Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 27, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-39264 | |
Entity Registrant Name | KEROS THERAPEUTICS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 81-1173868 | |
Entity Address, Address Line One | 99 Hayden Avenue | |
Entity Address, Address Line Two | Suite 120 | |
Entity Address, Address Line Three | Building E | |
Entity Address, City or Town | Lexington | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02421 | |
City Area Code | 617 | |
Local Phone Number | 314-6297 | |
Title of 12(b) Security | Common Stock, $0.0001 par value per share | |
Trading Symbol | KROS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 23,337,862 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001664710 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 237,113 | $ 265,876 |
Accounts receivable | 100 | |
Prepaid expenses and other current assets | 4,204 | 1,850 |
Total current assets | 241,417 | 267,726 |
Operating lease right-of-use assets | 676 | 878 |
Property and equipment, net | 1,253 | 724 |
Restricted cash | 115 | 115 |
TOTAL ASSETS | 243,461 | 269,443 |
CURRENT LIABILITIES: | ||
Accounts payable | 1,372 | 2,149 |
Current portion of operating lease liabilities | 449 | 423 |
Accrued expenses and other current liabilities | 5,710 | 4,612 |
Total current liabilities | 7,531 | 7,184 |
Operating lease liabilities, net of current portion | 242 | 476 |
Other liabilities | 32 | 62 |
Total liabilities | 7,805 | 7,722 |
STOCKHOLDERS' EQUITY: | ||
Common stock, par value of $0.0001 per share; 200,000,000 shares authorized as of June 30, 2021 and December 31, 2020, respectively; 23,328,771 and 23,192,866 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively | 2 | 2 |
Additional paid-in capital | 332,172 | 326,730 |
Accumulated deficit | (96,518) | (65,011) |
Total stockholders' equity | 235,656 | 261,721 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 243,461 | $ 269,443 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 23,328,771 | 23,192,866 |
Common stock, shares outstanding (in shares) | 23,328,771 | 23,192,866 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
REVENUE: | ||||
Total revenue | $ 100 | $ 0 | $ 100 | $ 0 |
OPERATING EXPENSES: | ||||
Research and development | (9,983) | (7,264) | (21,478) | (15,791) |
General and administrative | (5,658) | (3,650) | (9,932) | (5,627) |
Total operating expenses | (15,641) | (10,914) | (31,410) | (21,418) |
LOSS FROM OPERATIONS | (15,541) | (10,914) | (31,310) | (21,418) |
OTHER INCOME (EXPENSE), NET | ||||
Interest expense, net | (1) | (1) | (2) | (3) |
Change in fair value of preferred stock tranche obligation | 0 | 0 | 0 | (1,490) |
Other income (expense), net | (80) | 158 | (145) | 90 |
Total other income (expense), net | (81) | 157 | (147) | (1,403) |
Loss before income taxes | (15,622) | (10,757) | (31,457) | (22,821) |
Income tax (provision) benefit | 0 | 0 | (50) | 172 |
Net loss | (15,622) | (10,757) | (31,507) | (22,649) |
Net loss attributable to common stockholders—basic | (15,622) | (10,963) | (31,507) | (23,661) |
Net loss attributable to common stockholders— diluted | $ (15,622) | $ (10,963) | $ (31,507) | $ (23,661) |
Net loss per share attributable to common stockholders - basic (in USD per share) | $ (0.67) | $ (0.62) | $ (1.35) | $ (2.35) |
Net loss per share attributable to common stockholders - diluted (in USD per share) | $ (0.67) | $ (0.62) | $ (1.35) | $ (2.35) |
Weighted-average common stock outstanding - basic (in shares) | 23,305,673 | 17,623,994 | 23,267,943 | 10,054,026 |
Weighted-average common stock outstanding - diluted (in shares) | 23,305,673 | 17,623,994 | 23,267,943 | 10,054,026 |
Revenue, Product and Service [Extensible Enumeration] | License | License | License | License |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit) - USD ($) $ in Thousands | Total | Common Stock | ADDITIONAL PAID-IN CAPITAL | ACCUMULATED DEFICIT | Series A preferred stock | Series A-1 preferred stock | Series B-1 preferred stock | Series C preferred stock |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Ending balance (in shares) | 2,429,705 | |||||||
Ending balance | $ (19,446) | $ 1 | $ 203 | $ (19,650) | ||||
Beginning balance (in shares) at Dec. 31, 2019 | 4,607,652 | 368,612 | 1,579,043 | 0 | ||||
Beginning balance at Dec. 31, 2019 | $ 9,891 | $ 944 | $ 9,106 | $ 0 | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||
Issuance of series C convertible preferred stock, net of issuance costs of $219 (in shares) | 4,169,822 | |||||||
Issuance of Series C convertible preferred stock, net of issuance costs of $219 | 0 | $ 55,781 | ||||||
Ending balance (in shares) at Mar. 31, 2020 | 4,607,652 | 368,612 | 1,579,043 | 4,169,822 | ||||
Ending balance at Mar. 31, 2020 | $ 9,891 | $ 944 | $ 9,106 | $ 55,781 | ||||
Beginning balance (in shares) at Dec. 31, 2019 | 2,429,705 | |||||||
Beginning balance at Dec. 31, 2019 | (19,446) | $ 1 | 203 | (19,650) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Exercise of common stock options (in shares) | 44,686 | |||||||
Exercise of common stock options | 13 | 13 | ||||||
Vesting of restricted stock (in shares) | 17,279 | |||||||
Vesting of restricted stock | 0 | |||||||
Stock-based compensation | 12 | 12 | ||||||
Settlement of preferred stock tranche liability | 6,446 | 6,446 | ||||||
Net loss | (11,892) | (11,892) | ||||||
Beginning balance (in shares) at Dec. 31, 2019 | 4,607,652 | 368,612 | 1,579,043 | 0 | ||||
Beginning balance at Dec. 31, 2019 | $ 9,891 | $ 944 | $ 9,106 | $ 0 | ||||
Ending balance (in shares) at Jun. 30, 2020 | 0 | 0 | 0 | 0 | ||||
Ending balance at Jun. 30, 2020 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Beginning balance (in shares) at Dec. 31, 2019 | 2,429,705 | |||||||
Beginning balance at Dec. 31, 2019 | (19,446) | $ 1 | 203 | (19,650) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (22,649) | |||||||
Ending balance (in shares) | 2,491,670 | |||||||
Ending balance | (24,867) | $ 1 | 6,674 | (31,542) | ||||
Beginning balance (in shares) at Mar. 31, 2020 | 4,607,652 | 368,612 | 1,579,043 | 4,169,822 | ||||
Beginning balance at Mar. 31, 2020 | $ 9,891 | $ 944 | $ 9,106 | $ 55,781 | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||
Conversion of convertible preferred stock upon initial public offering (in shares) | 10,725,129 | (4,607,652) | (368,612) | (1,579,043) | (4,169,822) | |||
Conversion of convertible preferred stock upon initial public offering | 75,722 | $ 1 | 75,721 | $ (9,891) | $ (944) | $ (9,106) | $ (55,781) | |
Ending balance (in shares) at Jun. 30, 2020 | 0 | 0 | 0 | 0 | ||||
Ending balance at Jun. 30, 2020 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Beginning balance (in shares) at Mar. 31, 2020 | 2,491,670 | |||||||
Beginning balance at Mar. 31, 2020 | (24,867) | $ 1 | 6,674 | (31,542) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Offering expenses associated with direct offering | (8) | (8) | ||||||
