Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 23, 2020 | Jun. 28, 2019 | |
Document and Entity Information | |||
Entity Registrant Name | APTINYX INC. | ||
Entity Central Index Key | 0001674365 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | $ 62 | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 45,534,432 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 98,849 | $ 150,637 |
Restricted cash | 179 | 252 |
Accounts receivable | 444 | 578 |
Prepaid expenses and other current assets | 5,637 | 1,784 |
Total current assets | 105,109 | 153,251 |
Other assets | 166 | 673 |
Property and equipment, net | 1,204 | 1,690 |
Total assets | 106,479 | 155,614 |
Current liabilities: | ||
Accounts payable | 1,555 | 1,889 |
Accrued expenses and other current liabilities | 3,341 | 3,996 |
Total current liabilities | 4,896 | 5,885 |
Other long-term liabilities | 272 | 418 |
Total liabilities | 5,168 | 6,303 |
Commitments and contingencies (see Note 15) | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value, 10,000 shares authorized and no shares issued and outstanding as of December 31, 2019 and December 31, 2018 | ||
Common stock, $0.01 par value, 150,000 shares authorized as of December 31, 2019 and December 31, 2018, 33,739 and 33,341 issued and outstanding as of December 31, 2019 and December 31, 2018 | 337 | 333 |
Additional paid-in capital | 263,922 | 254,516 |
Accumulated deficit | (162,948) | (105,538) |
Total stockholders’ equity | 101,311 | 149,311 |
Total liabilities and stockholders’ equity | $ 106,479 | $ 155,614 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Balance Sheets | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000 | 150,000 |
Common stock, shares issued | 33,739 | 33,341 |
Common stock, shares outstanding | 33,739 | 33,341 |
Statements of Operations and Co
Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues: | ||
Total revenues | $ 3,669 | $ 6,574 |
Operating expenses: | ||
Research and development | 44,330 | 48,788 |
General and administrative | 18,952 | 12,674 |
Total operating expenses | 63,282 | 61,462 |
Loss from operations | (59,613) | (54,888) |
Other income | 2,203 | 1,607 |
Net loss and comprehensive loss | $ (57,410) | $ (53,281) |
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share) | $ (1.71) | $ (2.64) |
Weighted-average number of common shares outstanding, basic and diluted (in shares) | 33,556 | 20,199 |
Collaboration revenue | ||
Revenues: | ||
Total revenues | $ 3,669 | $ 4,932 |
Grant revenue | ||
Revenues: | ||
Total revenues | $ 1,642 |
Statements of Convertible Prefe
Statements of Convertible Preferred Stock shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($)shares | |
Convertible Preferred Stock Rollforward | |
Issuance of common stock upon IPO, net of underwriters’ discount and other offering costs of $3,012 | $ 106,505 |
Series A-1 | |
Convertible Preferred Stock Rollforward | |
Convertible preferred stock beginning balance | $ 22,650 |
Convertible preferred stock shares beginning balance | shares | 151,773 |
Conversion of preferred stock upon IPO | $ (22,650) |
Conversion of preferred stock upon IPO (in shares) | shares | (151,773) |
Series A-2 | |
Convertible Preferred Stock Rollforward | |
Convertible preferred stock beginning balance | $ 39,979 |
Convertible preferred stock shares beginning balance | shares | 173,453 |
Conversion of preferred stock upon IPO | $ (39,979) |
Conversion of preferred stock upon IPO (in shares) | shares | (173,453) |
Series B | |
Convertible Preferred Stock Rollforward | |
Convertible preferred stock beginning balance | $ 69,757 |
Convertible preferred stock shares beginning balance | shares | 234,955 |
Conversion of preferred stock upon IPO | $ (69,757) |
Conversion of preferred stock upon IPO (in shares) | shares | (234,955) |
Statements of Stockholders' Equ
Statements of Stockholders' Equity (Deficit) - USD ($) shares in Thousands, $ in Thousands | Common stock | Additional paid-in capital | Accumulated deficit | Total |
Stockholders' (deficit) equity beginning balance at Dec. 31, 2017 | $ 53 | $ 12,486 | $ (52,257) | $ (39,718) |
Stockholders' (deficit) equity shares beginning balance at Dec. 31, 2017 | 5,342 | |||
Stockholders' (Deficit) Equity Rollforward | ||||
Issuance of common stock upon vesting of restricted stock awards | $ 3 | (3) | ||
Issuance of common stock upon vesting of restricted stock awards (in shares) | 293 | |||
Stock-based compensation | 3,318 | 3,318 | ||
Conversion of preferred stock upon IPO | $ 203 | 132,183 | 132,386 | |
Conversion of preferred stock upon IPO (in shares) | 20,306 | |||
Issuance of common stock upon IPO, net of underwriters’ discount and other offering costs of $3,012 | $ 74 | 106,431 | 106,505 | |
Issuance of common stock upon IPO, net of underwriters’ discount and other offering costs of $3,012 (in shares) | 7,360 | |||
Issuance of common stock upon exercise of stock options | 101 | 101 | ||
Issuance of common stock upon exercise of stock options (in shares) | 40 | |||
Net loss | (53,281) | (53,281) | ||
Stockholders' (deficit) equity ending balance at Dec. 31, 2018 | $ 333 | 254,516 | (105,538) | $ 149,311 |
Stockholders' (deficit) equity shares ending balance at Dec. 31, 2018 | 33,341 | 33,341 | ||
Stockholders' (Deficit) Equity Rollforward | ||||
Issuance of common stock upon vesting of restricted stock awards | $ 2 | (2) | ||
Issuance of common stock upon vesting of restricted stock awards (in shares) | 217 | |||
Stock-based compensation | 9,036 | $ 9,036 | ||
Issuance of common stock upon exercise of stock options | $ 2 | 372 | 374 | |
Issuance of common stock upon exercise of stock options (in shares) | 181 | |||
Net loss | (57,410) | (57,410) | ||
Stockholders' (deficit) equity ending balance at Dec. 31, 2019 | $ 337 | $ 263,922 | $ (162,948) | $ 101,311 |
Stockholders' (deficit) equity shares ending balance at Dec. 31, 2019 | 33,739 | 33,739 |
Statements of Stockholders' E_2
Statements of Stockholders' Equity (Deficit) (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Statements of Stockholders' Equity (Deficit) | |
Stock issuance costs capitalized | $ 3,012 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (57,410) | $ (53,281) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization expense | 455 | 457 |
Loss on disposal of property and equipment | 3 | |
Stock-based compensation expense | 9,036 | 3,318 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other assets | (3,166) | (260) |
Accounts receivable | 134 | 359 |
Accounts payable | (361) | 418 |
Accrued expenses and other liabilities | (778) | 1,541 |
Net cash used in operating activities | (52,087) | (47,448) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (43) | (407) |
Proceeds from sale of property and equipment | 4 | |
Net cash used in investing activities | (39) | (407) |
Cash flows from financing activities: | ||
Payment of deferred issuance costs associated with Series B convertible preferred stock financing | (232) | |
Proceeds from stock options exercised | 374 | 101 |
Proceeds from initial public offering, net of underwriters' discounts | 109,517 | |
Payment of deferred offering costs | (182) | (3,012) |
Net cash provided by financing activities | 192 | 106,374 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (51,934) | 58,519 |
Cash, cash equivalents and restricted cash, at beginning of period | 151,128 | 92,609 |
Cash, cash equivalents and restricted cash, at end of period | 99,194 | $ 151,128 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Deferred offering costs not yet paid | 70 | |
Property and equipment in accounts payable | $ 11 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2019 | |
Organization | |
Organization | 1. Organization Description of business Aptinyx Inc. (the “Company” or “Aptinyx”) was incorporated in Delaware on June 24, 2015 and maintains its headquarters in Evanston, Illinois. Aptinyx is a clinical‑stage biopharmaceutical company focused on the discovery, development, and commercialization of novel, proprietary, synthetic small molecules for the treatment of brain and nervous system disorders. Aptinyx has a platform for discovering proprietary compounds that work through a novel mechanism: modulation of N‑methyl‑D‑aspartate receptors (“NMDAr”), which are vital to normal and effective brain and nervous system functions. This mechanism has applicability across a number of brain and nervous system disorders. Liquidity and capital resources The Company has incurred losses and negative cash flows from operations since inception and had an accumulated deficit of $162.9 million as of December 31, 2019. The Company expects to incur substantial operating losses for the next several years and will need to obtain additional financing in order to complete clinical studies and launch and commercialize any product candidates for which it receives regulatory approval. There can be no assurance that such financing will be available or will be at terms acceptable to the Company. As of December 31, 2019, the Company had cash and cash equivalents of $98.8 million which, when combined with the proceeds received from the Company’s follow-on offering discussed below (see Note 16), it believes will be sufficient to fund its planned operations for a period of at least twelve months from the date of the issuance of these financial statements. Initial public offering On June 20, 2018, the Company’s registration statement on Form S - 1 (File No. 333‑225150) relating to the initial public offering (“IPO”) of its common stock became effective and on June 25, 2018, the IPO closed. Pursuant to the IPO, the Company issued and sold 7,359,998 shares of common stock at a public offering price of $16.00 per share, which included 959,999 shares sold pursuant to the exercise of the underwriters’ option to purchase additional shares. The Company received net proceeds of $106.5 million after deducting underwriting discounts and commissions and other offering costs of $3.0 million. The shares began trading on the Nasdaq Global Select Market on June 21, 2018. Upon the closing of the IPO, all of the Company’s outstanding shares of convertible preferred stock automatically converted into 20,306,497 shares of common stock at the applicable conversion ratio. On June 7, 2018, the Company effected a one-for-27.58621 reverse stock split of its issued and outstanding shares of common stock and a proportional adjustment to the existing conversion ratios for each series of the Company's redeemable convertible preferred stock (see Note 10). Accordingly, all share and per share amounts for all periods presented in the financial statements have been adjusted retroactively, where applicable, to reflect this reverse stock split and adjustment of the preferred stock conversion ratios. The Company is also authorized to issue 10 million shares of undesignated preferred stock, par value $0.01, in one or more series. As of December 31, 2019, no shares of preferred stock were issued or outstanding. |
Basis of presentation
Basis of presentation | 12 Months Ended |
Dec. 31, 2019 | |
Basis of presentation | |
