stock does not contain any mandatory redemption features. The Company’s Series B-2 Convertible Preferred Stock has been classified as temporary equity in the accompanying condensed consolidated balance sheets in accordance with authoritative guidance for the classification and measurement of potentially redeemable securities whose redemption is based upon certain change in beneficial ownership events outside of the Company’s control. The Company has determined not to adjust the carrying values of the convertible preferred stock to the liquidation preferences of such shares because of the uncertainty of whether or when such events would occur. Conversion Each Series B-2 Share will be convertible into 1,000 shares of the Company’s common stock at a conversion price equal to $10.50, subject to adjustment as provided in the Series B-2 Certificate of Designation. Each Series B-2 Share will be convertible into Company common stock at the option of the holder, provided that conversion will be prohibited (i) until the first trading day after the Stockholder Approval and (ii) following the Stockholder Approval, if, as a result of any such conversion, the holder would beneficially own in excess of 9.99% of the total number of shares of Company common stock outstanding immediately after giving effect to such conversion. The Company refers to the conversion limitation described in clause (ii) of the preceding sentence as the Beneficial Ownership Limitation. A holder of Series B-2 Shares may reset the Beneficial Ownership Limitation to a higher or lower number upon providing written notice to the Company. Any such notice providing for an increase to such Holder’s Beneficial Ownership Limitation will be effective on the 61st day after its delivery to the Company. Voting Rights The Series B-2 Shares have no voting rights, except with respect to certain protective provisions set forth in the Series B-2 Certificate of Designation relating to the powers, preferences and rights of such shares. ( g ) Accelerated Vesting in Association with Business Combination On January 4, 2019, in contemplation of the Business Combination (refer to Note 8), DermTech Operations modified certain provisions of its stock-based compensation awards to all employees and certain non-employees to accelerate the vesting period for various outstanding stock awards. In connection with the modifications, the incremental fair value of certain unvested stock option grants was measured at the date of the modification. For any options in which the fair value immediately after the modification was lower than the fair value immediately prior to the modification, no additional compensation expense was or will be recognized. For options in which the fair value increased as a result of the modification and the award was not fully vested, the incremental fair value will be recognized as an expense over the remaining service period. For options that were modified and became fully vested as a result of the accelerated vesting, the Company recognized an expense for the remaining unrecognized grant date fair value. As a result of the accelerated vesting, the Company recognized stock-based compensation expense of $0.4 million related to this modification. ( h ) Public Warrants The Company previously issued 14,936,250 warrants to purchase common stock in public and private placement offerings which were consummated on June 23, 2017 (the “Public Warrants”). The Public Warrants have a five year life from the date the Business Combination was consummated and every four Public Warrants entitle the holder to purchase one share at an exercise price of $23.00 per whole share (as adjusted for the Reverse Stock Split). Outstanding Public Warrants totaled 14,936,250 at March 31, 2020 and December 31, 2019. Series C Warrants In connection with DermTech Operations’ Series C Preferred Stock financing that took place between 2016 and 2018, investors that purchased at least $1 million of Series C Convertible Preferred Stock in a single closing received a three-year warrant to purchase common shares at an exercise price of $9.54 in the amount equal to 20% of shares of Series C Preferred Stock purchased. Outstanding Series C warrants totaled 201,708 and 202,897 at March 31, 2020 and December 31, 2019, respectively. Placement Agent Warrants In connection with several of DermTech Operations’ financings that took place between 2015 and 2018, DermTech Operations engaged a registered placement agent to assist in marketing and selling of common and preferred units. From 2015 to 2016, 168,522 seven-year warrants were issued to purchase one common share at an exercise price of $8.68. From 2016 to 2018, 72,658 seven-year warrants were issued to purchase one common share at an exercise price of $9.54. In 2020, the Company issued 15,724 seven-year warrants to purchase one common share at an exercise price of $9.54 in connection with the Company’s 2018 Bridge Note financing. Outstanding placement agent warrants totaled 254,258 and 241,217 at March 31, 2020 and December 31, 2019, respectively. ( i ) In connection with the Business Combination, the Company adopted DermTech Operations’ Amended and Restated 2010 Stock Option Plan (the “Plan”), which provides for the granting of incentive and non-statutory stock options and restricted stock purchase rights and bonus awards. Under the Plan, incentive and non-statutory stock options may be granted at not less than 100% of the fair market value of the Company’s common stock on the date of grant. For incentive stock options granted to a ten percent shareholder under the Plan, the exercise price shall not be less than 110% of the fair market value of a share of stock on the effective date of grant. DermTech Operations initially reserved 1.0 million shares of common stock for issuance to its employees, non-employee directors and consultants. The Plan includes a provision which annually increases the amount of common stock reserved for issuance under the Plan. The contractual term of options granted under the Plan is ten years. Vesting provisions vary based on the specific terms of the individual option awards. 39,354 and 0.1 million options remain available for future grant under the Plan as of March 31, 2020 and December 31, 2019, respectively. Management Warrants Warrants to purchase DermTech Operations common stock were issued to executive officers of DermTech Operations in lieu of issuing certain stock options (the “Management Warrants”). The Management Warrants were assumed by the Company in connection with the Business Combination. The Management Warrants have a ten year life and are exercisable for Company common stock at $1.08 per common share. The Management Warrants vested monthly over a four-year period. Outstanding Management Warrants totaled 22,320 at March 31, 2020 and December 31, 2019. Common Stock Reserved for Future Issuance Common stock reserved for future issuance consists of the following at March 31, 2020 and December, 31 2019 (in thousands): March 31, 2020 December 31, 2019 Warrants to purchase common stock 478 466 Public Warrants to purchase common stock* 3,734 3,734 Stock options issued and outstanding 858 444 Restricted stock units issued and outstanding 485 — Authorized for future option grants 39 143 Total common stock reserved for future issuance 5,594 4,787 * Public Warrants are presented as four Public Warrants are needed to purchase one share of common stock.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Income Taxes	5. Income Taxes The Company has reported net losses since inception and therefore, the minimum provision for state income taxes has been recorded. The federal statutory rate was 21% at March 31, 2020 and December 31, 2019, respectively, and the effective income tax rate for the Company’s provision for income taxes was 0% at March 31, 2020 and December 31, 2019, respectively. The utilization of NOL and tax credit carryforwards to offset future taxable income may be subject to an annual limitation as a result of ownership changes that have occurred previously or may occur in the future. Under Sections 382 and 383 of the Internal Revenue Code of 1986, as amended, (“IRC”), a corporation that undergoes an ownership change may be subject to limitations on its ability to utilize its pre-change NOLs and other tax attributes otherwise available to offset future taxable income and/or tax liability. An ownership change is defined as a cumulative change of 50% or more in the ownership positions of certain stockholders during a rolling three-year period. The Company has not completed a formal study to determine if any ownership changes within the meaning of IRC Section 382 and 383 have occurred. If an ownership change has occurred, the Company’s ability to use its NOL or tax credit carryforwards may be restricted, which could require the Company to pay federal or state income taxes earlier than would be required if such limitations were not in effect. The Company conducts intensive research and experimentation activities, generating research tax credits for federal and state purposes under IRC Section 41. The Company has not performed a formal study validating these credits claimed in the tax returns. Once a study is prepared, the amount of R&D, tax credits available could vary from what was originally claimed on the tax returns. Due to the net operating loss carryforwards, the U.S. federal and state returns are open to examination for all years since inception. Business Combination Tax Implications In connection with the Business Combination, the Company changed its jurisdiction of incorporation from the British Virgin Islands to the State of Delaware. This reincorporation constituted a tax-free reorganization within the meaning of Section 368(a)(1)(F) of the IRC. The IRC provides that corporations and shareholders do not recognize gain with respect to certain qualifying reorganizations. To satisfy the requirements for this nonrecognition benefit, a transaction must meet one of the statutory definitions of a “reorganization” set forth in IRC Section 368(a)(1). IRC Section 368(a)(1)(F) provides that a reorganization includes a mere change in identity, form, or place of organization. As a result of the reincorporation, the Company will be treated as a U.S. corporation for federal income tax purposes. For federal income tax purposes, the Business Combination qualified as a reverse triangular merger within the meaning IRC Sections 368(a) and 368(a)(2)(E). Additionally, the Company, Merger Sub, and DermTech Operations were all parties to the reorganization under IRC Section 368(b). As the transaction qualified as reorganization under IRC Section 368(a), there were no tax consequences to either DermTech Operations or the Company and all tax attributes retained carryover basis.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2020
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	6. Commitments and Contingencies Operating Leases In January 2013, DermTech Operations entered into a non-cancelable lease agreement for its operating facilities. In January 2014, DermTech Operations signed an amendment to the lease to extend the term through January 2017. In November 2016, DermTech Operations signed a second amendment to the lease to extend the term through March 2022. In August 2019, DermTech Operations signed a third amendment to the lease to add additional space, and in September 2019, the Company signed a fourth amendment to the lease to add additional space. In February 2020, the Company signed a fifth amendment to the lease to add additional space. In connection with the Business Combination, the Company assumed all obligations under the lease, as amended, from DermTech Operations. As part of the fifth amendment, the Company is entitled to a tenant improvement allowance for certain costs incurred while performing these improvements in the amount of $0.3 million, which amount may be increased by up to $0.1 million at the Company’s election and subject to a corresponding increase in rent. The Company records rent expense on a straight line basis over the life of the lease and the difference between the average rent expense and cash payments for rent is recorded as deferred rent and is included in accrued liabilities on the condensed consolidated balance sheet. Rent and associated common area maintenance expense totaled $0.3 million and $0.2 million for the three months ended March 31, 2020 and 2019, respectively. Future minimum operating lease payments for the operating facilities as of March 31, 2020 were (in thousands): Remainder of 2020 $ 992 2021 1,371 2022 1,412 2023 478 Total future minimum lease payments $ 4,253 Deferred Underwriting Fees In connection with the execution of the Merger Agreement, the Company, DermTech Operations and Cowen and Company, LLC (“Cowen”) entered into a letter agreement, dated May 29, 2019, (the “Deferred Underwriting Fee Assignment Agreement”), pursuant to which the Company agreed to assign to DermTech Operations, and DermTech Operations agreed to assume, the Company’s obligations under the Underwriting Agreement, dated as of June 19, 2017 (the “Underwriting Agreement”), by and among the Company and Cowen. On September 4, 2019, the Company, DermTech Operations and Cowen amended the Deferred Underwriting Fee Assignment Agreement, pursuant to which the Company paid Cowen $0.8 million for the reduction of the balance owed by the Company to Cowen under the Underwriting Agreement to $1.4 million. Pursuant to the terms of the Deferred Underwriting Fee Assignment Agreement, as amended, if the Company raises at least $15.0 million in proceeds received from equity financings consummated prior to the one-year anniversary of the Business Combination, excluding the proceeds received from any financing consummated prior to or simultaneous with the Business Combination, then the Company will pay to the underwriters $1.4 million within one week of the one-year anniversary of the Business Combination. In connection with the Company’s 2020 PIPE Financing, the Company raised $65.0 million in gross proceeds, which satisfied this condition of the Deferred Underwriting Fee Assignment Agreement. The Company’s payment to the Underwriters of $1.4 million by September 5, 2020 will satisfy the Company’s obligation to pay Cowen the deferred underwriting fees in full, and no further payment will be required of the Company in connection with the deferred underwriting fees. Legal Proceedings The Company is not currently party to any material legal proceedings.

