Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 08, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | INOZYME PHARMA, INC. | |
Entity Central Index Key | 0001693011 | |
Entity Incorporation, State or Country Code | DE | |
Entity File Number | 001-39397 | |
Entity Tax Identification Number | 38-4024528 | |
Entity Address, Address Line One | 321 Summer Street | |
Entity Address, Address Line Two | Suite 400 | |
Entity Address, City or Town | Boston | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02210 | |
City Area Code | 857 | |
Local Phone Number | 330-4340 | |
Title of 12(b) Security | Common stock, par value $0.0001 per share | |
Trading Symbol | INZY | |
Security Exchange Name | NASDAQ | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 23,664,747 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 27,229 | $ 28,040 |
Short-term investments | 98,054 | 119,657 |
Prepaid expenses and other current assets | 5,296 | 3,282 |
Total current assets | 130,579 | 150,979 |
Property and equipment, net | 2,591 | 2,648 |
Right-of-use assets | 2,152 | 0 |
Restricted cash | 354 | 354 |
Long-term investments | 0 | 12,199 |
Prepaid expenses, net of current portion | 2,070 | 3,183 |
Total assets | 137,746 | 169,363 |
Current liabilities: | ||
Accounts payable | 626 | 3,069 |
Accrued expenses | 7,606 | 6,904 |
Operating lease liabilities | 711 | 0 |
Total current liabilities | 8,943 | 9,973 |
Operating lease liabilities, net of current portion | 2,829 | 1,287 |
Total liabilities | 11,772 | 11,260 |
Stockholders’ equity: | ||
Preferred Stock, $0.0001 par value – 5,000,000 shares authorized at June 30, 2021 and December 31, 2020; No shares issued and outstanding at June 30, 2021 or December 31, 2020 | 0 | 0 |
Common Stock, $0.0001 par value – 200,000,000 shares authorized at June 30, 2021 and December 31, 2020; 23,570,593 shares issued and outstanding at June 30, 2021 and 23,384,969 shares issued and outstanding at December 31, 2020 | 2 | 2 |
Additional paid in-capital | 254,915 | 249,175 |
Accumulated other comprehensive income | 3 | 2 |
Accumulated deficit | (128,946) | (91,076) |
Total stockholders’ equity | 125,974 | 158,103 |
Total liabilities and stockholders’ equity | $ 137,746 | $ 169,363 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 23,664,747 | 23,384,969 |
Common stock, shares outstanding | 23,664,747 | 23,384,969 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Operating expenses: | ||||
Research and development | $ 9,346 | $ 25,174 | $ 24,169 | $ 39,457 |
General and administrative | 4,916 | 3,142 | 13,720 | 6,313 |
Total operating expenses | 14,262 | 28,316 | 37,889 | 45,770 |
Loss from operations | (14,262) | (28,316) | (37,889) | (45,770) |
Other income (expense): | ||||
Interest income | 47 | 64 | 168 | 306 |
Other income (expenses) | (65) | 157 | (149) | 158 |
Other income (expense), net | (18) | 221 | 19 | 464 |
Net loss | (14,280) | (28,095) | (37,870) | (45,306) |
Other comprehensive (loss) income: | ||||
Unrealized (losses) gains on available-for-sale securities | (6) | (13) | 10 | (5) |
Foreign currency translation adjustment | (9) | 0 | (9) | 0 |
Total other comprehensive (loss) income | (15) | (13) | 1 | (5) |
Comprehensive loss | (14,295) | (28,108) | (37,869) | (45,311) |
Net loss attributable to common stockholders—basic and diluted | $ (14,280) | $ (28,095) | $ (37,870) | $ (45,306) |
Net loss per share attributable to common stockholders—basic and diluted | $ (0.60) | $ (1.55) | $ (1.61) | $ (6.57) |
Weighted-average common shares outstanding—basic and diluted | 23,643,494 | 18,101,496 | 23,521,981 | 6,893,745 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) (Unaudited) - USD ($) $ in Thousands | Total | Series A Convertible Preferred Stock | Series A-2 Convertible Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Accumulated Deficit |
Balance at Dec. 31, 2019 | $ (33,219) | $ 1,428 | $ 5 | $ (34,652) | |||
Temporary equity, shares at Dec. 31, 2019 | 48,850,000 | 23,566,431 | |||||
Temporary equity, balance at Dec. 31, 2019 | $ 44,657 | $ 33,270 | |||||
Balance, shares at Dec. 31, 2019 | 1,204,630 | ||||||
Stock-based compensation | 129 | 129 | |||||
Exercise of stock options | 5 | 5 | |||||
Exercise of stock options, shares | 2,677 | ||||||
Comprehensive income: | |||||||
Unrealized gain (loss) on investments | 23 | 23 | |||||
Net loss | (7,738) | (7,738) | |||||
Balance at Mar. 31, 2020 | (40,800) | 1,562 | 28 | (42,390) | |||
Temporary equity, shares at Mar. 31, 2020 | 48,850,000 | 23,566,431 | |||||
Temporary equity, balance at Mar. 31, 2020 | $ 44,657 | $ 33,270 | |||||
Balance, shares at Mar. 31, 2020 | 1,207,307 | ||||||
Balance at Dec. 31, 2019 | (33,219) | 1,428 | 5 | (34,652) | |||
Temporary equity, shares at Dec. 31, 2019 | 48,850,000 | 23,566,431 | |||||
Temporary equity, balance at Dec. 31, 2019 | $ 44,657 | $ 33,270 | |||||
Balance, shares at Dec. 31, 2019 | 1,204,630 | ||||||
Comprehensive income: | |||||||
Net loss | (45,306) | ||||||
Balance at Sep. 30, 2020 | 167,916 | $ 2 | 247,872 | (79,958) | |||
Temporary equity, shares at Sep. 30, 2020 | |||||||
Temporary equity, balance at Sep. 30, 2020 | |||||||
Balance, shares at Sep. 30, 2020 | 23,364,851 | ||||||
Balance at Dec. 31, 2019 | (33,219) | 1,428 | 5 | (34,652) | |||
Temporary equity, shares at Dec. 31, 2019 | 48,850,000 | 23,566,431 | |||||
Temporary equity, balance at Dec. 31, 2019 | $ 44,657 | $ 33,270 | |||||
Balance, shares at Dec. 31, 2019 | 1,204,630 | ||||||
Comprehensive income: | |||||||
Net loss | 56,400 | ||||||
Balance at Dec. 31, 2020 | 158,103 | $ 2 | 249,175 | 2 | (91,076) | ||
Balance, shares at Dec. 31, 2020 | 23,384,969 | ||||||
Balance at Mar. 31, 2020 | (40,800) | 1,562 | 28 | (42,390) | |||
Temporary equity, shares at Mar. 31, 2020 | 48,850,000 | 23,566,431 | |||||
Temporary equity, balance at Mar. 31, 2020 | $ 44,657 | $ 33,270 | |||||
Balance, shares at Mar. 31, 2020 | 1,207,307 | ||||||
Issuance of Series A-2 Convertible Preferred Stock, net of issuance costs of $0.1 million | $ 33,638 | ||||||
Issuance of Series A-2 Convertible Preferred Stock,net of issuance costs, shares | 23,566,431 | ||||||
Stock-based compensation | 120 | 120 | |||||
Exercise of stock options | 149 | 149 | |||||
Exercise of stock options, shares | 137,397 | ||||||
Comprehensive income: | |||||||
Unrealized gain (loss) on investments | (15) | (15) | |||||
Net loss | (9,473) | (9,473) | |||||
Balance at Jun. 30, 2020 | (50,019) | 1,831 | 13 | (51,863) | |||
Temporary equity, shares at Jun. 30, 2020 | 48,850,000 | 47,132,862 | |||||
Temporary equity, balance at Jun. 30, 2020 | $ 44,657 | $ 66,908 | |||||
Balance, shares at Jun. 30, 2020 | 1,344,704 | ||||||
Issuance of shares to acquire in-process research and development | $ 17,759 | ||||||
Issuance of shares to acquire in-process research and development, shares | 8,294,360 | ||||||
Initial public offering, net of issuance costs | 115,915 | $ 1 | 115,914 | ||||
Initial public offering, net of issuance costs, shares | 8,050,000 | ||||||
Conversion of convertible preferred stock into common stock | 129,324 | $ (44,657) | $ (84,667) | $ 1 | 129,323 | ||
Conversion of convertible preferred stock into common stock, shares | (48,850,000) | (55,427,222) | 13,953,850 | ||||
Stock-based compensation | 786 | 786 | |||||
Exercise of stock options | 18 | 18 | |||||
Exercise of stock options, shares | 16,297 | ||||||
Comprehensive income: | |||||||
Unrealized gain (loss) on investments | (13) | (13) | |||||
Net loss | (28,095) | (28,095) | |||||
Balance at Sep. 30, 2020 | 167,916 | $ 2 | 247,872 | (79,958) | |||
Temporary equity, shares at Sep. 30, 2020 | |||||||
Temporary equity, balance at Sep. 30, 2020 | |||||||
Balance, shares at Sep. 30, 2020 | 23,364,851 | ||||||
Balance at Dec. 31, 2020 | 158,103 | $ 2 | 249,175 | 2 | (91,076) | ||
Balance, shares at Dec. 31, 2020 | 23,384,969 | ||||||
Stock-based compensation | 1,577 | 1,577 | |||||