Initial public offering, net of underwriting discounts, commissions and offering costs (in shares) | 6,900,000 | |||||||
Initial public offering, net of underwriting discounts, commissions and offering costs of $9,390 | 100,123 | $ 0 | 100,123 | |||||
Exercise of common stock options (in shares) | 24,003 | |||||||
Exercise of common stock options | 9 | 9 | ||||||
Vesting of restricted stock (in shares) | 17,278 | |||||||
Vesting of restricted stock | 0 | |||||||
Stock-based compensation | 1,139 | 1,139 | ||||||
Net loss | (10,757) | (10,757) | ||||||
Ending balance (in shares) | 20,158,080 | |||||||
Ending balance | 141,361 | $ 2 | 183,658 | (42,299) | ||||
Ending balance (in shares) | 23,192,866 | |||||||
Ending balance | 261,721 | $ 2 | 326,730 | (65,011) | ||||
Beginning balance (in shares) at Dec. 31, 2020 | 0 | 0 | 0 | 0 | ||||
Beginning balance at Dec. 31, 2020 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Ending balance (in shares) at Mar. 31, 2021 | 0 | 0 | 0 | 0 | ||||
Ending balance at Mar. 31, 2021 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Beginning balance (in shares) at Dec. 31, 2020 | 23,192,866 | |||||||
Beginning balance at Dec. 31, 2020 | 261,721 | $ 2 | 326,730 | (65,011) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Exercise of common stock options (in shares) | 78,628 | |||||||
Exercise of common stock options | 42 | 42 | ||||||
Stock-based compensation | 2,494 | 2,494 | ||||||
Net loss | (15,885) | (15,885) | ||||||
Beginning balance (in shares) at Dec. 31, 2020 | 0 | 0 | 0 | 0 | ||||
Beginning balance at Dec. 31, 2020 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Ending balance (in shares) at Jun. 30, 2021 | 0 | 0 | 0 | 0 | ||||
Ending balance at Jun. 30, 2021 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Beginning balance (in shares) at Dec. 31, 2020 | 23,192,866 | |||||||
Beginning balance at Dec. 31, 2020 | $ 261,721 | $ 2 | 326,730 | (65,011) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Exercise of common stock options (in shares) | 135,905 | |||||||
Net loss | $ (31,507) | |||||||
Ending balance (in shares) | 23,271,494 | |||||||
Ending balance | 248,372 | $ 2 | 329,266 | (80,896) | ||||
Beginning balance (in shares) at Mar. 31, 2021 | 0 | 0 | 0 | 0 | ||||
Beginning balance at Mar. 31, 2021 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Ending balance (in shares) at Jun. 30, 2021 | 0 | 0 | 0 | 0 | ||||
Ending balance at Jun. 30, 2021 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Beginning balance (in shares) at Mar. 31, 2021 | 23,271,494 | |||||||
Beginning balance at Mar. 31, 2021 | 248,372 | $ 2 | 329,266 | (80,896) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Exercise of common stock options (in shares) | 57,277 | |||||||
Exercise of common stock options | 57 | 57 | ||||||
Stock-based compensation | 2,849 | 2,849 | ||||||
Net loss | (15,622) | (15,622) | ||||||
Ending balance (in shares) | 23,328,771 | |||||||
Ending balance | $ 235,656 | $ 2 | $ 332,172 | $ (96,518) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Common stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Issuance costs | $ 0 | $ 227 | |
Issuance costs | $ 9,390 | $ 7,728 | |
Series A preferred stock | |||
Par value (in USD per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Series A-1 preferred stock | |||
Par value (in USD per share) | 0.0001 | 0.0001 | 0.0001 |
Series B-1 preferred stock | |||
Par value (in USD per share) | 0.0001 | 0.0001 | 0.0001 |
Series C preferred stock | |||
Par value (in USD per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (31,507) | $ (22,649) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation expense | 171 | 131 |
Loss on disposal of fixed asset | 20 | 0 |
Stock-based compensation expense | 5,343 | 1,151 |
Non-cash lease expense | 202 | 180 |
Changes in fair value of preferred stock tranche obligation | 0 | 1,490 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (100) | 0 |
Research and development incentive receivable | 0 | 922 |
Prepaid expenses and other current assets | (2,354) | (3,449) |
Deferred IPO costs | 0 | 604 |
Accounts payable | (777) | 2,764 |
Operating lease liabilities | (208) | (183) |
Accrued expenses and other current liabilities | 1,098 | 1,020 |
Other liabilities | (30) | (28) |
Net cash used in operating activities | (28,142) | (18,047) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (720) | (204) |
Net cash used in investing activities | (720) | (204) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of Series C preferred stock | 0 | 56,000 |
Payment of Series C preferred stock issuance costs | 0 | (227) |
Proceeds from issuance of common stock, from the initial public offering, net of offering costs of $7,728 | 0 | 102,672 |
Payment of initial public offering costs | 0 | (2,549) |
Proceeds from exercise of stock options | 99 | 22 |
Net cash provided by financing activities | 99 | 155,918 |
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (28,763) | 137,667 |
Cash, cash equivalents and restricted cash at beginning of period | 265,991 | 7,135 |
Cash, cash equivalents and restricted cash at end of period | 237,228 | 144,802 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Settlement of preferred stock tranche obligation | 0 | 6,446 |
Reconciliation of cash, cash equivalents and restricted cash | ||
Cash and cash equivalents | 237,113 | 144,687 |
Restricted cash | 115 | 115 |
Total cash, cash equivalents and restricted cash | $ 237,228 | $ 144,802 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2020 | |
Statement of Cash Flows [Abstract] | |||
Issuance costs | $ 9,390 | $ 219 | $ 7,728 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Basis of Presentation | NATURE OF BUSINESS AND BASIS OF PRESENTATION Keros Therapeutics, Inc. (“Keros” or the “Company”) was incorporated in 2015 as a Delaware corporation. Its principal offices are in Lexington, Massachusetts. The Company is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of novel treatments for patients suffering from hematological and musculoskeletal disorders with high unmet medical need. The accompanying unaudited interim condensed consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company and its wholly owned subsidiaries, Keros Therapeutics Australia Pty Ltd (“Keros Australia”) and Keros Security Corporation, a Massachusetts securities corporation. All significant intercompany transactions and accounts have been eliminated in consolidation. Since its inception in 2015, the Company has devoted the majority of its resources on business planning, research and development of its product candidates, including by conducting clinical trials and preclinical studies, raising capital and recruiting management and technical staff to support these operations. To date, the Company has not generated any revenue from product sales as none of its product candidates have been approved for commercialization. On April 13, 2020, the Company completed an initial public offering (“IPO”) in which the Company issued and sold 6,900,000 shares of