Basis of Presentation | 2. Basis of presentation The accompanying financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”), or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s financial statements upon adoption. Under the Jumpstart Our Business Startups Act of 2012, as amended (“the JOBS Act”), the Company meets the definition of an emerging growth company, and has elected the extended transition period for complying with new or revised accounting standards, which delays the adoption of these accounting standards until they would apply to private companies. Recently adopted accounting pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, which amends the guidance for accounting for revenue from contracts with customers. This ASU supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition , (“ASC 605”), and creates a new topic, ASC 606, Revenue from Contracts with Customers . Through subsequent targeted amendments, the FASB issued additional ASUs that delayed the effective date of ASC 606 and clarified various aspects of the new revenue guidance, including principal versus agent considerations, identifying performance obligations, licensing, and other improvements and practical expedients. The Company adopted this new standard on January 1, 2019 using the modified retrospective transition method. The Company presents revenue from contracts with customers as collaboration revenue in the Company’s statements of operations. The Company applied this new standard to all contracts with customers that were not complete as of the adoption date and has determined that no cumulative catch-up adjustment to accumulated deficit was required. See Note 4, “ Research collaboration agreement with Allergan” for additional information regarding the Company’s single contract that falls within the scope of ASC 606. The Company considered the adoption of ASC 606 compared to what would have been recognized by the Company under the prior revenue standard, ASC 605. The adoption of ASC 606 did not have a material impact on the Company’s financial statements as of and for the year ended December 31, 2019. The Company has determined that the accounting for the Company’s various grant agreements is outside the scope of ASC 606, as the government agencies granting the Company funds are not receiving reciprocal value for their contributions. There are currently no grants outstanding in 2019. Since the accounting for government grants falls outside the scope of ASC 606, the Company has reclassified the grant income earned in 2018 separate and apart from revenue earned from contracts with customers in the Company’s statements of operations to conform to the current year presentation. In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting . This ASU expands the scope of Topic 718, Compensation—Stock Compensation to include share-based payments issued to nonemployees for goods or services. Under the new guidance, the existing employee guidance will apply to nonemployee share based transactions (as long as the transaction is not effectively a form of financing), with the exception of specific guidance related to the attribution of compensation cost. The cost of nonemployee awards will continue to be recorded as if the grantor had paid cash for the goods or services. The new accounting guidance will be effective for the Company on January 1, 2020. The Company has early adopted this new standard on January 1, 2019. The adoption did not have a material impact on the Company’s financial statements. Recently issued accounting pronouncements In February 2016, the FASB issued ASU No. 2016‑02, Leases (“ASC 842”), which requires a lessee to recognize assets and liabilities on the balance sheet for operating leases and changes many key definitions, including the definition of a lease. The new standard includes a short‑term lease exception for leases with a term of 12 months or less, as part of which a lessee can make an accounting policy election not to recognize lease assets and lease liabilities. Lessees will continue to differentiate between finance leases (previously referred to as capital leases) and operating leases using classification criteria that are substantially similar to the previous guidance. The new standard will be effective for the Company in fiscal years beginning after December 15, 2020, and early adoption is permitted. The Company anticipates that the adoption of this standard will have an impact on its balance sheet due to the recognition of right-of-use assets and lease liabilities; however, the Company is currently evaluating the impact that the adoption of ASC 842 will have on its financial statements. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2019 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | 3. Summary of significant accounting policies Use of estimates The financial statements are prepared in conformity with GAAP. This process requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Risk and uncertainties The Company’s future results of operations involve a number of risks and uncertainties. Factors that could affect the Company’s future operating results and cause actual results to vary materially from expectations include, but are not limited to, uncertainty of: future clinical study results, the scope, rate of progress and expense of the Company’s ongoing as well as any additional preclinical studies, clinical studies and other research and development activities, clinical study enrollment rate or design, the manufacturing of the Company’s product candidates, significant and changing government regulation, and the timing and receipt of any regulatory approvals. The Company’s product candidates require approvals from the U.S. Food and Drug Administration and comparable foreign regulatory agencies prior to commercial sales in their respective jurisdictions. There can be no assurance that any product candidates will receive the necessary approvals. If the Company was denied approval, approval was delayed or the Company was unable to maintain approval for any product candidate, it could have a materially adverse impact on the Company. The Company is dependent upon third‑party manufacturers to supply product for research and development activities in its programs. In particular, the Company relies and expects to continue to rely on a small number of manufacturers to supply it with its requirements for the active pharmaceutical ingredients and final drug product related to these programs. These programs could be adversely affected by a significant interruption in the supply of active pharmaceutical ingredients and final drug product. Revenue recognition Revenue is recognized in accordance with revenue recognition accounting guidance, which utilizes five steps to determine whether revenue can be recognized and to what extent: (i) identify the contract with a customer; (ii) identify the performance obligation(s); (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) determine the recognition period. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, Revenue from Contracts with Customers, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Significant judgments exercised by management include the identification of performance obligations, and whether such promised goods or services are considered distinct. The Company evaluates promised goods or services on a contract by contract basis to determine whether each promise represents a good or service that is distinct or has the same pattern of transfer as other promises. A promised good or service is considered distinct if the customer can benefit from the good or service independently of other goods/services either in the contract or that can be obtained elsewhere, without regard to contract exclusivity, and the entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contact. If the good or service is not considered distinct, the Company combines such promises and accounts for them as a single combined performance obligation. Accounts receivable Accounts receivable that management has the intent and ability to collect are reported in the balance sheets at outstanding amounts, less an allowance for doubtful accounts. During the years ended December 31, 2019 and 2018, one research collaborator, Allergan plc (“Allergan”) represented 100% and 75%, respectively, of the Company’s revenues (see Note 4). The associated accounts receivable were approximately $0.4 million and $0.6 million at December 31, 2019 and 2018, respectively. The Company writes off uncollectible receivables based on specific identification when the likelihood of collection is remote. No allowance was deemed necessary at December 31, 2019 and 2018. Cash, cash equivalents and restricted cash Cash and cash equivalents consist of cash and, if applicable, highly liquid investments with an original maturity of three months or less when purchased. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the balance sheets that sum to the total of the same such amounts shown in the statements of cash flows (amounts in thousands). As of December 31, Cash and cash equivalents $ 98,849 $ 150,637 Short-term and long-term restricted cash 345 491 Total cash, cash equivalents, and restricted cash shown in the statements of cash flows $ 99,194 $ 151,128 Amounts included in restricted cash represent those amounts required to be held as a security deposit in the form of letters of credit for the Company’s leased office facility and cash collateral held by credit card. Concentrations of credit risk The Company, at times, maintains cash and cash equivalents in accounts with a financial institution in excess of the amount insured by the Federal Deposit Insurance Corporation. The Company monitors the financial stability of this institution regularly and management does not believe there is significant credit risk associated with deposits in excess of federally insured amounts. Fair value of financial instruments ASC 820, Fair Value Measurement (“ASC 820”), establishes a fair value hierarchy for instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s own assumptions (unobservable inputs). Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability, and are developed based on the best information available in the circumstances. ASC 820 identifies fair value as the exchange price, or exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a three‑tier fair value hierarchy that distinguishes between the following: · Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; · Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and · Level 3 inputs are unobservable inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. There were no Level 3 assets or liabilities as of December 31, 2019 or 2018. The carrying values reported in the Company’s balance sheets for cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and accrued expenses are reasonable estimates of their fair values due to the short‑term nature of these items. Property and equipment Property and equipment are stated at cost. Maintenance and repairs are charged to expense as incurred. Additions, improvements and replacements are capitalized. Depreciation of property and equipment is provided for by the straight‑line method over the estimated useful lives of the related assets. The estimated useful lives of property and equipment are as follows: Description Estimated useful life Computer software and equipment 3 years Office equipment and furniture 5 years Laboratory equipment 5 years Leasehold improvements Lesser of the estimated useful life or term of the lease Construction-in-progress reflects property and equipment yet to be placed in service. Impairment of long‑lived assets Long‑lived assets consist of property and equipment. Long‑lived assets to be held and used are tested for recoverability whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. If the sum of the estimated future undiscounted cash flows expected to result from the use and eventual disposition of an asset is less than the carrying amount of the asset group, an impairment loss is recognized. Measurement of an impairment loss is based on the fair value of the asset group. The Company has not recorded any impairment losses on long‑lived assets for the years ended December 31, 2019 and 2018. Research and development Research and development expenses are comprised of costs incurred in performing research and development activities, including salaries and benefits, facilities costs, overhead costs, depreciation, contract services and other related costs. Research and development costs are expensed to operations as the related obligation is incurred. The Company has entered into various research and development contracts with research institutions, clinical research organizations, clinical manufacturing organizations and other companies. These agreements are generally cancelable, and related payments are recorded as research and development expenses as incurred. Payments for these activities are based on the terms of the individual agreements, which may differ from the pattern of costs incurred, and are reflected on the balance sheet as prepaid or accrued expenses. The Company records accruals for estimated ongoing research costs. When evaluating the adequacy of the accrued liabilities, the Company analyzes progress of the studies, including the phase or completion of events, invoices received and contracted costs. Significant judgments and estimates may be made in determining the accrued balances at the end of any reporting period. Actual results could differ from the Company’s estimates. The Company’s historical accrual estimates have not been materially different from the actual costs. Convertible preferred stock The Company has applied the guidance in ASC 480‑10‑S99‑3A, SEC Staff Announcement: Classification and Measurement of Redeemable Securities and has therefore classified the Series A‑1, Series A‑2 and Series B convertible preferred stock (Note 10) as mezzanine equity. The convertible preferred stock was recorded outside of stockholders’ deficit because, in the event of certain deemed liquidation events considered not solely within the Company’s control, such as a merger, acquisition and sale of all or substantially all of the Company’s assets, the convertible preferred stock would have become redeemable at the option of the holders. In the event of a change of control of the Company, proceeds received from the sale of such shares will be distributed in accordance with the liquidation preferences set forth in the Company’s Amended and Restated Certificate of Incorporation. The Company 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 an event would occur. As described in Note 1, all previously outstanding convertible preferred stock was converted to common stock upon the completion of the Company’s IPO in June 2018. Stock‑based compensation The Company has stock‑based compensation plans that cover the Company’s directors and employees and are more fully described in Note 11. Stock‑based compensation cost is estimated at the grant date based on the fair value of the award, and the cost is recognized as expense ratably over the vesting period. Income taxes The Company accounts for income taxes under the liability method in accordance with FASB ASC 740, Income Taxes. Under this method, deferred income tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is established if it is more likely than not that all, or some portion, of deferred income tax assets will not be realized. The Company has recorded a full valuation allowance to reduce its net deferred income tax assets to zero. In the event the Company were to determine that it would be able to realize some or all its deferred income tax assets in the future, an adjustment to the deferred income tax asset valuation allowance would increase income in the period such determination was made. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained upon an examination. Any recognized income tax positions would be measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement would be reflected in the period in which the change in judgment occurs. At December 31, 2019 and 2018, the Company had no liability for income tax associated with uncertain tax positions. The Company would recognize any corresponding interest and penalties associated with its income tax positions in income tax expense. There was no income tax interest or penalties incurred in 2019 or 2018. Segment data The Company manages its operations as a single segment for the purposes of assessing performance and making operating decisions. The Company’s singular focus is on advancing therapies to treat disorders of the brain and nervous system. All tangible assets are held in the United States and all revenue is generated in the United States. Comprehensive loss Comprehensive loss is equal to net loss as presented in the accompanying statements of operations. Net loss per share Basic net loss per share is calculated by dividing the net loss by the weighted‑average number of shares of common stock outstanding during the period, without consideration for common stock equivalents. Diluted net loss per share is the same as basic net loss per share, since the effects of potentially dilutive securities are antidilutive given the Company has reported net losses for each period presented. |
Research collaboration agreemen
Research collaboration agreement with Allergan | 12 Months Ended |
Dec. 31, 2019 | |
Research collaboration agreement with Allergan | |
Research collaboration agreement with Allergan | 4. Research collaboration agreement with Allergan On July 24, 2015, the Company entered into a Research Collaboration Agreement (“RCA”) with Naurex Inc., a subsidiary of Allergan plc (“Allergan”), focused on the research and discovery of small molecules that modulate NMDArs. The collaboration is supervised by a Joint Steering Committee (“JSC”) comprising an equal number of representatives from both the Company and Allergan. Under the terms of the agreement, the RCA will terminate upon the earlier of a predetermined anniversary of the RCA or on the date on which Allergan exercises three options to acquire molecules from a pool of eligible compounds. Under the terms of the agreement, Allergan will pay the Company $1.0 million for each option exercised by Allergan. On May 16, 2018, Allergan exercised its option to acquire exclusive rights to develop and commercialize AGN-241751 within a predefined set of indications. The Company concluded that Allergan meets the definition of a customer, and therefore concluded that the RCA represents a contract with a customer that falls within the scope of ASC 606. Performance obligations The Company identified the following promised goods or services within the RCA: · Research Licenses – the Company provides access to exclusive licenses under all of the Company’s NMDAr technologies, during the research term for the sole purpose of conducting research and development activities (the “Research Licenses”). Historically, the Company’s licenses have held no value to the customer on a standalone basis, as the research compounds were in the early discovery phase and required the Company’s expertise for further development. Accordingly, the Research Licenses are not considered distinct. · Research and Development Services – the Company provides research and development services that are performed on behalf of, or with, Allergan (the “Research and Development Services”). As discussed within Research Licenses above, the Company’s licenses have historically held no value without the specialized research and development services. As the Company generally only provides research and development services for internally generated small molecules that modulate NMDArs which require a license to be utilized by a third party, the Research and Development Services are not considered distinct. · Joint Steering Committee – the Company actively participates in a joint steering committee, which allows the Company and its collaboration partner to direct the progression and prioritization of the joint discovery programs. As the JSC would not occur or benefit the customer without the use of the Research Licenses and the related Research and Development Services, and given the Company’s proprietary knowledge of the Research Licenses and the NMDAr technologies, this is not considered distinct. The Company also evaluated whether the option granted to the customer to acquire additional goods or services represented a material right at contract inception. Upon Allergan’s exercise of one of its options, the Company is obligated to transfer control of all intellectual property relating to the optioned compound to Allergan, after which the Company has no further interest in, or continuing involvement with, such optioned compound. The Company evaluated the customer options for material rights, that is, whether the option was to acquire additional goods or services for free or at a discount, and concluded that the options are priced, at contract inception, at standalone selling price. Consequently, the customer options do not represent a performance obligation at the outset of the arrangement since they are contingent upon the option exercise which is outside of the Company’s control. The Company has concluded that there is a single combined performance obligation (comprising the Research Licenses, Research and Development Services and participation on the JSC) which is satisfied over time, as the research and development services are performed. The exercise of the option to acquire exclusive rights to develop and commercialize AGN-241751 or any future options exercised are not considered a performance obligation until the time of option exercise. Transaction price The RCA includes both fixed and variable consideration. Fixed payments, such as contractually defined fees per full-time employee (“FTE”), are included in the transaction price at contract inception, while variable consideration, such as reimbursement for Research and Development Services, are estimated and then evaluated for constraints upon inception of the contract and evaluated on a quarterly basis thereafter. Research and Development Services are updated for actual invoices. There were no capitalized costs associated with obtaining the contract. The Company concluded that it will use an input method to measure proportional performance and to calculate the corresponding amount of revenue to recognize. The Company uses fixed FTE efforts and variable out-of-pocket costs as actual costs incurred relative to the annual budget research plan to measure progress towards fulfillment of the performance obligation. An input method of revenue recognition requires management to make estimates of costs to complete the Company’s performance obligations. In making such estimates, significant judgment is required to evaluate assumptions related to cost estimates. The cumulative effect of revisions to estimated costs to complete the Company’s performance obligations will be recorded in the period in which changes are identified and amounts can be reasonably estimated. The Company does not anticipate significant changes as the research plan is reviewed and adjusted annually and approved by the JSC. There are no significant financing components in the contract. The Company has determined that the option fee is representative of standalone selling price and concluded that it will recognize revenue for the option fee at a point in time, on the date of exercise, due to the significant uncertainty of whether or not Allergan would exercise the option. The Company recognizes the option fee at a point in time because control of the underlying intellectual property transfers to the customer, and the customer is able to use and benefit from the license. The Company has no further rights, interests or remaining performance obligations associated with any optioned compound, once exercised. During the years ended December 31, 2019 and 2018, the Company recorded expenses of $7.3 million and $7.9 million, respectively, for certain development activities in accordance with the terms of the RCA, of which 50% was reimbursed by Allergan. The Company received reimbursements of $3.7 million and $3.9 million during the years ended December 31, 2019 and 2018, respectively. Such reimbursements were reported within collaboration revenue in the statements of operations. On May 16, 2018, Allergan exercised its option to acquire exclusive rights to develop and commercialize AGN-241751 within a specific set of indications. For the year ended December 31, 2018, the Company recognized the $1.0 million non-refundable milestone payment within collaboration revenue in the statements of operations as there were no remaining performance obligations associated with the optioned compound. |
Fair value measurements
Fair value measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair value measurements | |
Fair value measurements | 5. Fair value measurements Assets measured at fair value as of December 31, 2019 are as follows (in thousands): December 31, Level 1 Level 2 Level 3 Assets Money market funds, included in cash and cash equivalents $ 97,998 $ 97,998 $ — $ — Money market funds, included in restricted cash 179 179 — — Money market funds, included in other assets 166 166 — — $ 98,343 $ 98,343 $ — $ — Assets measured at fair value as of December 31, 2018 are as follows (in thousands): December 31, Level 1 Level 2 Level 3 Assets Money market funds, included in cash and cash equivalents $ 150,151 $ 150,151 $ — $ — Money market funds, included in restricted cash 252 252 — — Money market funds, included in other assets 239 239 — — $ 150,642 $ 150,642 $ — $ — |
Prepaid expenses and other curr
Prepaid expenses and other current assets | 12 Months Ended |
Dec. 31, 2019 | |
Prepaid expenses and other current assets | |
Prepaid expenses and other current assets | 6. Prepaid expenses and other current assets Prepaid expenses and other current assets consist of the following (in thousands): As of December 31, Prepaid clinical $ 3,719 $ 728 Prepaid insurance 994 673 Prepaid manufacturing costs 558 — Other prepaid expenses and current assets 366 383 Total prepaid expenses and other current assets $ 5,637 $ 1,784 |
Property and equipment
Property and equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property and equipment | |
Property and equipment | 7 . Property and equipment Property and equipment are as follows (in thousands): As of December 31, Computer software and equipment $ 15 $ 15 Office equipment and furniture 176 176 Laboratory equipment 1,597 1,571 Leasehold improvements 1,051 1,051 Construction-in-progress 11 — Less accumulated depreciation (1,646) (1,123) Property and equipment, net $ 1,204 $ 1,690 Depreciation expense was $0.5 million for each of the years ended December 31, 2019 and 2018. |
Accrued expenses and other curr
Accrued expenses and other current liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Accrued expenses and other current liabilities | |
Accrued expenses and other current liabilities | 8. Accrued expenses and other current liabilities Accrued expenses and other current liabilities consist of the following (in thousands): As of December 31, Employee-related expenses $ 1,925 $ 2,043 Development costs and sponsored research 652 915 Clinical trials 410 607 Other 354 431 Total accrued expenses and other current liabilities $ 3,341 $ 3,996 |
Operating leases
Operating leases | 12 Months Ended |
Dec. 31, 2019 | |
Operating leases | |
