Morphic Holding (MORF) 10-K 1 Mar 21 2020 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2020	Feb. 24, 2021	Jun. 30, 2020
Document and Entity Information
Document Type	10-K
Document Period End Date	Dec. 31, 2020
Entity Registrant Name	MORPHIC HOLDING, INC.
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	MORF
Security Exchange Name	NASDAQ
Entity Well Known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
ICFR Auditor Attestation Flag	false
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Public Float			$ 318,431,000
Entity Common Stock, Shares Outstanding		32,449,889
Entity Central Index Key	0001679363
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 102,047	$ 101,559
Marketable securities	126,217	135,457
Accounts receivable	7,314	3,467
Prepaid expenses and other current assets	3,857	3,090
Total current assets	239,435	243,573
Property and equipment, net	2,606	3,446
Restricted cash	275	275
Other assets	66	141
Total assets	242,382	247,435
Current liabilities:
Accounts payable	3,845	5,167
Accrued expenses	10,160	6,639
Deferred revenue, current portion	25,266	23,450
Deferred rent, current portion	167	94
Total current liabilities	39,438	35,350
Long-term liabilities:
Deferred revenue, net of current portion	57,672	70,954
Deferred rent, net of current portion	75	213
Total liabilities	97,185	106,517
Commitments and contingencies (Note 10)
Stockholders’ Equity
Preferred shares, $0.0001 par value, 10,000,000 shares authorized, no shares issued and outstanding as of December 31, 2020 and December 31, 2019
Common shares, $0.0001 par value, 400,000,000 shares authorized, 32,037,686 shares issued and outstanding as of December 31, 2020 and 30,110,251 shares issued and outstanding as of December 31, 2019	3	3
Additional paid-in capital	287,727	238,384
Accumulated deficit	(142,512)	(97,513)
Accumulated other comprehensive income	(21)	44
Total stockholders’ equity	145,197	140,918
Total liabilities and stockholders' equity	$ 242,382	$ 247,435

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2020	Dec. 31, 2019
Preferred shares, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred shares, shares authorized	10,000,000	10,000,000
Preferred shares, shares issued	0	0
Preferred shares, shares outstanding	0	0
Common shares
Common shares, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, authorized	400,000,000	400,000,000
Common shares, shares issued	32,037,686	30,110,251
Common shares, shares outstanding	32,037,686	30,110,251

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Collaboration revenue	$ 44,945,000	$ 16,977,000
Operating expenses:
Research and development	73,630,000	53,732,000
General and administrative	18,495,000	10,233,000
Total operating expenses	92,125,000	63,965,000
Loss from operations	(47,180,000)	(46,988,000)
Other income:
Interest income, net	1,630,000	4,666,000
Other expense, net	(19,000)	(94,000)
Total other income, net	1,611,000	4,572,000
Loss before benefit from (provision for) income taxes	(45,569,000)	(42,416,000)
Benefit from (provision for) income taxes	570,000	(912,000)
Net loss	$ (44,999,000)	$ (43,328,000)
Net loss per share, basic and diluted	$ (1.47)	$ (2.69)
Weighted average common shares outstanding, basic and diluted	30,594,897	16,101,928
Comprehensive loss:
Net loss	$ (44,999,000)	$ (43,328,000)
Other comprehensive (loss) income:
Unrealized holding (losses) gains on marketable securities, net of tax	(65,000)	44,000
Total other comprehensive (loss) income	(65,000)	44,000
Comprehensive loss	$ (45,064,000)	$ (43,284,000)

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands	Series Seed Preferred Shares	Series A Preferred Shares	Series B Preferred Shares	Common sharesIPO	Common sharesATM	Common shares	Additional Paid-in CapitalIPO	Additional Paid-in CapitalATM	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	IPO	ATM	Total
Balance at beginning of period at Dec. 31, 2018									$ 1,633	$ (54,185)				$ (52,552)
Balance at beginning of period ( in shares) at Dec. 31, 2018						1,832,923
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation expense									3,532					3,532
Vesting of restricted shares (in shares)						354,660
Conversion of convertible preferred stock into common stock						$ 2			139,807					139,809
Conversion of convertible preferred stock into common stock (in shares)						21,010,407
Reclassification of warrants to purchase preferred shares to stockholder's equity									118					118
Issuance of common shares				$ 1			$ 93,267					$ 93,268
Issuance of common shares (in shares)				6,900,000
Issuance of common shares upon warrants exercise (in shares)						5,766
Issuance of common shares upon stock option exercise									27					27
Issuance of common shares upon stock option exercise (in shares)						6,495
Unrealized holding (losses) gains on marketable securities, net of tax											$ 44			44
Net loss										(43,328)				(43,328)
Balance at end of period at Dec. 31, 2019						$ 3			238,384	(97,513)	44			140,918
Balance at end of period ( in shares) at Dec. 31, 2019						30,110,251
Balance at beginning of period at Dec. 31, 2018	$ 8,658	$ 51,320	$ 79,831
Balance at beginning of period ( in shares) at Dec. 31, 2018	2,045,556	8,411,368	10,553,483
Increase (Decrease) in Temporary Equity [Roll Forward]
Conversion of convertible preferred stock into common stock	$ (8,658)	$ (51,320)	$ (79,831)
Conversion of convertible preferred stock into common stock (in shares)	(2,045,556)	(8,411,368)	(10,553,483)
Equity-based compensation expense									11,053					11,053
Vesting of restricted shares (in shares)						252,890
Issuance of common shares								$ 33,646					$ 33,646
Issuance of common shares (in shares)					1,157,693								1,200,000
Issuance of common shares upon stock option exercise									3,532					3,532
Issuance of common shares upon stock option exercise (in shares)						431,554
Issuance of common stock under the Employee Stock Purchase Plan									1,112					1,112
Issuance of common stock under the Employee Stock Purchase Plan (in shares)						85,298
Unrealized holding (losses) gains on marketable securities, net of tax											(65)			(65)
Net loss										(44,999)				(44,999)
Balance at end of period at Dec. 31, 2020						$ 3			$ 287,727	$ (142,512)	$ (21)			$ 145,197
Balance at end of period ( in shares) at Dec. 31, 2020						32,037,686

CONSOLIDATED STATEMENTS OF ST_2

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
Offering costs	$ 1.5	$ 10.2

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities:
Net loss	$ (44,999)	$ (43,328)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,126	821
Premium amortization and discount accretion on marketable securities	450	(1,560)
Equity-based compensation	11,053	3,532
Change in fair value of warrants		93
Other non-cash items		(22)
Change in operating assets and liabilities:
Accounts receivable	(3,847)	(3,467)
Prepaid expenses and other current assets	(767)	(1,868)
Other assets	75	(77)
Accounts payable	(1,071)	3,164
Accrued expenses	3,521	3,389
Deferred revenue	(11,466)	(2,239)
Deferred rent	(65)	(56)
Other long-term liabilities		(33)
Net cash used in operating activities	(45,990)	(41,651)
Cash flows from investing activities:
Purchases of marketable securities	(145,275)	(296,328)
Proceeds from maturities of marketable securities	154,000	162,500
Purchase of property and equipment	(544)	(2,158)
Net cash provided by (used in) investing activities	8,181	(135,986)
Cash flows from financing activities:
Proceeds from issuance of Common Stock, net		93,268
Proceeds from issuance of Common Stock pursuant to stock options exercise	3,532	27
Proceeds from issuance of Common Stock under Employee Stock Purchase Plan	1,112
Net cash provided by financing activities	38,297	93,295
Net increase (decrease) in cash and cash equivalents and restricted cash	488	(84,342)
Cash and cash equivalents and restricted cash, beginning of period	101,834	186,176
Cash and cash equivalents and restricted cash, end of period	102,322	101,834
Non-cash financing activities:
Purchases of property and equipment in accounts payable and accrued expenses	11	269
Issuance costs included in accounts payable	7
Reclassification of warrants to additional paid-in capital		118
Conversion of preferred shares to common stock		139,809
Supplemental cash flow information:
Cash paid for taxes	480	$ 550
ATM
Cash flows from financing activities:
Proceeds from issuance of Common Stock, net	$ 33,653