Exercise of stock options | 249 | 249 | |||||
Exercise of stock options, shares | 88,734 | ||||||
Comprehensive income: | |||||||
Unrealized gain (loss) on investments | 10 | 10 | |||||
Net loss | (11,050) | (11,050) | |||||
Balance at Mar. 31, 2021 | 148,889 | $ 2 | 251,001 | 12 | (102,126) | ||
Balance, shares at Mar. 31, 2021 | 23,473,703 | ||||||
Balance at Dec. 31, 2020 | $ 158,103 | $ 2 | 249,175 | 2 | (91,076) | ||
Balance, shares at Dec. 31, 2020 | 23,384,969 | ||||||
Exercise of stock options, shares | 279,778 | ||||||
Comprehensive income: | |||||||
Net loss | $ (37,870) | ||||||
Balance at Sep. 30, 2021 | 125,974 | $ 2 | 254,915 | 3 | (128,946) | ||
Balance, shares at Sep. 30, 2021 | 23,664,747 | ||||||
Balance at Mar. 31, 2021 | 148,889 | $ 2 | 251,001 | 12 | (102,126) | ||
Balance, shares at Mar. 31, 2021 | 23,473,703 | ||||||
Stock-based compensation | 1,813 | 1,813 | |||||
Exercise of stock options | 106 | 106 | |||||
Exercise of stock options, shares | 96,890 | ||||||
Comprehensive income: | |||||||
Unrealized gain (loss) on investments | 6 | 6 | |||||
Net loss | (12,540) | (12,540) | |||||
Balance at Jun. 30, 2021 | 138,274 | $ 2 | 252,920 | 18 | (114,666) | ||
Balance, shares at Jun. 30, 2021 | 23,570,593 | ||||||
Stock-based compensation | 1,752 | 1,752 | |||||
Exercise of stock options | 243 | 243 | |||||
Exercise of stock options, shares | 94,154 | ||||||
Comprehensive income: | |||||||
Unrealized gain (loss) on investments | (6) | (6) | |||||
Foreign currency translation adjustment | (9) | (9) | |||||
Net loss | (14,280) | (14,280) | |||||
Balance at Sep. 30, 2021 | $ 125,974 | $ 2 | $ 254,915 | $ 3 | $ (128,946) | ||
Balance, shares at Sep. 30, 2021 | 23,664,747 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) (Parenthetical) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2020 | Jun. 30, 2020 | |
IPO | ||
Issuance costs | $ 3.9 | |
Series A-2 Convertible Preferred Stock | ||
Issuance costs | $ 0.1 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating activities | ||
Net loss | $ (37,870) | $ (45,306) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 492 | 94 |
Write-off of acquired in-process research and development | 17,759 | |
Stock-based compensation expense | 5,142 | 1,035 |
Amortization of premiums and discounts on marketable securities | 146 | 140 |
Reduction in the carrying value of right-of-use assets | 279 | |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | (2,014) | (4,147) |
Accounts payable | (2,482) | 1,744 |
Accrued expenses | 942 | 3,582 |
Operating lease liabilities | (457) | |
Prepaid expenses - noncurrent | 1,113 | |
Net cash used in operating activities | (34,709) | (25,099) |
Investing activities | ||
Purchases of marketable securities | (104,994) | (125,490) |
Maturities of marketable securities | 138,660 | 29,021 |
Purchases of property and equipment | (357) | (753) |
Net cash provided by (used in) investing activities | 33,309 | (97,222) |
Financing activities | ||
Proceeds from issuance of Series A-2 Convertible Preferred Stock, net of issuance costs | 33,638 | |
Proceeds from exercise of stock options | 598 | 172 |
Proceeds from initial public offering, net of offering costs | 116,988 | |
Net cash provided by financing activities | 598 | 150,798 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (802) | 28,477 |
Effect of foreign currency exchange rate in cash | (9) | |
Cash, cash equivalents and restricted cash at beginning of period | 28,394 | 31,735 |
Cash, cash equivalents and restricted cash at end of period | 27,583 | 60,212 |
Supplemental cash flow information: | ||
Cash and cash equivalents | 27,229 | 59,858 |
Restricted cash | 354 | 354 |
Cash, cash equivalents and restricted cash at end of period | 27,583 | 60,212 |
Issuance of shares to acquire in-process research and development | 17,759 | |
Property and equipment unpaid at end of period | 78 | 1,498 |
Right-of-use asset at adoption of ASC 842 | 2,431 | |
Operating lease liabilities at adoption of ASC 842 | 3,997 | |
Deferred offering costs unpaid at end of period | 1,073 | |
Deferred lease incentive - non-cash | $ 1,263 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Basis of Presentation | 1. Organization an d Basis of Presentation Inozyme Pharma, Inc. (the “Company”) is a clinical-stage rare disease biopharmaceutical company developing novel therapeutics for the treatment of diseases of abnormal mineralization impacting the vasculature, soft tissue and skeleton. The Company is pursuing the development of therapeutics to address the underlying causes of these debilitating diseases. It is well established that two genes, ENPP1 and ABCC6, play key roles in a critical mineralization pathway and that defects in these genes lead to abnormal mineralization. The Company is initially focused on developing a novel therapy to treat rare genetic diseases of ENPP1 and ABCC6 Deficiencies. The Company’s lead product candidate, INZ-701, is a soluble, recombinant, or genetically engineered, fusion protein that is designed to correct a defect in the mineralization pathway caused by ENPP1 and ABCC6 Deficiencies. This pathway is central to the regulation of calcium deposition throughout the body and is further associated with neointimal proliferation, or the overgrowth of smooth muscle cells inside blood vessels. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles ("U.S. GAAP") for interim financial information. Accordingly, these unaudited condensed consolidated financial statements do not include all of the information and note disclosures required by U.S. GAAP for audited year-end financial statements. The accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the interim period results. The results for the three and nine months ended September 30, 2021 are not necessarily indicative of results to be expected for the year ending December 31, 2021, any other interim periods, or any future year or period. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2020. Any reference in these notes to applicable guidance is meant to refer to authoritative U.S. GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”). Liquidity Since the Company’s incorporation in 2017 and through September 30, 2021, the Company has devoted substantially all of its efforts to raising capital, building infrastructure, developing intellectual property and conducting research and development activities. The Company incurred net losses of $ 37.9 million in the nine months ended September 30, 2021 and $ 56.4 million in the year ended December 31, 2020 and had an accumulated deficit of $ 128.9 million as of September 30, 2021. The Company had cash, cash equivalents, and short-term investments of $ 125.3 million as of September 30, 2021. The accompanying condensed consolidated financial statements have been prepared on the basis of continuity of operations, realization of assets, and the satisfaction of liabilities and commitments in the ordinary course of business. The Company has incurred recurring losses and negative cash flows from operations since inception and has primarily funded its operations with proceeds from the issuance of convertible preferred stock and the Company’s initial public offering (“IPO”) completed on July 28, 2020. The Company expects its operating losses and negative operating cash flows to continue into the foreseeable future as it continues to expand its research and development efforts. The Company believes that its cash, cash equivalents, and short-term investments as of September 30, 2021 will be sufficient to fund its operating expenses and capital expenditure requirements for at least twelve months from the date of filing this Quarterly Report on Form 10-Q. The Company will need additional funding to support its planned operating activities. If the Company is unable to obtain additional funding, it would be forced to delay, reduce or eliminate some or all of its research and development programs, product portfolio expansion, or commercialization efforts, which could adversely affect its business prospects. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated. Summary of Significant Accounting Policies The significant accounting policies and estimates used in the preparation of the accompanying consolidated financial statements are described in the Company’s audited consolidated financial statements for the year ended December 31, 2020 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Apart from the Company’s adoption of Leases (Topic 842) ("Topic 842") in January 2021, there have been no material changes in the Company’s significant accounting policies during the three or nine months ended September 30, 2021 . Use of Estimates The preparation of the Company’s financial statements 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 expenses during the reporting period. Estimates and judgments are based on historical information and other market-specific or various relevant assumptions, including, in certain circumstances, future projections that management believes to be reasonable under the circumstances. Actual results could differ materially from estimates. Significant estimates and assumptions are used for, but not limited to, the accruals for research and development expenses and, for equity instruments issued prior to the completion of the Company’s IPO, stock-based compensation expense, inclusive of the measurement of fair value of equity instruments. For equity instruments issued prior to the completion of the Company’s IPO, the Company utilized various valuation methodologies in accordance with the framework of the 2013 American Institute of Certified Public Accountants Technical Practice Aid, Valuation of Privately-Held Company Equity Securities Issued as Compensation , to estimate the fair value of its equity instruments. The Company evaluates its estimates and assumptions on an ongoing basis. All revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Accrued Research and Development Costs The Company records accrued liabilities for estimated costs of research and development activities conducted by service providers for sponsored research, preclinical studies, clinical trials, and contract manufacturing activities. The Company records the estimated costs of research and development activities based upon the estimated amount of services provided but not yet invoiced and includes these costs in accrued expenses in the accompanying consolidated balance sheets and within research and development expense in the accompanying consolidated statements of operations and comprehensive loss. The Company accrues for these costs based on factors such as estimates of the work completed and in accordance with agreements established with service providers. The Company makes significant judgments and estimates in determining the accrued liabilities balance in each reporting period. As actual costs become known, the Company adjusts its accrued liabilities. The Company has not experienced any material differences between accrued costs and actual costs incurred since its inception. Research and Development Costs Research and development costs are expensed as incurred. Research and development costs consist of direct and indirect internal costs related to specific projects as well as fees paid to other entities that conduct certain research and development activities on the Company’s behalf. Research and development costs also include the write-off of acquired in-process research and development assets with no alternative future use. Net Loss Per Share The Company follows the two-class method when computing net loss allocable to common securities per share as the Company had previously issued shares that meet the definition of participating securities, which included shares of: (i) Series A Convertible Preferred Stock; and (ii) Series A-2 Convertible Preferred Stock. The two-class method requires a portion of net income to be allocated to the participating securities to determine net income allocable to the common securities. During periods of loss, there is no allocation required under the two-class method since the participating securities do not have a contractual obligation to fund the losses of the Company. Basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, without consideration for 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 shares of common stock and potentially dilutive securities outstanding using the treasury-stock and if-converted methods. The Company has generated a net loss in all periods presented, therefore the basic and diluted net loss per share attributable to common stockholders are the same as the inclusion of the potentially dilutive securities would be anti-dilutive. Fair Value Measurements The Company categorizes its assets and liabilities measured at fair value in accordance with the authoritative accounting guidance that establishes a consistent framework for measuring fair value and expands disclosures for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as the 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, the guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1- Unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; Level 2- Quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; or Level 3- Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). Concentration of Credit Risk and Off-Balance Sheet Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents and short-term investments and, from time to time, long-term investments. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits and limits its exposure to credit risk by placing its cash with high credit quality financial institutions. The Company’s investments are comprised of U.S. Treasury and U.S. government agency debt securities and commercial paper of corporations. The Company mitigates credit risk by maintaining a diversified portfolio and limiting the amount of investment exposure as to institution, maturity and investment type. The Company has no significant off-balance sheet risk such as foreign exchange contracts, option contracts, or other foreign hedging arrangements. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 3. Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. Recently Issued and Adopted Accounting Standards In February 2016, the FASB issued Topic 842. The new standard, as amended, establishes a right-of-use model and requires a lessee to recognize on the balance sheet a right-of-use asset and corresponding lease liability for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the consolidated statements of operations and comprehensive loss. On January 1, 2021, the Company adopted Topic 842 using the modified retrospective approach. The Company recorded operating lease assets (right-of-use assets) of $ 2.4 million and operating lease liabilities of $ 4.0 million and reversed a lease liability of $ 1.6 million related to straight-line rent and incentives. There was no impact to accumulated deficit upon adoption of Topic 842. The underlying assets of the Company’s leases are primarily office and laboratory space. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The accounting for the service element of a hosting arrangement that is a service contract is not affected by these amendments. On January 1, 2021 , the Company adopted this standard and the adoption did not have a material impact on its consolidated financial statements. Recently Issued Accounting Standards Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . ASU 2016-13 and its subsequent related updates establish a new forward-looking “expected loss model” that requires entities to estimate current expected credit losses on accounts receivable and financial instruments by using all practical and relevant information. The new standard and its subsequent related updates are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. The Company is currently assessing the impact that adopting this standard will have on its consolidated financial statements but does not expect it to be material. In December 2019, the FASB issued ASU 2019-12, Income Taxes – Simplifying the Accounting for Income Taxes . The new guidance simplifies the accounting for income taxes by removing several exceptions in the current standard and adding guidance to reduce complexity in certain areas, such as requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The new standard is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022 for non-public entities, with early adoption permitted. The Company is currently assessing the impact that adopting this standard will have on its consolidated financial statements. |