its common stock, which includes 900,000 shares issued and sold pursuant to the full exercise of the underwriters’ option to purchase additional shares, at a public offering price of $16.00 per share, for aggregate gross proceeds of $110.4 million. The Company received approximately $100.1 million in net proceeds after deducting underwriting discounts and commissions and offering costs. Upon the closing of the IPO, all of the then-outstanding shares of convertible preferred stock automatically converted into 10,725,129 shares of common stock at the applicable conversion ratio then in effect. Subsequent to the closing of the IPO, there were no shares of convertible preferred stock outstanding. On November 17, 2020, the Company completed an underwritten public offering in which the Company issued and sold 2,990,000 shares of common stock at a public offering price of $50.00 per share, which included 390,000 shares of common stock issued pursuant to the exercise in full of the underwriters' option to purchase additional shares. The aggregate gross proceeds to the Company from the public offering were approximately $149.5 million. The Company received approximately $140.1 million in net proceeds after deducting underwriting discounts and commissions and offering costs. In May 2021, the Company filed a registration statement on Form S-3, which was automatically effective upon filing. Pursuant to this registration statement, the Company may issue up to $150.0 million in common stock in sales deemed to be an “at the market offering,” as defined by the Securities Act, and, so long as the Company qualifies as a “well-known seasoned issuer” as defined in Rule 405 of the Securities Act, an unspecified amount of shares of our common stock, preferred stock, debt securities and warrants. The Company’s condensed consolidated financial statements have been prepared on the basis of the Company continuing as a going concern for the next 12 months. Management believes that the Company’s existing cash and cash equivalents, will allow the Company to continue its operations for at least the next 12 months. In the absence of a significant source of recurring revenue, the continued viability of the Company is dependent on its ability to continue to raise additional capital to finance its operations. If the Company is unable to obtain additional funding, the Company may be forced to delay, reduce or eliminate some or all of its research and development programs, product portfolio expansion or commercialization efforts, which could adversely affect its business prospects, or the Company may be unable to continue operations. The accompanying unaudited interim condensed consolidated financial statements as of June 30, 2021 and for the three and six months ended June 30, 2021 and 2020 have been prepared by the Company in conformity with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and, pursuant to the rules and regulations of Article 10 of Regulation S-X of the Securities Act published by the Securities and Exchange Commission (“SEC”) for interim financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. However, the Company believes the disclosures are adequate. These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended December 31, 2020 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 25, 2021 (the “Annual Report”). The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited financial statements. In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements contain all adjustments which are necessary for a fair presentation of the Company’s condensed consolidated balance sheets as of June 30, 2021 and December 31, 2020, condensed consolidated statements of operations for the three and six months ended June 30, 2021 and 2020 and condensed consolidated cash flows for the six months ended June 30, 2021 and 2020. Such adjustments are of a normal and recurring nature. The results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2021. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Significant Accounting Policies The significant accounting policies and estimates used in preparation of the unaudited interim condensed consolidated financial statements are described in the Company’s audited consolidated financial statements as of and for the year ended December 31, 2020, and the notes thereto, which are included in the Annual Report. Except as detailed below, there have been no material changes to the Company’s significant accounting policies during the six months ended June 30, 2021. Risks and Uncertainties With the global COVID-19 pandemic continuing throughout 2021, the Company has implemented business continuity plans designed to address and mitigate the impact of the COVID-19 pandemic on its employees and its business operations, including its preclinical studies and clinical trials, supply chains and third-party providers. Additionally, in response to the spread of COVID-19, the Company closed its principal executive office in March 2020, with its administrative employees continuing their work outside of the office, and limited the number of staff in any given research laboratory. The Company further requested that its employees work from home if they are able to perform their duties remotely and limited the number of on-site employees to allow for proper social distancing in its offices and laboratories. For those employees on-site, the Company has implemented stringent safety measures designed to comply with applicable federal, state and local guidelines instituted in response to the COVID-19 pandemic. In July 2021, the Company implemented a plan to reopen its principal executive office to allow employees to return on-site to the office, which is based on a phased approach that is principles-based and local in design, with a focus on continuity of preclinical studies and clinical trial activities, employee safety and optimal work environment. The Company anticipates that the COVID-19 pandemic will have an impact on the development timelines for several of its preclinical and clinical programs. The extent to which the COVID-19 pandemic impacts the Company’s business, its clinical development and regulatory efforts, its corporate development objectives and the value of and market for its common stock will depend on future developments which are highly uncertain and cannot be predicted with confidence at this time, such as the ultimate duration of the pandemic, particularly in light of variant strains of the COVID-19 virus, travel restrictions, quarantines, social distancing and business closure requirements in the United States, Australia, New Zealand and other countries and the effectiveness of actions taken globally to contain and treat the disease. The global economic slowdown, the overall disruption of global healthcare systems and the other risks and uncertainties associated with the pandemic could have a material adverse effect on the Company’s business, financial condition, results of operations and