Nature of the Business and Basi

Nature of the Business and Basis of Presentation	12 Months Ended
	Dec. 31, 2020
Nature of the Business and Basis of Presentation
Nature of the Business and Basis of Presentation	1. Nature of the Business and Basis of Presentation Organization Morphic Holding, Inc. was formed under the laws of the State of Delaware in August 2014 under the name Integrin Rock, LLC. The Company subsequently changed its name to Morphic Rock Holding, LLC in October 2014 and then to Morphic Holding, LLC in June 2016. On December 5, 2018, the Company completed a series of transactions (the “Reorganization”) pursuant to which Morphic Holding, LLC was converted in a tax-free reorganization into Morphic Holding, Inc. and three wholly-owned subsidiaries, namely Lazuli, Inc., Tourmaline, Inc, and Phyllite, Inc, were merged with and into another wholly-owned subsidiary, Morphic Therapeutic, Inc. At the time of the Reorganization, the Company created a Massachusetts Securities Corporation (the “Security Corporation”) to take advantage of the favorable tax treatment of income earned on securities held within such entity. As of December 31, 2020, all of the Company’s excess funds were invested through the Security Corporation. Morphic Holding, Inc. (the “Company”) was formed under the laws of the State of Delaware in August 2014. The Company is a biopharmaceutical company applying proprietary insights into integrin medicine to discover and develop first-in-class oral small molecule integrin therapeutics. Integrins are a validated target class with multiple approved drugs for the treatment of serious chronic diseases. Despite significant biopharmaceutical industry investment, no oral integrin therapies have been approved. The Company has created the Morphic integrin technology platform, or MInT Platform, by leveraging a unique understanding of integrin structure and biology, to develop a pipeline of novel product candidates designed to achieve potency, high selectivity, and the pharmaceutical properties required for oral administration. The Company is subject to risks and uncertainties common to early-stage companies in the biotechnology industry, including, but not limited to, development by competitors of new technological innovations, dependence on key personnel, protection of proprietary technology, compliance with government regulations and the ability to secure additional capital to fund operations. Product candidates currently under development will require significant additional research and development efforts, including extensive preclinical and clinical testing and regulatory approval prior to commercialization. These efforts require significant amounts of additional capital, adequate personnel and infrastructure and extensive compliance-reporting capabilities. Even if the Company’s drug development efforts are successful, it is uncertain when, if ever, the Company will realize significant revenue from product sales. The Company expects to continue to incur losses from operations for the foreseeable future; the Company expects that its cash and cash equivalents and marketable securities will be sufficient to fund its operating expenses and capital expenditure requirements through at least the next 12 months from the date these financial statements were issued. On July 1, 2019, the Company completed its initial public offering, or IPO, in which the Company issued and sold 6,900,000 shares of its common stock at a public offering price of $15.00 per share, resulting in net proceeds of $93.3 million after deducting underwriting discounts and commissions and offering expenses payable by the Company . Upon the closing of the IPO, all of the outstanding shares of convertible preferred stock automatically converted into 21,010,407 shares of common stock; the warrants to purchase 6,825 convertible preferred shares automatically converted into warrants to purchase 6,825 common shares. Subsequent to the closing of the IPO, there were no shares of preferred stock outstanding. In connection with the closing of the IPO, the Company amended and restated its Fourth Amended and Restated Certificate of Incorporation to change the authorized capital stock to 400,000,000 shares designated as common stock and 10,000,000 shares designated as preferred stock, all with a par value of $0.0001 per share. On July 1, 2020, the Company entered into an Open Market Sale Agreement, or “the Agreement”, with Jefferies LLC (“Jefferies”) with respect to an at-the-market (“ATM”) offering program under which the Company may offer and sell, from time to time at its sole discretion, shares of its common stock, having an aggregate offering price of up to $75,000,000, referred to as Placement Shares, through Jefferies as its sales agent. The Company will pay Jefferies a commission equal to 3.0% of the gross sales proceeds of any Placement Shares sold through Jefferies under the Agreement, and also has provided Jefferies with customary indemnification and contribution rights. During the year ended December 31, 2020, the Company issued and sold 1.2 million shares for net proceeds of $33.6 million after deducting commissions and offering expenses paid by the Company. As of December 31, 2020, the Company had approximately $39.8 million of common stock remaining available for sale under the ATM. Basis of Presentation The consolidated financial statements include the accounts of Morphic Holding, Inc. and its wholly owned subsidiaries described above. All intercompany balances have been eliminated in consolidation. These consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative United States generally accepted accounting principles as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”). On June 10, 2019, the Company's board of directors and stockholders approved a 5.8311-to-one reverse stock split of the Company's issued and outstanding shares of common stock and convertible preferred stock. All share and per share amounts in the consolidated financial statements and notes thereto have been retrospectively adjusted for all periods presented to give effect of the reverse stock split.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2020
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Use of Estimates and Judgments The preparation of financial statements in accordance with GAAP requires management to make estimates and judgments that may affect the reported amounts of assets and liabilities and related disclosures of contingent assets and liabilities at the date of the financial statements and the related reporting of revenues and expenses during the reporting period. Significant estimates of accounting reflected in these consolidated financial statements include, but are not limited to, estimates related to revenue recognition, accrued research and development expenses, the valuation of equity‑based compensation, and income taxes. Actual results could differ from those estimates. Concentration of Credit Risk and Off‑Balance Sheet Risk Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, and accounts receivable. The Company’s cash and cash equivalents are held at one accredited financial institution, in amounts that exceed federally insured limits. The Company does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. The primary objectives for the Company’s investment portfolio are the preservation of capital and maintenance of liquidity. In 2019, the Company adopted its investment policy which allows funds to be held outside bank accounts, but to be invested only in readily marketable fixed income instruments with readily ascertainable market values, denominated and payable in U.S. dollars including obligations of the U.S. government and its agencies and money market funds registered according to Rule 2a‑7 of the Investment Company Act of 1940. Investments in the money market fund shall be consistent with approved instruments and assets under management must be at least $1.0 billion. Accounts receivable generally represent amounts due from Janssen. The Company monitors economic conditions to identify facts or circumstances that may indicate that any of its accounts receivable are at risk of collection. The Company has no off‑balance sheet risk, such as foreign exchange contracts, option contracts, or other foreign‑hedging arrangements. Cash and Cash Equivalents and Restricted Cash The Company considers highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. At December 31, 2020 and 2019, cash and cash equivalents include bank demand deposits and money market funds that invest primarily in U.S. government‑backed securities and treasuries. At December 31, 2019, cash equivalents also included one U.S. Treasury security with fair value of approximately $10.0 million. Cash equivalents are stated at cost, which approximates fair value. Restricted cash consists of a letter of credit in the amount of $275,000 issued to the landlord of the Company’s facility lease. The terms of the letter of credit extend beyond one year. The following table reconciles cash and cash equivalents and restricted cash per the balance sheet to the statements of cash flows: As of December 31, 2020 2019 Cash and cash equivalents $ 102,047 $ 101,559 Restricted cash 275 275 Total cash, cash equivalents, and restricted cash $ 102,322 $ 101,834 Marketable securities The Company invests funds in the United States Treasury securities; those securities are included in the current assets based on their contractual maturities, classified as available-for-sale, and carried at fair value. Changes in fair value of marketable securities are recorded in other comprehensive income (loss) as net unrealized gains (losses) on marketable securities. The Company recognized net unrealized losses of $65,000 and net unrealized gains of $44,000 for the years ended December 31, 2020 and 2019, respectively. Interest income on investments The Company recognizes interest income from investments in money market funds and available-for-sale securities, including amortization of premium/accretion of discount, on an accrual basis. For the years ended December 31, 2020 and 2019 , the Company recognized $1.6 million and $4.7 million in interest income, respectively. Interest income is included with other income on the consolidated statements of operations and comprehensive loss. Property and Equipment, net Property and equipment are recorded at cost. Expenditures for major renewals or betterments that extend the useful lives of property and equipment are capitalized; expenditures for maintenance and repairs are charged to expense as incurred. Depreciation is calculated on a straight‑line basis over the estimated useful lives of the related asset. Property and equipment are depreciated as follows: Estimated Useful Life (in Years) Laboratory equipment 5 Computers and software 3 - 5 Leasehold improvements Shorter of the useful life or the remaining term of the lease 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. Factors that the Company considers in deciding when to perform an impairment review include significant underperformance of the business in relation to expectations, significant negative industry or economic trends, and significant changes or planned changes in the use of the assets. If an impairment review is performed to evaluate a long‑lived asset for recoverability, the Company compares forecasts of undiscounted cash flows expected to result from the use and eventual disposition of the long‑lived asset to its carrying value. An impairment loss would be recognized when estimated undiscounted future cash flows expected to result from the use of an asset are less than its carrying amount. The impairment loss would be based on the excess of the carrying value of the impaired asset over its fair value, determined based on discounted cash flows. To date, the Company has not recorded any impairment losses on long‑lived assets. Fair Value Measurements ASC Topic 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 — Quoted market prices in active markets for identical assets or liabilities. Level 2 — Inputs other than Level 1 inputs that are either directly or indirectly observable, such as quoted market prices, interest rates and yield curves. Level 3 — Unobservable inputs developed using estimates of assumptions developed by the Company, which reflect those that a market participant would use. To the extent the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair values requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized as 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. The Company believes that the carrying amounts of the Company’s consolidated financial instruments, including prepaid expenses and other current assets, accounts receivable, accounts payable, and accrued expenses approximate fair value due to the short-term nature of those instruments. Segment Information Operating segments are defined as components of an entity about which separate discrete information is available for evaluation by the chief operating decision maker, or decision‑making group, in deciding how to allocate resources and in assessing performance. The Company’s Chief Executive Officer is its chief operating decision‑maker and views operations and manages the Company’s business in one operating segment operating exclusively in the United States. Revenue Recognition To date all revenue has been generated from the Company’s agreements with AbbVie, executed in October 2018, and Janssen, executed in February 2019 and amended in December 2020. Please refer to Note 11 below for details of ASC 606 application to the Company’s agreements with AbbVie and Janssen. The Company first evaluates collaboration arrangements to determine whether the arrangement (or part of the arrangement) represents a collaborative arrangement pursuant to ASC Topic 808, Collaborative Arrangements , based on the risks and rewards and activities of the parties pursuant to the contractual arrangement. The Company accounts for any collaborative arrangement or elements within the contract that are deemed to be a collaborative arrangement, and not a customer relationship, in accordance with ASC 808. Through December 31, 2020, the Company entered into two agreements – with AbbVie and Janssen – that have been accounted for pursuant to ASC 606. Under ASC 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine the appropriate amount of revenue to be recognized for arrangements determined to be within the scope of ASC 606, the Company performs the following five steps: (i) identification of the contract(s) with the customer, (ii) identification of the promised goods or services in the contract and determination of whether the promised goods or services are performance obligations, (iii) measurement of the transaction price, (iv) allocation of the transaction price to the performance obligations, and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five‑step model to contracts when it is probable that the entity will collect consideration it is entitled to in exchange for the goods or services it transfers to the customer. The Company accounts for a contract with a customer that is within the scope of ASC 606 when all of the following criteria are met: (i) the arrangement has been approved by the parties and the parties are committed to perform their respective obligations, (ii) each party’s rights regarding the goods or services to be transferred can be identified, (iii) the payment terms for the goods or services to be transferred can be identified, (iv) the arrangement has commercial substance and (v) collection of substantially all of the consideration to which the Company will be entitled in exchange for the goods or services that will be transferred to the customer is probable. Performance obligations are promised goods or services in a contract to transfer a distinct good or service to the customer. Promised goods or services are considered distinct when: (i) the customer can benefit from the good or service on its own or together with other readily available resources and (ii) the promised good or service is separately identifiable from other promises in the contract. Options to purchase additional goods or services are considered to be marketing offers and are to be accounted for as separate contracts when the customer elects such options, unless the Company determines the option provides a material right which would not be provided without entering into the contract. If, however, an option is determined to provide a material right that would not be provided without entering into a contract, a portion of the transaction price is allocated to such option. The Company estimates the transaction price based on the amount of consideration the Company expects to receive for transferring the promised goods or services in the contract. The consideration may include both fixed consideration and variable consideration. At the inception of each arrangement that includes variable consideration, the Company evaluates the amount of the potential payments and the likelihood that the payments will be received. The Company utilizes either the most likely amount method or expected value method to estimate the transaction price based on which method better predicts the amount of consideration expected to be received. If it is probable that a significant revenue reversal would not occur, the variable consideration is included in the transaction price. The Company also evaluates whether instances in which the timing of payments by customers do not match the timing of performance obligation satisfaction contain an element of financing and adjusts the transaction price for the effect of the financing component, if any. The Company’s transactions with customers may include development and regulatory milestone payments. The Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the Company’s control or the customer’s control, such as regulatory approvals, are not considered probable of being achieved until those approvals are received. At the end of each reporting period, the Company re‑evaluates the probability of achievement of such milestones and any related constraint, and, if necessary, adjusts the estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch‑up basis, which would affect collaboration revenue and net income (loss) in the period of adjustment. For sales‑based royalties, including milestone payments based on the level of sales, the Company determines whether the sole or predominant item to which the royalties relate is a license. When the license is the sole or predominant item to which the sales‑based royalty relates, the Company recognizes revenue at the later of: (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). The Company allocates the transaction price based on the estimated standalone selling price of the identified performance obligations. The Company must develop assumptions that require judgment to determine the standalone selling price for each performance obligation identified in the contract. The Company utilizes key assumptions to determine the standalone selling price, which may include other comparable transactions, pricing considered in negotiating the transaction, and the estimated costs. Certain variable consideration is allocated specifically to one or more performance obligations in a contract when the terms of the variable consideration relate to the satisfaction of the performance obligation and the resulting amounts allocated to each performance obligation are consistent with the amounts the Company would expect to receive for each performance obligation. We recognize as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) each performance obligation is satisfied, either at a point in time or over time. In particular, for the Company’s collaborations with AbbVie and Janssen, revenue attributable to research services is recognized as those services are provided, based on the costs incurred to date. The Company receives payments from customers based on billing schedules established in each contract. Up‑front payments and fees are recorded as deferred revenue upon receipt or when due until the Company performs its obligations under these arrangements. Amounts are recorded as accounts receivable when the Company’s right to consideration is unconditional. Research and Development Expenses Research and development expenses are expensed as incurred and consist of costs incurred in performing research and development activities, including compensation related expenses for research and development personnel, preclinical and clinical activities including cost of supply, overhead expenses including facilities expenses, materials and supplies, amounts paid to consultants and outside service providers, and depreciation of equipment. Upfront license payments related to acquired technologies which have not yet reached technological feasibility and have no alternative future use are also included in research and development expense. Research Contract and Development Costs and Accruals The Company has entered into various research development service arrangements under which vendors perform various services on behalf of the Company. The Company records accrued expenses for estimated costs incurred under the arrangements. When evaluating the adequacy of the accrued expenses, the Company analyzes the progress of the studies, trials or other services performed, including invoices received and contracted costs. Judgments and estimates are made in determining the accrued expense balances at the end of each reporting period. Equity‑Based Compensation The Company issues stock options, restricted stock awards, and restricted stock units to certain employees, officers, and directors. The Company accounts for stock compensation at the grant date fair value of the respective award, determined using the Black-Scholes model, which results in the recognition of compensation expense over the vesting period of the award. Please refer to Note 8 for additional information. Comprehensive Loss Comprehensive loss is the change in equity of a business enterprise during a period from transactions and other events and circumstances from non‑owner sources. Comprehensive loss includes net loss and the change in accumulated other comprehensive loss for the period. For the year ended December 31, 2020, comprehensive loss included $65,000 in unrealized holding losses, net on marketable securities; for the year ended December 31, 2019, comprehensive loss included $44,000 in unrealized holding gains, net on marketable securities. Income Taxes Since inception, the Company recorded income taxes in accordance with FASB Accounting Standards Codification Topic 740, Income Taxes (“ASC 740”), which provides for deferred taxes using an asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on temporary differences between the financial statement basis and tax basis of assets and liabilities and net operating loss and credit carryforwards using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established when it is more likely than not that some portion of the deferred tax assets will not be realized. The Company accounts for uncertainty in income taxes recognized in the financial statements by applying a two‑step process to determine the amount of tax benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination by the taxing authorities. If the tax position is deemed more‑likely‑than‑not to be sustained, the tax position is then assessed to determine the amount of benefit to recognize in the financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. At December 31, 2020 and 2019, the Company had not identified any significant uncertain tax positions. Subsequent Events The Company considers events or transactions that occur after the balance sheet date but prior to the issuance of the consolidated financial statements for potential recognition or disclosure in the consolidated financial statements. Subsequent events have been evaluated through the date these consolidated financial statements were issued for potential recognition or disclosure in the consolidated financial statements. Recently Adopted Accounting Pronouncements In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement ("ASU 2018-13"), to streamline the disclosure requirements of ASC Topic 820—Fair Value Measurement. ASU 2018 removes certain disclosure requirements, including the valuation process for Level 3 fair value measurements, and adds certain quantitative disclosures around Level 3 fair value measurements. This ASU is effective for annual reporting periods beginning after December 15, 2019, including interim periods within that reporting period, with early adoption permitted. The provisions of ASU 2018-13 are required to be adopted retrospectively, with the exception of disclosure of the range and weighted average of significant unobservable inputs used to develop Level 3 measurements, which can be adopted prospectively. The Company adopted ASU 2018-13 as of January 1, 2020. The standard did not have material impact on the Company’s financial statements and related disclosures. In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. The guidance will be effective for the Company for the fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Provisions of ASU 2019-12 must be adopted using either full retrospective, modified retrospective, or prospective method, depending on the provision adopted, as specified within the guidance. Early adoption is permitted. The Company adopted ASU 2019-12 effective January 1, 2020, using the prospective method. Adoption of the standard did not have a material impact on the consolidated financial statements. Recently Issued Accounting Pronouncements not yet Adopted As an “emerging growth company,” or EGC, under the Jumpstart Our Business Startups Act of 2012, or the JOBS Act, the Company has made an election under Section 107 of the JOBS Act to take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act, for complying with new or revised accounting standards. Thus, the Company follows requirements applicable to the private companies for adopting new and updated accounting standards. In November 2019, the FASB issued ASU 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates (“ASU 2019-10”), which finalizes effective date delays for private companies, not-for-profit organizations, and certain smaller reporting companies as follows: · January 1, 2023 as the effective date for adoption of the Topic 326 for annual and interim reporting periods; · January 1, 2021 and January 1, 2022 as the effective dates for adoption of the Topic 815 amendments for annual and interim periods, respectively; and · January 1, 2021 and January 1, 2022 as the effective dates for adoption of the Topic 842 for annual and interim periods, respectively In June 2020, the FASB issued ASU 2020-05, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842), which partially superseded the guidance of the ASU 2019-10 described above and deferred the effective date for adoption of ASC 606 and ASC 842 for certain entities that had not previously adopted these standards. The Company had adopted ASC 606 in a prior period and has not yet adopted ASC 842, discussed further below. In June 2016, the FASB issued ASU 2016-13, Financial Instruments Credit Losses (Topic 326) (“ASU 2016-13”), which requires consideration of a broader range of reasonable and supportable information in developing credit loss estimates. In April 2019, the FASB issued ASU 2019-04, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments (“ASU 2019-04”). Certain provisions of ASU 2019-04 amend the guidance of ASU 2016-13, are applicable to the Company’s investments portfolio, and allow the Company to make certain accounting policy elections regarding establishing allowance for credit losses for the accrued interest receivable and the corresponding disclosures. In November 2019, the FASB issued ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses (“ASU 2019-11”), which clarifies certain areas of the guidance to ensure all companies and organizations can make a smoother transition to the standard. Following the issuance of ASU 2019-10 described above, the guidance is effective for the Company for the fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, and will be adopted using the modified retrospective approach. The Company is currently evaluating the impact of ASU 2019-11 and the related ASU 2019-04 and ASU 2016-13 on the consolidated financial statements, including the impact of the available accounting policy elections. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), with guidance regarding the accounting for and disclosure of leases. In general, for lease arrangements exceeding a twelve-month term, these arrangements must now be recognized as assets and liabilities on the balance sheet of the lessee. Under ASU 2016-02, a right-of-use asset and lease obligation will be recorded for all leases, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. The balance sheet amount recorded for existing leases at the date of adoption of ASU 2016-02 must be calculated using the applicable incremental borrowing rate at the date of adoption. This update also requires lessees and lessors to disclose key information about their leasing transactions. In July 2018, the FASB issued ASU 2018-11, Leases - Targeted Improvements, intended to ease the implementation of the new lease standard for financial statement preparers by, among other things, allowing for an additional transition method. In lieu of presenting transition requirements to comparative periods, as previously required, an entity may now elect to show a cumulative effect adjustment on the date of adoption without the requirement to recast prior period financial statements or disclosures presented in accordance with ASU 2016-02. The Company currently expects to elect the available package of practical expedients which allows the Company to not reassess previous accounting conclusions around whether arrangements are or contain leases, the classification of leases, and the treatment of initial direct costs. The Company also expects it will make an accounting policy election to keep leases with an initial term of 12 months or less off of the balance sheet. The Company is in the process of assessing the impact of the standard and while not complete, it expects that it will record a material asset and liability related to its current operating lease; however, the full impact of adoption to the Company’s financial statements is yet to be determined. Based on the issuance of ASU 2020-05, described above, this standard is effective for the Company for the annual periods beginning after December 15, 2021, and interim periods within annual periods beginning after December 15, 2022.