Balance Sheet Details
Balance Sheet Details | 9 Months Ended |
Sep. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Balance Sheet Details | 4. Balance Sheet Details Short-term investments consisted of the following (dollar amounts in thousands): September 30, 2021 Description Maturity Amortized Gross Gross Estimated Commercial paper 1 year or less $ 80,953 $ 8 $ — $ 80,961 U.S. Treasury securities 1 year or less 10,069 3 — 10,072 U.S. government agency debt securities 1 year or less 7,020 1 — 7,021 $ 98,042 $ 12 $ — $ 98,054 December 31, 2020 Description Maturity Amortized Gross Gross Estimated Commercial paper 1 year or less $ 94,873 $ 5 $ ( 6 ) $ 94,872 U.S. Treasury securities 1 year or less 11,614 2 ( 1 ) 11,615 U.S. government agency debt securities 1 year or less 13,169 1 — 13,170 $ 119,656 $ 8 $ ( 7 ) $ 119,657 The Company did no t hold any long-term investments at September 30, 2021. Long-term investments at December 31, 2020 consisted of the following (dollar amounts in thousands): December 31, 2020 Description Maturity Amortized Gross Gross Estimated U.S. Treasury securities After 1 year through 5 years $ 5,126 $ — $ — $ 5,126 U.S. government agency debt securities After 1 year through 5 years 7,072 1 — 7,073 $ 12,198 $ 1 $ — $ 12,199 The Company concluded that the net declines in market value of available-for-sale securities were temporary in nature and did not consider any of the investments to be other-than-temporarily impaired. In accordance with its investment policy, the Company invests in investment grade securities with high credit quality issuers, and generally limits the amount of credit exposure to any one issuer. The Company evaluates securities for other-than-temporary impairment at the end of each reporting period. Impairment is evaluated considering numerous factors, and their relative significance varies depending on the situation. Factors considered include the length of time and extent to which fair value has been less than the cost basis, the financial condition and near-term prospects of the issuer, and the Company’s intent and ability to hold the investment to allow for an anticipated recovery in fair value. Furthermore, the aggregate of individual unrealized losses that had been outstanding for 12 months or less was not significant as of September 30, 2021 and December 31, 2020. The Company does not intend to sell these investments and it is not more likely than not that the Company will be required to sell the investments before a recovery of their amortized cost bases, which may be maturity. The Company also believes that it will be able to collect both principal and interest amounts due at maturity. Prepaid expenses and other current assets consisted of the following (dollar amounts in thousands): At September 30, At December 31, Interest receivable $ 73 $ 155 Prepaid insurance 2,494 1,723 Prepaid research studies 2,143 804 Prepaid other 586 600 Total $ 5,296 $ 3,282 Prepaid expenses, net of current portion consisted of the following (dollar amounts in thousands): At September 30, At December 31, Prepaid clinical trial and other $ 2,070 $ 3,183 $ 2,070 $ 3,183 Property and equipment consisted of the following (dollar amounts in thousands): At September 30, At December 31, Laboratory equipment and manufacturing equipment $ 593 $ 339 Furniture and fixtures 278 254 Computer equipment and software 444 287 Leasehold improvements 2,095 2,095 3,410 2,975 Less accumulated depreciation ( 819 ) ( 327 ) Total $ 2,591 $ 2,648 Depreciation expense for the three months ended September 30, 2021 and 2020 was $ 167 thousand and $ 42 thousand, respectively. Depreciation expense for the nine months ended September 30, 2021 and 2020 was $ 492 thousand and $ 94 thousand, respectively. Accrued expenses consi sted of the following (dollar amounts in thousands): At September 30, At December 31, Payroll and related liabilities $ 1,913 $ 2,296 Professional fees 641 454 Research and development costs 4,655 2,997 Deferred rent — 279 Other 397 878 Total $ 7,606 $ 6,904 |
Fair Value Measurement
Fair Value Measurement | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | 5. Fair Value Measurement The following table represents the Company’s financial assets measured at fair value on a recurring basis and indicate the level of fair value hierarchy utilized to determine such fair values (in thousands): Fair Value Measurements at Reporting Date Description September 30, Quoted Significant Significant Assets: Money market funds (included in cash and cash $ 19,713 $ 19,713 $ — $ — Commercial paper 80,961 — 80,961 — U.S. Treasury securities 10,072 10,072 — — U.S. government agency debt securities 7,021 — 7,021 — Total assets $ 117,767 $ 29,785 $ 87,982 $ — Fair Value Measurements at Reporting Date Description December 31, Quoted Significant Significant Assets: Money market funds (included in cash and cash $ 15,739 $ 15,739 $ — $ — Commercial paper 94,872 — 94,872 — U.S. Treasury securities 16,741 16,741 — — U.S. government agency debt securities 20,243 — 20,243 — Total assets $ 147,595 $ 32,480 $ 115,115 $ — There have been no transfers between fair value levels during the three or nine months ended September 30, 2021 . |
License and Sponsored Research
License and Sponsored Research Agreements | 9 Months Ended |
Sep. 30, 2021 | |
Research And Development [Abstract] | |
License and Sponsored Research Agreements | 6. License and Sponsored Research Agreements In January 2017, the Company entered into a license agreement with Yale University (“Yale”), which was amended in May 2020 and July 2020, under which the Company licensed certain intellectual property related to ectonucleotide pyrophosphatase/phosphodiesterase enzymes, that is the basis for the Company’s INZ-701 development program. Pursuant to the license agreement, as partial upfront consideration, the Company made a payment of approximately $ 0.1 million to Yale, which amount reflected unreimbursed patent expenses incurred by Yale prior to the date of the license agreement. The Company is responsible for paying Yale an annual license maintenance fee in varying amounts throughout the term ranging from the low tens of thousands of dollars to the high tens of thousands of dollars. As of September 30, 2021 , the Company incurred a total of $ 0.2 million in license maintenance fees to Yale. The Company is required to pay Yale $ 3.0 million, based on the achievement of a specified net product sales milestone or specified development and commercialization milestones, for each therapeutic and prophylactic licensed product develope d. In addition, the Company is required to pay Yale an amount in the several hundreds of thousands of dollars, based on the achievement of a specified net product sales milestone or specified development and commercialization milestones, including first dosing in a patient, for each diagnostic licensed product developed. While the agreement remains in effect, the Company is required to pay Yale low single-digit percentage royalties on aggregate