Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 04, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Satsuma Pharmaceuticals, Inc. | ||
Entity Central Index Key | 0001692830 | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 302 | ||
Entity Interactive Data Current | Yes | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity File Number | 001-39041 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 81-3039831 | ||
Entity Address, Address Line One | 400 Oyster Point Boulevard | ||
Entity Address, Address Line Two | Suite 221 | ||
Entity Address, City or Town | South San Francisco | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94080 | ||
City Area Code | 650 | ||
Local Phone Number | 410-3200 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Title of 12(b) Security | Common Stock, par value $0.0001 per share | ||
Trading Symbol | STSA | ||
Security Exchange Name | NASDAQ | ||
Entity Common Stock, Shares Outstanding | 31,521,485 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive Proxy Statement relating to the 2021 Annual Meeting of Stockholders are incorporated herein by reference in Part III of this Annual Report on Form 10-K to the extent stated herein. The proxy statement will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended December 31, 2020. |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 36,326 | $ 22,755 |
Short-term marketable securities | 31,910 | 84,942 |
Prepaid expenses and other current assets | 5,550 | 7,047 |
Total current assets | 73,786 | 114,744 |
Property and equipment, net | 6,473 | 832 |
Long-term marketable securities | 10,203 | |
Other non-current assets | 774 | 497 |
Total assets | 81,033 | 126,276 |
Liabilities | ||
Accounts payable | 3,381 | 4,282 |
Accrued and other current liabilities | 2,675 | 1,710 |
Current portion of long-term debt | 1,990 | 1,979 |
Total current liabilities | 8,046 | 7,971 |
Long-term debt | 1,042 | 2,951 |
Other noncurrent liabilities | 9 | 19 |
Total liabilities | 9,097 | 10,941 |
Commitments and Contingencies (Note 6) | ||
Stockholders’ equity (deficit) | ||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized as of December 31, 2020 and December 31, 2019; no shares issued and outstanding as of December 31, 2020 and December 31, 2019 | ||
Common stock, $0.0001 par value, 300,000,000 shares authorized as of December 31, 2020 and December 31, 2019, respectively; 17,436,978 shares and 17,382,047 shares issued and outstanding as of December 31, 2020 and December 31, 2019 | 2 | 2 |
Additional paid-in-capital | 162,469 | 158,317 |
Accumulated other comprehensive income | 29 | 17 |
Accumulated deficit | (90,564) | (43,001) |
Total stockholders’ equity | 71,936 | 115,335 |
Total liabilities, preferred stock and stockholders' equity | $ 81,033 | $ 126,276 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 17,436,978 | 17,382,047 |
Common stock, shares outstanding | 17,436,978 | 17,382,047 |
Statements of Operations and Co
Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating expenses | ||
Research and development | $ 36,270 | $ 24,196 |
General and administrative | 12,058 | 4,685 |
Total operating expenses | 48,328 | 28,881 |
Loss from operations | (48,328) | (28,881) |
Interest income | 1,115 | 1,189 |
Interest expense | (350) | (482) |
Other income (expense), net | (1) | |
Net loss | (47,563) | (28,175) |
Unrealized gains on marketable securities | 12 | 17 |
Comprehensive loss | $ (47,551) | $ (28,158) |
Net loss per share attributable to common stockholders, basic and diluted | $ (2.73) | $ (4.80) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted | 17,405,688 | 5,863,950 |
Statements of Convertible Prefe
Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Convertible Preferred Stock | Redeemable Convertible Preferred Stock | Series B Convertible Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income |
Beginning balance at Dec. 31, 2018 | $ (12,132) | $ 1 | $ 2,693 | $ (14,826) | ||||
Temporary equity, Beginning balance, Shares at Dec. 31, 2018 | 3,046,355 | |||||||
Temporary equity, Beginning balance at Dec. 31, 2018 | $ 11,648 | |||||||
Beginning balance, Shares at Dec. 31, 2018 | 1,083,280 | |||||||
Conversion of redeemable convertible preferred stock into common stock | 73,138 | $ 1 | 73,137 | |||||
Temporary Equity, Conversion of redeemable convertible preferred stock into common stock, Shares | (9,936,341) | |||||||
Temporary Equity, Conversion of redeemable convertible preferred stock into common stock | $ (73,138) | |||||||
Conversion of redeemable convertible preferred stock into common stock, Shares | 9,936,341 | |||||||
Issuance of common stock upon initial public offering,net of issuance cost | 81,435 | 81,435 | ||||||
Issuance of common stock upon initial public offering, net of issuance costs, Shares | 6,052,116 | |||||||
Vesting of restricted stock, Shares | 31,914 | |||||||
Issuance of Series B convertible preferred stock for cash, net of issuance costs, Shares | 6,889,986 | |||||||
Issuance of Series B convertible preferred stock for cash, net of issuance costs | $ 61,490 | |||||||
Issuance of common stock upon exercise of stock options | 305 | 305 | ||||||
Issuance of common stock upon exercise of stock options, Shares | 273,595 | |||||||
Stock-based compensation | 747 | 747 | ||||||
Issuance of common stock upon net exercise of common stock warrants, Shares | 4,801 | |||||||
Other comprehensive income | 17 | $ 17 | ||||||
Net loss | (28,175) | (28,175) | ||||||
Ending balance at Dec. 31, 2019 | $ 115,335 | $ 2 | 158,317 | (43,001) | 17 | |||
Temporary equity, Ending balance, Shares at Dec. 31, 2019 | 0 | |||||||
Ending Balance, Shares at Dec. 31, 2019 | 17,382,047 | |||||||
Issuance of common stock upon exercise of stock options | $ 82 | 82 | ||||||
Issuance of common stock upon exercise of stock options, Shares | 35,265 | |||||||
Stock-based compensation | 4,018 | 4,018 | ||||||
Issuance of common stock upon purchases under employee share purchase plan | 52 | 52 | ||||||
Issuance of common stock upon purchases under employee share purchase plan, Shares | 14,766 | |||||||
Issuance of common stock upon net exercise of common stock warrants, Shares | 4,900 | |||||||
Other comprehensive income | 12 | 12 | ||||||
Net loss | (47,563) | (47,563) | ||||||
Ending balance at Dec. 31, 2020 | $ 71,936 | $ 2 | $ 162,469 | $ (90,564) | $ 29 | |||
Temporary equity, Ending balance, Shares at Dec. 31, 2020 | 0 | |||||||
Ending Balance, Shares at Dec. 31, 2020 | 17,436,978 |
Statements of Convertible Pre_2
Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Series B Convertible Preferred Stock | |
Issuance of stock, net of issuance costs | $ 206 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | ||
Net loss | $ (47,563) | $ (28,175) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation | 239 | 141 |
Non-cash interest expense, and amortization of debt discount and issuance costs | 102 | 132 |
Net amortization of premiums and accretion of discounts on marketable securities | 83 | (127) |
Stock-based compensation | 4,018 | 747 |
Loss on disposal of assets | 3 | |
Changes in assets and liabilities | ||
Prepaid expenses and other assets | 1,455 | (6,489) |
Accounts payable | (1,625) | 3,984 |
Accrued and other current liabilities | 974 | 203 |
Other non-current liabilities | (10) | (56) |
Net cash used in operating activities | (42,327) | (29,637) |
Cash flows from investing activities | ||
Purchases of marketable securities | (34,008) | (99,855) |
Proceeds from maturities of available-for-sale securities | 97,172 | 4,530 |
Purchases of property and equipment | (5,165) | (551) |
Net cash provided by (used in) investing activities | 57,999 | (95,876) |
Cash flows from financing activities | ||
Repayment of debt | (2,000) | (167) |
Proceeds from issuance of convertible preferred stock, net of issuance costs | 61,490 | |
Proceeds from initial public offering | 81,435 | |
Payment of offering costs | (235) | |
Proceeds from issuance of common stock under employee plans | 134 | 305 |
Net cash (used in) provided by financing activities | (2,101) | 143,063 |
Net increase in cash and cash equivalents | 13,571 | 17,550 |
Cash and cash equivalents | ||
Cash and cash equivalents, at beginning of period | 22,755 | 5,205 |
Cash and cash equivalents, at end of period | 36,326 | 22,755 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 10 | |
Cash paid for interest | 259 | 347 |
Supplemental non-cash investing and financing activities: | ||
Purchases of property and equipment in accounts payable and accrued and other current liabilities | $ 724 | 9 |
Conversion of redeemable convertible preferred stock into common stock | $ 73,138 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Organization and Summary of significant Accounting Policies | 1. Organization and Summary of Significant Accounting Policies Description of the Business Satsuma Pharmaceuticals, Inc. (the “Company”) is a clinical-stage biopharmaceutical company developing a novel therapeutic for the acute treatment of migraine. The Company’s product candidate, STS101, is a drug-device combination of a proprietary dry-powder formulation of dihydroergotamine mesylate, or DHE, which can be quickly and easily self-administered by a proprietary pre-filled, single-use, nasal delivery device. The Company, headquartered in South San Francisco, was incorporated in 2016 in the state of Delaware. Initial Public Offering On September 12, 2019, the Company’s registration statement on Form S-1 (File No. 333-233347) relating to its initial public offering (“IPO”) of common stock became effective. The IPO closed on September 17, 2019 at which time the Company issued 5,500,000 shares of its common stock at a price of $15.00 per share, which did not include the issuance of any shares in connection with the exercise by the underwriters of their option to purchase up to 825,000 additional shares. The Company received an aggregate of $82.5 million gross proceeds, before underwriting discounts, commissions and offering costs. Liquidity The Company is subject to risks and uncertainties common to early-stage companies in the biopharmaceutical industry, including, but not limited to, risks of clinical delays or failure, development by competitors of new technological innovations, protection of proprietary technology, dependence on key personnel, reliance on contract manufacturing organizations (“CMOs”), contract research organizations (“CROs”), compliance with government regulations and the need to obtain additional financing to fund operations. STS101 is an investigational product candidate that will require significant additional effort prior to any submission for regulatory approval and commercialization, if approved. These efforts require significant amounts of additional capital, adequate personnel, infrastructure, and extensive compliance and reporting. The Company has incurred significant losses and negative cash flows from operations in all periods since its inception and had an accumulated deficit of $90.6 million as of December 31, 2020. The Company has historically financed its operations primarily through private placements of convertible preferred stock, a convertible promissory note, long-term debt and sale of common stock in the IPO. The Company has no products approved for sale, and the Company has not generated any revenue since its inception. The Company expects to incur significant additional operating losses over at least the next several years. There can be no assurance that in the event the Company requires additional financing, such financing will be available on terms which are favorable or at all. Failure to generate sufficient cash flows from operations, raise additional capital or reduce certain discretionary spending would have a material adverse effect on the Company’s ability to achieve its intended business objectives. As of December 31, 2020, the Company had cash, cash equivalents and marketable securities of $68.2 million. The Company’s management believes that the Company’s current cash, cash equivalents and marketable securities will be sufficient to fund its planned operations for at least 12 months from the date of the issuance of these annual financial statements. Basis of Presentation The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). Reverse Stock Split On September 11, 2019, the Company effected a 1-for-4.7 reverse stock split of the Company’s common stock and convertible preferred stock. All issued and outstanding common stock, convertible preferred stock, stock options and per share amounts contained in the accompanying financial statements and notes to the Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Such estimates include the accrual of research and development expenses, useful lives of property and equipment and the fair value of stock-based awards. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the impact of the COVID-19 pandemic which may delay the enrollment of subjects for our clinical trials and may disrupt our supply chain for development and manufacturing activities, and adjust those estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from those estimates and assumptions. Segments The Company operates and manages its business as a single operating and reportable segment, which is the business of developing, seeking regulatory As of December 31, 2019, As of December 31, 2020, of $1.5 million Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. Marketable Debt Securities The Company determines the appropriate classification of its marketable debt securities at the time of purchase and reevaluates such designation at each balance sheet date. All marketable debt securities are considered available-for-sale and carried at estimated fair values and reported in cash equivalents, short-term marketable securities or long-term marketable securities. Unrealized gains and losses on available-for-sale debt securities are excluded from net income and reported in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity. Interest income includes amortization of purchase premiums and discounts, realized gains and losses on sales of securities and other-than-temporary declines in the fair value of securities, if any. The cost of securities sold is based on the specific identification method. The Company regularly reviews all its investments for other-than-temporary declines in fair value . The review includes the consideration of the cause of the impairment, including the creditworthiness of the security issuers, the number of securities in an unrealized loss position, the severity and duration of the unrealized losses, whether the Company has the intent to sell the securities and whether it is more likely than not that the Company will be required to sell the securities before the recovery of their amortized cost basis. When determines that the decline in fair value of an investment is below its accounting basis and the decline is other-than-temporary, the Company reduces the carrying value of the security it holds and records a loss for the amount of such decline. Concentration of Credit Risk The Company has no significant off-balance sheet concentrations of credit risk. Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents and short-term marketable securities. Substantially all the Company’s cash is held by one financial institution that management believes to be of high credit quality. Such deposits may, at times, exceed federally insured limits. The Company invests its cash equivalents in marketable securities and money market funds. The Company has not experienced any credit losses on its deposits of cash or cash equivalents. Fair Value of Financial Instruments The carrying amounts of certain of the Company’s financial instruments, including cash equivalents, accounts payable and accrued liabilities approximate fair value due to their relatively short maturities and market interest rates, if applicable. Refer to Note 2 for details on the fair value of marketable securities. Deferred Offering Costs The Company capitalizes costs that are directly associated with in-process equity financings until such financings are consummated at which time such costs are recorded against the gross proceeds of the offering. Should the in-process equity financing be abandoned, the deferred offering costs will be expensed immediately as a charge to operating expenses in the statements of operations and comprehensive loss. Property and Equipment, Net Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which generally ranges from three to five years. Leasehold improvements are stated at cost and amortized over the shorter of the useful lives of the assets or the lease term. Maintenance and repairs are charged to expense as incurred. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the balance sheet and any resulting gain or loss is reflected in the statements of operations and comprehensive loss in the period realized. Impairment of Long-Lived Assets Long-lived assets consist of property and equipment. The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable or that the useful life is shorter than the Company had originally estimated. Recoverability is measured by comparison of the carrying amount of the asset or asset group to the future undiscounted cash flows which the asset or asset group is expected to generate. If the asset or asset group is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset or asset group exceeds the fair value of the asset or asset group. If the useful life is shorter than originally estimated, the Company amortizes the remaining carrying value over the new shorter useful life. There have been no such impairments of long-lived assets during the years ended December 31, 2020 and December 31, Convertible Preferred Stock The Company records all shares of convertible preferred stock at their respective fair values on the dates of issuance, net of issuance costs, or residual value, if issued together with other instruments that are remeasured to fair value on a recurring basis. The convertible preferred stock is recorded outside of permanent equity because while it is not mandatorily redeemable, in certain events considered not solely within the Company’s control, such as a merger or acquisition or sale of all or substantially all of the Company’s assets (each, a “deemed liquidation event”), the convertible preferred stock will become redeemable at the option of the holders of at least a majority of the then outstanding shares of such preferred stock. All outstanding shares of convertible preferred stock converted into common stock upon effectiveness of the IPO. Research and Development Expenses The Company’s research and development expenses consist primarily of payroll and personnel-related expenses, including salaries, employee benefit costs and stock-based compensation expenses for the Company’s research and product development employees, fees paid to third parties to conduct preclinical and clinical studies and other research and development activities on behalf of the Company, including CROs, CMOs and other service providers, costs for licenses, and allocated overhead, including rent, equipment, depreciation, information technology costs and utilities. The Company charges all research and development costs, both internal and external, to research and development expenses within the statements of operations and comprehensive loss as incurred. Payments associated with licensing agreements to acquire exclusive licenses to develop, use, manufacture and commercialize products that have not reached technological feasibility and do not have alternate commercial use are also expensed as incurred. Accrued Research and Development The Company monitors the activity under its various agreements with CROs, CMOs and other service providers to the extent possible through communication with each service provider, detailed invoice and task completion review, analysis of actual expenses against budget, pre-approval of any changes in scope, and review of contractual terms. The Company’s research and development accruals are estimated based on the level of services performed, progress of the studies, including the phase or completion of events, and contracted costs. These estimates may or may not match the actual services performed by the service providers. The estimated costs of research and development provided, but not yet invoiced, are included accrued and other current liabilities on the balance sheet. If the actual timing of the performance of services or the level of effort varies from the original estimates, the Company will adjust the accrual accordingly. Payments made to service providers under these arrangements in advance of the performance of the related services are recorded as prepaid expenses and other current assets on the balance sheet until the services are rendered. Stock-Based Compensation The Company maintains incentive plans under which incentive stock options and nonqualified stock options may be granted to employees and non-employee service providers. The Company accounts for all shared-based awards granted to employees and non-employees based on the fair value on the date of grant and recognizes compensation expense for those awards over the requisite service period, which is generally the vesting period of the respective award. The Company accounts for forfeitures as they occur. Generally, the Company Estimating fair value of stock-based awards using an option pricing model requires input of subjective assumptions, including fair value of the Company’s common stock, and, for stock options, expected term of options and stock price volatility. The Company uses the Black-Scholes option-pricing model to value its stock option awards. The assumptions used in calculating the fair value of stock-based awards represent management’s estimates, involve inherent uncertainties and require application of management’s judgment. As a result, if factors change and management uses different assumptions, stock-based compensation expense could be materially different for future The Company classifies stock-based compensation expense in its statements of operations and comprehensive loss in the same manner in which the award recipient’s payroll costs are classified or in which the award recipient’s service payments are classified. Comprehensive Income (Loss) Comprehensive income (loss) is defined as a change in equity during a period from transactions and other events and circumstances from non-owner sources. In each 2020 and 2019, the Company recorded unrealized gains on marketable securities of less than $0.1 million in other comprehensive income (loss). Net Loss per Share Attributable to Common Stockholders Basic net loss per common share is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common stock outstanding during the period, without consideration of potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common stock and potentially dilutive securities outstanding for the period. For purposes of the diluted net loss per share calculation, obligation to issue additional common stock upon exercise of warrant and outstanding stock options are considered to be potentially dilutive securities. Basic and diluted net loss per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities as the convertible preferred stock is considered a participating security because it participates in dividends with common stock. The holders of convertible preferred stock do not have a contractual obligation to share in the Company’s losses. As such, the net loss was attributed entirely to common stockholders. Because the Company has reported a net loss for all periods presented, diluted Income Taxes Income taxes are recorded using an asset and liability approach. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases using enacted tax rates in effect for the year in which the differences are expected to affect taxable income. Deferred tax assets are reduced by a valuation allowance if current evidence indicates that it is considered more likely than not that these benefits will not be realized. In making such a determination, management considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If management determines that the Company would be able to realize its deferred tax assets in the future in excess of their net recorded amount, management would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company’s tax positions are subject to income tax audits. The Company recognizes the tax benefit of an uncertain tax position only if it is more likely than not that the position is sustainable upon examination by the taxing authority, based on the technical merits. The tax benefit recognized is measured as the largest amount of benefit which is more likely than not to be realized upon settlement with the taxing authority. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in its tax provision. The Company evaluates uncertain tax positions on a regular basis. The evaluations are based on a number of factors, including changes in facts and circumstances, changes in tax law, correspondence with tax authorities during the course of the audit, and effective settlement of audit issues. The provision for income taxes includes the effects of any accruals that the Company believes are appropriate, as well as the related net interest and On March 18, 2020, the Families First Coronavirus Response Act (“FFCR Act”), and on March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) were each enacted in response to the COVID-19 pandemic. The FFCR Act and the CARES Act contain numerous tax-related provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. On June 29, 2020 California State Assembly Bill 85 (the “Trailer Bill”) was enacted which suspends the use of California net operating loss (“NOL”) deductions and certain tax credits, including research and development tax credits, for the 2020, 2021, and 2022 tax years. The FFCR Act, CARES Act and Trailer Bill did not have a material impact on the Company’s audited financial statements as of December 31, 2020; however, the Company continues to examine the impacts the FFCR Act and CARES Act may have on its business, results of operations, financial condition and liquidity. Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) under its accounting standard codifications (“ASC”) or other standard setting bodies and adopted by the Company as of the specified effective date, unless otherwise discussed below. Recently Adopted Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement New Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes. ASU 2019-12 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 2. Fair Value Measurements The Company applies fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. Fair value is an 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 such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a three-tier fair value hierarchy has been established, which prioritizes the inputs used in measuring fair value as follows: Level 1—Observable inputs, such as quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2—Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3—Unobservable inputs which reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value. As of December 31, 2020, financial assets measured and recognized at fair value were as follows (in thousands): Fair Value Measurements at December 31, 2020 Quoted Price in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets Corporate bonds $ — $ 31,910 $ — $ 31,910 Marketable securities — 31,910 — 31,910 Money market funds (1) 36,304 — — 36,304 Total fair value of assets $ 36,304 $ 31,910 $ — $ 68,214 Fair Value Measurements at December 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimate Fair Value Assets Corporate bonds $ 31,881 $ 30 $ (1 ) $ 31,910 Marketable securities 31,881 30 (1 ) 31,910 Money market funds (1) 36,304 — — 36,304 Total fair value of assets $ 68,185 $ 30 $ (1 ) $ 68,214 (1) Included in cash and cash equivalents on the balance sheet. As of December 31, 2019, financial assets measured and recognized at fair value were as follows (in thousands): Fair Value Measurements at December 31, 2019 Quoted Price in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets U.S. government bonds $ 10,063 $ — $ — $ 10,063 Overnight repurchase agreements (1) 14,000 — — 14,000 Corporate bonds — 64,295 — 64,295 Asset backed securities — 20,787 — 20,787 Marketable securities 24,063 85,082 — 109,145 Money market funds (1) 8,730 — — 8,730 Total fair value of assets $ 32,793 $ 85,082 $ — $ 117,875 Fair Value Measurements at December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimate Fair Value Assets U.S. government bonds $ 10,062 $ 1 $ — $ 10,063 Overnight repurchase agreements (1) 14,000 — — 14,000 Corporate bonds 64,285 17 (7 ) 64,295 Asset backed securities 20,781 7 (1 ) 20,787 Marketable securities 109,128 25 (8 ) 109,145 Money market funds (1) 8,730 — — 8,730 Total fair value of assets $ 117,858 $ 25 $ (8 ) $ 117,875 (1) Included in cash and cash equivalents on the balance sheet. Included in cash and cash equivalents on the balance sheet. There were no transfers of assets or liabilities between the fair value measurement levels during the years ended December 31, 2020 and 2019. As of December 31, 2020, the fair value of the Term Loan approximates the carrying amount of the loan |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | 3. Balance Property and Equipment, Net Property and equipment consisted of the following (in thousands, except years): December 31, Useful Life (In Years) 2020 2019 Furniture and fixtures 3 $ 63 $ 58 Leasehold improvements Shorter of useful life or lease term 62 62 Machinery and equipment 3-5 933 805 Tooling 3-5 840 102 Construction in progress — 5,008 — 6,906 1,027 Less: Accumulated depreciation (433 ) (195 ) $ 6,473 $ 832 Depreciation is computed using the straight-line method. Depreciation expense was $0.2 million and $0.1 million |