Operating leases | 9. Operating leases The Company enters into various non‑cancelable, operating lease agreements for its facilities and equipment in order to conduct its operations. The Company expenses rent on a straight‑line basis over the life of the lease and has recorded deferred rent on the balance sheets within both accrued expenses and other current liabilities and other long-term liabilities. On October 13, 2016, the Company entered into a lease agreement with the landlord for office space totaling approximately 16,500 square feet. The term of this lease commenced on April 1, 2017 and continues through August 31, 2022. The Company has an option to renew the lease for one renewal term of 5 years. The lease provided the Company with a tenant improvement allowance of $0.4 million. The Company recorded the tenant improvement allowance incurred as a deferred lease incentive and is amortizing the deferred lease incentive through a reduction of rent expense ratably over the lease term. On July 18, 2018, the Company entered into a sublease agreement for additional office space adjacent to the Company’s existing headquarters in Evanston, Illinois, totaling approximately 6,172 square feet. The term of the lease commenced on July 18, 2018 and continues through September 30, 2022. On January 31, 2019, the sublease agreement was terminated, and the Company entered into an amended lease agreement with the landlord for the same additional office space. The terms commence on February 1, 2019 and continue through August 31, 2022. Total rent expense, inclusive of lease incentives, under the operating lease agreements amounted to $0.9 million and $0.7 million for the years ended December 31, 2019 and 2018, respectively. Aggregate future minimum annual rental commitments under these non‑cancelable lease agreements are as follows at December 31, 2019 (in thousands): Year ending December 31, 2020 $ 864 2021 876 2022 590 2023 — 2024 — Thereafter — $ 2,330 |
Convertible preferred stock and
Convertible preferred stock and stockholders’ equity | 12 Months Ended |
Dec. 31, 2019 | |
Convertible preferred stock and stockholders’ equity | |
Convertible preferred stock and stockholders’ equity | 10. Convertible preferred stock and stockholders’ equity As described in Note 1, all previously outstanding convertible preferred stock was converted to common stock upon the completion of the Company’s IPO in June 2018. Series A preferred stock On May 4, 2016, the Company entered into a purchase agreement (the “Series A Purchase Agreement”) for a private placement of up to 151,772,701 shares of Series A‑1 Convertible Preferred Stock (the “Series A‑1 Preferred Stock”) and 173,453,018 shares of Series A‑2 Convertible Preferred Stock (the “Series A‑2 Preferred Stock” and together with the Series A‑1 Preferred Stock, the “Series A Preferred Stock”) under the Series A Purchase Agreement. Of the 325,225,719 authorized shares of Series A Preferred Stock, 151,772,701 shares were designated Series A‑1 Preferred Stock at $0.16472 per share and 173,453,018 shares were designated Series A‑2 Preferred Stock at $0.23061 per share. The Series A Purchase Agreement obligated the investors to purchase, at the election of the Company’s board of directors (the “Board of Directors”), the Series A‑2 Preferred Stock at $0.23061 per share upon achieving certain clinical milestones. The determination as to whether the milestone event was met was subject to the certification by (i) the Board of Directors and (ii) the holders of at least a majority of the then‑outstanding Series A Preferred Stock. The Series A Purchase Agreement also obligated the Company to sell to each investor that elects to purchase such investor’s portion of Series A‑2 Preferred Stock at any time such number of shares of Series A‑2 Preferred Stock pro rata in accordance with the number of Series A‑1 Preferred Stock purchased at the initial closing (the “Tranche Rights”). In January 2017, the Company achieved its clinical milestone obligating the Company to sell its Series A‑2 Preferred Stock at $0.23061 per share. Series B preferred stock On December 11, 2017, the Company entered into a purchase agreement (the “Series B Purchase Agreement”) for a private placement of 234,954,520 shares of Series B Convertible Preferred Stock (the “Series B Preferred Stock”) in exchange for $69.8 million, net of issuance costs. All 234,954,520 authorized shares of Series B Preferred Stock were designated at $0.29793 per share. Dividends The holders of the Series A and Series B Preferred Stock are not entitled to receive dividends unless declared by the Board of Directors of the Company in accordance with the Company’s certificate of incorporation, as amended from time to time. No dividends have been declared since inception. Liquidation preference Upon a liquidation of the Company, the assets of the Company or proceeds available for distribution to the Company’s stockholders shall be paid as follows: (a) first, for each share of Series B Preferred Stock the greater of (i) one times the original purchase price plus declared and unpaid dividends on such share, or (ii) such amount as would have been payable had all shares of Series B Preferred Stock been converted to common stock immediately prior to such liquidation; and (b) then, for each share of Series A Preferred Stock the greater of (i) one times the original purchase price plus declared and unpaid dividends on such share, or (ii) such amount as would have been payable had all shares of (A) Series A‑1 Preferred Stock been converted to common stock, in the case of Series A‑1 Preferred Stock and (B) Series A‑2 Preferred Stock been converted to common stock, in the case of Series A‑2 Preferred Stock immediately prior to such liquidation. The balance of any proceeds shall be distributed pro rata to holders of common stock. If upon liquidation, the assets of the Company or proceeds available for distribution to its stockholders are insufficient to pay the holders of the Series B Preferred Stock as to their respective liquidation preferences the full amount entitled, the holders of the Series B Preferred Stock shall share ratably any distribution of the assets or proceeds available for distribution. If upon liquidation, the assets of the Company or proceeds available for distribution to its stockholders, after payment in full of the liquidation preferences to holders of the Series B Preferred Stock, are insufficient to pay the holders of the Series A Preferred Stock as to their respective liquidation preferences the full amount entitled, the holders of the Series A Preferred Stock shall share ratably any distribution of the remaining assets or proceeds available for distribution. Conversion update Shares of preferred stock are convertible into such number of fully paid and non‑assessable shares of common stock as determined by dividing the original issuance price by the conversion price at the time in effect, subject to adjustment. The original conversion price is $0.16472 for Series A‑1 Preferred Stock, $0.23061 for Series A‑2 Preferred Stock, and $0.29793 for Series B Preferred Stock, in each case, subject to adjustments to reflect the issuance of common stock, options, warrants, or other rights to subscribe for or to purchase common stock for a consideration per share, less than the conversion price then in effect and subsequent stock dividends, stock splits, combinations, or recapitalizations. Conversion is at the option of the respective holders of Series A and Series B Preferred Stock, although conversion is automatic upon the earlier of (a) the consummation of an underwritten public offering resulting in gross proceeds to the Company of at least $70 million and a share price of at least $0.446895 per share (subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization), or (b) the date and time, or the occurrence of an event, specified by the vote or written consent of the holders of at least majority of the then outstanding shares of Series A and Series B Preferred Stock, respectively; provided, that the outstanding shares of Series B Preferred Stock will not convert into shares of common stock pursuant to clause (b) without the approval of at least a majority of the then‑outstanding Series B Preferred Stock, including one or more holders of Series B Preferred Stock that (i) individually, or together with such holders’ affiliates, do not hold any Series A Preferred Stock and (ii) individually or collectively are the record holders of at least 30,208,439 shares of Series B Preferred Stock, subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization with respect to the Series B Preferred Stock. Voting rights Holders of the Series A and Series B Preferred Stock are entitled to vote as a single class with the holders of common stock and shall have one vote for each equivalent common share into which the preferred stock is convertible. The holders of Series B Preferred Stock are entitled to elect one director to the Board of Directors; the holders of Series A Preferred Stock are entitled to elect four directors to the Board of Directors; and the holders of Preferred Stock and the holders of common stock on an as‑converted to common stock basis, are entitled to elect the remaining directors. Common stock As of December 31, 2019 and 2018, the Company had reserved common stock for issuance as follows (in thousands): As of December 31, Stock options issued and outstanding 4,798 3,959 Unvested restricted stock 1,032 195 5,830 4,154 |
Stock incentive plan
Stock incentive plan | 12 Months Ended |
Dec. 31, 2019 | |
Stock incentive plan | |
Stock incentive plan | 11. Stock incentive plan In October 2015, the Company established a stock option plan (“2015 Plan”) to provide for the issuance of shares of common stock pursuant to stock options, stock appreciation rights, stock purchase rights, restricted stock agreements and long‑term performance awards granted to key employees, directors and consultants of the Company. On June 5, 2018, the Company’s stockholders approved the 2018 Stock Option and Incentive Plan (the “2018 Plan”), which became effective on June 20, 2018. The number of shares available for grant under the Company’s 2018 Plan as of December 31, 2019 was 3079,544, which includes 505,046 shares of the Company’s common stock reserved under the Company’s 2015 Plan that became available for issuance upon the effectiveness of the 2018 Plan. No future issuance will be made under the 2015 Plan. The number of shares available for grant under the Company’s stock option plan were as follows (in thousands): Available for grant as of January 1, 2018 2,419 Plan amendment 3,899 Grants (2,515) Forfeitures and cancellations 14 Available for grant as of December 31, 2018 3,817 Plan amendment 1,341 Grants (2,955) Forfeitures and cancellations 878 Available for grant as of December 31, 2019 3,081 Stock‑based compensation expense Non‑cash stock‑based compensation expense recognized in the accompanying statements of operations relating to both stock options and restricted stock awards for the years ended December 31, 2019 and 2018 are as follows (in thousands): Year ended December 31, Research and development $ 2,442 $ 866 General and administrative 6,594 2,452 Total stock‑based compensation expense $ 9,036 $ 3,318 Restricted stock awards In 2015, the Company granted 1.5 million restricted stock awards with a weighted‑average grant date fair value per share of $1.10. The restricted stock awards generally vest over four years, or a change in the control of the Company, subject to continued employment with the Company. In the event of a change in control, the unvested restricted stock awards will be accelerated and fully vested immediately prior to the change in control. There are no performance‑based features or market conditions in the Company’s outstanding restricted stock awards. The fair value of restricted stock awards is determined based on the number of restricted stock awards granted and the fair value of the Company’s stock on the date of grant. Non-cash restricted stock award expense recognized in the accompanying statements of operations was $0.2 million and $0.3 million for the years ended December 31, 2019 and 2018, respectively. The total fair value of shares that vested in 2019 was $0.2 million. As of December 31, 2018, there were approximately 195,000 shares of unvested restricted stock outstanding which all subsequently vested in 2019 Restricted stock units In May 2019, the Company issued an aggregate of 1,183,400 shares of restricted stock units to employees. The restricted stock units vest in two years from the date of grant. The Company at any time may accelerate the vesting of the restricted stock units. Such shares are not accounted for as outstanding until they vest. There are 21,764 shares of common stock underlying restricted stock outstanding as of December 31, 2019. The table below summarizes activity related to restricted stock units (in thousands, except per share amounts): Weighted‑ average grant date fair value Shares per share Unvested as of December 31, 2018 - $ - Issued 1,183 $ 3.63 Vested (26) 3.63 Forfeited and canceled (125) 3.63 Unvested as of December 31, 2019 1,032 $ 3.63 Non-cash restricted stock unit award expense recognized in the accompanying statements of operations was $1.3 million for the year ended December 31, 2019. At December 31, 2019, there was $2.6 million of unrecognized compensation cost that will be recognized as expense over