worldwide net sales of certain licensed products. Yale is guaranteed a minimum royalty payment amount (ranging in dollar amounts from the mid six figures to low seven figures) for each year after the first sale of a therapeutic or prophylactic licensed product that results in net sales. Yale is guaranteed a minimum royalty payment amount (ranging from the low tens of thousands of dollars to the mid tens of thousands of dollars) for each year after the first sale of a diagnostic licensed product that results in net sales. The Company must also pay Yale a percentage in the twenties of certain types of income it receives from sublicensees. The Company is also responsible for costs relating to the prosecution and maintenance of the licensed patents. Finally, subject to certain conditions, all payments due by the Company to Yale will be tripled following any patent challenge, or challenge to a claim by Yale that a product is a licensed product under the agreement, made by the Company against Yale if Yale prevails in such challenge. The Company is not aware of any currently ongoing patent challenges. In January 2017, the Company also entere d into a corporate sponsored research agreement with Yale, which was amended in February 2019, under which the Company agreed to provide research support funding in the aggregate amount of $ 2.4 million over the five year period from contract inception through December 2021 . The Company recorded research and development expenses associated with this arrangeme nt of $ 0.1 million and $ 0.4 million in the three and nine months ended September 30, 2021, respectively, a nd $ 0.1 million and $ 0.3 million in t he three and nine months ended September 30, 2020, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. Commitments and Contingencies Operating Leases The Company adopted Topic 84 2 on January 1, 2021 . Topic 842 allows the Company to elect a package of practical expedients, which provide that an entity need not reassess: (i) whether any expired or existing contracts are or contain leases; (ii) the lease classification for any expired or existing leases; and (iii) any initial direct costs for any existing leases. Another practical expedient allows the Company to use hindsight in determining the lease term when considering lessee options to extend or terminate the lease and to purchase the underlying asset. The Company has elected to utilize this package of practical expedients and has not elected the hindsight methodology in its implementation of Topic 842. The Company elected to adopt this standard using the optional modified retrospective approach and recognized a cumulative-effect adjustment to the condensed consolidated balance sheet on the date of adoption. Comparative periods have not been restated. With the adoption of Topic 842, the Company’s condensed consolidated balance sheet now contains the following line items: Right-of-use assets, Operating lease liabilities and Operating lease liabilities, net of current portion. The Company determined that it held the following significant operating leases of office and laboratory space as of January 1, 2021: An operating lease for 8,499 square feet of office space in Boston, Massachusetts that expires in 2025 , with an option to extend the term for five years ; and An operating lease for 6,244 square feet of laboratory space in Boston, Massachusetts that expires in 2025 . In connection with the Company’s leases of office space and laboratory space, the Company provided security deposits to the landlords in the form of letters of credit totaling $ 354 thousand. The cash collateralizing the letters of credit is included in restricted cash in the accompanying balance sheets as of September 30, 2021 and December 31, 2020. The Company has elected to not recognize right-of-use assets and lease liabilities arising from short-term leases, which are leases that, at the commencement date, have a lease term of 12 months or less and do not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise. As all the existing leases subject to Topic 842 were previously classified as operating leases by the Company, they were similarly classified as operating leases under Topic 842. The Company has determined that the identified leases did not contain non-lease components and require no further allocation of the total lease cost. Additionally, the agreements in place did not contain information to determine the rate implicit in the lease. As such, the Company calculated the incremental borrowing rate based on the remaining lease terms as of January 1, 2021. At January 1, 2021, the weighted average incremental borrowing rate and the weighted average remaining lease term for the operating leases held by the Company were 8.0 % and 5.0 years, respectively. At September 30, 2021 , the weighted average incremental borrowing rate and the weighted average remaining lease term for the operating leases held by the Company were 8.0 % and 4.2 years, respectively. During the nine months ended September 30, 2021 , cash paid for amounts included for the measurement of lease liabilities was $ 0.7 million and the Company recorded operating lease expense of $ 0.5 million. Future lease payments under non-cancelable leases as of September 30, 2021 are as follows (dollar amounts in thousands): Year Ending December 31, 2021 (remaining 3 months) $ 237 2022 968 2023 992 2024 1,016 2025 944 Thereafter — $ 4,157 Indemnification Agreements In the ordinary course of business, the Company may provide indemnification of varying scope and terms to vendors, lessors, business partners and other parties with respect to certain matters arising out of the relationship between such parties and the Company. In addition, the Company has entered into indemnification agreements with members of its board of directors and senior management that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is, in many cases, unlimited. To date, the Company has not incurred any material costs as a result of such indemnifications. The Company is not aware of any claims under indemnification arrangements, and it has not accrued any liabilities related to such obligations as of September 30, 2021 or December 31, 2020. Legal Proceedings The Company is not currently a party to any material legal proceedings. At each reporting date, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. The Company expenses the costs related to its legal proceedings as they are incurred. No such costs have been incurred during the three and nine months ended September 30, 2021 and 2020 . |
Convertible Preferred Stock and
Convertible Preferred Stock and Stockholders' Equity | 9 Months Ended |
Sep. 30, 2021 | |
Convertible Preferred Stock And Stockholders Equity [Abstract] | |