Retirement Plan

Retirement Plan	3 Months Ended
	Mar. 31, 2020
Compensation And Retirement Disclosure [Abstract]
Retirement Plan	7. Retirement Plan The Company has an IRC Section 401(k) retirement plan, covering all employees. The Company does not offer a contribution percentage match.

Business Combination with DermT

Business Combination with DermTech Operations	3 Months Ended
	Mar. 31, 2020
Business Combinations [Abstract]
Business Combination with DermTech Operations	8. Business Combination with DermTech Operations On August 29, 2019, the Company completed the Business Combination with DermTech Operations. Upon the closing of the Business Combination, DermTech Operations became a wholly-owned subsidiary of the Company. The Business Combination was accounted for as a reverse acquisition in accordance with ASC 805-40, Business Combinations, Reverse Acquisitions, as the stockholders of DermTech Operations obtained effective control of the Company through (1) a majority of the voting common stock of the post-merger company, (2) appointment of a majority of the board of directors, (3) continued business operations of DermTech Operations, including certain directors and management, and (4) the ability to appoint the executive officers of the combined company. Accordingly, the assets, liabilities and results of operations prior periods presented before the Business Combination reflect those of DermTech Operations. Since the Business Combination, the assets, liabilities, and results of operations have been presented on a consolidated basis. Historical stockholders’ (deficit) equity of the Company prior to the Business Combination has been retroactively adjusted for the equivalent number of shares received by the stockholders of DermTech Operations after giving effect to any difference in par value of the Company and the DermTech Operations’ stock, with any such difference recognized as additional paid-in capital. Retained earnings and other equity balances of the Company/DermTech Operations have been carried forward after the Business Combination. Certain direct costs incurred in connection with the Business Combination were expensed in the period that such costs were incurred and services were received. Approximately $0.3 million in printer fees related to the Business Combination were treated as a reduction of the total amount of equity raised as an offset to additional paid in capital.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2020
Related Party Transactions [Abstract]
Related Party Transactions	9. Related Party Transactions During 2019 and 2020, the Company engaged EVERSANA Life Science Services, LLC (“EVERSANA”) to provide certain marketing services to the Company. Leana Wood, the spouse of Todd Wood, the Company’s Chief Commercial Offer, is an employee of EVERSANA. The Company incurred $0.3 million and zero in costs for the three months ended March 31, 2020 and 2019, respectively. On October 1, 2019, the Company entered into a consulting agreement with Michael Dobak pursuant to which the Company will compensate Michael Dobak, in an amount not to exceed $100,000, for certain public relations and marketing services. Michael Dobak is the brother of Dr. John Dobak, the Company’s Chief Executive Officer. The Company incurred $32,000 and zero in costs for the three months ended March 31, 2020 and 2019, respectively. There were no other related party transactions identified in 2020 and 2019.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2020
Subsequent Events [Abstract]
Subsequent Events	10. Subsequent Events The Company considered subsequent