a weighted-average period of 1.38 years. Stock options During the years ended December 31, 2019 and 2018, the Company granted 1.8 million and 2.5 million stock options, respectively. The options have a ten‑year life and generally vest over a period of four years, subject to continuous employment. The weighted‑average grant date fair value per share of each option granted during the years ended December 31, 2019 and 2018 was $7.98 and $7.03, respectively. As of December 31, 2019, there was $17.5 million of unrecognized compensation cost related to non‑vested stock options which is expected to be recognized over a weighted‑average period of 2.68 years. The fair value of each option award is estimated on the date of grant using a Black‑Scholes option pricing valuation model that uses various assumptions regarding the: (1) expected volatility, (2) expected life of the option, (3) expected dividend yield, and (4) risk‑free interest rate. The Company uses the historical volatility of the share values of publicly traded companies within the biotech industry as a surrogate for the expected volatility of the Company’s common stock. A zero-dividend yield is also assumed in the stock option fair value computations. The expected life of the options represents the period of time that the options granted are expected to be outstanding and has been calculated utilizing the “simplified method” for awards that qualify as “plain vanilla” options. The risk‑free rate is based on the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. The specific assumptions used to determine the fair value of the stock options granted during the years ended December 31, 2019 and 2018 were as follows: Year ended December 31, Expected volatility 71%-75% Expected dividends None None Expected option life 5.00 - 6.08 Years 6.08 Years Risk-free rate 1.38 – 2.72% 2.81 – 3.06% The table below summarizes activity related to stock options (in thousands, except per share amounts): Weighted‑ Weighted‑ average average remaining Aggregate exercise contractual intrinsic Options Shares price term value Outstanding, January 1, 2018 1,498 $ 2.48 8.93 $ 4,146 Granted 2,515 10.40 Exercised (40) 2.57 Forfeited and canceled (14) 4.79 Outstanding, December 31, 2018 3,959 $ 7.46 8.79 $ 35,984 Granted 1,772 12.19 Exercised (181) 2.07 Forfeited and canceled (752) 11.70 Outstanding, December 31, 2019 4,798 $ 8.75 8.29 $ 1,159 Vested and expected to vest at December 31, 2019 4,798 $ 8.75 8.29 $ 1,159 Exercisable at December 31, 2019 2,139 $ 5.64 7.87 $ 928 Employee stock purchase plan On June 5, 2018, the Company's stockholders approved the 2018 Employee Stock Purchase Plan (the "ESPP"), which became effective upon the completion of the Company's initial public offering. A total of 314,697 shares of common stock were reserved for issuance under this plan. In addition, the number of shares of common stock that may be issued under the ESPP automatically increase on January 1 of each year through January 1, 2028, by the lesser of (i) 1% of the number of shares of the Company's common stock outstanding on the immediately preceding December 31 and (ii) such lesser number of shares as determined by the administrator of the Company's ESPP. |
Net loss per share
Net loss per share | 12 Months Ended |
Dec. 31, 2019 | |
Net loss per share | |
Net loss per share | 12. Net loss per share Basic and diluted net loss per share attributable to common stockholders was calculated as follows for the years ended December 31, 2019 and 2018 (in thousands, except per share data): Year ended December 31, Numerator: Net loss attributable to common stockholders $ (57,410) $ (53,281) Denominator: Weighted-average common shares outstanding—basic and diluted 33,556 20,199 Net loss per share attributable to common stockholders—basic and diluted $ (1.71) $ (2.64) The following common stock equivalents outstanding as of December 31, 2019 and 2018, were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive (in thousands): As of December 31, Stock options issued and outstanding 4,798 3,959 Unvested restricted stock 1,032 195 5,830 4,154 |
Employee benefit plan
Employee benefit plan | 12 Months Ended |
Dec. 31, 2019 | |
Employee benefit plan | |
Employee benefit plan | 13. Employee benefit plan Effective December 31, 2015, the Company established a defined contribution 401(k) plan (the “401(k) Plan”) for the benefit of its employees. All of the employees of the Company are eligible to participate in the 401(k) Plan which permits employees to make voluntary contributions up to the dollar limit allowed under the Internal Revenue Code. The 401(k) Plan also provides for matching contributions as defined by the Company of up to a combined total of 4% of an employee’s eligible annual compensation. The Company has recorded matching contributions of $0.4 million and $0.3 million for the years ended December 31, 2019 and 2018, respectively. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income taxes | |
Income taxes | 14. Income taxes Provision for income taxes There is no provision for income taxes because the Company has historically incurred operating losses and maintains a full valuation allowance against its net deferred tax assets. The reported amount of income tax expense for the years differs from the amount that would result from applying domestic federal statutory tax rates and pretax losses primarily because of changes in valuation allowance. Deferred tax assets and valuation allowance Deferred tax assets reflect the tax effects of net operating losses (“NOLs”) and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The most significant item of deferred tax assets is derived from the Company’s federal NOLs. At December 31, 2019, the Company had a U.S. federal NOL carryforward available to offset future taxable income of $146.4 million. This includes the $7.1 million of gross NOLs that are limited under Sec. 382. Of the $146.4 million, $49.0 million will begin to expire in 2035 and $97.4 million have an indefinite carryforward period and NOL carryforwards will be limited to 80% of taxable income in future years. As of December 31, 2019, the Company had state NOL carryforwards of $13.9 million which have a 12-year carryforward period and will begin to expire starting in 2027. A reconciliation of the U.S statutory rate to the Company’s effective tax rate is as follows: Year ended December 31, Federal rate 21.0 % 21.0 % State rate 7.5 7.5 Valuation allowance (28.6) (26.8) Other 0.1 (1.7) — % — % The significant components of the Company’s net deferred tax assets are as follows (in thousands): December 31, Deferred tax assets Net operating loss $ 41,727 $ 27,749 Stock‑based compensation 2,603 — Accrued clinical trials 176 322 Accrued compensation 509 582 Accrued expenses and other, net 383 374 Total deferred tax assets 45,398 29,027 Less valuation allowance (45,398) (28,963) Net deferred tax assets — 64 Deferred tax liabilities Stock‑based compensation and other, net — (64) Net deferred taxes $ — $ — Pursuant to Section 382 of the Internal Revenue Code, certain substantial changes in the Company’s ownership may result in a limitation on the amount of NOL carryforwards and tax credit carryforwards that may be used in future years. Utilization of the NOL and tax credit carryforwards may be subject to a substantial annual limitation under Section 382 of the Internal Revenue Code of 1986 (“IRC Section 382”) due to ownership change limitations that have occurred previously or that could occur in the future. These ownership changes may limit the amount of NOL and tax credit carryforwards that can be utilized annually to offset future taxable income and tax, respectively. During 2018, the Company performed a detailed analysis of their historical and current IRC Section 382 ownership changes that may limit the utilization of NOL carryforwards. Except for approximately $7.1 million of NOLs arising prior to the Company’s Series A preferred stock financing in May 2016, the entire remaining NOL carryforward is available for immediate use based on the IRC Section 382 analysis performed. There could also be additional ownership changes in the future which may result in limitations on the utilization of NOL carryforwards and credits. The Company files federal and state income tax returns and, in the normal course of business, the Company is subject to examination by these taxing authorities. As of December 31, 2019, the Company’s tax years through December 31, 2015 are subject to examination by the U.S. federal and state taxing authorities. The December 31, 2018 tax year is currently under examination by the Internal Revenue Service. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and contingencies | |
Commitments and contingencies | 15. Commitments and contingencies From time to time, the Company is subject to occasional lawsuits, investigations and claims arising out of the normal conduct of business. The Company has no significant pending or threatened litigation as of December 31, 2019. In the normal course of business, the Company enters into contracts that contain a variety of indemnifications with its employees, licensors, suppliers and service providers. Further, the Company indemnifies its directors and officers who are, or were, serving at the Company’s request in such capacities. The Company’s maximum exposure under these arrangements is unknown at December 31, 2019. The Company does not anticipate recognizing any significant losses relating to these arrangements. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent events | |
Subsequent events | 16. Subsequent events Public offering of common stock On January 14, 2020, the Company completed a follow-on public offering of its common stock pursuant to an effective registration statement on Form S-3. The Company sold an aggregate of 11,691,666 shares of common stock, which included the exercise in full of the underwriters’ option to purchase additional shares at a public offering price of $3.00 per share. Net proceeds from the offering were approximately $33.3 million after deducting underwriting discounts and commissions as well as other offering expenses. COVID-19 Outbreak In March 2020, the World Health Organization declared the novel coronavirus (COVID-19) a global pandemic. This contagious disease outbreak, which has continued to spread, has adversely affected workforces, economies, and financial markets globally, potentially leading to an economic downturn. The evolving pandemic may affect patient enrollment for the Company’s ongoing Phase 2 clinical studies as patients may avoid or may not be able to travel to clinical study site locations. Similarly, this outbreak could result in the complete or partial closure of one or more of the Company’s clinical study site locations, the CRO, and/or impact the trial monitors and other critical vendors and consultants supporting the trials. On March 27, 2020, the Company suspended patient enrollment for certain ongoing Phase 2 clinical studies, including its NYX-2925 studies in painful diabetic peripheral neuropathy and fibromyalgia and its NYX-483 study in Parkinson’s disease cognitive impairment. Additionally, while the potential economic impact brought by, and the duration of, the COVID-19 pandemic is difficult to assess or predict, the impact of the COVID-19 pandemic on the global financial markets may reduce the Company’s ability to raise additional capital on attractive terms or at all. The Company cannot at this time predict the specific extent, duration, or full impact that the COVID-19 outbreak will have on its financial condition and operations. However, these effects could have a material impact on the Company’s business, financial condition, and results of operations. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of significant accounting policies | |
Use of estimates | Use of estimates The financial statements are prepared in conformity with GAAP. This process requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. |
Risk and uncertainties | Risk and uncertainties The Company’s future results of operations involve a number of risks and uncertainties. Factors that could affect the Company’s future operating results and cause actual results to vary materially from expectations include, but are not limited to, uncertainty of: future clinical study results, the scope, rate of progress and expense of the Company’s ongoing as well as any additional preclinical studies, clinical studies and other research and development activities, clinical study enrollment rate or design, the manufacturing of the Company’s product candidates, significant and changing government regulation, and the timing and receipt of any regulatory approvals. The Company’s product candidates require approvals from the U.S. Food and Drug Administration and comparable foreign regulatory agencies prior to commercial sales in their respective jurisdictions. There can be no assurance that any product candidates will receive the necessary approvals. If the Company was denied approval, approval was delayed or the Company was unable to maintain approval for any product candidate, it could have a materially adverse impact on the Company. The Company is dependent upon third‑party manufacturers to supply product for research and development activities in its programs. In particular, the Company relies and expects to continue to rely on a small number of manufacturers to supply it with its requirements for the active pharmaceutical ingredients and final drug product related to these programs. These programs could be adversely affected by a significant interruption in the supply of active pharmaceutical ingredients and final drug product. |