growth prospects. As of the date of issuance of these financial statements, the Company is not aware of any specific event or circumstance that would require the Company to update its estimates, assumptions and judgments or revise the carrying value of its assets or liabilities. Actual results could differ from those estimates, and any such differences may be material to the Company’s financial statements. In addition, the Company is subject to other challenges and risks specific to its business and its ability to execute on its business plan and strategy, as well as risks and uncertainties common to companies in the biopharmaceutical industry with research and development operations, including, without limitation, risks and uncertainties associated with: obtaining regulatory approval of its product candidates; delays or problems in obtaining clinical supply, loss of single source suppliers or failure to comply with manufacturing regulations; product development and the inherent uncertainty of clinical success; the challenges of protecting and enhancing its intellectual property rights; the challenges of complying with applicable regulatory requirements; and identifying, acquiring or in-licensing additional products or product candidates. In addition, to the extent the ongoing COVID-19 pandemic adversely affects the Company’s business and results of operations, it may also have the effect of heightening many of the other risks and uncertainties discussed above. Recently Adopted Accounting Pronouncements On January 1, 2021, the Company adopted Financial Accounting Standards Board Accounting Standards Update No. 2019-12, Income Taxes-Simplifying the Accounting for Income Taxes ("ASU No. 2019-12"). ASU No. 2019-12 eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. ASU No. 2019-12 also simplifies aspects of the accounting for franchise taxes, enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The adoption of this standard did not have an impact on the Company’s condensed consolidated financial statements and related disclosures. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The following table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis and indicates the level of the fair value hierarchy utilized to determine such fair values (in thousands): DESCRIPTION JUNE 30, 2021 QUOTED PRICES ACTIVE MARKETS FOR IDENTICAL ASSETS SIGNIFICANT OTHER OBSERVABLE INPUTS SIGNIFICANT OTHER OBSERVABLE INPUTS Assets Money market funds $ 235,156 $ 235,156 $ — $ — Total financial assets $ 235,156 $ 235,156 $ — $ — DESCRIPTION DECEMBER 31, 2020 QUOTED PRICES ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 3) Assets Money market funds $ 262,043 $ 262,043 $ — $ — Total financial assets $ 262,043 $ 262,043 $ — $ — |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 6 Months Ended |
Jun. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consisted of the following (in thousands): JUNE 30, DECEMBER 31, Prepaid service contracts $ 936 $ 501 Income tax credit receivable — 172 Prepaid sales tax 111 188 R&D payroll tax credit 145 44 Prepaid insurance 2,722 785 Other 290 160 Total prepaid expenses and other current assets $ 4,204 $ 1,850 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of the following (in thousands): JUNE 30, DECEMBER 31, Accrued external R&D costs $ 787 $ 169 Accrued external manufacturing costs 2,280 2,265 Accrued compensation and benefits 1,168 1,510 Accrued tax 106 185 Accrued professional fees 697 265 Other 672 218 Total accrued expenses and other current liabilities $ 5,710 $ 4,612 |
Common Stock
Common Stock | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Common Stock | COMMON STOCK As of June 30, 2021, the Company’s amended and restated certificate of incorporation authorized the Company to issue 200,000,000 shares of common stock at a par value of $0.0001 per share. In conjunction with the closing of the Company's initial public offering ("IPO") in April 2020, the Company issued and sold 6,900,000 shares of its common stock, including 900,000 shares pursuant to the full exercise of the underwriters' option to purchase additional shares, at a public offering price of $16.00 per share, for aggregate net proceeds of $100.1 million after deducting underwriting discounts and commissions and offering costs. In connection with the IPO, all outstanding shares of Preferred Stock converted into 10,725,129 shares of common stock. In conjunction with the Company's November 2020 public offering closing, the Company issued and sold 2,990,000 shares of its common stock, which included 390,000 shares pursuant to the full exercise of the underwriters' option to purchase additional shares, at a public offering price of $50.00 per share, for aggregate net proceeds of $140.1 million after deducting underwriting discounts and commissions and offering costs. In May 2021, the Company filed a registration statement on Form S-3, which was automatically effective upon filing. Pursuant to this registration statement, the Company may issue up to $150.0 million in common stock in sales deemed to be an “at the market offering,” as defined by the Securities Act, and, so long as the Company qualifies as a “well-known seasoned issuer” as defined in Rule 405 of the Securities Act, an unspecified amount of shares of our common stock, preferred stock, debt securities and warrants. See Note 8, Stockholders’ Equity , for further detail. As of June 30, 2021 and December 31, 2020, the Company has reserved the following shares of common stock for potential exercises of stock options: JUNE 30, DECEMBER 31, Options to purchase common stock 2,820,472 2,499,603 Sales Agreement On May 3, 2021, the Company entered into a Sales Agreement (the “ATM Sales Agreement”) with SVB Leerink LLC (“SVB Leerink”), as agent, pursuant to which the Company may offer and sell, from time to time, shares of its common stock having an aggregate offering price of up to $150.0 million (the “ATM Shares”) from time to time through SVB Leerink (the “ATM Offering”). Under the ATM Sales Agreement, SVB Leerink may sell the ATM Shares by methods deemed to be an “at the market offering” as defined in Rule 415(a)(4) promulgated under the Securities Exchange Act of 1934, as amended. The Company may sell the ATM Shares in amounts and at times to be determined by the Company from time to time subject to the terms and conditions of the ATM Sales Agreement, but it has no obligation to sell any of the ATM Shares in the ATM Offering. ATM Shares sold under the ATM Sales Agreement will be issued pursuant to a prospectus supplement filed on May 3, 2021, and related prospectus filed with the Securities and Exchange Commission, or the SEC, pursuant to our automatically effective shelf registration statement on Form S-3 (Registration No. 333-255724), filed with the SEC on May 3, 2021. The Company or SVB Leerink may suspend or terminate the offering of ATM Shares upon notice to the other party and subject to other conditions. The Company has agreed to pay SVB Leerink commissions for its services in acting as agent in the sale of the ATM Shares in the amount of up to 3.0% of gross proceeds from the sale of the ATM Shares pursuant to the ATM Sales Agreement. The Company has also agreed to provide SVB Leerink with customary indemnification and contribution rights. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION 2017 Stock Incentive Plan The Board adopted the 2017 Stock Incentive Plan (the "2017 Plan") in February 2017, and the stockholders approved the 2017 Plan in March 2017. The 2017 Plan was most recently amended in March 2020. As of June 30, 2021, there was an aggregate of 915,478 shares of common stock issuable upon the exercise of outstanding options under the 2017 Plan. Any options or awards outstanding under the 2017 Plan remain outstanding and effective. 2020 Equity Incentive Plan In April 2020, the 2020 Equity Incentive Plan (the "2020 Plan") became effective, and, as a result, no further awards will be made under the 2017 Plan. The 2020 Plan provides for the grant of stock options qualifying as incentive stock options ("ISOs"), to employees and for the grant of nonstatutory stock options ("NSOs"), restricted stock awards, restricted stock unit awards, stock appreciation rights, performance stock awards and other forms of stock compensation to employees, consultants and directors. The 2020 Plan also provides for the grant of performance cash awards to employees, consultants and directors. Any previously granted awards under the 2017 Plan will remain outstanding in accordance with their respective terms. Under the 2020 Plan, there is an annual increase on January 1 of each year from January 1, 2021 continuing through January 1, 2030, by 4.0% of the total number of shares of common stock outstanding on December 31 of the preceding calendar year, or a lesser number of shares as may be determined by the Board. On January 1, 2021, the Company increased the number of shares available for future grant under the 2020 Plan by 927,714 shares. As of June 30, 2021, there was an aggregate of 1,904,994 shares of common stock issuable upon the exercise of outstanding options under the 2020 Plan. Additionally, there were an aggregate of 1,010,379 shares reserved for future issuance under the 2020 Plan. Stock Options A summary of option activity during the six months ended June 30, 2021 is as follows (in thousands except share and per share data): NUMBER OF OPTIONS WEIGHTED-AVERAGE EXERCISE PRICE WEIGHTED-AVERAGE REMAINING CONTRACTUAL TERM (IN YEARS) AGGREGATE INTRINSIC VALUE Outstanding as of December 31, 2020 2,499,603 $ 11.77 8.64 $ 147,103 Granted 483,508 67.45 Exercised (135,905) 0.73 $ 8,107 Expired (26,734) 24.56 Outstanding as of June 30, 2021 2,820,472 $ 21.73 8.44 $ 71,592 Options exercisable as of December 31, 2020 723,130 $ 0.57 7.38 $ 50,599 Options exercisable as of June 30, 2021 1,080,101 $ 7.36 7.71 $ 38,047 The weighted-average grant date fair value price per share of options granted during the six months ended June 30, 2021 and 2020 was $47.10 and $14.24, respectively. As of June 30, 2021, there was $35.6 million of unrecognized stock-based compensation expense related to unvested stock options. The unrecognized stock-based compensation expense is estimated to be recognized over a period of 2.74 years. The total fair value of options vested during the six months ended June 30, 2021 was $5.9 million. Stock-Based Compensation Expense Total stock-based compensation expense recorded for employees, directors and non-employees during the three and six months ended June 30, 2021 and 2020 was as follows (in thousands): THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 2021 2020 2021 2020 Research and development $ 1,116 $ 313 $ 2,014 $ 321 General and administrative 1,733 826 3,329 830 Total stock-based compensation expense $ 2,849 $ 1,139 $ 5,343 $ 1,151 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | COMMON STOCK As of June 30, 2021, the Company’s amended and restated certificate of incorporation authorized the Company to issue 200,000,000 shares of common stock at a par value of $0.0001 per share. In conjunction with the closing of the Company's initial public offering ("IPO") in April 2020, the Company issued and sold 6,900,000 shares of its common stock, including 900,000 shares pursuant to the full exercise of the underwriters' option to purchase additional shares, at a public offering price of $16.00 per share, for aggregate net proceeds of $100.1 million after deducting underwriting discounts and commissions and offering costs. In connection with the IPO, all outstanding shares of Preferred Stock converted into 10,725,129 shares of common stock. In conjunction with the Company's November 2020 public offering closing, the Company issued and sold 2,990,000 shares of its common stock, which included 390,000 shares pursuant to the full exercise of the underwriters' option to purchase additional shares, at a public offering price of $50.00 per share, for aggregate net proceeds of $140.1 million after deducting underwriting discounts and commissions and offering costs. In May 2021, the Company filed a registration statement on Form S-3, which was automatically effective upon filing. Pursuant to this registration statement, the Company may issue up to $150.0 million in common stock in sales deemed to be an “at the market offering,” as defined by the Securities Act, and, so long as the Company qualifies as a “well-known seasoned issuer” as defined in Rule 405 of the Securities Act, an unspecified amount of shares of our common stock, preferred stock, debt securities and warrants. See Note 8, Stockholders’ Equity , for further detail. As of June 30, 2021 and December 31, 2020, the Company has reserved the following shares of common stock for potential exercises of stock options: JUNE 30, DECEMBER 31, Options to purchase common stock 2,820,472 2,499,603 Sales Agreement On May 3, 2021, the Company entered into a Sales Agreement (the “ATM Sales Agreement”) with SVB Leerink LLC (“SVB Leerink”), as agent, pursuant to which the Company may offer and sell, from time to time, shares of its common stock having an aggregate offering price of up to $150.0 million (the “ATM Shares”) from time to time through SVB Leerink (the “ATM Offering”). Under the ATM Sales Agreement, SVB Leerink may sell the ATM Shares by methods deemed to be an “at the market offering” as defined in Rule 415(a)(4) promulgated under the Securities Exchange Act of 1934, as amended. The Company may sell the ATM Shares in amounts and at times to be determined by the Company from time to time subject to the terms and conditions of the ATM Sales Agreement, but it has no obligation to sell any of the ATM Shares in the ATM Offering. ATM Shares sold under the ATM Sales Agreement will be issued pursuant to a prospectus supplement filed on May 3, 2021, and related prospectus filed with the Securities and Exchange Commission, or the SEC, pursuant to our automatically effective shelf registration statement on Form S-3 (Registration No. 333-255724), filed with the SEC on May 3, 2021. The Company or SVB Leerink may suspend or terminate the offering of ATM Shares upon notice to the other party and subject to other conditions. The Company has agreed to pay SVB Leerink commissions for its services in acting as agent in the sale of the ATM Shares in the amount of up to 3.0% of gross proceeds from the sale of the ATM Shares pursuant to the ATM Sales Agreement. The Company has also agreed to provide SVB Leerink with customary indemnification and contribution rights. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXESOn March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law in the United States. The CARES Act provides numerous tax provisions and other stimulus measures, including temporary changes regarding the prior and future utilization of net operating losses and technical corrections from prior tax legislation for tax depreciation of certain qualified improvement property. The Company evaluated the provisions of the CARES Act and as a result, received approximately $0.2 million in February 2021 related to the carryback of our 2019 net operating loss to claim a refund for prior federal tax liabilities. |
Loss Per Share
Loss Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Loss Per Share | LOSS PER SHARE Basic and diluted loss per share is computed by dividing net loss attributable to common stockholders by the weighted-average common shares outstanding (in thousands, except share and per share data): THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 2021 2020 2021 2020 Numerator: Net loss $ (15,622) $ (10,757) $ (31,507) $ (22,649) Less: Accruals of dividends of preferred stock — (206) — (1,012) Net loss attributable to common stockholders - basic and diluted $ (15,622) $ (10,963) $ (31,507) $ (23,661) Denominator: Weighted-average common stock outstanding - basic and diluted 23,305,673 17,623,994 23,267,943 10,054,026 Net loss per share attributable to common stockholders - basic and diluted $ (0.67) $ (0.62) $ (1.35) $ (2.35) The Company’s potentially dilutive securities, which includes stock options, have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share. Therefore, the weighted-average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same. The Company excluded the following from the computation of diluted net loss per share attributable to common stockholders at June 30, 2021 and 2020 because including them would have had an anti-dilutive effect: JUNE 30, JUNE 30, Options to purchase common stock 2,820,472 2,482,902 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | REVENUE FROM CONTRACTS WITH CUSTOMERS Neurona Therapeutics, Inc. License Agreement On June 22, 2021, the Company entered into a license agreement (the "Neurona Agreement") with Neurona Therapeutics, Inc. (“Neurona”). Under the Neurona Agreement, the Company granted Neurona a non-exclusive license to use LDN-193189, an early-stage research compound, which the Company licenses from a third party, solely as a reagent in connection with the manufacturing of diagnostic and/or therapeutic products to make, have made, use, import, offer for sale and sell products and services arising therefrom, and to make, have made, acquire, transfer, import and export the compound for such use. The license excludes Neurona from any rights to use, sell or distribute the compound for any therapeutic or diagnostic purpose. Unless terminated by either party for breach of contract or insolvency, the Neurona Agreement, which commenced on the execution date, will continue in perpetuity until the last patent expires. Under the Neurona Agreement, the Company is due a one-time, upfront license payment of $0.1 million from Neurona as of June 30, 2021. In accordance with the Company's ASC 606 assessment, Neurona is considered to be a customer. The Company identified a single performance obligation, the non-exclusive license, that was satisfied on the date of the execution of the Neurona Agreement when control of the license was transferred. The Company determined that the upfront license fee of $0.1 million constitutes the entire transaction price and does not require further allocation as there was only one performance obligation. The Company determined that the $0.1 million represented the point at which the licensee was able to use and benefit from the license and recognized revenue from upfront license fees when the license was transferred to Neurona upon execution of the Neurona Agreement. The Company recognized the upfront fee as revenue on its consolidated statement of operations for the six months ended June 30, 2021 and as a receivable on its consolidated balance sheet as of June 30, 2021. The Company received the one-time, upfront license payment of $0.1 million from Neurona in July 2021. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On August 4, 2021, the Company and 99 Hayden LLC, successor-in-interest to 128 Spring Street Lexington, LLC (the “Landlord”) entered into the Third Amendment to Lease (the “Amendment”), which amends the lease agreement dated March 20, 2017, as amended by the First Amendment to Lease dated July 1, 2019 and as further amended by the Second Amendment to Lease dated August 8, 2019 (collectively, the “Lease”). Pursuant to the Lease, the Company leased approximately 10,400 square feet of office and laboratory space (the “Initial Premises”) in Lexington, Massachusetts, which serve as the Company’s headquarters. The Amendment provides for (i) the expansion of the Premises to include an additional 5,205 square feet (the “Expansion Premises”) and (ii) the extension of the term of the Lease for an additional period commencing on January 1, 2023 and ending on March 31, 2023 (the“Extended Term”). The Lease with respect to the Expansion Premises pursuant to the Amendment shall commence on the later to occur of: (i) October 1, 2021 and (ii) the date the current tenant of the Expansion Premises vacates the Expansion Premises in a condition sufficient for Landlord to deliver them to the Company (the “Expansion Commencement Date”). Additionally, commencing on the Expansion Commencement Date, (i) the base rent for the Expansion Premises will be $34,700 a month and (ii) the Company’s additional rent amount will increase to account for the Company’s additional share of the operating expenses, utility costs, insurance premiums and taxes and other applicable levies associated with the Expansion Premises. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The accompanying unaudited interim condensed consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company and its wholly owned subsidiaries, Keros Therapeutics Australia Pty Ltd (“Keros Australia”) and Keros Security Corporation, a Massachusetts securities corporation. All significant intercompany transactions and accounts have been eliminated in consolidation. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements On January 1, 2021, the Company adopted Financial Accounting Standards Board Accounting Standards Update No. 2019-12, Income Taxes-Simplifying the Accounting for Income Taxes ("ASU No. 2019-12"). ASU No. 2019-12 eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. ASU No. 2019-12 also simplifies aspects of the accounting for franchise taxes, enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The adoption of this standard did not have an impact on the Company’s condensed consolidated financial statements and related disclosures. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis and indicates the level of the fair value hierarchy utilized to determine such fair values (in thousands): DESCRIPTION JUNE 30, 2021 QUOTED PRICES ACTIVE MARKETS FOR IDENTICAL ASSETS SIGNIFICANT OTHER OBSERVABLE INPUTS SIGNIFICANT OTHER OBSERVABLE INPUTS Assets Money market funds $ 235,156 $ 235,156 $ — $ — Total financial assets $ 235,156 $ 235,156 $ — $ — DESCRIPTION DECEMBER 31, 2020 QUOTED PRICES ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 3) Assets Money market funds $ 262,043 $ 262,043 $ — $ — Total financial assets $ 262,043 $ 262,043 $ — $ — |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands): JUNE 30, DECEMBER 31, Prepaid service contracts $ 936 $ 501 Income tax credit receivable — 172 Prepaid sales tax 111 188 R&D payroll tax credit 145 44 Prepaid insurance 2,722 785 Other 290 160 Total prepaid expenses and other current assets $ 4,204 $ 1,850 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): JUNE 30, DECEMBER 31, Accrued external R&D costs $ 787 $ 169 Accrued external manufacturing costs 2,280 2,265 Accrued compensation and benefits 1,168 1,510 Accrued tax 106 185 Accrued professional fees 697 265 Other 672 218 Total accrued expenses and other current liabilities $ 5,710 $ 4,612 |
Common Stock (Tables)
Common Stock (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Summary of Preferred Stock | As of June 30, 2021 and December 31, 2020, the Company has reserved the following shares of common stock for potential exercises of stock options: JUNE 30, DECEMBER 31, Options to purchase common stock 2,820,472 2,499,603 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Option Activity | A summary of option activity during the six months ended June 30, 2021 is as follows (in thousands except share and per share data): NUMBER OF OPTIONS WEIGHTED-AVERAGE EXERCISE PRICE WEIGHTED-AVERAGE REMAINING CONTRACTUAL TERM (IN YEARS) AGGREGATE INTRINSIC VALUE Outstanding as of December 31, 2020 2,499,603 $ 11.77 8.64 $ 147,103 Granted 483,508 67.45 Exercised (135,905) 0.73 $ 8,107 Expired (26,734) 24.56 Outstanding as of June 30, 2021 2,820,472 $ 21.73 8.44 $ 71,592 Options exercisable as of December 31, 2020 723,130 $ 0.57 7.38 $ 50,599 Options exercisable as of June 30, 2021 1,080,101 $ 7.36 7.71 $ 38,047 |
Schedule of Stock-based Compensation Expense | Total stock-based compensation expense recorded for employees, directors and non-employees during the three and six months ended June 30, 2021 and 2020 was as follows (in thousands): THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 2021 2020 2021 2020 Research and development $ 1,116 $ 313 $ 2,014 $ 321 General and administrative 1,733 826 3,329 830 Total stock-based compensation expense $ 2,849 $ 1,139 $ 5,343 $ 1,151 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Loss Per Share Calculation | Basic and diluted loss per share is computed by dividing net loss attributable to common stockholders by the weighted-average common shares outstanding (in thousands, except share and per share data): THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 2021 2020 2021 2020 Numerator: Net loss $ (15,622) $ (10,757) $ (31,507) $ (22,649) Less: Accruals of dividends of preferred stock — (206) — (1,012) Net loss attributable to common stockholders - basic and diluted $ (15,622) $ (10,963) $ (31,507) $ (23,661) Denominator: Weighted-average common stock outstanding - basic and diluted 23,305,673 17,623,994 23,267,943 10,054,026 Net loss per share attributable to common stockholders - basic and diluted $ (0.67) $ (0.62) $ (1.35) $ (2.35) |
Schedule of Antidilutive Securities Excluded From Computation of Diluted Net Loss Per Share | The Company excluded the following from the computation of diluted net loss per share attributable to common stockholders at June 30, 2021 and 2020 because including them would have had an anti-dilutive effect: JUNE 30, JUNE 30, Options to purchase common stock 2,820,472 2,482,902 |
Nature of Business and Basis _2
Nature of Business and Basis of Presentation (Details) - USD ($) $ / shares in Units, $ in Thousands | May 03, 2021 | Nov. 17, 2020 | Apr. 13, 2020 | May 31, 2021 | Nov. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Class of Stock [Line Items] | |||||||
Issuance of initial public offering | $ 149,500 | $ 110,400 | $ 0 | $ 102,672 | |||
Proceeds from initial public offering, net of discounts and offering costs | $ 140,100 | $ 100,100 | $ 140,100 | ||||
Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Conversion of convertible preferred stock upon initial public offering (in shares) | 10,725,129 | ||||||
IPO | |||||||
Class of Stock [Line Items] | |||||||
Sale of stock, number of shares issued in transaction (in shares) | 6,900,000 | ||||||
Sale of stock, price per share (in USD per share) | $ 16 | ||||||
Over-Allotment Option | |||||||
Class of Stock [Line Items] | |||||||
Sale of stock, number of shares issued in transaction (in shares) | 390,000 | 900,000 | 390,000 | ||||
Public Offering | |||||||
Class of Stock [Line Items] | |||||||
Sale of stock, number of shares issued in transaction (in shares) | 2,990,000 | 2,990,000 | |||||
Sale of stock, price per share (in USD per share) | $ 50 | ||||||
At the Market Offering | |||||||
Class of Stock [Line Items] | |||||||
Stock sales agreement, maximum amount authorized to be issued | $ 150,000 | $ 150,000 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Money market funds | $ 235,156 | $ 262,043 |
Total financial assets | 235,156 | 262,043 |
QUOTED PRICES ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | ||
Assets | ||
Money market funds | 235,156 | 262,043 |
Total financial assets | 235,156 | 262,043 |
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | ||
Assets | ||
Money market funds | 0 | 0 |
Total financial assets | 0 | 0 |
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 3) | ||
Assets | ||
Money market funds | 0 | 0 |
Total financial assets | $ 0 | $ 0 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid service contracts | $ 936 | $ 501 |
Income tax credit receivable | 0 | 172 |
Prepaid sales tax | 111 | 188 |
R&D payroll tax credit | 145 | 44 |
Prepaid insurance | 2,722 | 785 |
Other | 290 | 160 |
Total prepaid expenses and other current assets | $ 4,204 | $ 1,850 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Accrued external R&D costs | $ 787 | $ 169 |
Accrued external manufacturing costs | 2,280 | 2,265 |
Accrued compensation and benefits | 1,168 | 1,510 |