The Company and a Summary of _2

The Company and a Summary of its Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Nature of Operations	(a) On August 29, 2019, DermTech, Inc., formerly known as Constellation Alpha Capital Corp, (the “Company”), and DermTech Operations, Inc., formerly known as DermTech, Inc., (“DermTech Operations”), consummated the transactions contemplated by the Agreement and Plan of Merger, dated as of May 29, 2019, by and among the Company, DT Merger Sub, Inc., a wholly owned subsidiary of the Company (“Merger Sub”), and DermTech Operations. The Company refers to this agreement, as amended by that certain First Amendment to Agreement and Plan of Merger dated as of August 1, 2019, as the Merger Agreement. Pursuant to the Merger Agreement, Merger Sub merged with and into DermTech Operations, with DermTech Operations surviving as a wholly-owned subsidiary of the Company. The Company refers to this transaction as the Business Combination. In connection with and two days prior to the completion of the Business Combination, the Company domesticated from the British Virgin Islands to Delaware. DermTech Operations changed its name from DermTech, Inc. to DermTech Operations, Inc. shortly before the completion of the Business Combination. On August 29, 2019, immediately following the completion of the Business Combination, the Company changed its name from Constellation Alpha Capital Corp. to DermTech, Inc., and then effected a one-for-two reverse stock split of its common stock (“Reverse Stock Split”). The Company is an emerging growth molecular diagnostic company developing and marketing its Clinical Laboratory Improvement Amendments of 1988 (“CLIA”) laboratory services including molecular pathology tests to facilitate the diagnosis of dermatologic conditions including melanoma. The Company has developed a proprietary, non-invasive technique for sampling the surface layers of the skin using an adhesive patch in order to collect individual biological information for commercial applications in the medical diagnostic field. During and following the first quarter of 2020, there has been a widespread worldwide impact from the COVID-19 pandemic. The Company is considered an essential business due to the importance for early melanoma detection, which has allowed the Company’s CLIA laboratory to remain fully operational. The Company has implemented additional safety measures and social distancing with its CLIA laboratory operations and has transitioned administrative functions to working remotely. Beginning in March 2020, the ongoing COVID-19 pandemic has reduced patient access to clinician offices for in-person testing, which has resulted in a reduced volume of billable samples received. Additionally, the Company expects that the ongoing COVID-19 pandemic will have an effect on its pharmaceutical customers’ clinical trials. The extent of such effect on the Company’s future revenue is uncertain and will depend on the duration and extent of the effects of the ongoing COVID-19 pandemic.
Basis of Presentation	(b) These condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). In the opinion of management, all adjustments, which include only normal recurring adjustments considered necessary for a fair presentation, have been included.
Use of Estimates	(c) The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the amounts of revenues and expenses reported during the period. On an ongoing basis, management evaluates these estimates and judgments, including those related to assay revenue, stock-based compensation, accounts receivable and the realization of deferred tax assets. Actual results may differ from those estimates.
Cash and Cash Equivalents	(d) The Company considers all highly liquid investments with remaining maturities of three months or less when purchased to be cash equivalents. The Company maintains its cash balances at banks and financial institutions. The balances are insured up to the legal limit. The Company maintains cash balances that may, at times, exceed this insured limit.
Property and Equipment	(e) Property and equipment is recorded at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which range from two to five years. Leasehold improvements are depreciated over the shorter of the remaining term of the lease or the useful life of the asset. The Company recorded depreciation expense of $0.1 million and $19,000 for the three months ended March 31, 2020 and 2019, respectively. No property or equipment was disposed of during the three months ended March 31, 2020 and 2019. The Company assesses its long-lived assets, consisting primarily of property and equipment, for impairment when material events or changes in circumstances indicate that the carrying value may not be recoverable. There were no impairment losses for the three months ended March 31, 2020 and 2019.
Research and Development	(f) Costs incurred in connection with research and development (“R&D”) activities are expensed as incurred. R&D expenses consist of (i) employee-related expenses, including salaries, benefits, travel and stock compensation expense; (ii) and facilities and other expenses, which include direct and allocated expenses for rent and maintenance of facilities and laboratory and other supplies. The Company expenses all costs as incurred in connection with patent applications (including direct application fees and the legal and consulting expenses related to making such applications), and such costs are included in general and administrative expenses.
Concentration of Credit Risk	(g) Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents. As of March 31, 2020, the Company maintained $67.9 million in a bank deposit account, which is in excess of the $250,000 insurance provided by the Federal Deposit Insurance Corporation in one federally insured financial institution. The Company has not experienced any losses in such accounts.
Income Taxes	(h) The Company provides for federal and state income taxes on the asset and liability approach which requires deferred tax assets and liabilities to be recognized based on temporary differences between the condensed consolidated financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the temporary differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance when, in management’s opinion, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. The Company’s valuation allowance is based on available evidence, including its current year and prior year operating losses, evaluation of positive and negative evidence with respect to certain specific deferred tax assets including evaluation sources of future taxable income to support the realization of the deferred tax assets. The Company has established a full valuation allowance on the deferred tax assets as of March 31, 2020. Current and deferred tax assets and liabilities are recognized based on the tax positions taken or expected to be taken in the Company’s income tax returns. U.S. GAAP requires that the tax benefits of an uncertain tax position can only be recognized when it is more likely than not that the tax position will be sustained upon examination by the relevant taxing authority. Tax benefits related to tax positions that do not meet this criterion are not recognized in the condensed consolidated financial statements, of which there are none. The Company recognizes interest and penalties related to income tax matters in income tax expense.
Revenue Recognition	( i ) The Company’s revenue is generated from two revenue streams: contract revenue and assay revenue. The Company accounts for revenue in accordance with Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) The Company recognizes revenue from its contract and assay goods and service in accordance with the core principles and key aspects considered by the Company. These considerations are described below, first for Contract Revenue and then for Assay Revenue. Contract Revenue Contract revenue is generated from the sale of laboratory services and adhesive sample collection kits to third party companies through contract research agreements. Revenues are generated from providing gene expression tests to facilitate the development of drugs designed to treat dermatologic conditions. The provision of gene expression services may include sample collection using the Company’s patented adhesive patch biopsy devices, assay development for research partners, ribonucleic acid (“RNA”) isolation, expression, amplification and detection, including data analysis and reporting. Assay Revenue The Company generates revenues from its Pigmented Lesion Assay (“PLA”) and Nevome services it provides to healthcare physicians in various states throughout the United States to assist in a clinician’s diagnosis of melanoma. The Company provides prescribing clinicians with its adhesive sample collection kits to perform non-invasive skin biopsies of clinically ambiguous pigmented skin lesions on patients. Once the sample is collected by the healthcare clinician, it is returned to the Company’s CLIA laboratory for analysis. The patient RNA and deoxyribonucleic acid (“DNA”) is extracted from the adhesive patch collection kit and analyzed using gene expression technology to determine if the pigmented skin lesion contains certain genomic features indicative of melanoma. Upon completion of the gene expression analysis, a final report is drafted and provided to the dermatologists detailing the test results for the pigmented skin lesion indicating whether the sample collected is indicative of melanoma or not. (a) Disaggregation of Revenue The following table presents the Company’s revenues disaggregated by revenue source during the three months ended March 31, 2020 and 2019, respectively, (in thousands): Three Months Ended March 31, 2020 2019 Assay Revenue PLA Test $ 796 $ 235 Contract Revenue Adhesive Patch kits 14 167 RNA Extractions 671 115 Project Management Fees 76 78 Other — 1 Total Revenue $ 1,557 $ 596 (b) Contract Balances and Deferred Revenue The timing of revenue recognition, billings and cash collections results in billed accounts receivable and deferred revenue on the condensed consolidated balance sheets. Generally, contract revenue has a majority of agreements in which the Company receives a substantial up-front payment upon various milestones over the life of the agreement. This results in deferred revenue and is relieved upon delivery of the applicable adhesive patch kits or RNA extraction results. Changes in accounts receivable and deferred revenue were not materially impacted by any other factors. The Company records a deferred revenue liability if a customer pays consideration before the Company transfers a good or service to the customer. Deferred revenue primarily represents upfront milestone payments, for which consideration is received prior to when goods/services are completed or delivered. Deferred revenue at March 31, 2020 and December 31, 2019 was $1.1 million and $1.4 million, respectively.