Revenue recognition | Revenue recognition Revenue is recognized in accordance with revenue recognition accounting guidance, which utilizes five steps to determine whether revenue can be recognized and to what extent: (i) identify the contract with a customer; (ii) identify the performance obligation(s); (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) determine the recognition period. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, Revenue from Contracts with Customers, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Significant judgments exercised by management include the identification of performance obligations, and whether such promised goods or services are considered distinct. The Company evaluates promised goods or services on a contract by contract basis to determine whether each promise represents a good or service that is distinct or has the same pattern of transfer as other promises. A promised good or service is considered distinct if the customer can benefit from the good or service independently of other goods/services either in the contract or that can be obtained elsewhere, without regard to contract exclusivity, and the entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contact. If the good or service is not considered distinct, the Company combines such promises and accounts for them as a single combined performance obligation. |
Accounts receivable | Accounts receivable Accounts receivable that management has the intent and ability to collect are reported in the balance sheets at outstanding amounts, less an allowance for doubtful accounts. During the years ended December 31, 2019 and 2018, one research collaborator, Allergan plc (“Allergan”) represented 100% and 75%, respectively, of the Company’s revenues (see Note 4). The associated accounts receivable were approximately $0.4 million and $0.6 million at December 31, 2019 and 2018, respectively. The Company writes off uncollectible receivables based on specific identification when the likelihood of collection is remote. No allowance was deemed necessary at December 31, 2019 and 2018. |
Cash, cash equivalents and restricted cash | Cash, cash equivalents and restricted cash Cash and cash equivalents consist of cash and, if applicable, highly liquid investments with an original maturity of three months or less when purchased. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the balance sheets that sum to the total of the same such amounts shown in the statements of cash flows (amounts in thousands). As of December 31, Cash and cash equivalents $ 98,849 $ 150,637 Short-term and long-term restricted cash 345 491 Total cash, cash equivalents, and restricted cash shown in the statements of cash flows $ 99,194 $ 151,128 Amounts included in restricted cash represent those amounts required to be held as a security deposit in the form of letters of credit for the Company’s leased office facility and cash collateral held by credit card. |
Concentrations of credit risk | Concentrations of credit risk The Company, at times, maintains cash and cash equivalents in accounts with a financial institution in excess of the amount insured by the Federal Deposit Insurance Corporation. The Company monitors the financial stability of this institution regularly and management does not believe there is significant credit risk associated with deposits in excess of federally insured amounts. |
Fair value of financial instruments | Fair value of financial instruments ASC 820, Fair Value Measurement (“ASC 820”), establishes a fair value hierarchy for instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s own assumptions (unobservable inputs). Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability, and are developed based on the best information available in the circumstances. ASC 820 identifies fair value as the exchange price, or exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a three‑tier fair value hierarchy that distinguishes between the following: · Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; · Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and · Level 3 inputs are unobservable inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. There were no Level 3 assets or liabilities as of December 31, 2019 or 2018. The carrying values reported in the Company’s balance sheets for cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and accrued expenses are reasonable estimates of their fair values due to the short‑term nature of these items. |
Property and equipment | Property and equipment Property and equipment are stated at cost. Maintenance and repairs are charged to expense as incurred. Additions, improvements and replacements are capitalized. Depreciation of property and equipment is provided for by the straight‑line method over the estimated useful lives of the related assets. The estimated useful lives of property and equipment are as follows: Description Estimated useful life Computer software and equipment 3 years Office equipment and furniture 5 years Laboratory equipment 5 years Leasehold improvements Lesser of the estimated useful life or term of the lease Construction-in-progress reflects property and equipment yet to be placed in service. |
Impairment of long-lived assets | Impairment of long‑lived assets Long‑lived assets consist of property and equipment. Long‑lived assets to be held and used are tested for recoverability whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. If the sum of the estimated future undiscounted cash flows expected to result from the use and eventual disposition of an asset is less than the carrying amount of the asset group, an impairment loss is recognized. Measurement of an impairment loss is based on the fair value of the asset group. The Company has not recorded any impairment losses on long‑lived assets for the years ended December 31, 2019 and 2018. |
Research and development | Research and development Research and development expenses are comprised of costs incurred in performing research and development activities, including salaries and benefits, facilities costs, overhead costs, depreciation, contract services and other related costs. Research and development costs are expensed to operations as the related obligation is incurred. The Company has entered into various research and development contracts with research institutions, clinical research organizations, clinical manufacturing organizations and other companies. These agreements are generally cancelable, and related payments are recorded as research and development expenses as incurred. Payments for these activities are based on the terms of the individual agreements, which may differ from the pattern of costs incurred, and are reflected on the balance sheet as prepaid or accrued expenses. The Company records accruals for estimated ongoing research costs. When evaluating the adequacy of the accrued liabilities, the Company analyzes progress of the studies, including the phase or completion of events, invoices received and contracted costs. Significant judgments and estimates may be made in determining the accrued balances at the end of any reporting period. Actual results could differ from the Company’s estimates. The Company’s historical accrual estimates have not been materially different from the actual costs. |
Convertible preferred stock | Convertible preferred stock The Company has applied the guidance in ASC 480‑10‑S99‑3A, SEC Staff Announcement: Classification and Measurement of Redeemable Securities and has therefore classified the Series A‑1, Series A‑2 and Series B convertible preferred stock (Note 10) as mezzanine equity. The convertible preferred stock was recorded outside of stockholders’ deficit because, in the event of certain deemed liquidation events considered not solely within the Company’s control, such as a merger, acquisition and sale of all or substantially all of the Company’s assets, the convertible preferred stock would have become redeemable at the option of the holders. In the event of a change of control of the Company, proceeds received from the sale of such shares will be distributed in accordance with the liquidation preferences set forth in the Company’s Amended and Restated Certificate of Incorporation. The Company 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 an event would occur. As described in Note 1, all previously outstanding convertible preferred stock was converted to common stock upon the completion of the Company’s IPO in June 2018. |
Stock-based compensation | Stock‑based compensation The Company has stock‑based compensation plans that cover the Company’s directors and employees and are more fully described in Note 11. Stock‑based compensation cost is estimated at the grant date based on the fair value of the award, and the cost is recognized as expense ratably over the vesting period. |
Income taxes | Income taxes The Company accounts for income taxes under the liability method in accordance with FASB ASC 740, Income Taxes. Under this method, deferred income tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is established if it is more likely than not that all, or some portion, of deferred income tax assets will not be realized. The Company has recorded a full valuation allowance to reduce its net deferred income tax assets to zero. In the event the Company were to determine that it would be able to realize some or all its deferred income tax assets in the future, an adjustment to the deferred income tax asset valuation allowance would increase income in the period such determination was made. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained upon an examination. Any recognized income tax positions would be measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement would be reflected in the period in which the change in judgment occurs. At December 31, 2019 and 2018, the Company had no liability for income tax associated with uncertain tax positions. The Company would recognize any corresponding interest and penalties associated with its income tax positions in income tax expense. There was no income tax interest or penalties incurred in 2019 or 2018. |
Segment data | Segment data The Company manages its operations as a single segment for the purposes of assessing performance and making operating decisions. The Company’s singular focus is on advancing therapies to treat disorders of the brain and nervous system. All tangible assets are held in the United States and all revenue is generated in the United States. |
Comprehensive loss | Comprehensive loss Comprehensive loss is equal to net loss as presented in the accompanying statements of operations. |
Net loss per share | Net loss per share Basic net loss per share is calculated by dividing the net loss by the weighted‑average number of shares of common stock outstanding during the period, without consideration for common stock equivalents. Diluted net loss per share is the same as basic net loss per share, since the effects of potentially dilutive securities are antidilutive given the Company has reported net losses for each period presented. |
Summary of significant accoun_3
Summary of significant accounting policiess (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of significant accounting policies | |
Schedule of cash, cash equivalents and restricted cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the balance sheets that sum to the total of the same such amounts shown in the statements of cash flows (amounts in thousands). As of December 31, Cash and cash equivalents $ 98,849 $ 150,637 Short-term and long-term restricted cash 345 491 Total cash, cash equivalents, and restricted cash shown in the statements of cash flows $ 99,194 $ 151,128 |
Schedule of estimated useful lives of assets | Description Estimated useful life Computer software and equipment 3 years Office equipment and furniture 5 years Laboratory equipment 5 years Leasehold improvements Lesser of the estimated useful life or term of the lease |
Fair value measurements (Tables
Fair value measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair value measurements | |