Fair Value of Financial Assets

Fair Value of Financial Assets and Liabilities	12 Months Ended
	Dec. 31, 2020
Fair Value of Financial Assets and Liabilities
Fair Value of Financial Assets and Liabilities	3. Fair Value of Financial Assets and Liabilities The following tables summarize the assets and liabilities measured at fair value on a recurring basis at December 31, 2020 and 2019 (in thousands): Fair Value Measurements at December 31, 2020 Total Level 1 Level 2 Level 3 Assets: Money market funds, included in cash and cash equivalents $ 101,760 $ 101,760 $ — $ — U.S. Treasury obligations 126,217 — 126,217 — Total assets $ 227,977 $ 101,760 $ 126,217 $ — Fair Value Measurements at December 31, 2019 Total Level 1 Level 2 Level 3 Assets: Money market funds, included in cash and cash equivalents $ 91,332 $ 91,332 $ — $ — U.S. Treasury obligations, included in cash and cash equivalents 9,995 — 9,995 — U.S. Treasury obligations 135,457 — 135,457 — Total assets $ 236,784 $ 91,332 $ 145,452 $ — The money market funds included in the table above invest in U.S. government securities that are valued using quoted market prices. Accordingly, money market funds are categorized as Level 1 as of December 31, 2020 and 2019. Marketable securities, included in the table above, consist exclusively of U.S. Treasury securities that are valued using prices provided by third party pricing vendors, using observable market inputs such as interest rates, yield curves, and credit risk. Accordingly, these securities are categorized as Level 2 as of December 31, 2020 and 2019. During the years ended December 31, 2020 and 2019, no assets were transferred between the fair value hierarchy categories.

Marketable securities

Marketable securities	12 Months Ended
	Dec. 31, 2020
Marketable securities.
Marketable securities	4. Marketable securities The following tables summarizes Company’s investments in marketable securities classified as available-for-sale as of December 31, 2020 (in thousands): Gross Gross Aggregate Amortized unrealized unrealized estimated Maturity cost holding gains holding losses fair value U.S. Treasury securities less than 1 year $ 126,212 $ 7 $ (2) $ 126,217 The following tables summarizes Company’s investments in marketable securities classified as available-for-sale as of December 31, 2019 (in thousands): Gross Gross Aggregate Amortized unrealized unrealized estimated Maturity cost holding gains holding losses fair value U.S. Treasury securities less than 1 year $ 135,389 $ 70 $ (2) $ 135,457 All of the Company’s investments are classified as available‑for‑sale and are carried at fair value with unrealized gains and losses recorded as a component of accumulated other comprehensive income (loss), net of related income taxes. As of December 31, 2020, no securities are considered to be other than temporarily impaired because the impairments are not severe, have been for a short duration, and are due to normal market and interest rate fluctuations. Furthermore, the Company does not intend to sell the investment securities in an unrealized loss position and it is not more likely than not that the Company will be required to sell these securities before the recovery of the value.

Property and Equipment, Net

Property and Equipment, Net	12 Months Ended
	Dec. 31, 2020
Property and Equipment, Net.
Property and Equipment, Net	5. Property and Equipment, Net At December 31, 2020, property and equipment, net consists of the following (in thousands): As of December 31, 2020 2019 Laboratory equipment $ 4,808 $ 4,194 Computers and software 355 280 Leasehold improvements 596 535 Construction in progress — 465 5,759 5,474 Less: Accumulated depreciation and amortization (3,153) (2,028) $ 2,606 $ 3,446 Depreciation and amortization expense was $1.1 million and $0.8 million for the years ended December 31, 2020 and 2019, respectively.

Accrued Expenses

Accrued Expenses	12 Months Ended
	Dec. 31, 2020
Accrued Expenses
Accrued Expenses	6. Accrued Expenses At December 31, 2020 and 2019 accrued expenses consist of the following (in thousands): As of December 31, 2020 2019 Payroll and related expenses 5,148 3,159 Research and development activities 4,335 2,465 Other expenses 677 1,015 $ 10,160 $ 6,639

Stockholder's Equity

Stockholder's Equity	12 Months Ended
	Dec. 31, 2020
Stockholder's Equity
Stockholder's Equity	7. Stockholders’ Equity Common Stock The common stock has the following characteristics: Voting The holders of common stock are entitled to one vote for each share of common stock held. Dividends The holders of shares of common stock are entitled to receive dividends, if and when declared by the Company’s board of directors. Cash dividends may not be declared or paid to holders of shares of common stock until all unpaid dividends on any preferred stock outstanding have been paid in accordance with their terms. As of December 31, 2020 and 2019, no preferred stock was outstanding. No dividends have been declared or paid by the Company to the holders of common stock since the issuance of the common stock. Liquidation Holders of the common shares are entitled to receive distributions of cash, including in the event of a liquidation or dissolution of the Company, which preference is junior to the liquidation preference of any preferred stock holders. After any preferred stock holders have received their respective preferred distributions, any assets remaining for distribution shall be distributed to the holders of preferred or common shares determined on an as‑converted basis.

Equity-Based Compensation

Equity-Based Compensation	12 Months Ended
	Dec. 31, 2020
Equity-Based Compensation
Equity-Based Compensation	8. Equity-Based Compensation 2019 Stock Incentive Plan In connection with the Company’s initial public offering in July 2019, the Company adopted the 2019 Equity Incentive Plan (the “2019 Plan”) in June 2019, which replaced the 2018 Stock Incentive Plan. The 2019 Plan provides for the grant of stock options, restricted stock awards, stock bonus awards, cash awards, stock appreciation right, RSUs, and performance awards to purchase initially up to 2.8 million shares of common stock. The number of shares reserved for issuance under the Company’s 2019 Plan will increase automatically on January 1 of each of 2020 through 2029 by the number of shares equal to the lesser of 4% of the aggregate number of outstanding shares of the Company’s common stock as of the immediately preceding December 31, or a number as may be determined by the Company’s board of directors. On January 1, 2020, the number of shares of common stock available for issuance under the 2019 Plan increased by 1.2 million shares as a result of the automatic increase provision of the 2019 Plan. The 2019 Plan is administered by the Board of Directors, or at the discretion of the Board of Directors, by a committee of the board. The exercise prices, vesting, and other restrictions are determined at the discretion of the Board of Directors, or a committee if so delegated, except that the exercise price per share of stock options may not be less than 100% of the fair market value of the share of common stock on the date of grant and the term of stock option may not be greater than ten years. The shares of common stock underlying any awards that are forfeited, cancelled, repurchased, or are otherwise terminated by the Company under the 2019 Plan, and those previously granted under the 2018 Plan, will be added back to the shares of common stock available for issuance under the 2019 Plan. Options generally vest over a four-year period with the first 25% vesting following 12 months of employment or service and the remaining award vesting in equal monthly installments over the following 36 months. All options have a contractual term of 10 years. As of December 31, 2020, there were a total of 1.4 million shares available for future award grants under the 2019 Plan. The Company estimates the fair value of stock option awards granted using the Black-Scholes option-pricing model, which uses as inputs, the fair value of our common stock or unit and subjective assumptions made by management, including the expected stock price volatility, the expected term of the award, the risk-free interest rate, and expected dividends. The Company recognizes forfeitures as they occur. The Company recognized equity-based compensation expense in the consolidated statements of operations and comprehensive loss, by award type, as follows (in thousands): Year ended December 31, 2020 2019 Stock option $ 9,418 $ 2,549 Restricted stock 955 737 Restricted stock units 187 — ESPP 493 246 Total $ 11,053 $ 3,532 The following table summarizes the allocation of equity-based compensation expense in the consolidated statements of operations and comprehensive loss, by expense category: Year ended December 31, 2020 2019 Research and development expense $ 6,114 $ 2,241 General and administrative expense 4,939 1,291 Total $ 11,053 $ 3,532 Restricted Common Stock The following table summarizes the restricted common stock activity during the year ended December 31, 2020: Weighted Average Fair Number Value per Share of Shares at Issuance Unvested restricted common stock as of December 31, 2019 379,770 $ 4.32 Granted — — Vested (252,890) 4.32 Forfeited (25,891) 4.32 Unvested restricted common stock as of December 31, 2020 100,989 $ 4.32 As of December 31, 2020, the Company had unrecognized equity‑based compensation expense of $0.3 million for the restricted common shares issued to employees and non‑employees, which is expected to be recognized over a weighted average period of 1.0 year. The total fair value of awards vested during the year ended December 31, 2020 was approximately $1.1 million. Restricted Stock Units The following table summarizes the restricted stock unit activity during the year ended December 31, 2020: Weighted Average Fair Number Value per Share of Shares at Issuance Unvested restricted stock units as of December 31, 2019 — $ — Granted 66,216 10.84 Vested — — Forfeited — — Unvested restricted stock units as of December 31, 2020 66,216 $ 10.84 As of December 31, 2020, the Company had unrecognized equity‑based compensation expense of $0.5 million for the restricted common shares issued to employees, which is expected to be recognized over a weighted average period of 2.4 years. Stock Options The following table summarizes the Company’s stock option activity under the 2018 Plan and the 2019 Plan during the year ended December 31, 2020: Weighted Weighted Average Number of Average Remaining Aggregate Shares Exercise Price Contractual Term Intrinsic Value (in years) (in thousands) Outstanding as of December 31, 2019 2,987,403 $ 8.67 9.22 $ 26,254 Granted 2,061,585 16.05 Exercised (431,554) 8.18 Forfeited (265,339) 8.61 Outstanding as of December 31, 2020 4,352,095 $ 12.22 8.68 $ 92,828 Options vested and expected to vest as of December 31, 2020 4,352,095 $ 12.22 8.68 $ 92,828 Options exercisable as of December 31, 2020 1,131,518 $ 9.12 8.32 $ 27,647 The following table provides certain information related to the stock options granted, vested, and exercised during the years ended December 31, 2020 and 2019, in thousands, except for per option values: Year ended December 31, 2020 2019 Weighted-average fair value of options granted, per option $ 10.98 $ 9.95 Aggregate grant date fair value of options vested during the year $ 7,868 $ 1,381 Total cash received from exercises of stock options $ 3,532 $ 27 Total intrinsic market value of stock options exercised $ 7,752 $ 89 The following table summarizes assumptions used in determining the fair value of the options granted during the years ended December 31, 2020 and 2019: Year ended December 31, 2020 2019 Risk‑free interest rate 0.46% 1.9% Expected dividend yield - - Expected term (in years) 6.00 6.00 Expected Volatility 81.00% 75.45% The Company determines the volatility for options granted based on reported data for a guideline group of companies that issued options with substantially similar terms. The risk-free interest rate is based on a zero-coupon United States Treasury instrument with terms consistent with the expected life of the stock options. The expected term of options granted has been determined based upon the simplified method, because the Company does not have sufficient historical information regarding its options to derive the expected term. Under this approach, the expected term is the mid-point between the weighted average of vesting period and the contractual term. The Company has not paid and does not anticipate paying cash dividends on shares of common stock; therefore, the expected dividend yield is assumed to be zero. As of December 31, 2020, the Company had unrecognized equity‑based compensation expense of $26.6 million related to stock options issued to employees and non-employees, which is expected to be recognized over a weighted average period of 2.6 years. 2019 Employee Stock Purchase Plan In June 2019, the Company adopted the 2019 Employee Stock Purchase Plan (“ESPP”), which became effective on June 26, 2019. The Company initially reserved 300,000 shares of common stock for sale under the ESPP. The number of shares reserved for issuance under the ESPP will increase automatically on January 1st of each of the first 10 calendar years following the first offering date by the number of shares equal to the lesser of 1% of the total outstanding shares of the Company’s common stock as of the immediately preceding December 31 or an amount determined by the Company’s board of directors. The aggregate number of shares issued over the term of the ESPP will not exceed 3,000,000 shares of the Company’s common stock. On January 1, 2020, the number of shares of common stock available for issuance under the ESPP increased by 301,102 shares as a result of the automatic increase provision of the ESPP. The ESPP is a qualified, compensatory plan under Section 423 of the Internal Revenue Code and offers substantially all employees opportunity to purchase up to $25,000 of common stock per year at 15% discount to the lower of the beginning of the offering period price or the end of the offering period price. Compensation expense for discounted purchases under the ESPP is measured using the Black-Scholes model to compute the fair value of the lookback provision plus the purchase discount and is recognized as compensation expense over the course of the offering period.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2020
Income Taxes
Income Taxes	9. Income Taxes The components of the income tax (benefit) expense for the years ended December 31, 2020 and 2019 (in thousands) were: Year Ended December 31, 2020 2019 Current Federal $ (511) $ 512 State (59) 410 Total current tax (benefit) provision (570) 922 Deferred Federal — (6) State — (4) Total deferred tax provision — (10) Total income tax (benefit from) provision for income tax expense $ (570) $ 912 The effective income tax rate differed from the amount computed by applying the federal statutory rate to the Company’s loss before income taxes as follows: Year Ended December 31, 2020 2019 Tax effected at statutory rate 21.00 % 21.00 % State taxes 8.38 8.39 Stock compensation 0.76 (1.09) Non-deductible expenses (0.01) 0.08 Federal research and development credits 6.21 5.09 Change in valuation allowance (35.09) (35.64) 1.25 % (2.17) % Deferred tax assets and liabilities consist of the following at December 31, 2020 and 2019 (in thousands): As of December 31, 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 13,127 $ 1,170 Deferred revenue 21,293 23,453 Research and development credit carryforwards 6,314 1,091 Fixed and intangible assets 3,537 4,246 Reserves and accruals 235 195 Stock-based compensation 1,944 353 Total deferred tax assets: 46,450 30,508 Valuation allowance (45,590) (29,618) Subtotal 860 890 Fixed assets (568) (656) Prepaid expense (292) (234) Total net deferred tax assets $ — $ — As required by ASC 740, the Company has evaluated the positive and negative evidence bearing upon the realizability of its deferred tax assets, which is composed principally of collaboration revenue that has been recognized as taxable but remains deferred for book reporting purposes at year end. The Company has determined that it is more likely than not that the Company will not realize the benefits of its federal and state deferred tax assets, and, as a result, a valuation allowance of $45.6 million and $29.6 million has been established at 2020 and 2019, respectively. The change in the valuation allowance was $16.0 million and $14.9 million for the years ended December 31, 2020 and 2019. The Company has incurred NOLs from inception. At December 31, 2020, the Company has federal and state NOL carryforwards of approximately $45.6 million and $56.4 million, respectively, available to reduce future taxable income, that expire beginning in 2037. As of December 31, 2020, the Company also has federal and state research and development tax credit carryforwards of approximately $5.4 million and $1.1 million, respectively, to offset future income taxes, which will begin to expire beginning in December 2032. The Company’s NOL carryforwards are subject to review and possible adjustment by the appropriate taxing authorities. The Company has reviewed its historic ownership changes to determine if there are any IRC 382 limitations which would limit the annual utilization of the NOLs. A total of $3.8 million of the NOLs carryforwards remaining as of December 31, 2020 are subject to annual utilization limitation of approximately $0.6 million. On March 27, 2020, the Coronavirus Aid Relief and Economic Security, or CARES Act, was signed into law. Among other provision, the CARES Act temporarily reinstated loss carryback provisions. Losses generated after December 31, 2017 and before January 1, 2021 can be carried back up to 5 tax years. The Company recorded a $0.6 million tax benefit as a result of this provision, which is recorded as a receivable as of December 31, 2020 and is classified as other current assets on the consolidated balance sheet. The Company follows the provisions of ASC 740-10, “Accounting for Uncertainty in Income Taxes,” which specifies how tax benefits for uncertain tax positions are to be recognized, measured, and recorded in financial statements; requires certain disclosures of uncertain tax matters; specifies how reserves for uncertain tax positions should be classified on the balance sheet; and provides transition and interim period guidance, among other provisions. As of December 31, 2020 and 2019, the Company had no unrecognized tax benefits. As the Company’s research spending has increased in scope and complexity during 2019 and 2020, a detailed review of the R&D credit computation for those years was undertaken to support the company’s methodology and conclusions. The Company has not identified any uncertain positions with respect to the credit computations. The Company’s policy is to recognize interest and penalties accrued on any uncertain tax positions as a component of income tax expense, if any, in its statements of operations. For the years ended December 31, 2020 and 2019, no estimated interest or penalties were recognized on uncertain tax positions. The Company does not expect any significant change in its uncertain tax positions in the next 12 months. The Company files U.S. federal and state income tax returns and is generally subject to income tax examinations by these authorities for all tax years. The Company is open to examination by the Internal Revenue Service for the tax years ended December 31, 2018 to December 31, 2020. The Company is currently not under examination by the Internal Revenue Service or any other jurisdictions for any tax years. The Company has not recorded any interest or penalties on any unrecognized tax benefits since its inception. Provision for Income Taxes The Company recorded a benefit from income taxes of $0.6 million for the year ended December 31, 2020 and income tax expense of $0.9 million for the years ended December 31, 2019. Based on the net operating loss generated during the year ended December 31, 2020 and the carryback allowance under the CARES Act, the Company anticipates a full recovery of the federal income tax paid for the year ended December 31, 2019. Accordingly, the Company recognized an income tax benefit of $0.6 million for the year ended December 31, 2020. In the year ended December 31, 2019, the income tax expense recorded was driven largely by the current tax liability associated with the tax recognition of the upfront AbbVie collaboration payment received in 2018. A significant portion of the taxable income related to the collaboration payments was offset by current year expenses and prior year accumulated losses. A current tax liability has been calculated for the remaining taxable income. Despite the collaboration revenue, the Company continues to maintain a valuation allowance against all deferred tax assets. The Company believes that it is more likely than not that the Company will not realize a future tax benefit of these attributes, as the research programs continue to require significant investment and future revenue is subject to uncertainties. Ultimate realization of any deferred tax asset is dependent on the Company’s ability to generate sufficient future taxable income in the appropriate tax jurisdiction before the expiration of carryforward periods, if any.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2020
Commitments and Contingencies
Commitments and Contingencies	10. Commitments and Contingencies Guarantees and Indemnifications The Company entered, and intends to continue to enter, into separate indemnification agreements with directors, officers, and certain of key employees, in addition to the indemnification provided for in the restated certificate of incorporation and restated bylaws. These agreements, among other things, require the Company to indemnify directors, officers, and key employees for certain expenses, including attorneys' fees, judgments, penalties, fines, and settlement amounts actually incurred by these individuals in any action or proceeding arising out of their service to the Company or any of its subsidiaries or any other company or enterprise to which these individuals provide services at the Company’s request. Subject to certain limitations, the indemnification agreements also require the Company to advance expenses incurred by directors, officers, and key employees for the defense of any action for which indemnification is required or permitted. The Company has standard indemnification arrangements in its leases for laboratory and office space that require it to indemnify the landlord against any liability for injury, loss, accident, or damage from any claims, actions, proceedings, or costs resulting from certain acts, breaches, violations, or non-performance under the Company’s lease. Through December 31, 2020, the Company had not experienced any losses related to these indemnification obligations, and no material claims were outstanding. The Company does not expect significant claims related to these indemnifications’ obligations and, consequently, concluded that the fair value of these obligations is negligible, and no related reserves were established. Operating Leases Facility Lease Starting in June 2017, the Company leases office and laboratory space and obtains services (facilities management, office, and laboratory services) under an operating lease that expires in May 2022. The lease agreement provided for a fixed rental payment for the first 12 months with subsequent annual escalation of approximately 3%. The Company has an option to extend the lease by three years at a rate of at least the amount paid in the last year of the current lease or the then-current market rate, whichever is higher. In accordance with the lease, the Company entered into a cash-collateralized irrevocable standby letter of credit naming the landlord as beneficiary and the amount is included in restricted cash in the consolidated balance sheets. The Company recognizes rent expense for the space it currently occupies and records a deferred rent obligation, representing the cumulative difference between actual rent payments and rent expense recognized ratably over the lease period, which is included in the Company’s consolidated balance sheets as of December 31, 2020 and 2019. Minimum annual rent payments under this lease for the remaining term of the amended lease, excluding operating expenses and taxes, which are not fixed for future periods as of December 31, 2020, are as follows (in thousands): Total Minimum Year ending December 31, Lease Payments 2021 1,250 2022 527 Total minimum lease payments $ 1,777 The Company recorded approximately $1.1 million and $0.9 million in rent expense for the years ended December 31, 2020 and 2019, respectively. Legal Proceedings The Company is not currently a party to any material legal proceedings.