Accrued Liabilities and Other C
Accrued Liabilities and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities and Other Current Liabilities | 4. Accrued Liabilities and Other Current Liabilities Accrued liabilities consisted of the following (in thousands): December 31, 2020 2019 Accrued salaries and benefits $ 1,330 $ 1,145 Accrued research and development expenses 910 88 Accrued professional services 232 248 Accrued interest 16 27 Other 187 202 $ 2,675 $ 1,710 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 5 . Long-Term Debt On October 26, 2018, the Company entered into a Loan and Security Agreement (the “Loan Agreement”) with Silicon Valley Bank. The Loan Agreement provides for loan advances of up to $10.0 million. The first advance (the “Term A Loan”) of $5.0 million was available for draw down by the Company as of the effective date of the Loan Agreement. The remaining $5.0 million (the “Term B Loan” and together with the Term A Loan, the “Term Loans”) is available for draw down by the Company in $1.0 million increments. Interest on the loan advances is payable monthly at a floating per annum rate equal to the greater of 1.5% above the prime rate or 6.5%. Upon the occurrence of an event of default, interest will increase to 5.0% above the rate that is otherwise applicable. The maturity date of the loan advances is May 1, 2022. The effective interest rate of the Term Loan approximates its stated interest rates. Principal on the Term A Loan is repayable commencing on December 1, 2019 in 30 monthly payments through maturity, however if a Term B Loan advance is made, then the Term A Loan will be repayable in 24 monthly payments commencing on June 1, 2020. The Term B Loan, if drawn, will be repayable in 24 monthly payments commencing on June 1, 2020. In addition to regular monthly payments, a final payment equal to the original principal amount of the Term Loans multiplied by 5.0% is due on the earliest to occur of (a) May 1, 2020 or (b) the prepayment in full of the term loan advances. As of December 31, 2020, the Term A Loan advances, net of debt discount and debt issuance costs, were $3.0 million and are included in current portion of long-term debt and long-term debt on the Company’s balance sheet. As of December 31, 2020, the future contractual maturities of debt by fiscal year are as follows (in thousands): 2021 2,000 2022 833 Total future maturities of debt $ 2,833 In accordance with the terms of the Loan Agreement, on October 26, 2018, the Company issued warrants to purchase 10,232 shares of the Company’s common stock at an exercise price of $1.04 per share with a term of 10 years. The Company will be obligated to issue additional warrants to purchase up to a maximum aggregate amount of shares of the Company’s common stock equal to 0.15% of the Company’s fully-diluted capitalization in connection with drawdowns of the Term B Loan at an exercise price equal to the latest valuation of the Company’s common stock or if the Company’s common stock is publicly traded, the lower of the trailing 10-day average closing share price of the Company’s common stock prior to the first Term B Loan advance or the closing price per share on the day prior to the first Term B Loan advance (“Term B Warrants”). The Term B Warrants are considered issued and outstanding for accounting purposes on execution of the Loan Agreement. The warrants were accounted for and classified as equity at fair value using the following assumptions under the Option Pricing Model (“OPM”): October 26, 2018 (Issuance Date) Expected term (years) 10.0 Expected volatility 74.8 % Risk-free interest rate 3.1 % Dividend yield 0 % There were no common stock warrants outstanding as of December 31, 2020. The proceeds from the Term A Loan advance were allocated to the debt and the warrants based on their relative fair values. The resulting debt discount of less than $0.1 million is being recognized as interest expense over the term of the loan of 3.6 years using the effective interest method. The Company incurred debt issuance costs of $0.1 million, which is presented as reduction of the Term A Loan advance, consistent with the presentation of debt discount. Debt issuance cost and final payment of $0.3 million is recognized as additional interest expense using the effective interest method over the term of the loan. The Company accreted the final payment due at maturity using the effective interest rate method. The accrued liabilities related to the accretion of the final payment were $0.2 million and $0.1 million as of December 31, 2020 and December 31, 2019, respectively, included in long-term debt on the Company’s balance sheet. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6 . Commitments and Operating Leases On January 9, 2018, the Company entered into an office lease agreement for office space in South San Francisco, California. The lease term is through April 30, 2021. There is an option to renew for an additional three years. On December 8, 2018, the Company entered into an office lease agreement for office space in North Carolina. The lease commenced on January 2, 2019 and the lease term was through June 30, 2019. There was an option to renew for two additional periods of three months each. On March 14, 2019, the Company entered into an amendment to the lease agreement for the office space in North Carolina to lease additional workspace at the same address over the same lease term. The lease was terminated on September 30, 2019. In July 2019, the Company entered into a lease agreement to lease another office space in North Carolina. Тhe lease term for this office space is three years and the lease expires in July 2022. Rent expense was $0.3 million and $0.2 million for the years ended December 31, 2020 and 2019, respectively. As of December 31, 2020, less than $0.1 million of deferred rent representing future minimum rental payments for leases with scheduled rent escalations was included in accrued and other current liabilities and other noncurrent liabilities on the Company’s balance sheet. Future minimum lease payments under non-cancelable operating leases as of December 31, 2020 were as follows (in thousands): Operating Leases 2021 208 2022 93 Total minimum lease payments $ 301 Contingencies From time to time, the Company may be involved in litigation related to claims that arise in the ordinary course of its business activities. The Company accrues for these matters when it is probable that future expenditures will be made, and these expenditures can be reasonably estimated. As of December 31, 2020 and 2019, the Company did not believe that any such matters, individually or in the aggregate, would have a material adverse effect on the Company’s financial position, results of operations or cash flows. Indemnification The Company enters into standard indemnification arrangements in the ordinary course of business. Pursuant to these arrangements, the Company indemnifies, holds harmless and agrees to reimburse the indemnified parties for losses suffered or incurred by the indemnified party, in connection with any trade secret, copyright, patent or other intellectual property infringement claim by any third party with respect to its technology. The term of these indemnification agreements is generally perpetual any time after the execution of the agreement. The maximum potential amount of future payments the Company could be required to make under these arrangements is not determinable. The Company has never incurred costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, the Company believes the fair value of these agreements is |
Convertible Preferred Stock
Convertible Preferred Stock | 12 Months Ended |
Dec. 31, 2020 | |
Temporary Equity [Abstract] | |
Convertible Preferred Stock | 7 . Convertible Preferred Stock In April 2019, the Company issued 6,889,986 shares of its Series B convertible preferred stock at $8.95444 per share to certain investors for gross proceeds of $61.7 million. Following the closing of the IPO, all outstanding shares of the redeemable convertible preferred stock converted into 9,936,341 shares of common stock and the related carrying value was reclassified to common stock and additional paid-in capital. There were no shares of redeemable convertible preferred stock outstanding as of December 31, 2020 and December 31, 2019. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Preferred Stock | 8. Preferred Stock As of December 31, 2020 and 2019, the Company’s certificate of incorporation, as amended and restated, authorized the Company to issue up to 10,000,000 shares of preferred stock at the par value of $0.0001 per share. As of December 31, 2020 and 2019, there were no shares of preferred stock issued and outstanding. |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Common Stock | 9 . Common The Company has authorized 300,000,000 shares of common stock, $0.0001 par value per share. Each holder of shares of common stock shall be entitled to one vote for each share thereof held. The Company had reserved common stock, on an as-converted basis, for future issuance as follows: December 31, 2020 2019 Exercise of common stock warrants — 5,116 Exercise of outstanding options 3,162,459 1,568,874 Shares of common stock available for grant under the 2019 Plan 844,475 1,778,044 Shares of common stock available for ESPP 319,054 160,000 Total 4,325,988 3,512,034 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 1 0 . Stock-Based 2019 Incentive Award Plan The Company’s board of directors adopted and the Company’s stockholders approved, effective on the day of effectiveness of the registration statement on Form S-1, the 2019 Incentive Award Plan (the “2019 Plan”). Awards granted under the 2019 Plan may be either incentive stock options (“ISOs”), nonqualified stock options (“NSOs”), stock appreciation rights (“SARs”), or restricted stock units (“RSUs”). ISOs may be granted only to Company employees (including officers and directors who are also employees). 2016 Incentive Award Plan In 2016, the Company established its 2016 Equity Incentive Plan (the “2016 Plan”) which provides for the granting of stock options to employees and consultants of the Company. Awards granted under the 2016 Plan may be either incentive stock options (“ISOs”), nonqualified stock options (“NSOs”), stock appreciation rights (“SARs”), or restricted stock units (“RSUs”). ISOs may be granted only to Company employees (including officers and directors who are also employees). NSOs may be granted to Company employees and consultants. The exercise price of ISOs and NSOs shall not be less than 100% of the estimated fair value of the shares on the date of grant. The exercise price of ISOs granted to an employee who, at the time of grant, owns stock representing more than 10% (“10% stockholder”) of the voting power of all classes of stock of the Company shall be no less than 110% of the estimated fair value of the shares on the date of grant. The options usually have a term of 10 years (or no more than five years if granted to a 10% stockholder). Vesting conditions determined by the plan administrator may apply to stock options and In January 2021, the number of shares of common stock available for issuance under the 2019 Plan was increased by 697,479 shares as a result of the automatic increase provision in the 2019 Plan. Activity under the 2019 Plan and 2016 Plan is set forth below: Outstanding Options Shares Available for Grant Number of Shares Weighted Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Balance, January 1, 2019 114,905 829,775 $ 0.97 8.82 Additional shares authorized 2,675,833 Options granted (1,028,118 ) 1,028,118 $ 4.96 9.38 Options exercised — (273,595 ) $ 1.13 Options cancelled 15,424 (15,424 ) $ 1.04 Balance, December 31, 2019 1,778,044 1,568,874 $ 3.55 8.85 Additional shares authorized 695,281 Options granted (1,669,200 ) 1,669,200 $ 14.56 9.63 Options exercised — (35,265 ) $ 2.34 Options cancelled 40,350 (40,350 ) $ 8.83 Balance, December 31, 2020 844,475 3,162,459 $ 9.31 8.79 Exercisable as of December 31, 2020 862,640 $ 2.93 7.55 Vested and expected to vest, December 31, 2020 3,162,459 $ 9.31 8.79 The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock options and the fair value of the Company’s common stock for stock options that were in-the-money as of December 31, 2020 and December 31, 2019. The aggregate intrinsic value of options vested and expected to vest as of December 31, 2020 and December 31, 2019 was $1.9 million and $7.8 million, respectively. The aggregate intrinsic value of stock options exercised during the years ended on December 31, 2020 and 2019 was $0.8 million and $1.0 million, respectively. The weighted-average grant-date fair value of options granted during the years ended December 31, 2020 and December 2019 was $9.62 and $3.44 per share, respectively. As of December 31, 2020, the total unrecognized stock-based compensation expense for stock options was $14.9 million, which is expected to be recognized over a weighted-average period of 2.9 years. The The Company accounts for forfeitures as they occur. Stock-Based Compensation Associated with Awards to Employees and Non-employees The Company estimated the fair value of stock options using the Black Scholes option-pricing model. The fair value of stock options was valued using the following assumptions: December 31, 2020 2019 Expected term (years) 5.5 - 6.1 6.0 - 6.1 Expected volatility 71.2% - 92.5% 63.6% - 74.9% Risk-free interest rate 0.3% - 1.7% 1.4% - 2.5% Dividend yield 0% 0% Expected Term . The