Accounts Receivable	(j) Contract Accounts Receivable Contract accounts receivable are recorded at the net invoice value and are not interest bearing. The Company reserves specific receivables if collectability is no longer reasonably assured, and as of March 31, 2020, the Company did not maintain any reserve over contract receivables as they deal with large established credit worthy customers. The Company re-evaluates such reserves on a regular basis and adjusts its reserves as needed. Once a receivable is deemed to be uncollectible, such balance is charged against the reserve. The Company recorded $0.4 million and $0.3 million of contract accounts receivable as of March 31, 2020 and December 31, 2019, respectively. Assay Accounts Receivable Due to the nature of the Company’s assay revenue, it can take a significant amount of time to collect upon billed PLA services. The Company prepares an analysis on reimbursement collections and data obtained for each financial reporting period to determine the amount of receivables to be recorded relating to PLA services performed in the applicable period. The Company generally does not perform evaluations of customers’ financial condition and generally does not require collateral. Accounts receivable are written off when all efforts to collect the balance have been exhausted. Adjustments for implicit price concessions attributable to variable consideration are incorporated into the measurement of the accounts receivable balances.
Freight and Shipping Costs	(k) The Company records outbound freight and shipping costs for its contract and assay revenues in cost of revenues.
Comprehensive Income / (Loss)	(l) Comprehensive income / (loss) is defined as a change in equity during a period from transactions and other events and circumstances from non-owner sources. The Company’s comprehensive loss was the same as its reported net loss for all periods presented.
Segment Reporting	(m) Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision-making group, in making decisions on how to allocate resources and assess performance. The Company views its operations and manages its business as one operating segment.
Net Loss Per Share	(n) Basic and diluted net loss per common share is determined by dividing net loss applicable to common shareholders by the weighted average common shares outstanding during the period. Because there is a net loss attributable to common shareholders during the three months ended March 31, 2020 and 2019, the outstanding common stock warrants, stock options, restricted stock units and preferred stock have been excluded from the calculation of diluted loss per common share because their effect would be anti-dilutive. Therefore, the weighted average shares used to calculate both basic and diluted loss per share are the same. Diluted net loss per common share for the three months ended March 31, 2020 excludes the effect of anti-dilutive equity instruments including 4,338,136 shares of common stock issuable upon conversion of the Company’s the Company’s
Stock-Based Compensation	(o) Effective January 1, 2020, the Company elected an accounting policy change to no longer estimate forfeitures in connection with expense recognition of stock options and RSUs. All stock options and RSUs granted on or subsequent to January 1, 2020 will recognize forfeitures when they occur in accordance with Accounting Standards Update (“ASU”) 2016-09, Compensation - Stock Compensation (Topic 718) Compensation costs associated with stock option awards and other forms of equity compensation are measured at the grant-date fair value of the awards and recognized over the requisite service period of the awards on a ratable basis. The Company grants stock options to purchase common stock to employees with exercise prices equal to the fair market value of the underlying stock, as determined by the board of directors, management and outside valuation experts prior to the Business Combination. The board of directors and outside valuation experts determined the fair value of the underlying stock by considering a number of factors, including historical and projected financial results, the risks the Company faced at the time, the preferences of the Company’s debt holders and preferred stockholders, and the lack of liquidity of the Company’s common stock. Subsequent to the close of the Business Combination, the fair market value of stock options is based on the closing stock price on the grant date. The fair value of each stock option award is estimated using the Black-Scholes-Merton valuation model. Such value is recognized as expense over the requisite service period using the ratable method. The expected term of options is based on the simplified method which defines the expected term as the average of the contractual term of the options and the weighted average vesting period for all option tranches. The expected volatility of stock options is based upon the historical volatility of a number of related publicly traded companies in similar stages of development as well as the volatility of the Company’s common stock. The risk-free interest rate is based on the average yield of U.S. Treasury securities with remaining terms similar to the expected term of the share-based awards. The assumed dividend yield was based on the Company’s expectation of not paying dividends in the foreseeable future. The Company accounts for stock options to non-employees using the fair value approach. The fair value of these options is measured using the Black-Scholes-Merton option pricing model, reflecting the same assumptions applied to employee options, other than expected life, which is assumed to be the remaining contractual life of the award. Options that are granted to employees generally have a requisite service period of three to four years. Equity instruments awarded to non-employees are periodically re-measured as the underlying awards vest unless the instruments are fully vested, immediately exercisable, and non-forfeitable on the date of grant. Restricted stock units (“RSUs”), are considered restricted stock. The fair value of restricted stock is equal to the fair market value of the underlying stock, as determined by the board of directors, management and input from outside valuation experts prior to the Business Combination. Subsequent to the close of the Business Combination, the fair market value of RSUs is based on the closing stock price on the grant date. The Company recognizes stock-based compensation expense based on the fair value on a ratable basis over the requisite service periods of the awards. RSUs that are granted to employees have a requisite service period between two and four years. All stock options and RSUs granted prior to January 1, 2020 will maintain the estimated forfeiture approach and will be recognized over the requisite service period using the straight line method. The fair value of each option for employees was estimated on the date of grant using the following assumptions: Three Months Ended March 31, 2020 2019 Assumed risk-free interest rate 0.79% - 1.69% 2.51% Assumed volatility 64.03% - 65.92% 72.30% Expected option term 5.04 - 6.08 6.04 Expected dividend yield — — The Company recorded stock-based compensation expense for employee options, RSUs, common stock warrants, and consultant options of $1.0 million and $0.3 million for the three months ended March 31, 2020 and 2019, respectively. The total compensation cost related to non-vested awards not yet recognized at March 31, 2020 was $7.8 million,
Fair Value Measurements	( p ) The Company uses a three-tier fair value hierarchy to prioritize the inputs used in the Company’s fair value measurements. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets for identical assets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. There were no other assets or liabilities that were measured at fair value on a recurring basis as of March 31, 2020 or December 31, 2019. The Company believes the carrying amount of cash and cash equivalents, accounts payable and accrued expenses approximate their estimated fair values due to the short-term nature of these accounts.
Accounting Pronouncement Recently Adopted	( q ) In June 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-07, Compensation-Stock Compensation (Topic 718) – Improvements to Nonemployee Share-Based Payment Accounting In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement
Accounting Pronouncements Issued But Not Yet Effective	( r ) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) Codification Improvements to Topic 842, Leases Leases (Topic 842): Targeted Improvements Narrow-Scope Improvements for Lessors Lease (Topic 842): Codification Improvements In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes

The Company and a Summary of _3

The Company and a Summary of its Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Schedule of Revenues Disaggregated by Revenue Source	The following table presents the Company’s revenues disaggregated by revenue source during the three months ended March 31, 2020 and 2019, respectively, (in thousands): Three Months Ended March 31, 2020 2019 Assay Revenue PLA Test $ 796 $ 235 Contract Revenue Adhesive Patch kits 14 167 RNA Extractions 671 115 Project Management Fees 76 78 Other — 1 Total Revenue $ 1,557 $ 596
Assumptions Used to Estimate Fair Value of Each Option for Employees on Date of Grant	The fair value of each option for employees was estimated on the date of grant using the following assumptions: Three Months Ended March 31, 2020 2019 Assumed risk-free interest rate 0.79% - 1.69% 2.51% Assumed volatility 64.03% - 65.92% 72.30% Expected option term 5.04 - 6.08 6.04 Expected dividend yield — —

Balance Sheet Details (Tables)

Balance Sheet Details (Tables)	3 Months Ended
	Mar. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Schedule of Condensed Consolidated Balance Sheet Details	Condensed consolidated balance sheet details are as follows (in thousands): March 31, 2020 December 31, 2019 Prepaid expenses and other current assets: Prepaid insurance $ 678 $ 951 Prepaid trade shows 87 85 Other current assets 127 25 Total prepaid expenses and other current assets $ 892 $ 1,061 Property and equipment, gross: Laboratory equipment $ 1,586 $ 1,135 Computer equipment 41 15 Furniture and fixtures 34 34 Leasehold improvements 32 32 Construction in progress 343 — Total property and equipment, gross 2,036 1,216 Less accumulated depreciation (300 ) (239 ) Total property and equipment, net $ 1,736 $ 977 March 31, 2020 December 31, 2019 Accrued compensation: Accrued paid time off $ 357 $ 309 Accrued bonus and deferred compensation 452 465 Accrued severance 311 368 Total accrued compensation $ 1,120 $ 1,142 Accrued liabilities: Accrued consulting services $ 98 $ 37 Accrued printing fees — 55 Deferred rent 83 88 Other accrued expenses 19 38 Total accrued liabilities $ 200 $ 218

Convertible Preferred Stock a_2

Convertible Preferred Stock and Stockholders’ Equity (Tables)	3 Months Ended
	Mar. 31, 2020
Stockholders Equity Note [Abstract]
Summary of Common Stock Reserved for Future Issuance	Common stock reserved for future issuance consists of the following at March 31, 2020 and December, 31 2019 (in thousands): March 31, 2020 December 31, 2019 Warrants to purchase common stock 478 466 Public Warrants to purchase common stock* 3,734 3,734 Stock options issued and outstanding 858 444 Restricted stock units issued and outstanding 485 — Authorized for future option grants 39 143 Total common stock reserved for future issuance 5,594 4,787 * Public Warrants are presented as four Public Warrants are needed to purchase one share of common stock.

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2020
Commitments And Contingencies Disclosure [Abstract]
Schedule of Future Minimum Operating Lease Payments for Operating Facilities	Future minimum operating lease payments for the operating facilities as of March 31, 2020 were (in thousands): Remainder of 2020 $ 992 2021 1,371 2022 1,412 2023 478 Total future minimum lease payments $ 4,253

The Company and a Summary of _4

The Company and a Summary of its Significant Accounting Policies - Additional Information (Details)	Aug. 29, 2019	Mar. 31, 2020USD ($)Revenue_StreamSegmentshares	Mar. 31, 2019USD ($)shares	Dec. 31, 2019USD ($)
The Company and Summary of its Significant Accounting Policies [Line Items]
Conversion ratio of reverse stock split	0.5	0.5
Description of reverse stock split of common stock		one-for-two
Depreciation expense		$ 60,000	$ 19,000
Disposal of plant or equipment		0	0
Impairment losses		0	0
Bank deposits		67,900,000
Insured amount by FDIC		$ 250,000
Number of revenue streams | Revenue_Stream		2
Deferred revenue		$ 1,093,000		$ 1,390,000
Accounts receivable		$ 1,175,000		680,000
Number of operating segments | Segment		1
Stock-based compensation expense		$ 1,000,000	$ 300,000
Compensation cost related to non-vested awards not yet recognized		$ 7,800,000
Weighted average term expected to be recognized		2 years 11 months 15 days
Fair value other assets measured on recurring basis		$ 0
Fair value liabilities measured on recurring basis		$ 0
Conversion of Preferred Stock
The Company and Summary of its Significant Accounting Policies [Line Items]
Anti-dilutive equity instruments excluded from diluted net loss per common share | shares		4,338,136	1,524,122
Common Stock Warrants
The Company and Summary of its Significant Accounting Policies [Line Items]
Anti-dilutive equity instruments excluded from diluted net loss per common share | shares		4,212,349	685,761
Stock Options and Restricted Stock Units
The Company and Summary of its Significant Accounting Policies [Line Items]
Anti-dilutive equity instruments excluded from diluted net loss per common share | shares		1,342,625	1,574,655
Contract Revenue
The Company and Summary of its Significant Accounting Policies [Line Items]
Accounts receivable		$ 400,000		300,000
Assay Revenue
The Company and Summary of its Significant Accounting Policies [Line Items]
Accounts receivable gross		$ 800,000		$ 500,000
Minimum
The Company and Summary of its Significant Accounting Policies [Line Items]
Useful life of the assets		2 years
Minimum | Stock Options
The Company and Summary of its Significant Accounting Policies [Line Items]
Requisite service period		3 years
Minimum | Restricted Stock Units
The Company and Summary of its Significant Accounting Policies [Line Items]
Requisite service period		2 years
Maximum
The Company and Summary of its Significant Accounting Policies [Line Items]
Useful life of the assets		5 years
Maximum | Stock Options
The Company and Summary of its Significant Accounting Policies [Line Items]
Requisite service period		4 years
Maximum | Restricted Stock Units
The Company and Summary of its Significant Accounting Policies [Line Items]
Requisite service period		4 years