Option and License Agreements

Option and License Agreements	12 Months Ended
	Dec. 31, 2020
Option and License Agreements
Option and License Agreements	11. Option and License Agreements AbbVie Agreement Overview In October 2018, the Company entered into a 5‑year collaboration and option agreement with AbbVie, or the AbbVie agreement, a research‑based global biopharmaceutical company that held Series A and Series B Convertible Preferred Shares of the Company at the time the AbbVie agreement was executed. Pursuant to this agreement, AbbVie paid the Company an upfront, non‑refundable amount of $100.0 million. In exchange, the Company: (i) assumed the obligation to perform research and development activities to identify and develop compounds directed at multiple fibrosis indications (grouped into four research programs) through completion of Investigational New Drug (IND)‑enabling studies, and (ii) granted AbbVie options to license the results of R&D in exchange for separate upfront option‑exercise fees. At any time during the five‑year period, AbbVie holds the right to exercise its license options for molecules with the selected pharmacological profiles by providing written notice to the Company and paying an option exercise fee of $20.0 million per option exercised (up to three in total). Morphic is solely responsible for performing the R&D activities and generating at least one research product and one backup research product for each research target. The Company’s obligations to perform R&D activities for the molecules with selected pharmacological profile cease after AbbVie exercises the option(s) and accepts the results of R&D activities. Upon exercise of an option, AbbVie assumes full responsibility for further development of the molecules at its sole cost, and the Company is obligated to transfer any and all manufacturing related activities to AbbVie at AbbVie’s cost. In addition, after AbbVie exercises its options, it is obligated to pay the Company certain development milestones totaling up to $80.0 million per indication, launch milestones totaling up to $110.0 million per indication, and net sales milestones totaling up to $160.0 million per indication. Development milestones are triggered upon the initiation of various phases of clinical trials. Launch milestones are achieved by recording first commercial sale in each of the specified markets. The net sales milestones are achieved by reaching the agreed upon volume of sales in certain territories. The Company is also entitled to royalty payments ranging in high single digit to low teens percentage of sales in a calendar year. The Company retained cost‑sharing rights in the development of compounds for the liver fibrosis indications, including non‑alcoholic steatohepatitis, and may opt into paying a percentage of AbbVie’s development costs in exchange for enhanced royalties. The milestone payments were fully constrained, as a result of the uncertainty regarding whether AbbVie would exercise any of the options and whether any of the associated milestones would be achieved. AbbVie Agreement Accounting Analysis The Company has concluded that the performance obligations in the agreement include the research services for the four research programs. The Company has concluded that the unexercised license options were marketing offers as the options did not provide any discounts or other rights that would be considered a material right in the arrangement. All other performance obligations were determined to be immaterial in the context of the contract. The Company estimated the standalone selling price of each research program based on internal and external costs to perform the research plus a reasonable profit margin of 10%. The total estimated cost of the research and development services reflects the nature of the services to be performed and the Company’s best estimate of the length of time required to perform the services. The Company recognizes revenue as research and development services are provided based on the costs incurred to date, as such costs have a direct relationship between the Company’s effort and the progress made towards satisfying its performance obligations to AbbVie. Changes to the estimated cost of internal and external development services are recognized in the period of change as a cumulative catch‑up adjustment. The Company reassesses cost estimates which may change due to feedback from FDA, as well as the results and findings of any nonclinical activities performed under the agreement with AbbVie. The Company determined that the transaction price included only the non‑refundable up‑front payment of $100.0 million and recorded this amount as deferred revenue as of December 31, 2018. The option exercise payments were not included in the transaction price, as the Company determined that the agreed upon fees represent fair value of such options. The milestone payments were fully constrained, as a result of the uncertainty regarding whether AbbVie would exercise any of the options and whether any of the associated milestones would be achieved. There have been no changes to the transaction price in the years ended December 31, 2020 and 2019. The Company also considered the existence of any significant financing component within the AbbVie Agreement given its upfront payment structure. Based upon this assessment, the Company concluded that the up‑front payment was provided for valid business reasons and not for the purpose of providing financing. Accordingly, the Company has concluded that the upfront payment structure of the AbbVie Agreement does not result in the existence of a significant financing component. On August 25, 2020, AbbVie exercised its option to license and control further development and commercialization of Morphic’s αvβ6–specific integrin inhibitors (including MORF-720 and MORF-627) for the treatment of fibrotic diseases including idiopathic pulmonary fibrosis (IPF) and additional indications. In connection with the exercise of the option, AbbVie paid the Company $20.0 million. Upon option exercise, the Company evaluated whether the change to the contract should be treated as the continuation of the current arrangement or as a separate agreement. As the additional performance obligations were deemed to be distinct and priced consistent with the standalone selling price of such obligations, the Company concluded that the license and any additional performance obligations should be accounted for as a separate contract. The potential performance obligations included in the arrangement were (1) the license to research, develop and commercialize αvβ6–specific integrin inhibitors (including MORF-720 and MORF-627), and (2) options to purchase MORF-720 and MORF-627 materials that were manufactured prior to option exercise (the “Material Options”). The Company concluded that the Material Options were not material rights as the price to purchase the materials approximated the standalone selling price. Based on this conclusion, the full transaction price of $20.0 million was allocated to the license and recognized upon delivery in the third quarter of 2020. As detailed above, under the terms of AbbVie agreement, the Company is eligible to receive potential milestones and royalties on future development and commercialization of either MORF-720 and MORF-627, all of which have been fully constrained as of December 31, 2020. The Company incurred approximately $12.5 million in research and development costs, and recognized revenue of $14.2 million related to research services performed, recognized revenue of $20.0 million received in connection with the option exercise by AbbVie, and recognized $1.9 million in revenue related to the reimbursement of MORF-720 and MORF-627 material costs incurred during the year ended December 31, 2020. The Company incurred $20.0 million in research and development costs and recognized revenue of $10.8 million related to research services performed during year ended December 31, 2019. As of December 31, 2020, the Company had $0.9 million due from AbbVie recorded in accounts receivable. No amounts were recorded as accounts receivable as of December 31, 2019. As of December 31, 2020 and December 31, 2019, the Company had $71.7 million and $85.8 million, respectively, of deferred revenue, which is classified as either current or net of current portion in the accompanying consolidated balance sheets based on the period over which the revenue is expected to be recognized. This deferred revenue balance represents the aggregate amount of the transaction price allocated to the performance obligations that are partially unsatisfied as of December 31, 2020 and 2019. The Company expects to recognize revenue related to these performance obligations through 2024. As the Company progresses towards satisfaction of performance obligations under the AbbVie agreement, the estimated costs associated with the remaining effort required to complete the performance obligations may change, which may materially impact revenue recognition. The Company regularly evaluates and, when necessary, updates the costs associated with the remaining effort pursuant to each performance obligation under the AbbVie agreement. Accordingly, revenue may fluctuate from period to period due to revisions to estimated costs, resulting in a change in the measure of progress for a performance obligation. Such changes can also impact the allocation of deferred revenue between current and long term based on changes in expected timing of the satisfaction of performance obligations. For example, d uring the year ended December 31, 2019, the Company received feedback from the FDA requesting one additional toxicology study before submitting an IND for MORF-720. As a result of this feedback, the Company made revisions to its estimated costs to support an IND for MORF-720 and MORF-627. These additional costs resulted in a $2.0 million reduction to revenue previously recognized during the year ended December 31, 2019. Further, during the year ended December 31, 2020 certain costs to support the backup candidate, MORF-627, were reduced as a result of the August 2020 license exercise by AbbVie. Following the option exercise, all remaining deferred revenue related to the αvβ6 program, including MORF-720 and MORF-627, was recognized in the year ended December 31, 2020. Janssen Agreement — Overview In February 2019, the Company entered into a research collaboration and option agreement with Janssen Pharmaceuticals, Inc. (“Janssen agreement”), a subsidiary of Johnson & Johnson, to discover and develop novel integrin therapeutics for patients with conditions not adequately addressed by current therapies. The Janssen agreement focuses on three integrin targets, each target the subject of a research program, with a limited ability to substitute integrin targets for others, not explored by the Company, if research results are not favorable. Under the terms of the agreement, Janssen paid the Company an upfront fee of $10.0 million for the first two research programs in 2019 and in December 2020 the Company reached an agreement with Janssen to commence work on the third research program and Janssen agreed to pay $5.0 million for the third research program commencement fee. In addition, Janssen reimburses the Company for all internal and external costs and expenses incurred during the term of agreement at agreed‑upon contractual rates. The Company invoices Janssen on a quarterly basis and payments are due within 60 days. Upon completing IND‑enabling studies, on a research program‑by‑research program basis, Janssen, in exchange for one-time fee of $6.0 million per program, may exercise an exclusive option to obtain an exclusive license with respect to the target that is the subject of the research program, including all licensed compounds that are the subject of the applicable research program. Upon exercise of an option, Janssen will be responsible for global clinical development and commercialization of each licensed compound. Pursuant to the terms of the agreement, the Company is eligible to receive additional research and development milestone payments totaling $142.0 million per research program and net sales milestones payments totaling $90.0 million per research program. Research and development milestones are triggered upon the initiation of certain development activities and various phases of clinical trials. The net sales milestones are achieved by reaching the agreed upon volume of sales in certain territories. In addition, the Company is entitled to royalty payments in low‑to‑mid single digit percentage of sales in a calendar year. Janssen Agreement — Accounting Analysis The Company has concluded that the performance obligations in the agreement include the research services for the three research programs and three options to license the outcomes of those research programs, which were determined to provide Janssen with material rights. All other performance obligations were determined to be immaterial in the context of the contract. The Company estimated the standalone selling price of each research program based on internal and external costs to perform the research plus a reasonable profit margin. The total estimated cost of the research and development services reflect the nature of the services to be performed and the Company’s best estimate of the length of time required to perform the services. The Company estimated the standalone selling price of each material right by determining the discount provided to the estimated standalone selling price of comparable options and applying appropriate likelihood of exercise, which includes the appropriate probability of successfully completing the research efforts. Based on the standalone selling prices determined, the company allocates the total transaction price among the programs and material rights. The Company recognizes revenue as research services are provided based on the costs incurred to date, as such costs have direct relationship between the Company’s effort and the progress made towards satisfying its performance obligations to Janssen. Transaction price allocated to the material rights was deferred and will be recognized in revenue when Janssen exercises the options or the option period expires. Changes in estimates of total internal and external costs expected to be incurred are recognized in the period of change as a cumulative catch‑up adjustment. There have been no material changes to the Company’s estimates to date. The Company determined that the transaction price included: the non‑refundable up‑front payment of $10.0 million for the first two programs, $5.0 million non‑refundable up‑front payment for the third program, and the estimated reimbursement payments at agreed upon contractual rates to be received from Janssen for the Company’s on‑going research services. The option exercise payments were not included in the transaction price. Exercise of any of the options will be accounted for as a continuation of the current contract if and when Janssen delivers the written exercise notice. The milestone payments were fully constrained, as a result of the uncertainty regarding whether Janssen would exercise any of the options and whether any of the associated milestones would be achieved. The Company also considered the existence of any significant financing component within the Janssen Agreement given its upfront payment structure. Based upon this assessment, the Company concluded that the up‑front payment was provided for valid business reasons and not for the purpose of providing financing. Accordingly, the Company has concluded that the upfront payment structure of the Janssen Agreement does not result in the existence of a significant financing component. In December 2020, the Company and Janssen agreed that the Company initiate the work on the third target in exchange for the $5.0 million upfront initiation fee, recorded as deferred revenue as of December 31, 2020. During the year ended December 31, 2020, the Company incurred $6.2 million in research and development costs and recognized revenue of $8.9 million, related to the research services performed, inclusive of recognizing $2.3 million of previously received upfront payments. During the year ended December 31, 2019, the Company incurred $4.5 million in research and development costs and recognized revenue of $6.2 million, related to research services performed, inclusive of recognizing $1.4 million of previously received upfront payment. As of December 31, 2020, the Company had $6.4 million due from Janssen recorded in accounts receivable, including $5.0 million related to the upfront payment for initiation of the third program. As of December 31, 2019, the Company had $3.5 million due from Janssen recorded in accounts receivable. As of December 31, 2020, $11.3 million of deferred revenue was classified as either current or net of current portion in the accompanying consolidated balance sheets based on the period over which the revenue is expected to be recognized. This deferred revenue balance represents the portion of the upfront payments received allocated to the performance obligations that are partially unsatisfied as of December 31, 2020. The Company expects to recognize revenue related to these performance obligations through 2024. The Company's continuing obligations to provide research and development services is based on the results of such efforts and the estimated costs associated with the remaining efforts required to complete the performance obligations may change, which may materially impact revenue recognition. The Company regularly evaluates and, when necessary, updates the costs associated with the remaining effort pursuant to each performance obligation under the Janssen agreement. Accordingly, revenue may fluctuate from period to period due to revisions to estimated costs, resulting in a change in the measure of progress for a performance obligation.