Convertible Preferred Stock and Stockholders' Equity | 8. Convertible Preferred Stock and Stockholders’ Equity Convertible Preferred Stock In November 2018, the Company entered into a Series A-2 Convertible Preferred Stock Purchase Agreement, which was amended in March 2019 (as so amended, the “Series A-2 Agreement”) under which it agreed to issue up to 47,132,862 shares of Series A-2 Convertible Preferred Stock. Under the Series A-2 Agreement, the Company initially issued 7,482,515 shares at a price of $ 1.43 per share for net proceeds of $ 10.4 million in November 2018 and 16,083,916 shares at a price of $ 1.43 per share for net proceeds of $ 22.9 million in March 2019. The Series A-2 Agreement provided for a second tranche closing, pursuant to which the investors were required to purchase, and the Company to sell, an additional 23,566,431 shares of Series A-2 Convertible Preferred Stock at $ 1.43 per share upon the achievement of the defined milestone, or earlier upon board of directors and requisite stockholder approval to waive such requirement. In June 2020, the board of directors and requisite stockholders approved such waiver and the Company issued 23,566,431 shares of Series A-2 Convertible Preferred Stock at a price of $ 1.43 per share for net proceeds of $ 33.6 million. In July 2020, the Company increased the number of authorized shares of Series A-2 Convertible Preferred Stock from 47,132,862 to 55,427,222 . In July 2020, the Company issued 8,294,360 shares of Series A-2 Convertible Preferred Stock to Alexion Pharmaceuticals, Inc. (“Alexion”) in consideration for the sale and assignment to the Company of specified patent rights and other specified assets related to ENPP1. In July 2020, the Company eliminated the per share and gross proceeds thresholds for a firm-commitment underwritten public offering that triggers the automatic conversion of all outstanding shares of preferred stock into common stock. On July 28, 2020, upon the closing of the Company’s IPO, all 104,277,222 shares of then outstanding preferred stock automatically converted into 13,953,850 shares of common stock. In addition, on July 28, 2020, the Company amended and restated its certificate of incorporation to authorize 200,000,000 shares of common stock and 5,000,000 shares of preferred stock, which shares of preferred stock are currently undesignated. The Company does no t have any outstanding preferred stock as of September 30, 2021. There have been no dividends declared on preferred stock or common stock by the Company’s board of directors as of September 30, 2021. Open Market Sale Agreement On August 11, 2021, we filed a universal shelf registration statement on Form S-3, which was declared effective on August 23, 2021, (the "Registration Statement"). Under the Registration Statement, we may offer and sell up to $ 200.0 million of a variety of securities, including common stock, preferred stock, depositary shares, debt securities, warrants, subscription rights or units from time to time pursuant to one or more offerings at prices and terms to be determined at the time of the sale. In connection with the filing of the Registration Statement, we entered into an Open Market Sale Agreement with Jefferies LLC, as sales agent, pursuant to which we may offer and sell shares of our common stock with an aggregate offering price of up to $ 50.0 million under an “at-the-market” offering program. To date, we have not sold any securities under the Registration Statement. Equity Incentive Plans In January 2017, the Company’s board of directors and stockholders adopted the 2017 Equity Incentive Plan, which was amended and restated in July 2017, (as so amended and restated, the “2017 Plan”), which provided for the grant of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards and other stock awards. The maximum number of shares of common stock that were authorized for issuance under the 2017 Plan was 2,730,496 . On July 17, 2020, the Company’s stockholders approved the 2020 Stock Incentive Plan (the “2020 Plan”), which became effective on July 23, 2020. The 2020 Plan provides for the grant of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock awards, restricted stock units and other stock-based awards. The number of shares of the Company’s common stock reserved for issuance under the 2020 Plan was 1,588,315 shares, plus the 426,065 shares of common stock remaining available for issuance under the 2017 Plan as of July 23, 2020. The number of shares reserved under the 2020 Plan will be annually increased on each January 1 through January 1, 2030 by the lower of (i) 4 % of the number of shares of common stock outstanding on the first day of such fiscal year and (ii) an amount determined by the Company’s board of directors. The number of shares available for grant under the 2020 Plan increased by 935,398 on January 1, 2021 due to this provision. As of the effective date of the 2020 Plan, no further awards will be made under the 2017 Plan. Any options or awards outstanding under the 2017 Plan are governed by their existing terms. The shares of the Company’s common stock subject to outstanding awards under the 2017 Plan that expire, terminate or are otherwise surrendered, cancelled, forfeited or repurchased by the Company at their original issuance price pursuant to a contractual repurchase right will be added back to the shares of common stock available for issuance under the 2020 Plan. As of September 30, 2021 , 1,147,179 shares of common stock remain available for future issuance under the 2020 Plan. For financial reporting purposes, the Company performed common stock valuations with the assistance of a third-party valuation specialist as of March 31, 2020, May 31, 2019, November 30, 2018, December 31, 2017 and April 30, 2017 to determine stock-based compensation expense for the stock options issued under the 2017 Plan prior to the IPO. Following the completion of the IPO, the fair value of the common stock underlying option grants is determined based on the closing price of the Company’s common stock on the Nasdaq Global Select Market on the date of grant. The following table summarizes stock option activity under the Company’s equity incentive plans since December 31, 2020: Options Weighted- Weighted- Aggregate (in years) (in thousands) Outstanding at December 31, 2020 3,064,457 $ 7.28 8.76 $ 41,680 Granted 1,009,354 19.56 Exercised ( 279,778 ) 2.16 Forfeited ( 432,536 ) 11.67 Outstanding at September 30, 2021 3,361,497 $ 10.83 8.43 $ 15,006 Exercisable at September 30, 2021 1,228,549 $ 6.17 7.65 $ 8,677 Vested and expected to vest at September 30, 2021 3,361,497 $ 10.83 8.43 $ 15,006 (1) The aggregate intrinsic value of stock options is calculated as the difference between the exercise price of the stock options and the fair value of the Company’s common stock for those stock options that had exercise prices lower than the fair value of the Company’s common stock. The weighted-average grant date fair value of options granted during the three and nine months ended September 30, 2021 was $ 12.40 per share and $ 14.70 per share, respectively. The aggregate intrinsic value of stock options exercised during the three and nine months ended September 30, 2021 was $ 1.4 million and $ 3.0 million, respectively. For purposes of calculating stock-based compensation expense, the Company estimates the fair value of stock options using the Black-Scholes option-pricing model. This model incorporates various assumptions, including the expected volatility, expected term, and interest rates. The underlying assumptions used to value stock options granted to participants using the Black-Scholes option-pricing were as follows: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2021 2020 2021 2020 Risk-free interest rate range 0.93 % to 0.98 % 0.38 % to 0.43 % 0.48 % to 1.15 % 0.38 % to 0.47 % Dividend yield 0 % 0 % 0 % 0 % Expected term of options (years) 5.98 to 6.08 6.78 5.37 to 6.48 6.78 Volatility rate range 88.57 % to 89.25 % 86.54 % to 86.88 % 88.57 % to 91.19 % 86.54 % to 99.85 % The total compensation cost recognized in the statements of operations associated with all the stock-based compensation awards granted by the Company is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Research and development $ 798 $ 295 $ 2,495 $ 422 General and administrative 954 491 2,647 613 Total $ 1,752 $ 786 $ 5,142 $ 1,035 The total unrecognized compensation cost related to outstanding employee awards as of September 30, 2021 was $ 20.0 million, and is expected to be recognized over a weighted-average period of 3.0 years. Employee Stock Purchase Plan On July 17, 2020, the Company’s stockholders approved the 2020 Employee Stock Purchase Plan (the “ESPP”), which became effective on July 23, 2020. The ESPP initially provides participating employees with the opportunity to purchase up to an aggregate of 198,539 shares of the Company’s common stock. The number of shares of common stock reserved for issuance under the ESPP will automatically increase on each January 1 through January 1, 2031, in an amount equal to the lowest of (1) 397,079 shares of the Company’s common stock, (2) 1 % of the number of shares of the Company’s common stock outstanding on the first day of such fiscal year and (3) an amount determined by the Company’s board of directors . The number of shares available for grant under this plan increased by 233,849 on January 1, 2021 due to this provision. As of September 30, 2021 , no shares have been purchased by employees under the ESPP. |