expected term is calculated using the simplified method, which is available where there is insufficient historical data about exercise patterns and post-vesting employment termination behavior. The simplified method is based on the vesting period and the contractual term for each grant, or for each vesting-tranche for awards with graded vesting. The mid-point between the vesting date and the maximum contractual expiration date is used as the expected term under this method. For awards with multiple vesting-tranches, the periods from grant until the mid-point for each of the tranches are averaged to provide an overall expected term. Expected Volatility . The Company used an average historical stock price volatility of a peer group of publicly traded companies to be representative of its expected future stock price volatility, as the Company has limited trading history for its common stock. For purposes of identifying these peer companies, the Company considered the industry, stage of development, size and financial leverage of potential comparable companies. For each grant, the Company measured historical volatility over a period equivalent to the expected term. Risk-Free Interest Rate . The risk-free interest rate is based on the implied yield currently available on U.S. Treasury zero-coupon issues with a remaining term equivalent to the expected term of a stock award. Expected Dividend . The Company has not paid any dividends and does not anticipate paying any dividends in the near future. Accordingly, the Company has estimated the dividend yield to be zero Fair Value of Common Stock Prior to the IPO the fair value of the Company’s common stock underlying the stock options was determined by the Board of Directors with assistance from management and, in part, on input from an independent third-party valuation firm. The Board of Directors determined the fair value of common stock by considering a number of objective and subjective factors, including valuations of comparable companies, sales of convertible preferred stock, operating and financial performance, the lack of liquidity of the Company’s common stock and the general and industry-specific economic outlook. Subsequent to the Company’s IPO, the fair value of the Company’s common stock is determined based on its closing market price. Restricted Stock Activity with respect to restricted stock awards (“RSAs”) was as follows (in Number of Shares Underlying Outstanding RSAs Weighted Average Grant Date Fair Value Unvested, December 31, 2018 31,914 $ — Vested (31,914 ) $ — Unvested, December 31, 2019 — $ — Vested — $ — Unvested, December 31, 2020 — $ — 2019 Share Purchase Plan In September 2019, the Company adopted the 2019 Employee Share Purchase Plan (“ESPP”), which became effective on the business day prior to the effectiveness of the registration statement relating to the IPO. A total of 160,000 shares of common stock were initially reserved for issuance under the ESPP. In January 2020, the number of shares of common stock available for issuance under the ESPP was increased by 173,820 shares as a result of the automatic increase provision in the ESPP. The ESPP permits eligible employees to acquire shares of the Company’s common stock through periodic payroll deductions of up to 15% of base compensation. No employee may purchase more than 50,000 shares during an offering period. In addition, no employee may purchase more than $25,000 worth of stock, determined by the fair market value of the shares at the time such option is granted, in one calendar year. At the end of each purchase period, employees are able to purchase shares at 85% of the lower of the fair market value of the Company’s common stock on the first trading day of the offering period or on the last trading day of the offering period. The first offering period was for 6.5 months beginning from May 1, 2020 until November 15, 2020. The Company issued 14,766 shares under the ESPP for the year ended December 31, 2020. Shares authorized for future purchase under the ESPP were 319,054 at December 31, 2020. In January 2021, the number of shares of common stock available for issuance under the ESPP was increased by 174,369 shares as a result of the automatic increase provision in the ESPP. The offering period and purchase period is determined by the board of directors. As of December 31, 2020, no new offerings had been authorized. Compensation expense is calculated using the fair value of the employees' purchase rights under the Black-Scholes option pricing model. Year Ended December 31, 2020 Expected term (years) 0.5 Expected volatility 111.0% Risk-free interest rate 0.1% Dividend yield 0% As of December 31, 2020, there was no unrecognized compensation costs related to non-vested ESPP shares. Stock-Based Compensation Expense Total Year Ended December 31, 2020 2019 Research and development $ 1,290 $ 334 General and administrative 2,728 413 Total $ 4,018 $ 747 The above stock-based compensation expense related to the following equity-based awards: Year Ended December 31, 2020 2019 Stock options $ 3,989 $ 747 ESPP 29 — Total $ 4,018 $ 747 |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Stockholders | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Attributable to Common Stockholders | 11. The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except share and per share data): Year Ended December 31, 2020 2019 Numerator: Net loss attributable to common stockholders $ (47,563 ) $ (28,175 ) Denominator: Weighted-average shares outstanding 17,405,688 5,879,820 Less: weighted-average unvested restricted shares and shares subject to repurchase — (15,870 ) Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 17,405,688 5,863,950 Net loss per share attributable to common stockholders, basic and diluted $ (2.73 ) $ (4.80 ) The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share attributable to common stockholders for the period presented because including them would have been antidilutive: Year Ended December 31, 2020 2019 Options to purchase common stock 3,162,459 1,568,874 Warrants to purchase common stock — 5,116 Total 3,162,459 1,573,990 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 1 2 . Income Taxes No provision for income taxes was recorded for the years ended December 31, 2020 and December 31, 2019. The Company has incurred net operating losses only in the United States since its inception. The Company has not reflected any benefit of such net operating loss carryforwards in the financial statements. The differences between the statutory tax expense (benefit) rate and the effective tax expense (benefit) rate, were as follows (in thousands): Year Ended December 31, 2020 2019 Tax at federal statutory income tax rate $ (9,988 ) $ (5,917 ) Change in valuation allowance 9,950 6,708 Permanent differences (20 ) 124 Prior year true ups 341 6 Research and development credits (154 ) (873 ) State income taxes (128 ) 1 Other — (48 ) Tax at effective income tax rate $ 1 $ 1 Significant components of the Company’s net deferred tax assets are summarized as follows (in thousands): December 31, 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 17,915 $ 8,250 Research and development credit carryforwards 847 1,118 Stock-based compensation 697 45 Accruals and other 286 236 Gross deferred tax assets 19,745 9,649 Less: Valuation allowance (19,441 ) (9,491 ) Deferred tax assets, net of valuation allowance 304 158 Deferred tax liabilities: Property and equipment (304 ) (158 ) Net deferred tax assets $ — $ — As of December 31, 2020, the Company had federal and state net operating loss carryforwards (“NOLs”) of $84.9 million and $1.7 million, respectively. The Company also has California state research and development (“R&D”) credit carryforwards of $0.4 million, which do not expire and Federal R&D credit carryforwards of $0.7 million which will begin to expire in 2037. The Company has not performed a formal study validating these credits claimed in the tax returns. Once a study is prepared, the amount of R&D tax credits available could vary from what was originally claimed on the tax returns. As part of the Protecting Americans from Tax Hikes Act of 2015 (the “PATH Act”), certain eligible companies have the ability to convert a portion of their R&D tax credits to offset payroll tax liabilities. As of December 31, 2020, the Company had converted $1.0 million of its federal R&D credits to be utilized as an offset against future payroll taxes. The utilization of NOLs and tax credit carryforwards to offset future taxable income may be subject to an annual limitation as a result of ownership changes that have occurred previously or may occur in the future. Under Sections 382 and 383 of the Internal Revenue Code (“IRC”) a corporation that undergoes an ownership change may be subject to limitations on its ability to utilize its pre-change NOLs and other tax attributes otherwise available to offset future taxable income and/or tax liability. An ownership change is defined as a cumulative change of 50% or more in the ownership positions of certain stockholders during a rolling three-year period. The Company has not completed a formal study to determine if any ownership changes within the meaning of IRC Section 382 and 383 have occurred. If an ownership change has occurred, the Company’s ability to use its NOLs or tax credit carryforwards may be restricted, which could require the Company to pay federal or state income taxes earlier than would be required if such limitations were not in effect. Uncertain Income Tax Positions The The following table summarizes the activity related to the Company’s unrecognized tax benefits: Balance as of January 1, 2019 $ 157 Increase related to current year tax positions 196 Decrease related to prior year tax positions (115 ) Balance as of December 31, 2019 $ 238 Increase related to current year tax positions 80 Decrease related to prior year tax positions (162 ) Balance as of December 31, 2020 $ 156 The Company’s policy is to account for interest and penalties as income tax expense. As of December 31, 2020, the Company had no interest related to unrecognized tax benefits. No amounts of penalties related to unrecognized tax benefits were recognized in the provision for income taxes. The Company does not anticipate any significant change within twelve months following the date of the filing of this Annual Report on Form 10-K The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. The Company is subject to U.S. federal and state income tax examination for calendar tax years beginning in 2016 due to net operating losses that are being carried forward for tax purposes. |
Related Party Transaction
Related Party Transaction | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 1 3 . Related Party Transactions with SNBL In April 2019, as part of the Company’s Series B Financing, SNBL purchased 307,110 shares of Series B convertible preferred stock with an aggregate purchase price of $2.7 million. In September 2019 The Company incurred expenses in connection with preclinical study services performed by SNBL of less than $0.1 million in each of the years ended December 31, 2020 and 2019, respectively, which are included in research and development expenses on the statement of operations and comprehensive loss. Amounts due to SNBL in connection with these expenses of less than $0.1 million are included in accrued and other current liabilities on the balance sheets as of December 31, 2019. As of December 31, 2020, the Company did not have any amounts due to SNBL. Transactions with Others Upon the closing of the IPO in September 2019, 3,887,668 shares of outstanding Series A and Series B convertible preferred stock owed by two shareholders of the Company, each owning more than 10% of the Company’s equity on an as-converted basis, converted into 3,887,668 shares of common stock. Upon the IPO these shareholders also purchased additional 2,633,333 shares of the Company’s common stock, with an aggregate purchase price of $39.5 million. |
Quarterly Results of Operations
Quarterly Results of Operations Data (unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations Data (unaudited) | 1 4 . Quarterly Results of Operations Data (unaudited) The following table sets forth our unaudited statement of operations data for each of the eight quarters in the period ended December 31, Three months ended March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 (In thousands, except per share amounts) Loss from operations $ (12,171 ) $ (11,500 ) $ (12,170 ) $ (12,487 ) Net loss $ (11,773 ) $ (11,269 ) $ (12,043 ) $ (12,478 ) Net loss per share attributable to common stockholders, basic and diluted $ (0.68 ) $ (0.65 ) $ (0.69 ) $ (0.72 ) Three months ended March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 (In thousands, except per share amounts) Loss from operations $ (2,714 ) $ (6,422 ) $ (8,470 ) $ (11,275 ) Net loss $ (2,815 ) $ (6,291 ) $ (8,260 ) $ (10,809 ) Net loss per share attributable to common stockholders, basic and diluted $ (2.51 ) $ (5.48 ) $ (2.26 ) $ (0.62 ) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 1 5 . Subsequent Events In February 2021, the Company entered into a Securities Purchase Agreement with certain purchasers, pursuant to which it agreed to sell and issue to certain purchasers an aggregate of 14,084,507 shares of its common stock at a per share purchase price of $5.68, the closing price of its common stock on the Nasdaq Global Market on February 26, 2021 for aggregate gross proceeds of approximately $80.0 million. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Description of the Business | Description of the Business Satsuma Pharmaceuticals, Inc. (the “Company”) is a clinical-stage biopharmaceutical company developing a novel therapeutic for the acute treatment of migraine. The Company’s product candidate, STS101, is a drug-device combination of a proprietary dry-powder formulation of dihydroergotamine mesylate, or DHE, which can be quickly and easily self-administered by a proprietary pre-filled, single-use, nasal delivery device. The Company, headquartered in South San Francisco, was incorporated in 2016 in the state of Delaware. |
Initial Public Offering | Initial Public Offering On September 12, 2019, the Company’s registration statement on Form S-1 (File No. 333-233347) relating to its initial public offering (“IPO”) of common stock became effective. The IPO closed on September 17, 2019 at which time the Company issued 5,500,000 shares of its common stock at a price of $15.00 per share, which did not include the issuance of any shares in connection with the exercise by the underwriters of their option to purchase up to 825,000 additional shares. The Company received an aggregate of $82.5 million gross proceeds, before underwriting discounts, commissions and offering costs. |