Net Loss per Share

Net Loss per Share	12 Months Ended
	Dec. 31, 2020
Net Loss per Share
Net Loss per Share	12. Net Loss per Share The Company applies the two‑class method to compute basic and diluted net loss per share because it has issued instruments that meet the definition of participating securities. The two‑class method determines net income (loss) per share for each class of common and participating securities according to dividends declared or accumulated and participation rights in undistributed earnings. The two‑class method requires income (losses) available to common stockholders for the period to be allocated between common and participating securities based upon their respective rights to share in the earnings as if all income (losses) for the period had been distributed. During periods of loss, there is no allocation required under the two‑class method since the participating securities do not have a contractual obligation to fund the losses of the Company. The Company calculates basic net loss per share by dividing net loss by the weighted average number of common shares outstanding (excluding unvested restricted common stock). The Company calculates diluted net loss per share by dividing net loss by the weighted average number of common shares outstanding, as applicable, after giving consideration to the dilutive effect of convertible preferred stock, restricted common stock, warrants, and stock options that are outstanding during the period. The Company has generated a net loss in all periods presented, so the basic and diluted net loss share are the same, as the inclusion of the potentially dilutive securities would be anti‑dilutive. Basic and diluted net loss per share is calculated as follows (in thousands, except share and per share data) for the years ended December 31, 2020 and 2019: Year Ended Year Ended December 31, 2020 December 31, 2019 Net loss $ (44,999) $ (43,328) Weighted average common shares outstanding, basic and diluted 30,594,897 16,101,928 Net loss per share, basic and diluted $ (1.47) $ (2.69) The following table sets forth the outstanding common stock equivalents, presented based on amounts outstanding at each period end, that have been excluded from the calculation of diluted net loss per share for the periods indicated because their inclusion would have been anti‑dilutive (in common stock equivalent shares, as applicable): Year Ended December 31, 2020 2019 Restricted common stock 100,989 379,700 Restricted stock units 66,216 — Stock options 4,352,095 2,987,403 4,519,300 3,367,103 In addition to the securities listed in the table above, in June 2019, the Company adopted the ESPP (Note 8) and as of December 31, 2020, had 515,799 shares of common stock reserved for sale under the ESPP, which, if issued, would be anti-dilutive if included in calculation of diluted net loss per share.

Employee Benefit Plan

Employee Benefit Plan	12 Months Ended
	Dec. 31, 2020
Employee Benefit Plan
Employee Benefit Plan	13. Employee Benefit Plan In 2016, the Company adopted a qualified retirement plan, the Morphic Therapeutic, Inc. 401(k) Plan (the “Plan”) to provide retirement income for eligible employees through employee contributions and employer matching contributions. The Company matches 50% up to the first 6% contributed by a participant. Contributions totaled $0.5 million and $0.2 million for the years ended December 31, 2020 and 2019, respectively.