Net Loss per Share
Net Loss per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | 9. Net Loss per Share Net Loss per Share Attributable to Common Stockholders We have generated a net loss in all periods presented, therefore the basic and diluted net loss per share attributable to common stockholders are the same as the inclusion of the potentially dilutive securities would be anti-dilutive. We excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share attributable to common stockholders for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Options to purchase common stock 3,361,497 2,911,875 3,361,497 2,911,875 3,361,497 2,911,875 3,361,497 2,911,875 |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 10. Employee Benefit Plans The Company established a defined contribution savings plan in 2018 for all eligible U.S. employees under Section 401(k) of the Internal Revenue Code. Employees can designate the investment of their 401(k) accounts into several mutual funds. Effective January 1, 2021, the Company implemented a matching policy under which the Company matches 50 % of an employee’s contributions to the 401(k) plan, up to a maximum of 6 % of the employee’s base salary and bonus paid during the year. For the three and nine months ended September 30, 2021, the Company has made employer contributions to the 401(k) plan totaling $ 58 thousand and $ 174 thousand, respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles ("U.S. GAAP") for interim financial information. Accordingly, these unaudited condensed consolidated financial statements do not include all of the information and note disclosures required by U.S. GAAP for audited year-end financial statements. The accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the interim period results. The results for the three and nine months ended September 30, 2021 are not necessarily indicative of results to be expected for the year ending December 31, 2021, any other interim periods, or any future year or period. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2020. Any reference in these notes to applicable guidance is meant to refer to authoritative U.S. GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”). |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated. Summary of Significant Accounting Policies The significant accounting policies and estimates used in the preparation of the accompanying consolidated financial statements are described in the Company’s audited consolidated financial statements for the year ended December 31, 2020 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Apart from the Company’s adoption of Leases (Topic 842) ("Topic 842") in January 2021, there have been no material changes in the Company’s significant accounting policies during the three or nine months ended September 30, 2021 . |
Use of Estimates | Use of Estimates The preparation of the Company’s financial statements 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 expenses during the reporting period. Estimates and judgments are based on historical information and other market-specific or various relevant assumptions, including, in certain circumstances, future projections that management believes to be reasonable under the circumstances. Actual results could differ materially from estimates. Significant estimates and assumptions are used for, but not limited to, the accruals for research and development expenses and, for equity instruments issued prior to the completion of the Company’s IPO, stock-based compensation expense, inclusive of the measurement of fair value of equity instruments. For equity instruments issued prior to the completion of the Company’s IPO, the Company utilized various valuation methodologies in accordance with the framework of the 2013 American Institute of Certified Public Accountants Technical Practice Aid, Valuation of Privately-Held Company Equity Securities Issued as Compensation , to estimate the fair value of its equity instruments. The Company evaluates its estimates and assumptions on an ongoing basis. All revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. |
Accrued Research and Development Costs | Accrued Research and Development Costs The Company records accrued liabilities for estimated costs of research and development activities conducted by service providers for sponsored research, preclinical studies, clinical trials, and contract manufacturing activities. The Company records the estimated costs of research and development activities based upon the estimated amount of services provided but not yet invoiced and includes these costs in accrued expenses in the accompanying consolidated balance sheets and within research and development expense in the accompanying consolidated statements of operations and comprehensive loss. The Company accrues for these costs based on factors such as estimates of the work completed and in accordance with agreements established with service providers. The Company makes significant judgments and estimates in determining the accrued liabilities balance in each reporting period. As actual costs become known, the Company adjusts its accrued liabilities. The Company has not experienced any material differences between accrued costs and actual costs incurred since its inception. |
Research and Development Costs | Research and Development Costs Research and development costs are expensed as incurred. Research and development costs consist of direct and indirect internal costs related to specific projects as well as fees paid to other entities that conduct certain research and development activities on the Company’s behalf. Research and development costs also include the write-off of acquired in-process research and development assets with no alternative future use. |
Net Loss Per Share | Net Loss Per Share The Company follows the two-class method when computing net loss allocable to common securities per share as the Company had previously issued shares that meet the definition of participating securities, which included shares of: (i) Series A Convertible Preferred Stock; and (ii) Series A-2 Convertible Preferred Stock. The two-class method requires a portion of net income to be allocated to the participating securities to determine net income allocable to the common securities. During periods of loss, there is no allocation required under the two-class method since the participating securities do not have a contractual obligation to fund the losses of the Company. Basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, without consideration for 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 shares of common stock and potentially dilutive securities outstanding using the treasury-stock and if-converted methods. The Company has generated a net loss in all periods presented, therefore the basic and diluted net loss per share attributable to common stockholders are the same as the inclusion of the potentially dilutive securities would be anti-dilutive. |
Fair Value Measurements | Fair Value Measurements The Company categorizes its assets and liabilities measured at fair value in accordance with the authoritative accounting guidance that establishes a consistent framework for measuring fair value and expands disclosures for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as the 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, the guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1- Unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; Level 2- Quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; or Level 3- Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). |