Liquidity | Liquidity The Company is subject to risks and uncertainties common to early-stage companies in the biopharmaceutical industry, including, but not limited to, risks of clinical delays or failure, development by competitors of new technological innovations, protection of proprietary technology, dependence on key personnel, reliance on contract manufacturing organizations (“CMOs”), contract research organizations (“CROs”), compliance with government regulations and the need to obtain additional financing to fund operations. STS101 is an investigational product candidate that will require significant additional effort prior to any submission for regulatory approval and commercialization, if approved. These efforts require significant amounts of additional capital, adequate personnel, infrastructure, and extensive compliance and reporting. The Company has incurred significant losses and negative cash flows from operations in all periods since its inception and had an accumulated deficit of $90.6 million as of December 31, 2020. The Company has historically financed its operations primarily through private placements of convertible preferred stock, a convertible promissory note, long-term debt and sale of common stock in the IPO. The Company has no products approved for sale, and the Company has not generated any revenue since its inception. The Company expects to incur significant additional operating losses over at least the next several years. There can be no assurance that in the event the Company requires additional financing, such financing will be available on terms which are favorable or at all. Failure to generate sufficient cash flows from operations, raise additional capital or reduce certain discretionary spending would have a material adverse effect on the Company’s ability to achieve its intended business objectives. As of December 31, 2020, the Company had cash, cash equivalents and marketable securities of $68.2 million. The Company’s management believes that the Company’s current cash, cash equivalents and marketable securities will be sufficient to fund its planned operations for at least 12 months from the date of the issuance of these annual financial statements. |
Basis of Presentation | Basis of Presentation The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). |
Reverse Stock Split | Reverse Stock Split On September 11, 2019, the Company effected a 1-for-4.7 reverse stock split of the Company’s common stock and convertible preferred stock. All issued and outstanding common stock, convertible preferred stock, stock options and per share amounts contained in the accompanying financial statements and notes to the |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Such estimates include the accrual of research and development expenses, useful lives of property and equipment and the fair value of stock-based awards. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the impact of the COVID-19 pandemic which may delay the enrollment of subjects for our clinical trials and may disrupt our supply chain for development and manufacturing activities, and adjust those estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from those estimates and assumptions. |
Segments | Segments The Company operates and manages its business as a single operating and reportable segment, which is the business of developing, seeking regulatory As of December 31, 2019, As of December 31, 2020, of $1.5 million |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. |
Marketable Debt Securities | Marketable Debt Securities The Company determines the appropriate classification of its marketable debt securities at the time of purchase and reevaluates such designation at each balance sheet date. All marketable debt securities are considered available-for-sale and carried at estimated fair values and reported in cash equivalents, short-term marketable securities or long-term marketable securities. Unrealized gains and losses on available-for-sale debt securities are excluded from net income and reported in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity. Interest income includes amortization of purchase premiums and discounts, realized gains and losses on sales of securities and other-than-temporary declines in the fair value of securities, if any. The cost of securities sold is based on the specific identification method. The Company regularly reviews all its investments for other-than-temporary declines in fair value . The review includes the consideration of the cause of the impairment, including the creditworthiness of the security issuers, the number of securities in an unrealized loss position, the severity and duration of the unrealized losses, whether the Company has the intent to sell the securities and whether it is more likely than not that the Company will be required to sell the securities before the recovery of their amortized cost basis. When determines that the decline in fair value of an investment is below its accounting basis and the decline is other-than-temporary, the Company reduces the carrying value of the security it holds and records a loss for the amount of such decline. |
Concentration of Credit Risk | Concentration of Credit Risk The Company has no significant off-balance sheet concentrations of credit risk. Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents and short-term marketable securities. Substantially all the Company’s cash is held by one financial institution that management believes to be of high credit quality. Such deposits may, at times, exceed federally insured limits. The Company invests its cash equivalents in marketable securities and money market funds. The Company has not experienced any credit losses on its deposits of cash or cash equivalents. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of certain of the Company’s financial instruments, including cash equivalents, accounts payable and accrued liabilities approximate fair value due to their relatively short maturities and market interest rates, if applicable. Refer to Note 2 for details on the fair value of marketable securities. |
Deferred Offering Costs | Deferred Offering Costs The Company capitalizes costs that are directly associated with in-process equity financings until such financings are consummated at which time such costs are recorded against the gross proceeds of the offering. Should the in-process equity financing be abandoned, the deferred offering costs will be expensed immediately as a charge to operating expenses in the statements of operations and comprehensive loss. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which generally ranges from three to five years. Leasehold improvements are stated at cost and amortized over the shorter of the useful lives of the assets or the lease term. Maintenance and repairs are charged to expense as incurred. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the balance sheet and any resulting gain or loss is reflected in the statements of operations and comprehensive loss in the period realized. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets consist of property and equipment. The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable or that the useful life is shorter than the Company had originally estimated. Recoverability is measured by comparison of the carrying amount of the asset or asset group to the future undiscounted cash flows which the asset or asset group is expected to generate. If the asset or asset group is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset or asset group exceeds the fair value of the asset or asset group. If the useful life is shorter than originally estimated, the Company amortizes the remaining carrying value over the new shorter useful life. There have been no such impairments of long-lived assets during the years ended December 31, 2020 and December 31, |
Convertible Preferred Stock | Convertible Preferred Stock The Company records all shares of convertible preferred stock at their respective fair values on the dates of issuance, net of issuance costs, or residual value, if issued together with other instruments that are remeasured to fair value on a recurring basis. The convertible preferred stock is recorded outside of permanent equity because while it is not mandatorily redeemable, in certain events considered not solely within the Company’s control, such as a merger or acquisition or sale of all or substantially all of the Company’s assets (each, a “deemed liquidation event”), the convertible preferred stock will become redeemable at the option of the holders of at least a majority of the then outstanding shares of such preferred stock. All outstanding shares of convertible preferred stock converted into common stock upon effectiveness of the IPO. |
Research and Development Expenses | Research and Development Expenses The Company’s research and development expenses consist primarily of payroll and personnel-related expenses, including salaries, employee benefit costs and stock-based compensation expenses for the Company’s research and product development employees, fees paid to third parties to conduct preclinical and clinical studies and other research and development activities on behalf of the Company, including CROs, CMOs and other service providers, costs for licenses, and allocated overhead, including rent, equipment, depreciation, information technology costs and utilities. The Company charges all research and development costs, both internal and external, to research and development expenses within the statements of operations and comprehensive loss as incurred. Payments associated with licensing agreements to acquire exclusive licenses to develop, use, manufacture and commercialize products that have not reached technological feasibility and do not have alternate commercial use are also expensed as incurred. |
Accrued Research and Development | Accrued Research and Development The Company monitors the activity under its various agreements with CROs, CMOs and other service providers to the extent possible through communication with each service provider, detailed invoice and task completion review, analysis of actual expenses against budget, pre-approval of any changes in scope, and review of contractual terms. The Company’s research and development accruals are estimated based on the level of services performed, progress of the studies, including the phase or completion of events, and contracted costs. These estimates may or may not match the actual services performed by the service providers. The estimated costs of research and development provided, but not yet invoiced, are included accrued and other current liabilities on the balance sheet. If the actual timing of the performance of services or the level of effort varies from the original estimates, the Company will adjust the accrual accordingly. Payments made to service providers under these arrangements in advance of the performance of the related services are recorded as prepaid expenses and other current assets on the balance sheet until the services are rendered. |
Stock-Based Compensation | Stock-Based Compensation The Company maintains incentive plans under which incentive stock options and nonqualified stock options may be granted to employees and non-employee service providers. The Company accounts for all shared-based awards granted to employees and non-employees based on the fair value on the date of grant and recognizes compensation expense for those awards over the requisite service period, which is generally the vesting period of the respective award. The Company accounts for forfeitures as they occur. Generally, the Company Estimating fair value of stock-based awards using an option pricing model requires input of subjective assumptions, including fair value of the Company’s common stock, and, for stock options, expected term of options and stock price volatility. The Company uses the Black-Scholes option-pricing model to value its stock option awards. The assumptions used in calculating the fair value of stock-based awards represent management’s estimates, involve inherent uncertainties and require application of management’s judgment. As a result, if factors change and management uses different assumptions, stock-based compensation expense could be materially different for future The Company classifies stock-based compensation expense in its statements of operations and comprehensive loss in the same manner in which the award recipient’s payroll costs are classified or in which the award recipient’s service payments are classified. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) is defined as a change in equity during a period from transactions and other events and circumstances from non-owner sources. In each 2020 and 2019, the Company recorded unrealized gains on marketable securities of less than $0.1 million in other comprehensive income (loss). |
Net Loss per Share Attributable to Common Stockholders | Net Loss per Share Attributable to Common Stockholders Basic net loss per common share is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common stock outstanding during the period, without consideration of potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common stock and potentially dilutive securities outstanding for the period. For purposes of the diluted net loss per share calculation, obligation to issue additional common stock upon exercise of warrant and outstanding stock options are considered to be potentially dilutive securities. Basic and diluted net loss per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities as the convertible preferred stock is considered a participating security because it participates in dividends with common stock. The holders of convertible preferred stock do not have a contractual obligation to share in the Company’s losses. As such, the net loss was attributed entirely to common stockholders. Because the Company has reported a net loss for all periods presented, diluted |