Quarterly Financial Information

Quarterly Financial Information	12 Months Ended
	Dec. 31, 2020
Quarterly Financial Information
Quarterly Financial Information	14. Quarterly Financial Information (unaudited) The following tables summarize the results of operations and earnings per share and per unit for the interim periods with the years ended December 31, 2020 and 2019: Three Months Ended March 31, June 30, September 30, December 31, 2020 2020 2020 2020 (in thousands, except per share data) (unaudited) Revenue $ 5,594 $ 7,693 $ 25,757 $ 5,901 Operating expenses 23,383 24,113 20,749 23,880 (Loss) Income from operations (17,789) (16,420) 5,008 (17,979) Other (expense) income, net 886 407 231 87 Benefit from income taxes 157 155 115 143 Net (loss) income $ (16,746) $ (15,858) $ 5,354 $ (17,749) Net (loss) income per share - basic $ (0.55) $ (0.52) $ 0.18 $ (0.57) Net (loss) income per share - diluted $ (0.55) $ (0.52) $ 0.17 $ (0.57) Three Months Ended March 31, June 30, September 30, December 31, 2019 2019 2019 2019 (in thousands, except per share and per unit data) (unaudited) Revenue $ 6,068 $ 5,567 $ 5,675 $ (333)* Operating expenses 12,202 15,984 15,533 20,246 Loss from operations (6,134) (10,417) (9,858) (20,579) Other income, net 1,063 1,119 1,298 1,092 Provision for income taxes (129) (135) (304) (344) Net loss $ (5,200) $ (9,433) $ (8,864) $ (19,831) Net loss per share - basic and diluted $ (2.77) $ (4.73) $ (0.30) $ (0.66)* * Revisions to estimated costs under the AbbVie arrangement during Q4 2019, which principally related to FDA feedback provided in November 2019 on MORF-720, resulted in a $6 million reduction to revenue previously recognized and corresponding increase to net loss by $6 million or approximately $0.37 per share during the three months-ended December 31, 2019.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2020
Summary of Significant Accounting Policies
Use of Estimates and Judgments	Use of Estimates and Judgments The preparation of financial statements in accordance with GAAP requires management to make estimates and judgments that may affect the reported amounts of assets and liabilities and related disclosures of contingent assets and liabilities at the date of the financial statements and the related reporting of revenues and expenses during the reporting period. Significant estimates of accounting reflected in these consolidated financial statements include, but are not limited to, estimates related to revenue recognition, accrued research and development expenses, the valuation of equity‑based compensation, and income taxes. Actual results could differ from those estimates.
Concentration of Credit Risk and Off‑Balance Sheet Risk	Concentration of Credit Risk and Off‑Balance Sheet Risk Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, and accounts receivable. The Company’s cash and cash equivalents are held at one accredited financial institution, in amounts that exceed federally insured limits. The Company does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. The primary objectives for the Company’s investment portfolio are the preservation of capital and maintenance of liquidity. In 2019, the Company adopted its investment policy which allows funds to be held outside bank accounts, but to be invested only in readily marketable fixed income instruments with readily ascertainable market values, denominated and payable in U.S. dollars including obligations of the U.S. government and its agencies and money market funds registered according to Rule 2a‑7 of the Investment Company Act of 1940. Investments in the money market fund shall be consistent with approved instruments and assets under management must be at least $1.0 billion. Accounts receivable generally represent amounts due from Janssen. The Company monitors economic conditions to identify facts or circumstances that may indicate that any of its accounts receivable are at risk of collection. The Company has no off‑balance sheet risk, such as foreign exchange contracts, option contracts, or other foreign‑hedging arrangements.
Cash and Cash Equivalents and Restricted Cash	Cash and Cash Equivalents and Restricted Cash The Company considers highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. At December 31, 2020 and 2019, cash and cash equivalents include bank demand deposits and money market funds that invest primarily in U.S. government‑backed securities and treasuries. At December 31, 2019, cash equivalents also included one U.S. Treasury security with fair value of approximately $10.0 million. Cash equivalents are stated at cost, which approximates fair value. Restricted cash consists of a letter of credit in the amount of $275,000 issued to the landlord of the Company’s facility lease. The terms of the letter of credit extend beyond one year. The following table reconciles cash and cash equivalents and restricted cash per the balance sheet to the statements of cash flows: As of December 31, 2020 2019 Cash and cash equivalents $ 102,047 $ 101,559 Restricted cash 275 275 Total cash, cash equivalents, and restricted cash $ 102,322 $ 101,834
Marketable securities	Marketable securities The Company invests funds in the United States Treasury securities; those securities are included in the current assets based on their contractual maturities, classified as available-for-sale, and carried at fair value. Changes in fair value of marketable securities are recorded in other comprehensive income (loss) as net unrealized gains (losses) on marketable securities. The Company recognized net unrealized losses of $65,000 and net unrealized gains of $44,000 for the years ended December 31, 2020 and 2019, respectively.
Interest income on investments	Interest income on investments The Company recognizes interest income from investments in money market funds and available-for-sale securities, including amortization of premium/accretion of discount, on an accrual basis. For the years ended December 31, 2020 and 2019 , the Company recognized $1.6 million and $4.7 million in interest income, respectively. Interest income is included with other income on the consolidated statements of operations and comprehensive loss.
Property and Equipment, net	Property and Equipment, net Property and equipment are recorded at cost. Expenditures for major renewals or betterments that extend the useful lives of property and equipment are capitalized; expenditures for maintenance and repairs are charged to expense as incurred. Depreciation is calculated on a straight‑line basis over the estimated useful lives of the related asset. Property and equipment are depreciated as follows: Estimated Useful Life (in Years) Laboratory equipment 5 Computers and software 3 - 5 Leasehold improvements Shorter of the useful life or the remaining term of the lease
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. Factors that the Company considers in deciding when to perform an impairment review include significant underperformance of the business in relation to expectations, significant negative industry or economic trends, and significant changes or planned changes in the use of the assets. If an impairment review is performed to evaluate a long‑lived asset for recoverability, the Company compares forecasts of undiscounted cash flows expected to result from the use and eventual disposition of the long‑lived asset to its carrying value. An impairment loss would be recognized when estimated undiscounted future cash flows expected to result from the use of an asset are less than its carrying amount. The impairment loss would be based on the excess of the carrying value of the impaired asset over its fair value, determined based on discounted cash flows. To date, the Company has not recorded any impairment losses on long‑lived assets.
Fair Value Measurements	Fair Value Measurements ASC Topic 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 — Quoted market prices in active markets for identical assets or liabilities. Level 2 — Inputs other than Level 1 inputs that are either directly or indirectly observable, such as quoted market prices, interest rates and yield curves. Level 3 — Unobservable inputs developed using estimates of assumptions developed by the Company, which reflect those that a market participant would use. To the extent the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair values requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized as 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. The Company believes that the carrying amounts of the Company’s consolidated financial instruments, including prepaid expenses and other current assets, accounts receivable, accounts payable, and accrued expenses approximate fair value due to the short-term nature of those instruments.
Segment Information	Segment Information Operating segments are defined as components of an entity about which separate discrete information is available for evaluation by the chief operating decision maker, or decision‑making group, in deciding how to allocate resources and in assessing performance. The Company’s Chief Executive Officer is its chief operating decision‑maker and views operations and manages the Company’s business in one operating segment operating exclusively in the United States.
Revenue Recognition	Revenue Recognition To date all revenue has been generated from the Company’s agreements with AbbVie, executed in October 2018, and Janssen, executed in February 2019 and amended in December 2020. Please refer to Note 11 below for details of ASC 606 application to the Company’s agreements with AbbVie and Janssen. The Company first evaluates collaboration arrangements to determine whether the arrangement (or part of the arrangement) represents a collaborative arrangement pursuant to ASC Topic 808, Collaborative Arrangements , based on the risks and rewards and activities of the parties pursuant to the contractual arrangement. The Company accounts for any collaborative arrangement or elements within the contract that are deemed to be a collaborative arrangement, and not a customer relationship, in accordance with ASC 808. Through December 31, 2020, the Company entered into two agreements – with AbbVie and Janssen – that have been accounted for pursuant to ASC 606. Under ASC 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine the appropriate amount of revenue to be recognized for arrangements determined to be within the scope of ASC 606, the Company performs the following five steps: (i) identification of the contract(s) with the customer, (ii) identification of the promised goods or services in the contract and determination of whether the promised goods or services are performance obligations, (iii) measurement of the transaction price, (iv) allocation of the transaction price to the performance obligations, and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five‑step model to contracts when it is probable that the entity will collect consideration it is entitled to in exchange for the goods or services it transfers to the customer. The Company accounts for a contract with a customer that is within the scope of ASC 606 when all of the following criteria are met: (i) the arrangement has been approved by the parties and the parties are committed to perform their respective obligations, (ii) each party’s rights regarding the goods or services to be transferred can be identified, (iii) the payment terms for the goods or services to be transferred can be identified, (iv) the arrangement has commercial substance and (v) collection of substantially all of the consideration to which the Company will be entitled in exchange for the goods or services that will be transferred to the customer is probable. Performance obligations are promised goods or services in a contract to transfer a distinct good or service to the customer. Promised goods or services are considered distinct when: (i) the customer can benefit from the good or service on its own or together with other readily available resources and (ii) the promised good or service is separately identifiable from other promises in the contract. Options to purchase additional goods or services are considered to be marketing offers and are to be accounted for as separate contracts when the customer elects such options, unless the Company determines the option provides a material right which would not be provided without entering into the contract. If, however, an option is determined to provide a material right that would not be provided without entering into a contract, a portion of the transaction price is allocated to such option. The Company estimates the transaction price based on the amount of consideration the Company expects to receive for transferring the promised goods or services in the contract. The consideration may include both fixed consideration and variable consideration. At the inception of each arrangement that includes variable consideration, the Company evaluates the amount of the potential payments and the likelihood that the payments will be received. The Company utilizes either the most likely amount method or expected value method to estimate the transaction price based on which method better predicts the amount of consideration expected to be received. If it is probable that a significant revenue reversal would not occur, the variable consideration is included in the transaction price. The Company also evaluates whether instances in which the timing of payments by customers do not match the timing of performance obligation satisfaction contain an element of financing and adjusts the transaction price for the effect of the financing component, if any. The Company’s transactions with customers may include development and regulatory milestone payments. The Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the Company’s control or the customer’s control, such as regulatory approvals, are not considered probable of being achieved until those approvals are received. At the end of each reporting period, the Company re‑evaluates the probability of achievement of such milestones and any related constraint, and, if necessary, adjusts the estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch‑up basis, which would affect collaboration revenue and net income (loss) in the period of adjustment. For sales‑based royalties, including milestone payments based on the level of sales, the Company determines whether the sole or predominant item to which the royalties relate is a license. When the license is the sole or predominant item to which the sales‑based royalty relates, the Company recognizes revenue at the later of: (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). The Company allocates the transaction price based on the estimated standalone selling price of the identified performance obligations. The Company must develop assumptions that require judgment to determine the standalone selling price for each performance obligation identified in the contract. The Company utilizes key assumptions to determine the standalone selling price, which may include other comparable transactions, pricing considered in negotiating the transaction, and the estimated costs. Certain variable consideration is allocated specifically to one or more performance obligations in a contract when the terms of the variable consideration relate to the satisfaction of the performance obligation and the resulting amounts allocated to each performance obligation are consistent with the amounts the Company would expect to receive for each performance obligation. We recognize as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) each performance obligation is satisfied, either at a point in time or over time. In particular, for the Company’s collaborations with AbbVie and Janssen, revenue attributable to research services is recognized as those services are provided, based on the costs incurred to date. The Company receives payments from customers based on billing schedules established in each contract. Up‑front payments and fees are recorded as deferred revenue upon receipt or when due until the Company performs its obligations under these arrangements. Amounts are recorded as accounts receivable when the Company’s right to consideration is unconditional.
Research and Development Expenses	Research and Development Expenses Research and development expenses are expensed as incurred and consist of costs incurred in performing research and development activities, including compensation related expenses for research and development personnel, preclinical and clinical activities including cost of supply, overhead expenses including facilities expenses, materials and supplies, amounts paid to consultants and outside service providers, and depreciation of equipment. Upfront license payments related to acquired technologies which have not yet reached technological feasibility and have no alternative future use are also included in research and development expense.
Research Contract and Development Costs and Accruals	Research Contract and Development Costs and Accruals The Company has entered into various research development service arrangements under which vendors perform various services on behalf of the Company. The Company records accrued expenses for estimated costs incurred under the arrangements. When evaluating the adequacy of the accrued expenses, the Company analyzes the progress of the studies, trials or other services performed, including invoices received and contracted costs. Judgments and estimates are made in determining the accrued expense balances at the end of each reporting period.
Equity‑Based Compensation	Equity‑Based Compensation The Company issues stock options, restricted stock awards, and restricted stock units to certain employees, officers, and directors. The Company accounts for stock compensation at the grant date fair value of the respective award, determined using the Black-Scholes model, which results in the recognition of compensation expense over the vesting period of the award. Please refer to Note 8 for additional information.
Comprehensive Loss	Comprehensive Loss Comprehensive loss is the change in equity of a business enterprise during a period from transactions and other events and circumstances from non‑owner sources. Comprehensive loss includes net loss and the change in accumulated other comprehensive loss for the period. For the year ended December 31, 2020, comprehensive loss included $65,000 in unrealized holding losses, net on marketable securities; for the year ended December 31, 2019, comprehensive loss included $44,000 in unrealized holding gains, net on marketable securities.
Income Taxes	Income Taxes Since inception, the Company recorded income taxes in accordance with FASB Accounting Standards Codification Topic 740, Income Taxes (“ASC 740”), which provides for deferred taxes using an asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on temporary differences between the financial statement basis and tax basis of assets and liabilities and net operating loss and credit carryforwards using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established when it is more likely than not that some portion of the deferred tax assets will not be realized. The Company accounts for uncertainty in income taxes recognized in the financial statements by applying a two‑step process to determine the amount of tax benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination by the taxing authorities. If the tax position is deemed more‑likely‑than‑not to be sustained, the tax position is then assessed to determine the amount of benefit to recognize in the financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. At December 31, 2020 and 2019, the Company had not identified any significant uncertain tax positions.
Subsequent Events	Subsequent Events The Company considers events or transactions that occur after the balance sheet date but prior to the issuance of the consolidated financial statements for potential recognition or disclosure in the consolidated financial statements. Subsequent events have been evaluated through the date these consolidated financial statements were issued for potential recognition or disclosure in the consolidated financial statements.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement ("ASU 2018-13"), to streamline the disclosure requirements of ASC Topic 820—Fair Value Measurement. ASU 2018 removes certain disclosure requirements, including the valuation process for Level 3 fair value measurements, and adds certain quantitative disclosures around Level 3 fair value measurements. This ASU is effective for annual reporting periods beginning after December 15, 2019, including interim periods within that reporting period, with early adoption permitted. The provisions of ASU 2018-13 are required to be adopted retrospectively, with the exception of disclosure of the range and weighted average of significant unobservable inputs used to develop Level 3 measurements, which can be adopted prospectively. The Company adopted ASU 2018-13 as of January 1, 2020. The standard did not have material impact on the Company’s financial statements and related disclosures. In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. The guidance will be effective for the Company for the fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Provisions of ASU 2019-12 must be adopted using either full retrospective, modified retrospective, or prospective method, depending on the provision adopted, as specified within the guidance. Early adoption is permitted. The Company adopted ASU 2019-12 effective January 1, 2020, using the prospective method. Adoption of the standard did not have a material impact on the consolidated financial statements.
Recently Issued Accounting Pronouncements not yet Adopted	Recently Issued Accounting Pronouncements not yet Adopted As an “emerging growth company,” or EGC, under the Jumpstart Our Business Startups Act of 2012, or the JOBS Act, the Company has made an election under Section 107 of the JOBS Act to take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act, for complying with new or revised accounting standards. Thus, the Company follows requirements applicable to the private companies for adopting new and updated accounting standards. In November 2019, the FASB issued ASU 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates (“ASU 2019-10”), which finalizes effective date delays for private companies, not-for-profit organizations, and certain smaller reporting companies as follows: · January 1, 2023 as the effective date for adoption of the Topic 326 for annual and interim reporting periods; · January 1, 2021 and January 1, 2022 as the effective dates for adoption of the Topic 815 amendments for annual and interim periods, respectively; and · January 1, 2021 and January 1, 2022 as the effective dates for adoption of the Topic 842 for annual and interim periods, respectively In June 2020, the FASB issued ASU 2020-05, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842), which partially superseded the guidance of the ASU 2019-10 described above and deferred the effective date for adoption of ASC 606 and ASC 842 for certain entities that had not previously adopted these standards. The Company had adopted ASC 606 in a prior period and has not yet adopted ASC 842, discussed further below. In June 2016, the FASB issued ASU 2016-13, Financial Instruments Credit Losses (Topic 326) (“ASU 2016-13”), which requires consideration of a broader range of reasonable and supportable information in developing credit loss estimates. In April 2019, the FASB issued ASU 2019-04, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments (“ASU 2019-04”). Certain provisions of ASU 2019-04 amend the guidance of ASU 2016-13, are applicable to the Company’s investments portfolio, and allow the Company to make certain accounting policy elections regarding establishing allowance for credit losses for the accrued interest receivable and the corresponding disclosures. In November 2019, the FASB issued ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses (“ASU 2019-11”), which clarifies certain areas of the guidance to ensure all companies and organizations can make a smoother transition to the standard. Following the issuance of ASU 2019-10 described above, the guidance is effective for the Company for the fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, and will be adopted using the modified retrospective approach. The Company is currently evaluating the impact of ASU 2019-11 and the related ASU 2019-04 and ASU 2016-13 on the consolidated financial statements, including the impact of the available accounting policy elections. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), with guidance regarding the accounting for and disclosure of leases. In general, for lease arrangements exceeding a twelve-month term, these arrangements must now be recognized as assets and liabilities on the balance sheet of the lessee. Under ASU 2016-02, a right-of-use asset and lease obligation will be recorded for all leases, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. The balance sheet amount recorded for existing leases at the date of adoption of ASU 2016-02 must be calculated using the applicable incremental borrowing rate at the date of adoption. This update also requires lessees and lessors to disclose key information about their leasing transactions. In July 2018, the FASB issued ASU 2018-11, Leases - Targeted Improvements, intended to ease the implementation of the new lease standard for financial statement preparers by, among other things, allowing for an additional transition method. In lieu of presenting transition requirements to comparative periods, as previously required, an entity may now elect to show a cumulative effect adjustment on the date of adoption without the requirement to recast prior period financial statements or disclosures presented in accordance with ASU 2016-02. The Company currently expects to elect the available package of practical expedients which allows the Company to not reassess previous accounting conclusions around whether arrangements are or contain leases, the classification of leases, and the treatment of initial direct costs. The Company also expects it will make an accounting policy election to keep leases with an initial term of 12 months or less off of the balance sheet. The Company is in the process of assessing the impact of the standard and while not complete, it expects that it will record a material asset and liability related to its current operating lease; however, the full impact of adoption to the Company’s financial statements is yet to be determined. Based on the issuance of ASU 2020-05, described above, this standard is effective for the Company for the annual periods beginning after December 15, 2021, and interim periods within annual periods beginning after December 15, 2022.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2020
Summary of Significant Accounting Policies
Schedule of reconciliation of cash and cash equivalents and restricted cash	As of December 31, 2020 2019 Cash and cash equivalents $ 102,047 $ 101,559 Restricted cash 275 275 Total cash, cash equivalents, and restricted cash $ 102,322 $ 101,834
Schedule of estimated useful lives of property and equipment	Estimated Useful Life (in Years) Laboratory equipment 5 Computers and software 3 - 5 Leasehold improvements Shorter of the useful life or the remaining term of the lease

Fair Value of Financial Asset_2

Fair Value of Financial Assets and Liabilities (Tables)	12 Months Ended
	Dec. 31, 2020
Fair Value of Financial Assets and Liabilities
Summary of financial assets measured at fair value on recurring basis	The following tables summarize the assets and liabilities measured at fair value on a recurring basis at December 31, 2020 and 2019 (in thousands): Fair Value Measurements at December 31, 2020 Total Level 1 Level 2 Level 3 Assets: Money market funds, included in cash and cash equivalents $ 101,760 $ 101,760 $ — $ — U.S. Treasury obligations 126,217 — 126,217 — Total assets $ 227,977 $ 101,760 $ 126,217 $ — Fair Value Measurements at December 31, 2019 Total Level 1 Level 2 Level 3 Assets: Money market funds, included in cash and cash equivalents $ 91,332 $ 91,332 $ — $ — U.S. Treasury obligations, included in cash and cash equivalents 9,995 — 9,995 — U.S. Treasury obligations 135,457 — 135,457 — Total assets $ 236,784 $ 91,332 $ 145,452 $ —