The Company and a Summary of _5

The Company and a Summary of its Significant Accounting Policies - Schedule of Revenues Disaggregated by Revenue Source (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Disaggregation Of Revenue [Line Items]
Total Revenue	$ 1,557	$ 596
Assay Revenue, PLA Test
Disaggregation Of Revenue [Line Items]
Total Revenue	796	235
Contract Revenue, Adhesive Patch kits
Disaggregation Of Revenue [Line Items]
Total Revenue	14	167
Contract Revenue, RNA Extractions
Disaggregation Of Revenue [Line Items]
Total Revenue	671	115
Contract Revenue, Project Management Fees
Disaggregation Of Revenue [Line Items]
Total Revenue	$ 76	78
Contract Revenue, Other
Disaggregation Of Revenue [Line Items]
Total Revenue		$ 1

The Company and a Summary of _6

The Company and a Summary of its Significant Accounting Policies - Assumptions Used to Estimate Fair Value of Each Option for Employees on Date of Grant (Details)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Assumed risk-free interest rate		2.51%
Assumed risk-free interest rate,minimum	0.79%
Assumed risk-free interest rate,maximum	1.69%
Assumed volatility		72.30%
Assumed volatility,minimum	64.03%
Assumed volatility,maximum	65.92%
Expected option term		6 years 14 days
Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected option term	5 years 14 days
Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected option term	6 years 29 days

Balance Sheet Details - Schedul

Balance Sheet Details - Schedule of Condensed Consolidated Balance Sheet Details (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Prepaid expenses and other current assets:
Prepaid insurance	$ 678	$ 951
Prepaid trade shows	87	85
Other current assets	127	25
Total prepaid expenses and other current assets	892	1,061
Property and equipment, gross:
Laboratory equipment	1,586	1,135
Computer equipment	41	15
Furniture and fixtures	34	34
Leasehold improvements	32	32
Construction in progress	343
Total property and equipment, gross	2,036	1,216
Less accumulated depreciation	(300)	(239)
Total property and equipment, net	1,736	977
Accrued compensation:
Accrued paid time off	357	309
Accrued bonus and deferred compensation	452	465
Accrued severance	311	368
Total accrued compensation	1,120	1,142
Accrued liabilities:
Accrued consulting services	98	37
Accrued printing fees		55
Deferred rent	83	88
Other accrued expenses	19	38
Total accrued liabilities	$ 200	$ 218

Debt - Additional Information (

Debt - Additional Information (Details)	Sep. 24, 2019$ / shares	Sep. 23, 2019USD ($)$ / shares	Aug. 29, 2019USD ($)shares	Jun. 10, 2019USD ($)	Nov. 30, 2018USD ($)	Mar. 31, 2020USD ($)	Mar. 31, 2019USD ($)	Dec. 31, 2019USD ($)
Debt Instrument [Line Items]
Convertible debt converted in to common shares | shares			2,267,042
Gain on debt extinguishment			$ 900,000
2018 Convertible Bridge Notes
Debt Instrument [Line Items]
Convertible note, principal amount					$ 6,800,000
Proceeds from issuance of convertible note					$ 6,600,000
Debt instrument, interest rate					10.00%
Debt maturity date					Mar. 31, 2019
Increase in interest rate if bridge notes not paid or converted						15.00%
Percentage of multiplier on price per share of new stock paid in qualified financing by investors						70.00%
Denominator for calculating capitalization value for price per share						$ 45,000,000
Debt discount						$ 2,500,000
Maturity date, description						As part of the amendment, the maturity dates of the notes were extended to the earliest of (i) September 24, 2019; (ii) the occurrence of an Event of Default (as defined in the 2018 Bridge Notes); (iii) the consummation of a liquidation or dissolution of DermTech Operations; (iv) a Liquidation Transaction (as defined in the 2018 Bridge Notes); or (v) the consummation of a merger with or into the Company or any of its subsidiaries.
Convertible notes conversion ratio		0.70
Description of merger consideration						“Merger Consideration” means (i) the lesser of $6.46 and (ii) the offering price per share of the private investment in public equity (“PIPE”) transaction to be consummated concurrently with the consummation of the Qualifying Merger multiplied by the Conversion Ratio.
Merger consideration maximum price per share | $ / shares		$ 6.46
Debt Conversion Ratio Number Used As Numerator to Derive Quotient		$ 8,000,000
Liability balance						$ 0		$ 0
2018 Convertible Bridge Notes | Other Expense
Debt Instrument [Line Items]
Loss on change in fair value of derivative liability						0	$ 200,000
2018 Convertible Bridge Notes | Minimum
Debt Instrument [Line Items]
Gross proceeds from issuance of equity securities						20,000,000
2019 Convertible Bridge Notes
Debt Instrument [Line Items]
Debt instrument, interest rate				10.00%
Debt discount						$ 300,000
Maturity date, description						These convertible bridge notes carried an interest rate of 10% and matured after the earliest to occur of: (i) September 25, 2019; (ii) the occurrence of an Event of Default (as defined in the 2019 Bridge Notes); (iii) the consummation of a liquidation or dissolution of DermTech Operations; (iv) a Liquidation Transaction (as defined in the 2019 Bridge Notes); or (v) the consummation of a merger of DermTech Operations with DT Merger Sub, Inc., a previous subsidiary of the Company, in accordance with the Merger Agreement.
Debt Conversion Ratio Number Used As Numerator to Derive Quotient		$ 8,000,000
Proceeds from issuance of convertible note				$ 2,600,000
Debt conversion feature						Upon the conversion of these notes, the note holders were entitled to receive a number of shares of DermTech Operations’ common stock equal to the quotient obtained by dividing (i) the unpaid principal amount of these notes plus interest accrued but unpaid thereon, by (1) if the Qualifying Merger consummates prior to the maturity date, the lesser of (x) $5.80 and (y) 90% of the Merger Consideration (as defined below), or (2) if the Qualifying Merger consummates on or after the maturity date, the lesser of (x) $4.51 and (y) 70% of the Merger Consideration.
Liability balance						$ 0		$ 0
2019 Convertible Bridge Notes | Other Expense
Debt Instrument [Line Items]
Gains or losses on change in fair value of derivative liability						$ 0	$ 0
2019 Convertible Bridge Notes | Maximum
Debt Instrument [Line Items]
Convertible notes conversion ratio	0.70	0.90
Convertible notes conversion price | $ / shares	$ 4.51	$ 5.80