Income Taxes | Income Taxes Income taxes are recorded using an asset and liability approach. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases using enacted tax rates in effect for the year in which the differences are expected to affect taxable income. Deferred tax assets are reduced by a valuation allowance if current evidence indicates that it is considered more likely than not that these benefits will not be realized. In making such a determination, management considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If management determines that the Company would be able to realize its deferred tax assets in the future in excess of their net recorded amount, management would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company’s tax positions are subject to income tax audits. The Company recognizes the tax benefit of an uncertain tax position only if it is more likely than not that the position is sustainable upon examination by the taxing authority, based on the technical merits. The tax benefit recognized is measured as the largest amount of benefit which is more likely than not to be realized upon settlement with the taxing authority. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in its tax provision. The Company evaluates uncertain tax positions on a regular basis. The evaluations are based on a number of factors, including changes in facts and circumstances, changes in tax law, correspondence with tax authorities during the course of the audit, and effective settlement of audit issues. The provision for income taxes includes the effects of any accruals that the Company believes are appropriate, as well as the related net interest and On March 18, 2020, the Families First Coronavirus Response Act (“FFCR Act”), and on March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) were each enacted in response to the COVID-19 pandemic. The FFCR Act and the CARES Act contain numerous tax-related provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. On June 29, 2020 California State Assembly Bill 85 (the “Trailer Bill”) was enacted which suspends the use of California net operating loss (“NOL”) deductions and certain tax credits, including research and development tax credits, for the 2020, 2021, and 2022 tax years. The FFCR Act, CARES Act and Trailer Bill did not have a material impact on the Company’s audited financial statements as of December 31, 2020; however, the Company continues to examine the impacts the FFCR Act and CARES Act may have on its business, results of operations, financial condition and liquidity. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) under its accounting standard codifications (“ASC”) or other standard setting bodies and adopted by the Company as of the specified effective date, unless otherwise discussed below. Recently Adopted Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement New Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes. ASU 2019-12 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets Measured and Recognized at Fair Value | As of December 31, 2020, financial assets measured and recognized at fair value were as follows (in thousands): Fair Value Measurements at December 31, 2020 Quoted Price in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets Corporate bonds $ — $ 31,910 $ — $ 31,910 Marketable securities — 31,910 — 31,910 Money market funds (1) 36,304 — — 36,304 Total fair value of assets $ 36,304 $ 31,910 $ — $ 68,214 Fair Value Measurements at December 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimate Fair Value Assets Corporate bonds $ 31,881 $ 30 $ (1 ) $ 31,910 Marketable securities 31,881 30 (1 ) 31,910 Money market funds (1) 36,304 — — 36,304 Total fair value of assets $ 68,185 $ 30 $ (1 ) $ 68,214 (1) Included in cash and cash equivalents on the balance sheet. As of December 31, 2019, financial assets measured and recognized at fair value were as follows (in thousands): Fair Value Measurements at December 31, 2019 Quoted Price in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets U.S. government bonds $ 10,063 $ — $ — $ 10,063 Overnight repurchase agreements (1) 14,000 — — 14,000 Corporate bonds — 64,295 — 64,295 Asset backed securities — 20,787 — 20,787 Marketable securities 24,063 85,082 — 109,145 Money market funds (1) 8,730 — — 8,730 Total fair value of assets $ 32,793 $ 85,082 $ — $ 117,875 Fair Value Measurements at December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimate Fair Value Assets U.S. government bonds $ 10,062 $ 1 $ — $ 10,063 Overnight repurchase agreements (1) 14,000 — — 14,000 Corporate bonds 64,285 17 (7 ) 64,295 Asset backed securities 20,781 7 (1 ) 20,787 Marketable securities 109,128 25 (8 ) 109,145 Money market funds (1) 8,730 — — 8,730 Total fair value of assets $ 117,858 $ 25 $ (8 ) $ 117,875 (1) Included in cash and cash equivalents on the balance sheet. |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following (in thousands, except years): December 31, Useful Life (In Years) 2020 2019 Furniture and fixtures 3 $ 63 $ 58 Leasehold improvements Shorter of useful life or lease term 62 62 Machinery and equipment 3-5 933 805 Tooling 3-5 840 102 Construction in progress — 5,008 — 6,906 1,027 Less: Accumulated depreciation (433 ) (195 ) $ 6,473 $ 832 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Liabilities and Other Current Liabilities | Accrued liabilities consisted of the following (in thousands): December 31, 2020 2019 Accrued salaries and benefits $ 1,330 $ 1,145 Accrued research and development expenses 910 88 Accrued professional services 232 248 Accrued interest 16 27 Other 187 202 $ 2,675 $ 1,710 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Future Contractual Maturities of Debt | As of December 31, 2020, the future contractual maturities of debt by fiscal year are as follows (in thousands): 2021 2,000 2022 833 Total future maturities of debt $ 2,833 |
Schedule of Assumptions Used for Classification of Warrants as Equity at Fair Value under Option Pricing Model | The warrants were accounted for and classified as equity at fair value using the following assumptions under the Option Pricing Model (“OPM”): October 26, 2018 (Issuance Date) Expected term (years) 10.0 Expected volatility 74.8 % Risk-free interest rate 3.1 % Dividend yield 0 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments Under Non-cancelable Operating Leases | Future minimum lease payments under non-cancelable operating leases as of December 31, 2020 were as follows (in thousands): Operating Leases 2021 208 2022 93 Total minimum lease payments $ 301 |
Common Stock (Tables)
Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Reserved Common Stock on an as-Converted Basis for Future Issuance | The Company had reserved common stock, on an as-converted basis, for future issuance as follows: December 31, 2020 2019 Exercise of common stock warrants — 5,116 Exercise of outstanding options 3,162,459 1,568,874 Shares of common stock available for grant under the 2019 Plan 844,475 1,778,044 Shares of common stock available for ESPP 319,054 160,000 Total 4,325,988 3,512,034 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of Activity Under 2019 and 2016 Plan | Activity under the 2019 Plan and 2016 Plan is set forth below: Outstanding Options Shares Available for Grant Number of Shares Weighted Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Balance, January 1, 2019 114,905 829,775 $ 0.97 8.82 Additional shares authorized 2,675,833 Options granted (1,028,118 ) 1,028,118 $ 4.96 9.38 Options exercised — (273,595 ) $ 1.13 Options cancelled 15,424 (15,424 ) $ 1.04 Balance, December 31, 2019 1,778,044 1,568,874 $ 3.55 8.85 Additional shares authorized 695,281 Options granted (1,669,200 ) 1,669,200 $ 14.56 9.63 Options exercised — (35,265 ) $ 2.34 Options cancelled 40,350 (40,350 ) $ 8.83 Balance, December 31, 2020 844,475 3,162,459 $ 9.31 8.79 Exercisable as of December 31, 2020 862,640 $ 2.93 7.55 Vested and expected to vest, December 31, 2020 3,162,459 $ 9.31 8.79 |
Schedule of Activity Under Restricted Stock Awards | Activity with respect to restricted stock awards (“RSAs”) was as follows (in Number of Shares Underlying Outstanding RSAs Weighted Average Grant Date Fair Value Unvested, December 31, 2018 31,914 $ — Vested (31,914 ) $ — Unvested, December 31, 2019 — $ — Vested — $ — Unvested, December 31, 2020 — $ — |
Summary of Stock Based Compensation Expense | Total Year Ended December 31, 2020 2019 Research and development $ 1,290 $ 334 General and administrative 2,728 413 Total $ 4,018 $ 747 The above stock-based compensation expense related to the following equity-based awards: Year Ended December 31, 2020 2019 Stock options $ 3,989 $ 747 ESPP 29 — Total $ 4,018 $ 747 |
2016 Incentive Award Plan | |
Schedule of Fair Value Assumptions of Stock Options | The Company estimated the fair value of stock options using the Black Scholes option-pricing model. The fair value of stock options was valued using the following assumptions: December 31, 2020 2019 Expected term (years) 5.5 - 6.1 6.0 - 6.1 Expected volatility 71.2% - 92.5% 63.6% - 74.9% Risk-free interest rate 0.3% - 1.7% 1.4% - 2.5% Dividend yield 0% 0% |
2019 Employee Share Purchase Plan | |
Schedule of Fair Value Assumptions of Stock Options | Compensation expense is calculated using the fair value of the employees' purchase rights under the Black-Scholes option pricing model. Year Ended December 31, 2020 Expected term (years) 0.5 Expected volatility 111.0% Risk-free interest rate 0.1% Dividend yield 0% |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable to Common Stockholders (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders | The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except share and per share data): Year Ended December 31, 2020 2019 Numerator: Net loss attributable to common stockholders $ (47,563 ) $ (28,175 ) Denominator: Weighted-average shares outstanding 17,405,688 5,879,820 Less: weighted-average unvested restricted shares and shares subject to repurchase — (15,870 ) Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 17,405,688 5,863,950 Net loss per share attributable to common stockholders, basic and diluted $ (2.73 ) $ (4.80 ) |
Schedule of Potentially Dilutive Securities Excluded from Computation of Diluted Net Loss Per Share | The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share attributable to common stockholders for the period presented because including them would have been antidilutive: Year Ended December 31, 2020 2019 Options to purchase common stock 3,162,459 1,568,874 Warrants to purchase common stock — 5,116 Total 3,162,459 1,573,990 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Statutory Tax Expense (Benefit) Rate and Effective Tax Expense (Benefit) Rate | The differences between the statutory tax expense (benefit) rate and the effective tax expense (benefit) rate, were as follows (in thousands): Year Ended December 31, 2020 2019 Tax at federal statutory income tax rate $ (9,988 ) $ (5,917 ) Change in valuation allowance 9,950 6,708 Permanent differences (20 ) 124 Prior year true ups 341 6 Research and development credits (154 ) (873 ) State income taxes (128 ) 1 Other — (48 ) Tax at effective income tax rate $ 1 $ 1 |
Components of Net Deferred Tax Assets | Significant components of the Company’s net deferred tax assets are summarized as follows (in thousands): December 31, 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 17,915 $ 8,250 Research and development credit carryforwards 847 1,118 Stock-based compensation 697 45 Accruals and other 286 236 Gross deferred tax assets 19,745 9,649 Less: Valuation allowance (19,441 ) (9,491 ) Deferred tax assets, net of valuation allowance 304 158 Deferred tax liabilities: Property and equipment (304 ) (158 ) Net deferred tax assets $ — $ — |
Summary of Unrecognized Tax Benefits | The following table summarizes the activity related to the Company’s unrecognized tax benefits: Balance as of January 1, 2019 $ 157 Increase related to current year tax positions 196 Decrease related to prior year tax positions (115 ) Balance as of December 31, 2019 $ 238 Increase related to current year tax positions 80 Decrease related to prior year tax positions (162 ) Balance as of December 31, 2020 $ 156 |
Quarterly Results of Operatio_2
Quarterly Results of Operations Data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data | The following quarterly financial data should be read in conjunction with our audited financial statements and the related notes included elsewhere in this Annual Report on Form 10-K. Three months ended March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 (In thousands, except per share amounts) Loss from operations $ (12,171 ) $ (11,500 ) $ (12,170 ) $ (12,487 ) Net loss $ (11,773 ) $ (11,269 ) $ (12,043 ) $ (12,478 ) Net loss per share attributable to common stockholders, basic and diluted $ (0.68 ) $ (0.65 ) $ (0.69 ) $ (0.72 ) Three months ended March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 (In thousands, except per share amounts) Loss from operations $ (2,714 ) $ (6,422 ) $ (8,470 ) $ (11,275 ) Net loss $ (2,815 ) $ (6,291 ) $ (8,260 ) $ (10,809 ) Net loss per share attributable to common stockholders, basic and diluted $ (2.51 ) $ (5.48 ) $ (2.26 ) $ (0.62 ) |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies - Additional Information (Details) | Sep. 17, 2019USD ($)$ / sharesshares | Sep. 11, 2019 | Oct. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2020USD ($)segment$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Sep. 12, 2019$ / sharesshares |
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Aggregate gross proceeds from initial public offering | $ 82,500,000 | $ 81,435,000 | ||||
Common stock, shares authorized | shares | 300,000,000 | 300,000,000 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||||
Preferred stock, shares authorized | shares | 10,000,000 | 10,000,000 | ||||
Preferred stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | ||||
Common stock, shares issued | shares | 17,436,978 | 17,382,047 | ||||
Accumulated deficit | $ 90,564,000 | $ 43,001,000 | ||||
Cash, cash equivalents and marketable securities | $ 68,200,000 | |||||
Reverse stock split, conversion ratio | 0.21 | |||||
Number of operating segment | segment | 1 | |||||
Number of reportable segment | segment | 1 | |||||
Long-lived assets | $ 6,473,000 | 832,000 | ||||
Impairments of long-lived assets | 0 | 0 | ||||
Unrealized gains on marketable securities | 12,000 | 17,000 | ||||
Other comprehensive income | $ 12,000 | 17,000 | ||||
ASU No. 2018-13 | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Change in accounting principle, ASU, adopted [true false] | true | |||||