Marketable securities (Tables)

Marketable securities (Tables)	12 Months Ended
	Dec. 31, 2020
Marketable securities.
Schedule of investments in marketable securities classified as available for sale	The following tables summarizes Company’s investments in marketable securities classified as available-for-sale as of December 31, 2020 (in thousands): Gross Gross Aggregate Amortized unrealized unrealized estimated Maturity cost holding gains holding losses fair value U.S. Treasury securities less than 1 year $ 126,212 $ 7 $ (2) $ 126,217 The following tables summarizes Company’s investments in marketable securities classified as available-for-sale as of December 31, 2019 (in thousands): Gross Gross Aggregate Amortized unrealized unrealized estimated Maturity cost holding gains holding losses fair value U.S. Treasury securities less than 1 year $ 135,389 $ 70 $ (2) $ 135,457

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	12 Months Ended
	Dec. 31, 2020
Property and Equipment, Net.
Schedule of Property and equipment, net	At December 31, 2020, property and equipment, net consists of the following (in thousands): As of December 31, 2020 2019 Laboratory equipment $ 4,808 $ 4,194 Computers and software 355 280 Leasehold improvements 596 535 Construction in progress — 465 5,759 5,474 Less: Accumulated depreciation and amortization (3,153) (2,028) $ 2,606 $ 3,446

Accrued Expenses (Tables)

Accrued Expenses (Tables)	12 Months Ended
	Dec. 31, 2020
Accrued Expenses
Schedule of accrued expenses	At December 31, 2020 and 2019 accrued expenses consist of the following (in thousands): As of December 31, 2020 2019 Payroll and related expenses 5,148 3,159 Research and development activities 4,335 2,465 Other expenses 677 1,015 $ 10,160 $ 6,639

Equity-Based Compensation (Tabl

Equity-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2020
Equity Based Compensation
Summary of equity based compensation expense	The Company recognized equity-based compensation expense in the consolidated statements of operations and comprehensive loss, by award type, as follows (in thousands): Year ended December 31, 2020 2019 Stock option $ 9,418 $ 2,549 Restricted stock 955 737 Restricted stock units 187 — ESPP 493 246 Total $ 11,053 $ 3,532 The following table summarizes the allocation of equity-based compensation expense in the consolidated statements of operations and comprehensive loss, by expense category: Year ended December 31, 2020 2019 Research and development expense $ 6,114 $ 2,241 General and administrative expense 4,939 1,291 Total $ 11,053 $ 3,532
Summary of restricted stock units	Weighted Average Fair Number Value per Share of Shares at Issuance Unvested restricted stock units as of December 31, 2019 — $ — Granted 66,216 10.84 Vested — — Forfeited — — Unvested restricted stock units as of December 31, 2020 66,216 $ 10.84
2019 Equity Incentive Plan
Equity Based Compensation
Summary of restricted common stock	Weighted Average Fair Number Value per Share of Shares at Issuance Unvested restricted common stock as of December 31, 2019 379,770 $ 4.32 Granted — — Vested (252,890) 4.32 Forfeited (25,891) 4.32 Unvested restricted common stock as of December 31, 2020 100,989 $ 4.32
Summary of stock option activity	Weighted Weighted Average Number of Average Remaining Aggregate Shares Exercise Price Contractual Term Intrinsic Value (in years) (in thousands) Outstanding as of December 31, 2019 2,987,403 $ 8.67 9.22 $ 26,254 Granted 2,061,585 16.05 Exercised (431,554) 8.18 Forfeited (265,339) 8.61 Outstanding as of December 31, 2020 4,352,095 $ 12.22 8.68 $ 92,828 Options vested and expected to vest as of December 31, 2020 4,352,095 $ 12.22 8.68 $ 92,828 Options exercisable as of December 31, 2020 1,131,518 $ 9.12 8.32 $ 27,647
Summarized information relating to stock options granted, vested, and exercised.	The following table provides certain information related to the stock options granted, vested, and exercised during the years ended December 31, 2020 and 2019, in thousands, except for per option values: Year ended December 31, 2020 2019 Weighted-average fair value of options granted, per option $ 10.98 $ 9.95 Aggregate grant date fair value of options vested during the year $ 7,868 $ 1,381 Total cash received from exercises of stock options $ 3,532 $ 27 Total intrinsic market value of stock options exercised $ 7,752 $ 89
Summary of assumptions used in determining the fair value of the options granted	Year ended December 31, 2020 2019 Risk‑free interest rate 0.46% 1.9% Expected dividend yield - - Expected term (in years) 6.00 6.00 Expected Volatility 81.00% 75.45%

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2020
Income Taxes
Schedule of components of the income tax (benefit) expense	Year Ended December 31, 2020 2019 Current Federal $ (511) $ 512 State (59) 410 Total current tax (benefit) provision (570) 922 Deferred Federal — (6) State — (4) Total deferred tax provision — (10) Total income tax (benefit from) provision for income tax expense $ (570) $ 912
Schedule of effective income tax rate differed from the amount computed by applying the federal statutory rate to the Company’s loss before income taxes	Year Ended December 31, 2020 2019 Tax effected at statutory rate 21.00 % 21.00 % State taxes 8.38 8.39 Stock compensation 0.76 (1.09) Non-deductible expenses (0.01) 0.08 Federal research and development credits 6.21 5.09 Change in valuation allowance (35.09) (35.64) 1.25 % (2.17) %
Schedule of deferred tax assets and liabilities	Deferred tax assets and liabilities consist of the following at December 31, 2020 and 2019 (in thousands): As of December 31, 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 13,127 $ 1,170 Deferred revenue 21,293 23,453 Research and development credit carryforwards 6,314 1,091 Fixed and intangible assets 3,537 4,246 Reserves and accruals 235 195 Stock-based compensation 1,944 353 Total deferred tax assets: 46,450 30,508 Valuation allowance (45,590) (29,618) Subtotal 860 890 Fixed assets (568) (656) Prepaid expense (292) (234) Total net deferred tax assets $ — $ —

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2020
Commitments and Contingencies
Summary of minimum annual rent payments	Minimum annual rent payments under this lease for the remaining term of the amended lease, excluding operating expenses and taxes, which are not fixed for future periods as of December 31, 2020, are as follows (in thousands): Total Minimum Year ending December 31, Lease Payments 2021 1,250 2022 527 Total minimum lease payments $ 1,777

Net Loss per Share (Tables)

Net Loss per Share (Tables)	12 Months Ended
	Dec. 31, 2020
Net Loss per Share
Schedule of basic and diluted net loss per share	Basic and diluted net loss per share is calculated as follows (in thousands, except share and per share data) for the years ended December 31, 2020 and 2019: Year Ended Year Ended December 31, 2020 December 31, 2019 Net loss $ (44,999) $ (43,328) Weighted average common shares outstanding, basic and diluted 30,594,897 16,101,928 Net loss per share, basic and diluted $ (1.47) $ (2.69)
Schedule of common stock equivalent shares	Year Ended December 31, 2020 2019 Restricted common stock 100,989 379,700 Restricted stock units 66,216 — Stock options 4,352,095 2,987,403 4,519,300 3,367,103

Quarterly Financial Informati_2

Quarterly Financial Information (Tables)	12 Months Ended
	Dec. 31, 2020
Quarterly Financial Information
Summary of the results of operations and earnings per share and per unit for the interim periods	Three Months Ended March 31, June 30, September 30, December 31, 2020 2020 2020 2020 (in thousands, except per share data) (unaudited) Revenue $ 5,594 $ 7,693 $ 25,757 $ 5,901 Operating expenses 23,383 24,113 20,749 23,880 (Loss) Income from operations (17,789) (16,420) 5,008 (17,979) Other (expense) income, net 886 407 231 87 Benefit from income taxes 157 155 115 143 Net (loss) income $ (16,746) $ (15,858) $ 5,354 $ (17,749) Net (loss) income per share - basic $ (0.55) $ (0.52) $ 0.18 $ (0.57) Net (loss) income per share - diluted $ (0.55) $ (0.52) $ 0.17 $ (0.57) Three Months Ended March 31, June 30, September 30, December 31, 2019 2019 2019 2019 (in thousands, except per share and per unit data) (unaudited) Revenue $ 6,068 $ 5,567 $ 5,675 $ (333)* Operating expenses 12,202 15,984 15,533 20,246 Loss from operations (6,134) (10,417) (9,858) (20,579) Other income, net 1,063 1,119 1,298 1,092 Provision for income taxes (129) (135) (304) (344) Net loss $ (5,200) $ (9,433) $ (8,864) $ (19,831) Net loss per share - basic and diluted $ (2.77) $ (4.73) $ (0.30) $ (0.66)*

Nature of the Business and Ba_2

Nature of the Business and Basis of Presentation (Details) $ / shares in Units, $ in Millions	Jul. 01, 2019USD ($)$ / sharesshares	Jun. 10, 2019	Sep. 30, 2019shares	Dec. 31, 2020subsidiaryshares	Dec. 31, 2019shares
Subsidiary or Equity Method Investee [Line Items]
Number of wholly-owned subsidiaries merged in reorganization | subsidiary				3
Common stock issued (in shares)	6,900,000
Public offering price (in dollars per share) | $ / shares	$ 15
Net proceeds | $	$ 93.3
Conversion of warrant to purchase shares of convertible preferred stock	6,825
Outstanding warrants	6,825
Series Preferred shares, shares outstanding	0
Common stock, authorized (in shares)	400,000,000
Series Preferred shares, shares authorized	10,000,000
Series Preferred shares, par value (in dollars per share) | $ / shares	$ 0.0001
Reverse stock split		5.8311
Common shares
Subsidiary or Equity Method Investee [Line Items]
Conversion of convertible preferred stock into common stock (in shares)			21,010,407
Common stock, authorized (in shares)				400,000,000	400,000,000

Nature of the Business and Ba_3

Nature of the Business and Basis of Presentation - ATM (Details) - USD ($)	Jul. 01, 2020	Jul. 01, 2019	Dec. 31, 2020	Dec. 31, 2019
Class of Stock [Line Items]
Sales of common shares sold in IPO, net of offering costs (in shares)		6,900,000
Offering commissions			$ 1,500,000	$ 10,200,000
Net proceeds from issuance of shares				$ 93,268,000
ATM
Class of Stock [Line Items]
Aggregate offering price of Placement Shares			$ 33,600,000
Sales of common shares sold in IPO, net of offering costs (in shares)			1,200,000
Net proceeds from issuance of shares			$ 33,653,000
Amount of shares remaining available for sale			$ 39,800,000
Open Market Sale Agreement
Class of Stock [Line Items]
Commission (as a percent)	3.00%
Open Market Sale Agreement | ATM | Maximum
Class of Stock [Line Items]
Aggregate offering price of Placement Shares	$ 75,000,000

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Cash and Cash Equivalents and Restricted Cash
Letter of credit	$ 275,000
Term of letter of credit (in years)	1 year
Cash and cash equivalents	$ 102,047,000	$ 101,559,000
Restricted cash	275,000	275,000
Total cash, cash equivalents, and restricted cash	102,322,000	101,834,000	$ 186,176,000
U.S. Treasury obligations
Cash and Cash Equivalents and Restricted Cash
Cash equivalents		$ 10,000,000
Minimum
Concentration of Credit Risk and Off Balance Sheet Risk
Assets under management	$ 1,000,000,000

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Marketable securities and interest income (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Marketable securities
Marketable securities gains (losses)	$ (65,000)	$ 44,000
Interest income on investments
Interest income	$ 1,600,000	$ 4,700,000

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Property and equipment (Details)	12 Months Ended
	Dec. 31, 2020
Laboratory equipment
Property and Equipment, net
Estimated useful lives	5 years
Computers and software | Minimum
Property and Equipment, net
Estimated useful lives	3 years
Computers and software | Maximum
Property and Equipment, net
Estimated useful lives	5 years

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Segment Information, Revenue Recognition and Comprehensive Loss (Details)	12 Months Ended
	Dec. 31, 2020USD ($)segmentagreement	Dec. 31, 2019USD ($)
Segment Information
Number of operating segments | segment	1
Revenue Recognition
Number of agreements | agreement	2
Comprehensive loss:
Unrealized holding (losses) gains on marketable securities, net of tax | $	$ (65,000)	$ 44,000

Fair Value of Financial Asset_3

Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Assets:
Aggregate estimated fair value	$ 126,217	$ 135,457
Level 1 to level 2	0	0
Level 2 to level 1	0	0
Transfers into level 3	0	0
Transfers out of level 3	0	0
U.S. Treasury obligations
Assets:
Aggregate estimated fair value	126,217	135,457
Fair value on a recurring basis
Assets:
Total assets	227,977	236,784
Fair value on a recurring basis | Money market funds
Assets:
Assets included in cash and cash equivalents	101,760	91,332
Fair value on a recurring basis | U.S. Treasury obligations
Assets:
Assets included in cash and cash equivalents		9,995
Aggregate estimated fair value	126,217	135,457
Fair value on a recurring basis | Level 1
Assets:
Total assets	101,760	91,332
Fair value on a recurring basis | Level 1 | Money market funds
Assets:
Assets included in cash and cash equivalents	101,760	91,332
Fair value on a recurring basis | Level 2
Assets:
Total assets	126,217	145,452
Fair value on a recurring basis | Level 2 | U.S. Treasury obligations
Assets:
Assets included in cash and cash equivalents		9,995
Aggregate estimated fair value	$ 126,217	$ 135,457

Marketable securities (Details)

Marketable securities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Marketable securities
Aggregate estimated fair value	$ 126,217	$ 135,457
U.S. Treasury obligations
Marketable securities
Amortized cost	126,212	135,389
Gross unrealized holding gains	7	70
Gross unrealized holding losses	(2)	(2)
Aggregate estimated fair value	$ 126,217	$ 135,457

Property and Equipment, Net (De

Property and Equipment, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Property and Equipment, net
Property and equipment, gross	$ 5,759	$ 5,474
Less: Accumulated depreciation and amortization	(3,153)	(2,028)
Property and equipment, net	2,606	3,446
Depreciation and amortization	1,126	821
Laboratory equipment
Property and Equipment, net
Property and equipment, gross	4,808	4,194
Computers and software
Property and Equipment, net
Property and equipment, gross	355	280
Leasehold improvements
Property and Equipment, net
Property and equipment, gross	$ 596	535
Construction in progress
Property and Equipment, net
Property and equipment, gross		$ 465