Schedule of assets measured at fair value | Assets measured at fair value as of December 31, 2019 are as follows (in thousands): December 31, Level 1 Level 2 Level 3 Assets Money market funds, included in cash and cash equivalents $ 97,998 $ 97,998 $ — $ — Money market funds, included in restricted cash 179 179 — — Money market funds, included in other assets 166 166 — — $ 98,343 $ 98,343 $ — $ — Assets measured at fair value as of December 31, 2018 are as follows (in thousands): December 31, Level 1 Level 2 Level 3 Assets Money market funds, included in cash and cash equivalents $ 150,151 $ 150,151 $ — $ — Money market funds, included in restricted cash 252 252 — — Money market funds, included in other assets 239 239 — — $ 150,642 $ 150,642 $ — $ — |
Prepaid expenses and other cu_2
Prepaid expenses and other current assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Prepaid expenses and other current assets | |
Schedule of prepaid expenses and other current assets | Prepaid expenses and other current assets consist of the following (in thousands): As of December 31, Prepaid clinical $ 3,719 $ 728 Prepaid insurance 994 673 Prepaid manufacturing costs 558 — Other prepaid expenses and current assets 366 383 Total prepaid expenses and other current assets $ 5,637 $ 1,784 |
Property and equipment (Tables)
Property and equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property and equipment | |
Schedule of property and equipment | Property and equipment are as follows (in thousands): As of December 31, Computer software and equipment $ 15 $ 15 Office equipment and furniture 176 176 Laboratory equipment 1,597 1,571 Leasehold improvements 1,051 1,051 Construction-in-progress 11 — Less accumulated depreciation (1,646) (1,123) Property and equipment, net $ 1,204 $ 1,690 |
Accrued expenses and other cu_2
Accrued expenses and other current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accrued expenses and other current liabilities | |
Schedule of accrued expenses and other current liabilities | Accrued expenses and other current liabilities consist of the following (in thousands): As of December 31, Employee-related expenses $ 1,925 $ 2,043 Development costs and sponsored research 652 915 Clinical trials 410 607 Other 354 431 Total accrued expenses and other current liabilities $ 3,341 $ 3,996 |
Operating leases (Tables)
Operating leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Operating leases | |
Schedule of aggregate future minimum annual rental commitments under non-cancelable lease agreements | Aggregate future minimum annual rental commitments under these non‑cancelable lease agreements are as follows at December 31, 2019 (in thousands): Year ending December 31, 2020 $ 864 2021 876 2022 590 2023 — 2024 — Thereafter — $ 2,330 |
Convertible preferred stock a_2
Convertible preferred stock and stockholders’ equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Convertible preferred stock and stockholders’ equity | |
Schedule of the Company's common stock reserved for issuance, on an as if converted basis, | As of December 31, 2019 and 2018, the Company had reserved common stock for issuance as follows (in thousands): As of December 31, Stock options issued and outstanding 4,798 3,959 Unvested restricted stock 1,032 195 5,830 4,154 |
Stock incentive plan (Tables)
Stock incentive plan (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stock incentive plan | |
Schedule of available shares for grant under the Company’s stock option plan | The number of shares available for grant under the Company’s stock option plan were as follows (in thousands): Available for grant as of January 1, 2018 2,419 Plan amendment 3,899 Grants (2,515) Forfeitures and cancellations 14 Available for grant as of December 31, 2018 3,817 Plan amendment 1,341 Grants (2,955) Forfeitures and cancellations 878 Available for grant as of December 31, 2019 3,081 |
Allocation of stock-based compensation expenses | Non‑cash stock‑based compensation expense recognized in the accompanying statements of operations relating to both stock options and restricted stock awards for the years ended December 31, 2019 and 2018 are as follows (in thousands): Year ended December 31, Research and development $ 2,442 $ 866 General and administrative 6,594 2,452 Total stock‑based compensation expense $ 9,036 $ 3,318 |
Schedule of restricted stock unit activity | The table below summarizes activity related to restricted stock units (in thousands, except per share amounts): Weighted‑ average grant date fair value Shares per share Unvested as of December 31, 2018 - $ - Issued 1,183 $ 3.63 Vested (26) 3.63 Forfeited and canceled (125) 3.63 Unvested as of December 31, 2019 1,032 $ 3.63 |
Schedule of assumptions used to determine the fair value of the stock options granted | Year ended December 31, Expected volatility 71%-75% Expected dividends None None Expected option life 5.00 - 6.08 Years 6.08 Years Risk-free rate 1.38 – 2.72% 2.81 – 3.06% |
Summary of stock option activity | The table below summarizes activity related to stock options (in thousands, except per share amounts): Weighted‑ Weighted‑ average average remaining Aggregate exercise contractual intrinsic Options Shares price term value Outstanding, January 1, 2018 1,498 $ 2.48 8.93 $ 4,146 Granted 2,515 10.40 Exercised (40) 2.57 Forfeited and canceled (14) 4.79 Outstanding, December 31, 2018 3,959 $ 7.46 8.79 $ 35,984 Granted 1,772 12.19 Exercised (181) 2.07 Forfeited and canceled (752) 11.70 Outstanding, December 31, 2019 4,798 $ 8.75 8.29 $ 1,159 Vested and expected to vest at December 31, 2019 4,798 $ 8.75 8.29 $ 1,159 Exercisable at December 31, 2019 2,139 $ 5.64 7.87 $ 928 |
Net loss per share (Tables)
Net loss per share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Net loss per share | |
Schedule of basic and diluted net loss per share attributable to common stockholders calculation | Basic and diluted net loss per share attributable to common stockholders was calculated as follows for the years ended December 31, 2019 and 2018 (in thousands, except per share data): Year ended December 31, Numerator: Net loss attributable to common stockholders $ (57,410) $ (53,281) Denominator: Weighted-average common shares outstanding—basic and diluted 33,556 20,199 Net loss per share attributable to common stockholders—basic and diluted $ (1.71) $ (2.64) |
Schedule of anti-dilutive securities excluded from computation of diluted net loss per share | The following common stock equivalents outstanding as of December 31, 2019 and 2018, were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive (in thousands): As of December 31, Stock options issued and outstanding 4,798 3,959 Unvested restricted stock 1,032 195 5,830 4,154 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income taxes | |
Summary of reconciliation of U.S. statutory rate to the Company’s effective tax rate | Year ended December 31, Federal rate 21.0 % 21.0 % State rate 7.5 7.5 Valuation allowance (28.6) (26.8) Other 0.1 (1.7) — % — % |
Schedule of significant components of the Company’s net deferred tax assets | The significant components of the Company’s net deferred tax assets are as follows (in thousands): December 31, Deferred tax assets Net operating loss $ 41,727 $ 27,749 Stock‑based compensation 2,603 — Accrued clinical trials 176 322 Accrued compensation 509 582 Accrued expenses and other, net 383 374 Total deferred tax assets 45,398 29,027 Less valuation allowance (45,398) (28,963) Net deferred tax assets — 64 Deferred tax liabilities Stock‑based compensation and other, net — (64) Net deferred taxes $ — $ — |
Organization (Details)
Organization (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 25, 2018 | Jun. 07, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Organization | ||||
Accumulated deficit | $ (162,900) | |||
Cash and cash equivalents | $ 98,849 | $ 150,637 | ||
Expected period of sufficient funds for planned operations | 12 months | |||
Payment of offering costs | $ 182 | $ 3,012 | ||
Reverse stock split ratio | 0.03625 | |||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Preferred stock, shares issued | 0 | 0 | ||
Preferred stock, shares outstanding | 0 | 0 | ||
IPO | ||||
Organization | ||||
Common stock issued and sold in initial public offering (in shares) | 7,359,998 | |||
Public offering price of the shares sold | $ 16 | |||
Net proceeds from issuance of common stock | $ 106,500 | |||
Payment of offering costs | $ 3,000 | |||
Number of preferred stock converted into common stock | 20,306,497 | |||
Underwriters' option | ||||
Organization | ||||
Common stock issued and sold in initial public offering (in shares) | 959,999 |
Summary of significant accoun_4
Summary of significant accounting policies (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)customer | Dec. 31, 2018USD ($)customer | |
Concentration Risk [Line Items] | ||
Allowance for accounts receivable | $ 0 | $ 0 |
Accounts receivable | $ 444 | $ 578 |
Customer Concentration Risk | Revenue | Allergan | ||
Concentration Risk [Line Items] | ||
Number of customers | customer | 1 | 1 |
Concentration risk percentage | 100.00% | 75.00% |
Customer Concentration Risk | Accounts Receivable | Allergan | ||
Concentration Risk [Line Items] | ||
Accounts receivable | $ 400 | $ 600 |
Summary of significant accoun_5
Summary of significant accounting policies - Cash, cash equivalents, and restricted cash (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Summary of significant accounting policies | |||
Cash and cash equivalents | $ 98,849 | $ 150,637 | |
Short-term and long-term restricted cash | 345 | 491 | |
Total cash, cash equivalents, and restricted cash shown in the statements of cash flows | $ 99,194 | $ 151,128 | $ 92,609 |
Summary of significant accoun_6
Summary of significant accounting policies - Property and equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Impairment of long lived assets | $ 0 | $ 0 |
Computer software and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Office equipment and furniture | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 5 years | |
Laboratory equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 5 years | |
Level 3 | ||
Property, Plant and Equipment [Line Items] | ||
Assets measured at fair value | $ 0 | 0 |
Liabilities measured at fair value | $ 0 | $ 0 |
Summary of significant accoun_7
Summary of significant accounting policies - Income taxes (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of significant accounting policies | ||
Deferred income tax assets | $ 0 | |
Uncertain tax positions | 0 | $ 0 |
Interest or penalties recorded | $ 0 | $ 0 |
Research collaboration agreem_2
Research collaboration agreement with Allergan (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jul. 24, 2015USD ($)Option | |
Research collaboration agreement with Allergan | |||
Research and development | $ 44,330 | $ 48,788 | |
Non-Refundable Milestone Payment | 1,000 | ||
RCA | |||
Research collaboration agreement with Allergan | |||
Payment of option exercise fee | $ 1,000 | ||
Number of options to acquire molecules | Option | 3 | ||
capitalized contract costs | 0 | ||
Research and development | $ 7,300 | $ 7,900 | |
Development activities reimbursement percentage | 50.00% | 50.00% | |
Development activities expenses reimbursed | $ 3,700 | $ 3,900 | |
Remaining performance obligation | $ 0 |
Fair value measurements (Detail
Fair value measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Level 3 | ||
Fair value measurements | ||
Assets measured at fair value | $ 0 | $ 0 |
Recurring | ||
Fair value measurements | ||
Assets measured at fair value | 98,343 | 150,642 |
Recurring | Money market funds, included in cash and cash equivalents | ||
Fair value measurements | ||
Money market funds | 97,998 | 150,151 |
Recurring | Money market funds, included in restricted cash | ||
Fair value measurements | ||
Money market funds | 179 | 252 |
Recurring | Money market funds, included in other assets | ||
Fair value measurements | ||
Money market funds | 166 | 239 |
Recurring | Level 1 | ||
Fair value measurements | ||
Assets measured at fair value | 98,343 | 150,642 |
Recurring | Level 1 | Money market funds, included in cash and cash equivalents | ||
Fair value measurements | ||
Money market funds | 97,998 | 150,151 |
Recurring | Level 1 | Money market funds, included in restricted cash | ||
Fair value measurements | ||
Money market funds | 179 | 252 |
Recurring | Level 1 | Money market funds, included in other assets | ||
Fair value measurements | ||
Money market funds | $ 166 | $ 239 |
Prepaid expenses and other cu_3
Prepaid expenses and other current assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Prepaid expenses and other current assets | ||
Prepaid clinical | $ 3,719 | $ 728 |
Prepaid insurance | 994 | 673 |
Prepaid Manufacturing Cost | 558 | |
Other prepaid expenses and current assets | 366 | 383 |
Total prepaid expenses and other current assets | $ 5,637 | $ 1,784 |
Property and equipment (Details
Property and equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property and equipment | ||
Less accumulated depreciation | $ (1,646) | $ (1,123) |
Property and equipment, net | 1,204 | 1,690 |
Depreciation and amortization | 455 | 457 |
Computer software and equipment | ||