Change in accounting principle, ASU, adoption date | Jan. 1, 2020 | |||||
Change in accounting principle, ASU, immaterial effect [true false] | true | |||||
Accounting Standards Update [Extensible List] | ASU No. 2018-13 | |||||
United States | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Long-lived assets | $ 1,500,000 | |||||
United Kingdom | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Long-lived assets | $ 5,000,000 | |||||
Maximum | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated useful lives of assets | 5 years | |||||
Unrealized gains on marketable securities | $ 100,000 | $ 100,000 | ||||
Minimum | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated useful lives of assets | 3 years | |||||
Common Stock | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Share issued | shares | 6,052,116 | |||||
IPO | Common Stock | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Share issued | shares | 5,500,000 | |||||
Shares issued, price per share | $ / shares | $ 15 | |||||
Shares issued upon conversion | shares | 9,936,341 | |||||
Common stock, shares authorized | shares | 300,000,000 | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | |||||
IPO | Preferred Stock | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Preferred stock, shares authorized | shares | 10,000,000 | |||||
Preferred stock, par value | $ / shares | $ 0.0001 | |||||
Over-Allotment Option | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Shares issued, price per share | $ / shares | $ 15 | |||||
Common stock, shares issued | shares | 552,116 | |||||
Gross proceeds from issuance of common stock | $ 8,300,000 | |||||
Over-Allotment Option | Maximum | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Additional share issued period | shares | 825,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets Measured and Recognized at Fair Value (Details) - Recurring - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Assets | |||
Marketable Securities | $ 31,910 | $ 109,145 | |
Total fair value of assets | 68,214 | 117,875 | |
Marketable Securities Amortized Cost | 31,881 | 109,128 | |
Marketable Securities Gross Unrealized Gains | 30 | 25 | |
Marketable Securities Gross Unrealized Losses | (1) | (8) | |
Marketable Securities Estimate Fair Value | 31,910 | 109,145 | |
Amortized Cost | 68,185 | 117,858 | |
Gross Unrealized Gains | 30 | 25 | |
Gross Unrealized Losses | (1) | (8) | |
Estimate Fair Value | 68,214 | 117,875 | |
U.S. Government Bonds | |||
Assets | |||
Marketable Securities | 10,063 | ||
Marketable Securities Amortized Cost | 10,062 | ||
Marketable Securities Gross Unrealized Gains | 1 | ||
Marketable Securities Estimate Fair Value | 10,063 | ||
Overnight Repurchase Agreements | |||
Assets | |||
Marketable Securities | [1] | 14,000 | |
Marketable Securities Amortized Cost | [1] | 14,000 | |
Marketable Securities Estimate Fair Value | [1] | 14,000 | |
Corporate Bonds | |||
Assets | |||
Marketable Securities | 31,910 | 64,295 | |
Marketable Securities Amortized Cost | 31,881 | 64,285 | |
Marketable Securities Gross Unrealized Gains | 30 | 17 | |
Marketable Securities Gross Unrealized Losses | (1) | (7) | |
Marketable Securities Estimate Fair Value | 31,910 | 64,295 | |
Asset Backed Securities | |||
Assets | |||
Marketable Securities | 20,787 | ||
Marketable Securities Amortized Cost | 20,781 | ||
Marketable Securities Gross Unrealized Gains | 7 | ||
Marketable Securities Gross Unrealized Losses | (1) | ||
Marketable Securities Estimate Fair Value | 20,787 | ||
Money Market Funds | |||
Assets | |||
Money market funds | [1] | 36,304 | 8,730 |
Amortized Cost | [1] | 36,304 | 8,730 |
Estimate Fair Value | [1] | 36,304 | 8,730 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Assets | |||
Marketable Securities | 24,063 | ||
Total fair value of assets | 36,304 | 32,793 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Government Bonds | |||
Assets | |||
Marketable Securities | 10,063 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Overnight Repurchase Agreements | |||
Assets | |||
Marketable Securities | [1] | 14,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money Market Funds | |||
Assets | |||
Money market funds | [1] | 36,304 | 8,730 |
Significant Other Observable Inputs (Level 2) | |||
Assets | |||
Marketable Securities | 31,910 | 85,082 | |
Total fair value of assets | 31,910 | 85,082 | |
Significant Other Observable Inputs (Level 2) | Corporate Bonds | |||
Assets | |||
Marketable Securities | $ 31,910 | 64,295 | |
Significant Other Observable Inputs (Level 2) | Asset Backed Securities | |||
Assets | |||
Marketable Securities | $ 20,787 | ||
[1] | Included in cash and cash equivalents on the balance sheet. |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - Recurring - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial liabilities measured and recognized | $ 0 | $ 0 |
Fair value of financial assets transfers | 0 | 0 |
Fair value of financial assets transfers | $ 0 | $ 0 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 6,906 | $ 1,027 |
Less: Accumulated depreciation | (433) | (195) |
Property and equipment, net | $ 6,473 | $ 832 |
Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment useful life | 3 years | |
Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment useful life | 5 years | |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment useful life | 3 years | 3 years |
Property and equipment, gross | $ 63 | $ 58 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment useful life | Shorter of useful life or lease term | Shorter of useful life or lease term |
Property and equipment, gross | $ 62 | $ 62 |
Machinery and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 933 | $ 805 |
Machinery and Equipment | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment useful life | 3 years | 3 years |
Machinery and Equipment | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment useful life | 5 years | 5 years |
Tooling | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 840 | $ 102 |
Tooling | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment useful life | 3 years | 3 years |
Tooling | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment useful life | 5 years | 5 years |
Construction in Progress | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 5,008 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | ||
Depreciation expense | $ 239 | $ 141 |
Accrued Liabilities and Other_3
Accrued Liabilities and Other Current Liabilities - Schedule of Accrued Liabilities and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Payables And Accruals [Abstract] | ||
Accrued salaries and benefits | $ 1,330 | $ 1,145 |
Accrued research and development expenses | 910 | 88 |
Accrued professional services | 232 | 248 |
Accrued interest | 16 | 27 |
Other | 187 | 202 |
Total | $ 2,675 | $ 1,710 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) | Oct. 26, 2018USD ($)$ / sharesshares | Dec. 31, 2020USD ($)Paymentshares | Dec. 31, 2019USD ($)shares |
Debt Instrument [Line Items] | |||
Long-term debt net of debt discount and issuance costs | $ 2,833,000 | ||
Number of shares to be called by warrants issued | shares | 5,116 | ||
Loan Agreement | Silicon Valley Bank | |||
Debt Instrument [Line Items] | |||
Debt instrument, maximum borrowing capacity | $ 10,000,000 | ||
Debt instrument, increments amount | $ 1,000,000 | ||
Debt instrument, floating interest rate percentage | 6.50% | ||
Debt instrument, interest rate increase percentage | 5.00% | ||
Debt instrument, maturity date | May 1, 2022 | ||
Debt instrument, final principal payment description | a final payment equal to the original principal amount of the Term Loans multiplied by 5.0% is due on the earliest to occur of (a) May 1, 2020 or (b) the prepayment in full of the term loan advances. | ||
Debt instrument, final payment percentage of original principal | 5.00% | ||
Number of shares to be called by warrants issued | shares | 10,232 | ||
Warrants, exercise price | $ / shares | $ 1.04 | ||
Warrants, term | 10 years | ||
Common stock warrants outstanding | shares | 0 | ||
Debt issuance cost final payment recognized as additional interest expense | $ 300,000 | ||
Accrued liabilities related to accretion of final payment included in long-term debt | $ 200,000 | $ 100,000 | |
Loan Agreement | Silicon Valley Bank | Term B Warrants | |||
Debt Instrument [Line Items] | |||
Maximum percentage of securities called by additional warrants | 0.15% | ||
Average closing share price, trailing period | 10 days | ||
Loan Agreement | Silicon Valley Bank | If Prepayment Made Prior to October 26, 2019 | |||
Debt Instrument [Line Items] | |||
Debt instrument, percentage of prepayment premium | 3.00% | ||
Loan Agreement | Silicon Valley Bank | If Prepayment Made After October 26, 2019 But Before October 26, 2020 | |||
Debt Instrument [Line Items] | |||
Debt instrument, percentage of prepayment premium | 2.00% | ||
Loan Agreement | Silicon Valley Bank | If Prepayment Made After October 26, 2020 But Before May 1, 2020 | |||
Debt Instrument [Line Items] | |||
Debt instrument, percentage of prepayment premium | 1.00% | ||
Loan Agreement | Silicon Valley Bank | Greater above Prime Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, floating interest rate percentage | 1.50% | ||
Loan Agreement | Silicon Valley Bank | Term A Loan | |||
Debt Instrument [Line Items] | |||
Debt instrument, current borrowing capacity | $ 5,000,000 | ||
Debt instrument, principal repayments commencing date | Dec. 1, 2019 | ||
Debt instrument, number of monthly principal payments | Payment | 30 | ||
Long-term debt net of debt discount and issuance costs | $ 3,000,000 | ||
Debt instrument, term | 3 years 7 months 6 days | ||
Debt issuance costs | $ 100,000 | ||
Loan Agreement | Silicon Valley Bank | Term A Loan | Maximum | |||
Debt Instrument [Line Items] | |||
Amortization of debt discount | $ 100,000 | ||
Loan Agreement | Silicon Valley Bank | Term A Loan | If Term B Loan Advance Made | |||
Debt Instrument [Line Items] | |||
Debt instrument, principal repayments commencing date | Jun. 1, 2020 | ||
Debt instrument, number of monthly principal payments | Payment | 24 | ||
Loan Agreement | Silicon Valley Bank | Term Loans | |||
Debt Instrument [Line Items] | |||
Debt instrument, remaining borrowing capacity | $ 5,000,000 | ||
Loan Agreement | Silicon Valley Bank | Term B Loan | |||
Debt Instrument [Line Items] | |||
Debt instrument, principal repayments commencing date | Jun. 1, 2020 | ||
Debt instrument, number of monthly principal payments | Payment | 24 |
Long-Term Debt - Summary of Fut
Long-Term Debt - Summary of Future Contractual Maturities of Debt (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 2,000 |
2022 | 833 |
Total future maturities of debt | $ 2,833 |
Long-Term Debt - Schedule of As
Long-Term Debt - Schedule of Assumptions Used for Classification of Warrants as Equity at Fair Value under Option Pricing Model (Details) - Term B Warrants | Oct. 26, 2018 |
Expected Term (Years) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Warrants issued and outstanding, expected term (years) | 10 years |
Expected Volatility | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Warrants issued and outstanding, measurement input | 74.8 |
Risk-free Interest Rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Warrants issued and outstanding, measurement input | 3.1 |
Dividend Yield | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Warrants issued and outstanding, measurement input | 0 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | Jul. 31, 2019 | Dec. 08, 2018 | Jan. 09, 2018 | Dec. 31, 2020 | Dec. 31, 2019 |
Lessee Lease Description [Line Items] | |||||
Operating lease, expense | $ 0.3 | $ 0.2 | |||
Accrued and Other Current Liabilities | Maximum | |||||
Lessee Lease Description [Line Items] | |||||
Operating lease deferred rent | 0.1 | ||||
Other Noncurrent Liabilities | Maximum | |||||
Lessee Lease Description [Line Items] | |||||
Operating lease deferred rent | $ 0.1 | ||||
California | |||||
Lessee Lease Description [Line Items] | |||||
Operating lease expiration date | Apr. 30, 2021 | ||||
Operating lease, option to extend | There is an option to renew for an additional three years. | ||||
Operating Lease, existence of option to extend | true | ||||
Operating lease, renewal term | 3 years | ||||
North Carolina | |||||
Lessee Lease Description [Line Items] | |||||
Operating lease expiration date | Jul. 31, 2022 | Jun. 30, 2019 | |||
Operating lease, option to extend | There was an option to renew for two additional periods of three months each. | ||||
Operating Lease, existence of option to extend | true | ||||
Operating lease, renewal term | 3 months | ||||
Operating lease commencement date | Jan. 2, 2019 | ||||
Operating lease termination date | Sep. 30, 2019 | ||||
Operating lease, term of contract | 3 years |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Lease Payments Under Non-cancelable Operating Leases (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
2021 | $ 208 |
2022 | 93 |
Total minimum lease payments | $ 301 |
Convertible Preferred Stock - A
Convertible Preferred Stock - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 17, 2019 | Apr. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2020 |
Class Of Stock [Line Items] | ||||
Gross proceeds from issuance of convertible preferred stock | $ 61,490 | |||
Redeemable convertible preferred stock outstanding, shares | 0 | 0 | ||
Common Stock | ||||
Class Of Stock [Line Items] | ||||
Stock issued during period shares, conversion of convertible securities | 9,936,341 | 9,936,341 | ||
Series B Convertible Preferred Stock | ||||
Class Of Stock [Line Items] | ||||
Preferred stock, shares issued | 6,889,986 | |||
Shares issued price per share | $ 8.95444 | |||
Gross proceeds from issuance of convertible preferred stock | $ 61,700 |
Preferred Stock - Additional In
Preferred Stock - Additional Information (Details) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Equity [Abstract] | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common Stock - Additional Infor
Common Stock - Additional Information (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | ||
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, voting rights | one vote for each share |
Common Stock - Schedule of Rese
Common Stock - Schedule of Reserved Common Stock on an as-Converted Basis for Future Issuance (Details) - shares | Dec. 31, 2020 | Dec. 31, 2019 |