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Accrued Expenses
Payroll and related expenses	$ 5,148	$ 3,159
Research and development activities	4,335	2,465
Other expenses	677	1,015
Total	$ 10,160	$ 6,639

Stockholder's Equity - Common S

Stockholder's Equity - Common Stock (Details)	Dec. 05, 2018Vote$ / shares	Dec. 31, 2020shares	Dec. 31, 2019shares
Stockholder's Equity
Preferred shares, shares outstanding | shares		0	0
Number of votes per share | Vote	1
Dividend declared	$ 0
Dividend paid	$ 0

Equity-Based Compensation - 201

Equity-Based Compensation - 2019 Stock Incentive Plan (Details) - 2019 Equity Incentive Plan - shares shares in Millions	12 Months Ended
	Dec. 31, 2020	Jan. 01, 2020
Equity Based Compensation
Shares authorized	2.8
Percentage of increase in authorized shares	4.00%
Shares available for future issuance		1.2
Stock option
Equity Based Compensation
Shares available for future grants	1.4
Percentage of exercise price of option over fair market value of shares	100.00%
Vesting period	4 years
Vesting percentage	25.00%
Number of shares available for issuance	1.4
Stock option | Initial vesting following 12 months of employment or service
Equity Based Compensation
Vesting period	12 months
Stock option | Remaining vesting in equal quarterly installments over the following 36 months
Equity Based Compensation
Vesting period	36 months
Stock option | Maximum
Equity Based Compensation
Contractual term	10 years

Equity-Based Compensation - Equ

Equity-Based Compensation - Equity based compensation expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Equity Based Compensation
Total equity-based compensation expense	$ 11,053	$ 3,532
Research and development expense
Equity Based Compensation
Total equity-based compensation expense	6,114	2,241
General and administrative expense
Equity Based Compensation
Total equity-based compensation expense	4,939	1,291
Stock option
Equity Based Compensation
Total equity-based compensation expense	9,418	2,549
Restricted stock
Equity Based Compensation
Total equity-based compensation expense	955	737
Restricted stocks units
Equity Based Compensation
Total equity-based compensation expense	187
ESPP
Equity Based Compensation
Total equity-based compensation expense	$ 493	$ 246

Equity-Based Compensation - Res

Equity-Based Compensation - Restricted common stock activity (Details) - Restricted stock $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2020USD ($)$ / sharesshares
Number of Shares
Outstanding at the beginning | shares	379,770
Vested | shares	(252,890)
Forfeited | shares	(25,891)
Outstanding at the end | shares	100,989
Weighted Average Grant Date Fair Value per Unit
Outstanding at the beginning (in dollars per share) | $ / shares	$ 4.32
Vested as of the Reorganization | $ / shares	4.32
Forfeited (in dollars per share) | $ / shares	4.32
Outstanding at the end (in dollars per share) | $ / shares	$ 4.32
Unrecognized equity based compensation expense | $	$ 0.3
Unrecognized equity based compensation expense expected period for recognition	1 year
Aggregate fair value of restricted stock awards | $	$ 1.1

Equity-Based Compensation - R_2

Equity-Based Compensation - Restricted stock units activity (Details) - Restricted stocks units $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2020USD ($)$ / sharesshares
Weighted Average Grant Date Fair Value per Share at Issuance
Unrecognized equity based compensation expense | $	$ 0.5
Unrecognized equity based compensation expense expected period for recognition	2 years 4 months 24 days
2019 Equity Incentive Plan
Number of Shares
Outstanding at the beginning | shares
Granted | shares	66,216
Outstanding at the end | shares	66,216
Weighted Average Grant Date Fair Value per Share at Issuance
Outstanding at the beginning (in dollars per share) | $ / shares
Granted (in dollars per share) | $ / shares	10.84
Outstanding at the end (in dollars per share) | $ / shares	$ 10.84

Equity-Based Compensation - Sto

Equity-Based Compensation - Stock option awards (Details) - Stock option - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Number of Shares
Outstanding at the beginning	2,987,403
Granted	2,061,585
Exercised	(431,554)
Forfeited	(265,339)
Outstanding at the end	4,352,095	2,987,403
Options vested and expected to vest at the end	4,352,095
Options exercisable at the end	1,131,518
Weighted Average Exercise Price
Outstanding at the beginning (in dollars per share)	$ 8.67
Granted (in dollars per share)	16.05
Exercised (in dollars per share)	8.18
Forfeited (in dollars per share)	8.61
Outstanding at the end (in dollars per share)	12.22	$ 8.67
Options vested and expected to vest at the end (in dollars per share)	12.22
Options exercisable at the end (in dollars per share)	$ 9.12
Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value
Expected term (in years)	8 years 8 months 5 days	9 years 2 months 19 days
Options vested and expected to vest at the end	8 years 8 months 5 days
Options exercisable at the end (in years)	8 years 3 months 26 days
Outstanding at the beginning (in dollars)	$ 26,254
Outstanding at the end (in dollars)	92,828	$ 26,254
Options vested and expected to vest at the end	92,828
Options exercisable at the end (in dollars)	27,647
Unrecognized equity based compensation expense	$ 26,600
Unrecognized equity based compensation expense expected period for recognition	2 years 7 months 6 days
2019 Equity Incentive Plan
Assumptions used in determining the fair value of the options granted
Risk-free interest rate	0.46%	1.90%
Expected term (in years)	6 years	6 years
Expected volatility	81.00%	75.45%

Equity-Based Compensation - Inf

Equity-Based Compensation - Information related to options granted, vested and exercised (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total cash received from exercises of stock options	$ 3,532	$ 27
Stock option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average fair value of options granted, per option	$ 10.98	$ 9.95
Aggregate grant date fair value of options vested during the year	$ 7,868	$ 1,381
Total cash received from exercises of stock options	3,532	27
Total intrinsic market value of stock options exercised	$ 7,752	$ 89

Equity-Based Compensation - ESP

Equity-Based Compensation - ESPP (Details) - ESPP - shares	1 Months Ended
	Jun. 30, 2019	Jan. 01, 2020
Equity Based Compensation
Shares authorized	300,000
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Increase in Authorized Shares	1.00%
Shares available for future grants		301,102
Discount rate to purchase common stock	15.00%
Maximum
Equity Based Compensation
Shares authorized	3,000,000
Common shares available for purchase	25,000

Income Taxes - Components (Deta

Income Taxes - Components (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Current
Federal									$ (511)	$ 512
State									(59)	410
Total current tax (benefit) provision									(570)	922
Deferred
Federal										(6)
State										(4)
Total deferred tax provision										(10)
Total income tax (benefit from) provision for income tax expense	$ (143)	$ (115)	$ (155)	$ (157)	$ 344	$ 304	$ 135	$ 129	$ (570)	$ 912

Income Taxes - Effective income

Income Taxes - Effective income tax rate (Details)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Effective income tax rate differed from the amount computed by applying the federal statutory rate to the Company’s loss before income taxes
Tax effected at statutory rate	21.00%	21.00%
State taxes	8.38%	8.39%
Stock compensation	0.76%	(1.09%)
Non-deductible expenses	(0.01%)	0.08%
Federal research and development credits	6.21%	5.09%
Change in valuation allowance	(35.09%)	(35.64%)
Effective Income Tax Rate	1.25%	(2.17%)

Income Taxes - Deferred tax ass

Income Taxes - Deferred tax assets (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Deferred tax assets:
Net operating loss carryforwards	$ 13,127	$ 1,170
Deferred revenue	21,293	23,453
Research and development credit carryforwards	6,314	1,091
Fixed and intangible assets	3,537	4,246
Reserves and accruals	235	195
Stock-based compensation	1,944	353
Total deferred tax assets:	46,450	30,508
Valuation allowance	(45,590)	(29,618)
Subtotal	860	890
Fixed assets	(568)	(656)
Prepaid expense	(292)	(234)
Total net deferred tax assets	$ 0	$ 0

Income Taxes - Valuation Allowa

Income Taxes - Valuation Allowances (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income Taxes
Valuation allowance	$ 45,590	$ 29,618
Change in valuation allowance	$ 16,000	$ 14,900

Income Taxes - NOL carryforward

Income Taxes - NOL carryforwards (Details) $ in Millions	Dec. 31, 2020USD ($)
Operating Loss Carryforwards [Line Items]
NOL carryforwards	$ 3.8
Federal
Operating Loss Carryforwards [Line Items]
NOL carryforwards	45.6
State
Operating Loss Carryforwards [Line Items]
NOL carryforwards	$ 56.4

Income Taxes - Tax credit carry

Income Taxes - Tax credit carryforward (Details) - Research and Development Tax Credit Carryforward $ in Thousands	Dec. 31, 2020USD ($)
Federal
Tax Credit Carryforward [Line Items]
Tax credit carryforward	$ 5,400
State
Tax Credit Carryforward [Line Items]
Tax credit carryforward	$ 1,100

Income Taxes - Others (Details)

Income Taxes - Others (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income Taxes
NOL carryforwards	$ 3.8
Annual utilization limitation	0.6
Unrecognized tax benefits	0	$ 0
Estimated interest or penalties	$ 0	$ 0

Income Taxes - Provision (Detai

Income Taxes - Provision (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Income Taxes
Benefit from (provision for) income taxes	$ 143	$ 115	$ 155	$ 157	$ (344)	$ (304)	$ (135)	$ (129)	$ 570	$ (912)

Commitments and Contingencies_2

Commitments and Contingencies (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2020	Dec. 31, 2019
Commitments and Contingencies
Percentage of escalation in annual lease rental payments	3.00%
Option to extend	True
Extension term	3 years
Total Minimum Lease Payments
2021		$ 1,250
2022		527
Total minimum lease payments		1,777
Rent expense		$ 1,100	$ 900

Option and License Agreements (

Option and License Agreements (Details) $ in Thousands	Aug. 25, 2020USD ($)	Feb. 28, 2019USD ($)OptionsitemProgram	Oct. 31, 2018USD ($)OptionsProgram	Sep. 30, 2020USD ($)	Dec. 31, 2019USD ($)	Dec. 31, 2020USD ($)Program	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Research and development						$ 73,630	$ 53,732
Accounts receivable					$ 3,467	7,314	3,467
MORF-720 and MORF-627
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Revenue recognized from option exercise						1,900
AbbVie
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Revenue recognized from option exercise						20,000
Janssen
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Accounts receivable					3,500		3,500
AbbVie
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Accounts receivable					0	$ 900	0
Collaboration and option agreement with AbbVie
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Term of arrangement			5 years
Upfront fees received			$ 100,000
Number of research programs | Program						4
Option exercise fee			$ 20,000
Number of options available for exercise | Options			3
Development milestones			$ 80,000
Launch milestones			110,000
Net sales milestones			$ 160,000
Profit margin percentage						10.00%
Up-front payment included in transaction price								$ 100,000
Deferred revenue					85,800	$ 71,700	85,800	$ 100,000
Option exercise fees received	$ 20,000
Revenue recognized from option exercise				$ 20,000
Research and development						12,500	20,000
Revenue related to research services						14,200	10,800
Number of research program | Program			4
Reduction in revenue previously recognized					$ (6,000)		2,000
Collaboration and option agreement with AbbVie | Janssen
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Upfront initiation fee						5,000
Research collaboration and option agreement | Janssen
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Number of research programs | Program		2
Number of options available for exercise | Options		3
Development milestones		$ 142,000
Net sales milestones		$ 90,000
Deferred revenue						11,300
Research and development						6,200	4,500
Revenue related to research services						8,900	6,200
Number of integrin targets | item		3
Upfront fee for first two research program		$ 10,000
Number of research program | Program		3
Payment due period		60 days
Additional fee upon commencement of third research program		$ 5,000
One time fee		$ 6,000
Upfront payment received related to research services						2,300	$ 1,400
Accounts receivable						6,400
Upfront payment receivable for initiation of the third program						$ 5,000

Net Loss per Share (Details)

Net Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Net Loss per Share
Net loss	$ (17,749)	$ 5,354	$ (15,858)	$ (16,746)	$ (19,831)	$ (8,864)	$ (9,433)	$ (5,200)	$ (44,999)	$ (43,328)
Weighted average common shares outstanding, basic and diluted									30,594,897	16,101,928
Net loss per share, basic and diluted					$ (0.66)	$ (0.30)	$ (4.73)	$ (2.77)	$ (1.47)	$ (2.69)

Net Loss per Share - Common sto

Net Loss per Share - Common stock equivalent shares (Details) - shares	7 Months Ended	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti‑dilutive securities		4,519,300	3,367,103
Restricted stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti‑dilutive securities		100,989	379,700
Restricted stocks units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti‑dilutive securities		66,216
Stock option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti‑dilutive securities		4,352,095	2,987,403
ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti‑dilutive securities	515,799

Employee Benefit Plan (Details)

Employee Benefit Plan (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Employee Benefit Plan
Employer matching contribution as percentage of first 0% of eligible employee's contribution	50.00%
Percentage of eligible employees contribution matched 0% by employer	6.00%
Contributions	$ 0.5	$ 0.2

Quarterly Financial Informati_3

Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Revenue	$ 5,901	$ 25,757	$ 7,693	$ 5,594		$ 5,675	$ 5,567	$ 6,068	$ 44,945	$ 16,977
Revenue					$ (333)
Operating expenses	23,880	20,749	24,113	23,383	20,246	15,533	15,984	12,202	92,125	63,965
(Loss) Income from operations	(17,979)	5,008	(16,420)	(17,789)	(20,579)	(9,858)	(10,417)	(6,134)	(47,180)	(46,988)
Other (expense) income, net	87	231	407	886	1,092	1,298	1,119	1,063	1,611	4,572
Benefit from (provision for) income taxes	143	115	155	157	(344)	(304)	(135)	(129)	570	(912)
Net (loss) income	$ (17,749)	$ 5,354	$ (15,858)	$ (16,746)	$ (19,831)	$ (8,864)	$ (9,433)	$ (5,200)	$ (44,999)	$ (43,328)
Net (loss) income per share - basic	$ (0.57)	$ 0.18	$ (0.52)	$ (0.55)
Net (loss) income per share - diluted	$ (0.57)	$ 0.17	$ (0.52)	$ (0.55)
Net income (loss) per share, basic and diluted					$ (0.66)	$ (0.30)	$ (4.73)	$ (2.77)	$ (1.47)	$ (2.69)
Collaboration and option agreement with AbbVie
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Net (loss) income					$ (6,000)
Reduction in revenue previously recognized					$ 6,000					$ (2,000)
Impact on net loss (per share)					$ 0.37