Convertible Preferred Stock a_3

Convertible Preferred Stock and Stockholders Equity - Additional Information (Details)

Mar. 02, 2020USD ($)shares

Feb. 28, 2020USD ($)$ / sharesshares

Sep. 24, 2019

Aug. 29, 2019USD ($)shares

Jan. 04, 2019USD ($)

Jun. 23, 2017shares

Aug. 31, 2016USD ($)$ / shares

Mar. 31, 2020USD ($)Warrant$ / sharesshares

Dec. 31, 2018USD ($)$ / sharesshares

Dec. 31, 2017USD ($)shares

Dec. 31, 2016$ / sharesshares

Dec. 31, 2018$ / sharesshares

Dec. 31, 2019$ / sharesshares

May 29, 2019shares

Class of Stock [Line Items]

Common stock, shares authorized

50,000,000

50,000,000

Preferred stock, shares authorized

5,000,000

Common stock, par value per share | $ / shares

$ 0.0001

$ 0.0001

Preferred stock, par value per share | $ / shares

$ 0.0001

Business combination shares issued for each share of common stock

1.16

Conversion ratio of reverse stock split

0.5

0.5

Preferred stock, issuance costs | $

$ 77,000

Common stock warrants issued

102,740

Stock-based compensation expense recognized as a result of accelerated vesting | $

$ 400,000

2010 Stock Option Plan

Class of Stock [Line Items]

Common stock initially reserved for issuance

1,000,000

Contractual term of options granted

10 years

Options remain available for future grant

39,354

100,000

2010 Stock Option Plan | Incentive Stock Options

Class of Stock [Line Items]

Options granted to shareholder, percentage

10.00%

Minimum | 2010 Stock Option Plan | Incentive and Non-statutory Stock Options

Class of Stock [Line Items]

Options granted, exercise price expressed as a percentage of fair market value

100.00%

Minimum | 2010 Stock Option Plan | Incentive Stock Options

Class of Stock [Line Items]

Options granted, exercise price expressed as a percentage of fair market value

110.00%

Public Warrants

Class of Stock [Line Items]

Warrants issued to purchase common stock

14,936,250

Warrants expiration period

5 years

Number of warrants entitle holder to purchase one share | Warrant

4

Warrants outstanding

14,936,250

14,936,250

Series C Warrants

Class of Stock [Line Items]

Warrants expiration period

3 years

Warrants outstanding

201,708

202,897

Placement Agent Warrants

Class of Stock [Line Items]

Warrants issued to purchase common stock

168,522

72,658

Warrants expiration period

7 years

7 years

7 years

Warrants outstanding

241,217

Placement Agent Warrants | 2018 Convertible Bridge Notes

Class of Stock [Line Items]

Warrants issued to purchase common stock

15,724

Warrants expiration period

7 years

Warrants outstanding

254,258

Management Warrants

Class of Stock [Line Items]

Warrants expiration period

10 years

Warrants outstanding

22,320

22,320

Securities Purchase Agreement

Class of Stock [Line Items]

Preferred stock, issuance costs | $

$ 5,100,000

Gross proceeds from PIPE financing | $

$ 65,000,000

2020 PIPE Financing | Securities Purchase Agreement

Class of Stock [Line Items]

PIPE financing closing date

Mar. 4, 2020

Common Stock | Public Warrants

Class of Stock [Line Items]

Number of shares issued for each warrant

0.25

Exercise price of warrant | $ / shares

$ 23

Common Stock | Series C Warrants

Class of Stock [Line Items]

Exercise price of warrant | $ / shares

$ 9.54

Common Stock | Placement Agent Warrants

Class of Stock [Line Items]

Number of shares issued for each warrant

1

1

1

Exercise price of warrant | $ / shares

$ 9.54

$ 8.68

$ 9.54

Common Stock | Placement Agent Warrants | 2018 Convertible Bridge Notes

Class of Stock [Line Items]

Number of shares issued for each warrant

1

Exercise price of warrant | $ / shares

$ 9.54

Common Stock | Management Warrants

Class of Stock [Line Items]

Exercise price of warrant | $ / shares

$ 1.08

Warrants vesting period

4 years

Common Stock | 2020 PIPE Financing | Securities Purchase Agreement

Class of Stock [Line Items]

Issuance of preferred stock, price per share | $ / shares

$ 10.50

Issuance of stock

2,467,724

Issuance price per share | $ / shares

$ 10.50

Series C convertible preferred stock

Class of Stock [Line Items]

Issuance of preferred stock, total offering amount | $

$ 15,000,000

Issuance of preferred stock, price per share | $ / shares

$ 9.54

Preferred stock, shares issued during period

506,539

559,849

Proceeds from issuance of Convertible Preferred Stock | $

$ 4,800,000

$ 5,300,000

Preferred stock, issuance costs | $

$ 300,000

$ 400,000

Issuance price per share | $ / shares

$ 9.54

Series C convertible preferred stock | Series C Warrants

Class of Stock [Line Items]

Percentage of warrants issued in connection with preferred stock purchased

20.00%

Series C convertible preferred stock | Series C Warrants | Minimum

Class of Stock [Line Items]

Preferred stock value of shares purchased in single closing | $

$ 1,000,000

Series C convertible preferred stock | Common Stock

Class of Stock [Line Items]

Series c convertible preferred stock convert into common stock shares, conversion ratio

1

Convertible preferred stock convertible into shares of common stock

1

Series A Convertible Preferred Stock

Class of Stock [Line Items]

Preferred stock, shares authorized

1,250

1,250

Preferred stock, par value per share | $ / shares

$ 0.0001

$ 0.0001

Preferred stock, shares issued during period

1,231

Convertible preferred stock convertible into shares of common stock

500

Issuance of preferred stock, total offering amount | $

$ 4,000,000

Convertible preferred stock convertible into shares of common stock, conversion price per share | $ / shares

$ 6.50

Event of convertible preferred stock be convertible if holder beneficially owning outstanding shares of common stock percentage

9.99%

Voting rights of preferred stock holder

The shares of the Series A Convertible Preferred Stock have no voting rights, except with respect to certain protective provisions set forth in the Series A Certificate of Designation relating to the powers, preferences and rights of such shares.