Class Of Stock [Line Items] | ||
Exercise of common stock warrants | 5,116 | |
Exercise of outstanding options | 3,162,459 | 1,568,874 |
Total | 4,325,988 | 3,512,034 |
2019 Incentive Award Plan | ||
Class Of Stock [Line Items] | ||
Shares of common stock available for grant | 844,475 | 1,778,044 |
ESPP | ||
Class Of Stock [Line Items] | ||
Shares of common stock available for grant | 319,054 | 160,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2021 | Jan. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Expected dividend rate | 0.00% | 0.00% | |||
Common stock, shares reserved for issuance | 4,325,988 | 3,512,034 | |||
Employees | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Expected dividend rate | 0.00% | ||||
2016 Incentive Award Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock options term | 10 years | ||||
Options and restricted stock awards vesting period | 4 years | ||||
Aggregate intrinsic value of options vested and expected to vest | $ 1,900,000 | $ 7,800,000 | |||
Aggregate intrinsic value of options exercised | $ 800,000 | $ 1,000,000 | |||
Weighted average grant-date fair value of options granted | $ 9.62 | $ 3.44 | |||
Unrecognized stock-based compensation expense | $ 14,900,000 | ||||
Unrecognized stock-based compensation expense, weighted-average recognition period | 2 years 10 months 24 days | ||||
Fair value of options vested | $ 4,000,000 | $ 700,000 | |||
2016 Incentive Award Plan | Incentive Stock Options | 10% Stockholder | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Estimated fair value shares date of grant, maximum | 10.00% | ||||
2016 Incentive Award Plan | Minimum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Exercise price, percent of estimated fair value of shares on date of grant | 100.00% | ||||
2016 Incentive Award Plan | Minimum | Incentive Stock Options | 10% Stockholder | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Exercise price, percent of estimated fair value of shares on date of grant | 110.00% | ||||
2016 Incentive Award Plan | Maximum | 10% Stockholder | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock options term | 5 years | ||||
2019 Incentive Award Plan | Subsequent Event | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Increase in number of common stock shares available for Issuance | 697,479 | ||||
2019 Employee Share Purchase Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Expected dividend rate | 0.00% | ||||
Common stock, shares reserved for issuance | 173,820 | 319,054 | 160,000 | ||
Maximum percentage of base compensation permitted to acquire common stock through payroll | 15.00% | ||||
Maximum number of shares permitted to acquire through payroll | 50,000 | ||||
Maximum values of shares permitted to acquire through payroll | $ 25,000 | ||||
Fair market value percentage available to employees | 85.00% | ||||
Employee share purchase plan offering period | 6 months 15 days | ||||
Shares issued in first offering period | 14,766 | ||||
Number of shares authorized for new offerings | 0 | ||||
Unrecognized compensation costs | $ 0 | ||||
2019 Employee Share Purchase Plan | Subsequent Event | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock, shares reserved for issuance | 174,369 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Activity Under 2019 Plan and 2016 Plan (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Outstanding Options, Number of Shares, Beginning Balance | 1,568,874 | ||
Outstanding Options, Number of Shares, Ending Balance | 3,162,459 | 1,568,874 | |
2019 and 2016 Incentive Award Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares Available for Grant, Beginning Balance | 1,778,044 | 114,905 | |
Shares Available for Grant, Additional shares authorized | 695,281 | 2,675,833 | |
Shares Available for Grant, Options granted | (1,669,200) | (1,028,118) | |
Shares Available for Grant, Options cancelled | 40,350 | 15,424 | |
Shares Available for Grant, Ending Balance | 844,475 | 1,778,044 | 114,905 |
Outstanding Options, Number of Shares, Beginning Balance | 1,568,874 | 829,775 | |
Outstanding Options, Number of Shares, Options granted | 1,669,200 | 1,028,118 | |
Outstanding Options, Number of Shares, Options exercised | (35,265) | (273,595) | |
Outstanding Options, Number of Shares, Options cancelled | (40,350) | (15,424) | |
Outstanding Options, Number of Shares, Ending Balance | 3,162,459 | 1,568,874 | 829,775 |
Outstanding Options, Number of Shares, Exercisable as of December 31, 2020 | 862,640 | ||
Outstanding Options, Number of Shares, Vested and expected to vest, December 31, 2020 | 3,162,459 | ||
Outstanding Options, Weighted Average Exercise Price, Beginning Balance | $ 3.55 | $ 0.97 | |
Outstanding Options, Weighted Average Exercise Price, Options granted | 14.56 | 4.96 | |
Outstanding Options, Weighted Average Exercise Price, Options exercised | 2.34 | 1.13 | |
Outstanding Options, Weighted Average Exercise Price, Options cancelled | 8.83 | 1.04 | |
Outstanding Options, Weighted Average Exercise Price, Ending Balance | 9.31 | $ 3.55 | $ 0.97 |
Shares Available for Grant, Exercisable as of December 31, 2020 | 2.93 | ||
Shares Available for Grant, Vested and expected to vest, December 31, 2020 | $ 9.31 | ||
Weighted Average Remaining Contractual Term, Balance | 8 years 9 months 14 days | 8 years 10 months 6 days | 8 years 9 months 25 days |
Weighted Average Remaining Contractual Term, Options granted | 9 years 7 months 17 days | 9 years 4 months 17 days | |
Weighted Average Remaining Contractual Term, Exercisable as of December 31, 2020 | 7 years 6 months 18 days | ||
Weighted Average Remaining Contractual Term, Vested and expected to vest, December 31, 2020 | 8 years 9 months 14 days |
Stock-based Compensation - Sc_2
Stock-based Compensation - Schedule of Fair Value Assumptions of Stock Options (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected volatility, Minimum | 71.20% | 63.60% |
Expected volatility, Maximum | 92.50% | 74.90% |
Risk-free interest rate, Minimum | 0.30% | 1.40% |
Risk-free interest rate, Maximum | 1.70% | 2.50% |
Dividend yield | 0.00% | 0.00% |
2019 Employee Share Purchase Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term (years) | 6 months | |
Expected volatility | 111.00% | |
Risk-free interest rate | 0.10% | |
Dividend yield | 0.00% | |
Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term (years) | 5 years 6 months | 6 years |
Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term (years) | 6 years 1 month 6 days | 6 years 1 month 6 days |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Activity Under Restricted Stock Awards (Details) - Restricted Stock Awards (“RSAs”) | 12 Months Ended |
Dec. 31, 2019shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of shares underlying outstanding, unvested, beginning balance | 31,914 |
Number of shares, vested in period | (31,914) |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 4,018 | $ 747 |
Research and Development | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 1,290 | 334 |
General and Administrative | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 2,728 | $ 413 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock Based Compensation Expense Related to Equity Based Awards (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 4,018 | $ 747 |
Stock Options | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 3,989 | $ 747 |
ESPP | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 29 |
Net Loss Per Share Attributab_3
Net Loss Per Share Attributable to Common Stockholders - Schedule of Computation of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders (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 | |
Numerator: | ||||||||||
Net loss attributable to common stockholders | $ (12,478) | $ (12,043) | $ (11,269) | $ (11,773) | $ (10,809) | $ (8,260) | $ (6,291) | $ (2,815) | $ (47,563) | $ (28,175) |
Denominator: | ||||||||||
Weighted-average shares outstanding | 17,405,688 | 5,879,820 | ||||||||
Less: weighted-average unvested restricted shares and shares subject to repurchase | (15,870) | |||||||||
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted | 17,405,688 | 5,863,950 | ||||||||
Net loss per share attributable to common stockholders, basic and diluted | $ (0.72) | $ (0.69) | $ (0.65) | $ (0.68) | $ (0.62) | $ (2.26) | $ (5.48) | $ (2.51) | $ (2.73) | $ (4.80) |
Net Loss Per Share Attributab_4
Net Loss Per Share Attributable to Common Stockholders - Schedule of Potentially Dilutive Securities Excluded from Computation of Diluted Net Loss Per Share (Details) - shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities outstanding | 3,162,459 | 1,573,990 |
Options to Purchase Common Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities outstanding | 3,162,459 | 1,568,874 |
Warrants to Purchase Common Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities outstanding | 5,116 |
Income Taxes - Schedule of Stat
Income Taxes - Schedule of Statutory Tax Expense (Benefit) Rate and Effective Tax Expense (Benefit) Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Tax at federal statutory income tax rate | $ (9,988) | $ (5,917) |
Change in valuation allowance | 9,950 | 6,708 |
Permanent differences | (20) | 124 |
Prior year true ups | 341 | 6 |
Research and development credits | (154) | (873) |
State income taxes | (128) | 1 |
Other | (48) | |
Tax at effective income tax rate | $ 1 | $ 1 |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 17,915 | $ 8,250 |
Research and development credit carryforwards | 847 | 1,118 |
Stock-based compensation | 697 | 45 |
Accruals and other | 286 | 236 |
Gross deferred tax assets | 19,745 | 9,649 |
Less: Valuation allowance | (19,441) | (9,491) |
Deferred tax assets, net of valuation allowance | 304 | 158 |
Deferred tax liabilities: | ||
Property and equipment | $ (304) | $ (158) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Line Items] | ||||
Percentage of cumulative ownership changes | 50.00% | |||
Unrecognized tax benefits | $ 156,000 | $ 238,000 | $ 157,000 | |
Unrecognized tax benefits would affect the company's effective tax rate | 0 | |||
Interest related to unrecognized tax benefits | 0 | |||
Penalties related to unrecognized tax benefits | 0 | |||
Federal | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | $ 84,900,000 | $ 4,700,000 | $ 80,300,000 | |
Operating loss carryforwards begin to expire | 2036 | |||
Operating loss carryforwards offset of taxable income percentage | 100.00% | |||
Operating loss carryforwards limitation rate on taxable income | 80.00% | |||
Tax credit carryforwards | $ 700,000 | |||
Tax credit carryforward, expiration year | 2037 | |||
Federal | Research and Development | ||||
Income Taxes [Line Items] | ||||
Tax credit carryforwards | $ 1,000,000 | |||
State | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | $ 1,700,000 | |||
Operating loss carryforwards begin to expire | 2036 | |||
State | California | Research and Development | ||||
Income Taxes [Line Items] | ||||
Tax credit carryforwards | $ 400,000 |
Income Taxes - Summary of Unrec
Income Taxes - Summary of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Beginning balance | $ 238 | $ 157 |
Increase related to current year tax positions | 80 | 196 |
Decrease related to prior year tax positions | (162) | (115) |
Ending balance | $ 156 | $ 238 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) | Sep. 12, 2019USD ($)Owedshares | Sep. 30, 2019shares | Apr. 30, 2019USD ($)shares | Feb. 28, 2018shares | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Related Party Transaction [Line Items] | ||||||
Issuance of common stock, net of issuance costs | $ | $ 81,435,000 | |||||
Series A And Series B Convertible Preferred Stock | IPO | ||||||
Related Party Transaction [Line Items] | ||||||
Issuance of common stock, net of issuance costs, Shares | shares | 2,633,333 | |||||
Issuance of common stock, net of issuance costs | $ | $ 39,500,000 | |||||
Debt instrument converted, shares issued | shares | 3,887,668 | |||||
Number of owed shareholders | Owed | 2 | |||||
Percentage of minimum convertible preferred stock owning of equity on converted basis | 10.00% | |||||
Shares issued upon conversion | shares | 3,887,668 | |||||
SNBL | ||||||
Related Party Transaction [Line Items] | ||||||
Due to related party | $ | $ 0 | |||||
SNBL | IPO | ||||||
Related Party Transaction [Line Items] | ||||||
Issuance of common stock, net of issuance costs, Shares | shares | 233,333 | |||||
SNBL | Series B Convertible Preferred Stock | ||||||
Related Party Transaction [Line Items] | ||||||
Issuance of common stock, net of issuance costs, Shares | shares | 307,110 | |||||
Issuance of common stock, net of issuance costs | $ | $ 2,700,000 | |||||
SNBL | Series A convertible preferred stock | Convertible Note | ||||||
Related Party Transaction [Line Items] | ||||||
Debt instrument converted, shares issued | shares | 33,741 | |||||
SNBL | Maximum | Accrued and Other Current Liabilities | ||||||
Related Party Transaction [Line Items] | ||||||
Due to related party | $ | 100,000 | |||||
SNBL | Maximum | Research and Development | ||||||
Related Party Transaction [Line Items] | ||||||
Preclinical study services expenses | $ | $ 100,000 | $ 100,000 |
Quarterly Results of Operatio_3
Quarterly Results of Operations Data (unaudited) - Schedule of Quarterly Financial Data (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 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Loss from operations | $ (12,487) | $ (12,170) | $ (11,500) | $ (12,171) | $ (11,275) | $ (8,470) | $ (6,422) | $ (2,714) | $ (48,328) | $ (28,881) |
Net loss | $ (12,478) | $ (12,043) | $ (11,269) | $ (11,773) | $ (10,809) | $ (8,260) | $ (6,291) | $ (2,815) | $ (47,563) | $ (28,175) |
Net loss per share attributable to common stockholders, basic and diluted | $ (0.72) | $ (0.69) | $ (0.65) | $ (0.68) | $ (0.62) | $ (2.26) | $ (5.48) | $ (2.51) | $ (2.73) | $ (4.80) |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 26, 2021 | Dec. 31, 2019 |
Common Stock | ||
Subsequent Event [Line Items] | ||
Issuance of common stock upon initial public offering, net of issuance costs, Shares | 6,052,116 | |
Subsequent Event | Securities Purchase Agreement | ||
Subsequent Event [Line Items] | ||
Gross proceeds from issuance of common stock | $ 80 | |
Subsequent Event | Common Stock | Securities Purchase Agreement | ||
Subsequent Event [Line Items] | ||
Issuance of common stock upon initial public offering, net of issuance costs, Shares | 14,084,507 | |
Shares issued, price per share | $ 5.68 |