Property and equipment | ||
Property and equipment, gross | 15 | 15 |
Office equipment and furniture | ||
Property and equipment | ||
Property and equipment, gross | 176 | 176 |
Laboratory equipment | ||
Property and equipment | ||
Property and equipment, gross | 1,597 | 1,571 |
Leasehold improvements | ||
Property and equipment | ||
Property and equipment, gross | 1,051 | $ 1,051 |
Construction in progress | ||
Property and equipment | ||
Property and equipment, gross | $ 11 |
Accrued expenses and other cu_3
Accrued expenses and other current liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accrued expenses and other current liabilities | ||
Employee-related expenses | $ 1,925 | $ 2,043 |
Development costs and sponsored research | 652 | 915 |
Clinical trials | 410 | 607 |
Other | 354 | 431 |
Total accrued expenses and other current liabilities | $ 3,341 | $ 3,996 |
Operating leases (Details)
Operating leases (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jul. 18, 2018ft² | Oct. 13, 2016USD ($)ft²item | |
Operating leases | ||||
Leased space (in square feet) | ft² | 6,172 | 16,500 | ||
Lease renewal options | item | 1 | |||
Renewal term (in years) | 5 years | |||
Deferred lease incentive | $ 400 | |||
Rent expense inclusive of lease incentives | $ 900 | $ 700 | ||
Future minimum annual rental commitments | ||||
2020 | 864 | |||
2021 | 876 | |||
2022 | 590 | |||
Total | $ 2,330 |
Convertible preferred stock a_3
Convertible preferred stock and stockholders’ equity - Convertible preferred stock (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 11, 2017 | May 04, 2016 |
Series A Preferred Stock | Private placement | ||
Temporary Equity [Line Items] | ||
Shares authorized | 325,225,719 | |
Series A‑1 | Private placement | ||
Temporary Equity [Line Items] | ||
Shares authorized | 151,772,701 | |
Issuance price per share | $ 0.16472 | |
Series A‑1 | Private placement | Maximum | ||
Temporary Equity [Line Items] | ||
New shares issued under the agreement | 151,772,701 | |
Series A‑2 | ||
Temporary Equity [Line Items] | ||
Issuance price per share | $ 0.23061 | |
Series A‑2 | Private placement | ||
Temporary Equity [Line Items] | ||
Shares authorized | 173,453,018 | |
Issuance price per share | $ 0.23061 | |
New shares issued under the agreement | 173,453,018 | |
Series B preferred stock | ||
Temporary Equity [Line Items] | ||
Shares authorized | 234,954,520 | |
Cash proceeds, net of issuance cost | $ 69.8 | |
Series B preferred stock | Private placement | ||
Temporary Equity [Line Items] | ||
Issuance price per share | $ 0.29793 | |
New shares issued under the agreement | 234,954,520 |
Convertible preferred stock a_4
Convertible preferred stock and stockholders’ equity - Conversion update, Voting rights (Details) $ / shares in Units, $ in Millions | Dec. 11, 2017USD ($)Vote$ / sharesshares | May 04, 2016Vote$ / shares |
Threshold gross proceeds for automatic conversion | $ | $ 70 | |
Threshold share price for automatic conversion | $ 0.446895 | |
Series A Preferred Stock | ||
Number of votes per share | Vote | 1 | |
Number of director entitled to be elected by preferred shareholders | Vote | 4 | |
Series A‑1 | ||
Conversion price | $ 0.16472 | |
Series A‑2 | ||
Conversion price | $ 0.23061 | |
Series B preferred stock | ||
Conversion price | $ 0.29793 | |
Approval of threshold shares | shares | 30,208,439 | |
Number of votes per share | Vote | 1 |
Convertible preferred stock a_5
Convertible preferred stock and stockholders’ equity - Common stock (Details) - shares shares in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Common stock reserved for issuance | 5,830 | 4,154 |
Stock options | ||
Common stock reserved for issuance | 4,798 | 3,959 |
Restricted stock awards | ||
Common stock reserved for issuance | 1,032 | 195 |
Stock incentive plan (Details)
Stock incentive plan (Details) - shares | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards available for future grant | 3,081,000 | 3,817,000 | 2,419,000 |
2018 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards available for future grant | 3,079,544 | ||
2015 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards available for future grant | 505,046 |
Stock incentive plan - Shares a
Stock incentive plan - Shares available for grant (Details) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Available for grant Beginning of the period | 3,817 | 2,419 |
Plan amendment | 1,341 | 3,899 |
Grants | (2,955) | (2,515) |
Forfeitures and cancellations | 878 | 14 |
Available for grant End of the period | 3,081 | 3,817 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants | (1,772) | (2,515) |
Forfeitures and cancellations | 752 | 14 |
Stock incentive plan - Stock-ba
Stock incentive plan - Stock-based compensation expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 9,036 | $ 3,318 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 2,442 | 866 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 6,594 | $ 2,452 |
Stock incentive plan - Restrict
Stock incentive plan - Restricted stock awards (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-cash restricted stock unit award expense recognized | $ 9,036 | $ 3,318 | |
Restricted stock awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 1,500,000 | ||
Granted (in dollars per share) | $ 1.10 | ||
Vesting period | 4 years | ||
Non-cash restricted stock unit award expense recognized | 200 | $ 300 | |
Fair value of shares vested | $ 200 | ||
Vested (in shares) | 195,000 | ||
Unvested restricted stock outstanding | 195,000 |
Stock incentive plan - Restri_2
Stock incentive plan - Restricted stock units (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |
May 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Weighted-average grant date fair value per share | |||
Non-cash restricted stock unit award expense recognized | $ 9,036 | $ 3,318 | |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 2 years | ||
Vested and outstanding awards | 21,764 | ||
Shares | |||
Issued (in shares) | 1,183,400 | 1,183,000 | |
Vested | (26,000) | ||
Forfeited and canceled (in shares) | (125,000) | ||
Unvested at end of period (in shares) | 1,032,000 | ||
Weighted-average grant date fair value per share | |||
Issued (in dollars per share) | $ 3.63 | ||
Vested (in dollars per share) | 3.63 | ||
Forfeited and canceled (in dollars per share) | 3.63 | ||
Unvested at end of period (in dollars per share) | $ 3.63 | ||
Non-cash restricted stock unit award expense recognized | $ 1,300 | ||
Unrecognized compensation related to unvested restricted stock units | $ 2,600 | ||
Expenses recognized over a weighted-average period (in years) | 1 year 4 months 17 days |
Stock incentive plan - Fair val
Stock incentive plan - Fair value assumptions (Details) - Stock options | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 75.00% | |
Expected dividends | 0.00% | 0.00% |
Expected option life | 6 years 29 days | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 71.00% | |
Expected option life | 5 years | |
Risk-free rate | 1.38% | 2.81% |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 75.00% | |
Expected option life | 6 years 29 days | |
Risk-free rate | 2.72% | 3.06% |
Stock incentive plan - Activity
Stock incentive plan - Activity related to stock options (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares | |||
Granted | 2,955 | 2,515 | |
Forfeited and canceled | (878) | (14) | |
Stock options | |||
Shares | |||
Outstanding, at the beginning of the period | 3,959 | 1,498 | |
Granted | 1,772 | 2,515 | |
Exercised | (181) | (40) | |
Forfeited and canceled | (752) | (14) | |
Outstanding, at the end of the period | 4,798 | 3,959 | 1,498 |
Vested and expected to vest | 4,798 | ||
Exercisable | 2,139 | ||
Weighted-average exercise price | |||
Outstanding, at the beginning of the period | $ 7.46 | $ 2.48 | |
Granted | 12.19 | 10.40 | |
Exercised | 2.07 | 2.57 | |
Forfeited and canceled | 11.70 | 4.79 | |
Outstanding, at the end of the period | 8.75 | $ 7.46 | $ 2.48 |
Vested and expected to vest | 8.75 | ||
Exercisable at the end of the period | $ 5.64 | ||
Weighted-average remaining contractual term | |||
Weighted-average remaining contractual term | 8 years 3 months 15 days | 8 years 9 months 15 days | 8 years 11 months 5 days |
Vested and expected to vest | 8 years 3 months 15 days | ||
Exercisable | 7 years 10 months 13 days | ||
Aggregate intrinsic value | |||
Outstanding, at the beginning of the period | $ 35,984 | $ 4,146 | |
Outstanding, at the end of the period | 1,159 | $ 35,984 | $ 4,146 |
Vested and expected to vest | 1,159 | ||
Exercisable | $ 928 | ||
Weighted-average grant date fair value per share | $ 7.98 | $ 7.03 | |
Unrecognized stock-based compensation related to non-vested stock options | $ 17,500 | ||
Expenses recognized over a weighted-average period (in years) | 2 years 8 months 5 days | ||
Term of award | 10 years | ||
Vesting period | 4 years |
Stock incentive plan - Employee
Stock incentive plan - Employee Stock Purchase Plan (Details) - shares | Jun. 05, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Subsidiary, Sale of Stock [Line Items] | |||
Common stock reserved for issuance | 5,830,000 | 4,154,000 | |
Employee Stock Purchase Plan | |||
Subsidiary, Sale of Stock [Line Items] | |||
Common stock reserved for issuance | 314,697 | ||
Maximum percentage increase in shares available for issuance under the ESPP | 1.00% |
Net loss per share (Details)
Net loss per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | ||
Net loss attributable to common stockholders | $ (57,410) | $ (53,281) |
Denominator: | ||
Weighted-average common shares outstanding—basic and diluted | 33,556 | 20,199 |
Net loss per share attributable to common stockholders—basic and diluted | $ (1.71) | $ (2.64) |
Net loss per share - Anti-dilut
Net loss per share - Anti-dilutive securities (Details) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Common stock equivalents outstanding excluded from the computation of diluted net loss per share attributable to common stockholders | ||
Outstanding anti-dilutive securities excluded from computation of diluted net loss per share | 5,830 | 4,154 |
Stock options | ||
Common stock equivalents outstanding excluded from the computation of diluted net loss per share attributable to common stockholders | ||
Outstanding anti-dilutive securities excluded from computation of diluted net loss per share | 4,798 | 3,959 |
Unvested restricted stock | ||
Common stock equivalents outstanding excluded from the computation of diluted net loss per share attributable to common stockholders | ||
Outstanding anti-dilutive securities excluded from computation of diluted net loss per share | 1,032 | 195 |
Employee benefit plan (Details)
Employee benefit plan (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Employee benefit plan | ||
Matching contribution as a percentage | 4.00% | |
Matching contributions | $ 0.4 | $ 0.3 |
Income taxes (Details)
Income taxes (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income taxes | ||
Federal effective tax rate | 21.00% | 21.00% |
Income taxes | $ 0 |
Income taxes - Deferred tax ass
Income taxes - Deferred tax assets and valuation allowance (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Federal | |
Operating Loss Carryforwards [Line Items] | |
Net operating losses | $ 146.4 |
NOL Gross | 7.1 |
Net operating loss carryforwards that expire | 49 |
Net operating losses that never expire | $ 97.4 |
Net operating loss carryforward taxable income limit percentage | 80.00% |
State | |
Operating Loss Carryforwards [Line Items] | |
NOL carryforward period | 12 years |
Net operating loss carryforwards that expire | $ 13.9 |
Income taxes - Reconciliation (
Income taxes - Reconciliation (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income taxes | ||
Federal rate | 21.00% | 21.00% |
State rate | 7.50% | 7.50% |
Valuation allowance | (28.60%) | (26.80%) |
Other | 0.10% | (1.70%) |
Income taxes - Components of ne
Income taxes - Components of net deferred tax assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets | ||
Net operating loss | $ 41,727 | $ 27,749 |
Stock‑based compensation | 2,603 | |
Accrued clinical trials | 176 | 322 |
Accrued compensation | 509 | 582 |
Accrued expenses and other, net | 383 | 374 |
Total deferred tax assets | 45,398 | 29,027 |
Less valuation allowance | (45,398) | (28,963) |
Net deferred tax assets | 64 | |
Deferred tax liabilities | ||
Stock-based compensation and other, net | (64) | |
Net deferred taxes | $ 0 | |
Net operating loss carryforwards with no taxable income limitation | $ 7,100 |
Subsequent events (Details)
Subsequent events (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 14, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Subsequent Event [Line Items] | |||
Granted | 2,955,000 | 2,515,000 | |
Subsequent Event | Sales Agreement | |||
Subsequent Event [Line Items] | |||
New shares issued under the agreement | 11,691,666 | ||
Public offering price of the shares sold | $ 3 | ||
Net proceeds from issuance of common stock | $ 33.3 |