Series B-1 Convertible Preferred Stock

Class of Stock [Line Items]

Preferred stock, shares authorized

3,200

0

Preferred stock, par value per share | $ / shares

$ 0.0001

$ 0.0001

Preferred stock, shares issued during period

3,199

Proceeds from issuance of Convertible Preferred Stock | $

$ 30,971,000

Convertible preferred stock convertible into shares of common stock

1,000

Convertible preferred stock convertible into shares of common stock, conversion price per share | $ / shares

$ 10.50

Voting rights of preferred stock holder

The Series B-1 Shares have no voting rights, except with respect to certain protective provisions set forth in the Series B-1 Certificate of Designation relating to the powers, preferences and rights of such shares.

Series B-1 Convertible Preferred Stock | 2020 PIPE Financing

Class of Stock [Line Items]

Preferred stock, shares issued during period

3,199

Issuance of preferred stock, total offering amount | $

$ 33,600,000

Series B-1 Convertible Preferred Stock | 2020 PIPE Financing | Securities Purchase Agreement

Class of Stock [Line Items]

Issuance of preferred stock, price per share | $ / shares

$ 10,500

Issuance of stock

3,199

Issuance price per share | $ / shares

$ 10,500

Preferred stock designated shares authorized and unissued

3,200

Series B-2 Convertible Preferred Stock

Class of Stock [Line Items]

Preferred stock, shares authorized

525

0

Preferred stock, par value per share | $ / shares

$ 0.0001

$ 0.0001

Preferred stock, shares issued during period

524

Proceeds from issuance of Convertible Preferred Stock | $

$ 5,071,000

Convertible preferred stock convertible into shares of common stock

1,000

Convertible preferred stock convertible into shares of common stock, conversion price per share | $ / shares

$ 10.50

Event of convertible preferred stock be convertible if holder beneficially owning outstanding shares of common stock percentage

9.99%

Voting rights of preferred stock holder

The Series B-2 Shares have no voting rights, except with respect to certain protective provisions set forth in the Series B-2 Certificate of Designation relating to the powers, preferences and rights of such shares.

Conversion of stock description

Each Series B-2 Share will be convertible into Company common stock at the option of the holder, provided that conversion will be prohibited (i) until the first trading day after the Stockholder Approval and (ii) following the Stockholder Approval, if, as a result of any such conversion, the holder would beneficially own in excess of 9.99% of the total number of shares of Company common stock outstanding immediately after giving effect to such conversion.

Series B-2 Convertible Preferred Stock | 2020 PIPE Financing

Class of Stock [Line Items]

Preferred stock, shares issued during period

524

Issuance of preferred stock, total offering amount | $

$ 5,500,000

Series B-2 Convertible Preferred Stock | 2020 PIPE Financing | Securities Purchase Agreement

Class of Stock [Line Items]

Issuance of preferred stock, price per share | $ / shares

$ 10,500

Issuance of stock

524

Issuance price per share | $ / shares

$ 10,500

Preferred stock designated shares authorized and unissued

525

Convertible Preferred Stock a_4

Convertible Preferred Stock and Stockholders Equity - Summary of Common Stock Reserved for Future Issuance (Detail) - shares	Mar. 31, 2020	Dec. 31, 2019
Class of Stock [Line Items]
Common stock reserved for future issuance	5,594	4,787
Warrants to Purchase Common Stock
Class of Stock [Line Items]
Common stock reserved for future issuance	478	466
Public Warrants to Purchase Common Stock
Class of Stock [Line Items]
Common stock reserved for future issuance	3,734	3,734
Stock Options
Class of Stock [Line Items]
Common stock reserved for future issuance	858	444
Restricted Stock Units
Class of Stock [Line Items]
Common stock reserved for future issuance	485
Authorized for Future Option Grants
Class of Stock [Line Items]
Common stock reserved for future issuance	39	143

Convertible Preferred Stock a_5

Convertible Preferred Stock and Stockholders Equity - Summary of Common Stock Reserved for Future Issuance (Parenthetical) (Details) - Public Warrants	3 Months Ended
	Mar. 31, 2020Warrantshares
Class of Stock [Line Items]
Number of warrants entitle holder to purchase one share | Warrant	4
Common Stock
Class of Stock [Line Items]
Number of shares issued for each warrant | shares	0.25

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Operating Loss Carryforwards [Line Items]
Federal statutory rate	21.00%	21.00%
Effective income tax rate	0.00%	0.00%
Minimum
Operating Loss Carryforwards [Line Items]
Ownership interest	50.00%

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($)	Sep. 04, 2019	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Commitments And Contingencies [Line Items]
Operating leases, description		In January 2013, DermTech Operations entered into a non-cancelable lease agreement for its operating facilities. In January 2014, DermTech Operations signed an amendment to the lease to extend the term through January 2017. In November 2016, DermTech Operations signed a second amendment to the lease to extend the term through March 2022. In August 2019, DermTech Operations signed a third amendment to the lease to add additional space, and in September 2019, the Company signed a fourth amendment to the lease to add additional space. In February 2020, the Company signed a fifth amendment to the lease to add additional space. In connection with the Business Combination, the Company assumed all obligations under the lease, as amended, from DermTech Operations.
Tenant improvement allowance		$ 300,000
Rent and common area maintenance expense		300,000	$ 200,000
Underwriting fees		1,363,000		$ 1,363,000
Cowen
Commitments And Contingencies [Line Items]
Payments for deferred underwriting fees	$ 800,000
Underwriting fees	$ 1,400,000	1,400,000
Proceeds from equity financing		15,000,000
Gross proceeds from PIPE financing		65,000,000
Deferred underwriting fee equity payable if equity financing limit not raised		0
Maximum
Commitments And Contingencies [Line Items]
Increase in tenant improvement allowance		$ 100,000

Commitments and Contingencies_2

Commitments and Contingencies - Schedule of Future Minimum Operating Lease Payments for Operating Facilities (Details) $ in Thousands	Mar. 31, 2020USD ($)
Commitments And Contingencies Disclosure [Abstract]
Remainder of 2020	$ 992
2021	1,371
2022	1,412
2023	478
Total future minimum lease payments	$ 4,253

Business Combination with Der_2

Business Combination with DermTech Operations - Additional Information (Details) - USD ($) $ in Thousands	Aug. 29, 2019	Mar. 31, 2020
Business Acquisition [Line Items]
Printer fees related to business combination		$ 77
DermTech Operations
Business Acquisition [Line Items]
Effective date of acquisition	Aug. 29, 2019
Printer fees related to business combination	$ 300

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Details) - USD ($)	Oct. 01, 2019	Mar. 31, 2020	Mar. 31, 2019
Related Party Transaction [Line Items]
Related party transaction, other		$ 0	$ 0
EVERSANA | Leana Wood
Related Party Transaction [Line Items]
Related party certain marketing cost		300,000	0
DermTech Operations | Michael Dobak
Related Party Transaction [Line Items]
Related party certain marketing cost		$ 32,000	$ 0
DermTech Operations | Michael Dobak | Maximum
Related Party Transaction [Line Items]
Related party certain marketing cost	$ 100,000