Accrued tax | 106 | 185 |
Accrued professional fees | 697 | 265 |
Other | 672 | 218 |
Total accrued expenses and other current liabilities | $ 5,710 | $ 4,612 |
Common Stock - Narrative (Detai
Common Stock - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | May 03, 2021 | Nov. 17, 2020 | Apr. 13, 2020 | May 31, 2021 | Nov. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Class of Stock [Line Items] | ||||||||
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 | ||||||
Common stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Proceeds from initial public offering, net of discounts and offering costs | $ 140.1 | $ 100.1 | $ 140.1 | |||||
IPO | ||||||||
Class of Stock [Line Items] | ||||||||
Sale of stock, number of shares issued in transaction (in shares) | 6,900,000 | |||||||
Sale of stock, price per share (in USD per share) | $ 16 | |||||||
Over-Allotment Option | ||||||||
Class of Stock [Line Items] | ||||||||
Sale of stock, number of shares issued in transaction (in shares) | 390,000 | 900,000 | 390,000 | |||||
Public Offering | ||||||||
Class of Stock [Line Items] | ||||||||
Sale of stock, number of shares issued in transaction (in shares) | 2,990,000 | 2,990,000 | ||||||
Sale of stock, price per share (in USD per share) | $ 50 | |||||||
At the Market Offering | ||||||||
Class of Stock [Line Items] | ||||||||
Stock sales agreement, maximum amount authorized to be issued | $ 150 | $ 150 | ||||||
Common Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock issuable upon conversion (in shares) | 10,725,129 |
Common Stock - Summary of Commo
Common Stock - Summary of Common Stock Reserved for Future Issuance (Details) - shares | Jun. 30, 2021 | Dec. 31, 2020 |
Options to purchase common stock | ||
Class of Stock [Line Items] | ||
Common stock, reserved for future issuance (in shares) | 2,820,472 | 2,499,603 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 01, 2021 | Jun. 30, 2021 | Jun. 30, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 483,508 | ||
Weighted-average grant date fair value of options granted during the period (in dollars per share) | $ 47.10 | $ 14.24 | |
Unrecognized stock-based compensation expense related to unvested stock options | $ 35.6 | ||
Total fair value of options vested during period | $ 5.9 | ||
Employee Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unvested award, period for recognition | 2 years 8 months 26 days | ||
2017 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | 915,478 | ||
2020 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Annual percentage increase in shares authorized | 4.00% | ||
Number of additional shares authorized (in shares) | 927,714 | ||
Granted (in shares) | 1,904,994 | ||
Number of shares available for future grants (in shares) | 1,010,379 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | |
NUMBER OF OPTIONS | ||
Outstanding as of beginning of period (in shares) | shares | 2,499,603 | |
Granted (in shares) | shares | 483,508 | |
Exercised (in shares) | shares | (135,905) | |
Expired (in shares) | shares | (26,734) | |
Outstanding as of end of period (in shares) | shares | 2,820,472 | 2,499,603 |
Exercisable (in shares) | shares | 1,080,101 | 723,130 |
WEIGHTED-AVERAGE EXERCISE PRICE | ||
Outstanding as of beginning of period (in USD per share) | $ / shares | $ 11.77 | |
Granted (in USD per share) | $ / shares | 67.45 | |
Exercised (in USD per share) | $ / shares | 0.73 | |
Expired (in USD per share) | $ / shares | 24.56 | |
Outstanding as of end of period (in USD per share) | $ / shares | 21.73 | $ 11.77 |
Exercisable (in USD per share) | $ / shares | $ 7.36 | $ 0.57 |
WEIGHTED-AVERAGE REMAINING CONTRACTUAL TERM (IN YEARS) | ||
Outstanding | 8 years 5 months 8 days | 8 years 7 months 20 days |
Exercisable | 7 years 8 months 15 days | 7 years 4 months 17 days |
AGGREGATE INTRINSIC VALUE | ||
Outstanding | $ | $ 71,592 | $ 147,103 |
Exercised | $ | 8,107 | |
Exercisable | $ | $ 38,047 | $ 50,599 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | $ 2,849 | $ 1,139 | $ 5,343 | $ 1,151 |
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 1,116 | 313 | 2,014 | 321 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | $ 1,733 | $ 826 | $ 3,329 | $ 830 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - At the Market Offering - USD ($) $ in Millions | May 03, 2021 | May 31, 2021 |
Class of Stock [Line Items] | ||
Stock sales agreement, maximum amount authorized to be issued | $ 150 | $ 150 |
Commission payment, percentage of gross on sale of ATM shares | 3.00% |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | 1 Months Ended |
Feb. 28, 2021USD ($) | |
Income Tax Disclosure [Abstract] | |
Proceeds from income tax refunds | $ 0.2 |
Loss Per Share - Basic and Dilu
Loss Per Share - Basic and Diluted Loss Per Share Calculation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Numerator: | ||||||
Net loss | $ (15,622) | $ (15,885) | $ (10,757) | $ (11,892) | $ (31,507) | $ (22,649) |
Less: Accruals of dividends of preferred stock | 0 | (206) | 0 | (1,012) | ||
Net loss attributable to common stockholders—basic | (15,622) | (10,963) | (31,507) | (23,661) | ||
Net loss attributable to common stockholders— diluted | $ (15,622) | $ (10,963) | $ (31,507) | $ (23,661) | ||
Denominator: | ||||||
Weighted-average common stock outstanding - basic (in shares) | 23,305,673 | 17,623,994 | 23,267,943 | 10,054,026 | ||
Weighted-average common stock outstanding - diluted (in shares) | 23,305,673 | 17,623,994 | 23,267,943 | 10,054,026 | ||
Net loss per share attributable to common stockholders - basic (in USD per share) | $ (0.67) | $ (0.62) | $ (1.35) | $ (2.35) | ||
Net loss per share attributable to common stockholders - diluted (in USD per share) | $ (0.67) | $ (0.62) | $ (1.35) | $ (2.35) |
Loss Per Share - Antidilutive S
Loss Per Share - Antidilutive Securities (Details) - shares | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Options to purchase common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2,820,472 | 2,482,902 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | |||||
Total revenue | $ 100 | $ 0 | $ 100 | $ 0 | |
Neurona Therapeutics, Inc. | Subsequent Event | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue | $ 100 | ||||
License | Neurona Therapeutics, Inc. | |||||
Disaggregation of Revenue [Line Items] | |||||
Upfront license payment receivable | $ 100 | $ 100 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event | Aug. 04, 2021USD ($)ft² |
Company Headquarters, Initial Premises | |
Subsequent Event [Line Items] | |
Area of Land | 10,400 |
Company Headquarters, Initial Premises, 5,420 Square Feet | |
Subsequent Event [Line Items] | |
Area of Land | 5,420 |
Monthly base rent | $ | $ 20,400 |
Company Headquarters, Initial Premises, 4,997 Square Feet | |
Subsequent Event [Line Items] | |
Area of Land | 4,997 |
Monthly base rent | $ | $ 22,700 |
Company Headquarters, Expansion Premises | |
Subsequent Event [Line Items] | |
Area of Land | 5,205 |
Monthly base rent | $ | $ 34,700 |