Concentration of Credit Risk and Off-Balance Sheet Risk | Concentration of Credit Risk and Off-Balance Sheet Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents and short-term investments and, from time to time, long-term investments. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits and limits its exposure to credit risk by placing its cash with high credit quality financial institutions. The Company’s investments are comprised of U.S. Treasury and U.S. government agency debt securities and commercial paper of corporations. The Company mitigates credit risk by maintaining a diversified portfolio and limiting the amount of investment exposure as to institution, maturity and investment type. The Company has no significant off-balance sheet risk such as foreign exchange contracts, option contracts, or other foreign hedging arrangements. |
Recently Issued and Adopted Accounting Standards | Recently Issued and Adopted Accounting Standards In February 2016, the FASB issued Topic 842. The new standard, as amended, establishes a right-of-use model and requires a lessee to recognize on the balance sheet a right-of-use asset and corresponding lease liability for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the consolidated statements of operations and comprehensive loss. On January 1, 2021, the Company adopted Topic 842 using the modified retrospective approach. The Company recorded operating lease assets (right-of-use assets) of $ 2.4 million and operating lease liabilities of $ 4.0 million and reversed a lease liability of $ 1.6 million related to straight-line rent and incentives. There was no impact to accumulated deficit upon adoption of Topic 842. The underlying assets of the Company’s leases are primarily office and laboratory space. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The accounting for the service element of a hosting arrangement that is a service contract is not affected by these amendments. On January 1, 2021 , the Company adopted this standard and the adoption did not have a material impact on its consolidated financial statements. |
Recently Issued Accounting Standards Not Yet Adopted | Recently Issued Accounting Standards Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . ASU 2016-13 and its subsequent related updates establish a new forward-looking “expected loss model” that requires entities to estimate current expected credit losses on accounts receivable and financial instruments by using all practical and relevant information. The new standard and its subsequent related updates are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. The Company is currently assessing the impact that adopting this standard will have on its consolidated financial statements but does not expect it to be material. In December 2019, the FASB issued ASU 2019-12, Income Taxes – Simplifying the Accounting for Income Taxes . The new guidance simplifies the accounting for income taxes by removing several exceptions in the current standard and adding guidance to reduce complexity in certain areas, such as requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The new standard is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022 for non-public entities, with early adoption permitted. The Company is currently assessing the impact that adopting this standard will have on its consolidated financial statements. |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Short-Term Investments | Short-term investments consisted of the following (dollar amounts in thousands): September 30, 2021 Description Maturity Amortized Gross Gross Estimated Commercial paper 1 year or less $ 80,953 $ 8 $ — $ 80,961 U.S. Treasury securities 1 year or less 10,069 3 — 10,072 U.S. government agency debt securities 1 year or less 7,020 1 — 7,021 $ 98,042 $ 12 $ — $ 98,054 December 31, 2020 Description Maturity Amortized Gross Gross Estimated Commercial paper 1 year or less $ 94,873 $ 5 $ ( 6 ) $ 94,872 U.S. Treasury securities 1 year or less 11,614 2 ( 1 ) 11,615 U.S. government agency debt securities 1 year or less 13,169 1 — 13,170 $ 119,656 $ 8 $ ( 7 ) $ 119,657 |
Schedule of Long-Term Investments | The Company did no t hold any long-term investments at September 30, 2021. Long-term investments at December 31, 2020 consisted of the following (dollar amounts in thousands): December 31, 2020 Description Maturity Amortized Gross Gross Estimated U.S. Treasury securities After 1 year through 5 years $ 5,126 $ — $ — $ 5,126 U.S. government agency debt securities After 1 year through 5 years 7,072 1 — 7,073 $ 12,198 $ 1 $ — $ 12,199 |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following (dollar amounts in thousands): At September 30, At December 31, Interest receivable $ 73 $ 155 Prepaid insurance 2,494 1,723 Prepaid research studies 2,143 804 Prepaid other 586 600 Total $ 5,296 $ 3,282 |
Schedule of Prepaid Expenses, Net of Current Portion | Prepaid expenses, net of current portion consisted of the following (dollar amounts in thousands): At September 30, At December 31, Prepaid clinical trial and other $ 2,070 $ 3,183 $ 2,070 $ 3,183 |
Schedule of Property and Equipment | Property and equipment consisted of the following (dollar amounts in thousands): At September 30, At December 31, Laboratory equipment and manufacturing equipment $ 593 $ 339 Furniture and fixtures 278 254 Computer equipment and software 444 287 Leasehold improvements 2,095 2,095 3,410 2,975 Less accumulated depreciation ( 819 ) ( 327 ) Total $ 2,591 $ 2,648 |
Schedule of Accrued Expenses | Accrued expenses consi sted of the following (dollar amounts in thousands): At September 30, At December 31, Payroll and related liabilities $ 1,913 $ 2,296 Professional fees 641 454 Research and development costs 4,655 2,997 Deferred rent — 279 Other 397 878 Total $ 7,606 $ 6,904 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets Measured at Fair Value | The following table represents the Company’s financial assets measured at fair value on a recurring basis and indicate the level of fair value hierarchy utilized to determine such fair values (in thousands): Fair Value Measurements at Reporting Date Description September 30, Quoted Significant Significant Assets: Money market funds (included in cash and cash $ 19,713 $ 19,713 $ — $ — Commercial paper 80,961 — 80,961 — U.S. Treasury securities 10,072 10,072 — — U.S. government agency debt securities 7,021 — 7,021 — Total assets $ 117,767 $ 29,785 $ 87,982 $ — Fair Value Measurements at Reporting Date Description December 31, Quoted Significant Significant Assets: Money market funds (included in cash and cash $ 15,739 $ 15,739 $ — $ — Commercial paper 94,872 — 94,872 — U.S. Treasury securities 16,741 16,741 — — U.S. government agency debt securities 20,243 — 20,243 — Total assets $ 147,595 $ 32,480 $ 115,115 $ — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Lease Payments Under Non-Cancelable Leases | Future lease payments under non-cancelable leases as of September 30, 2021 are as follows (dollar amounts in thousands): Year Ending December 31, 2021 (remaining 3 months) $ 237 2022 968 2023 992 2024 1,016 2025 944 Thereafter — $ 4,157 |
Convertible Preferred Stock a_2
Convertible Preferred Stock and Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Summary of Stock Option Activity Under Equity Incentive Plans | The following table summarizes stock option activity under the Company’s equity incentive plans since December 31, 2020: Options Weighted- Weighted- Aggregate (in years) (in thousands) Outstanding at December 31, 2020 3,064,457 $ 7.28 8.76 $ 41,680 Granted 1,009,354 19.56 Exercised ( 279,778 ) 2.16 Forfeited ( 432,536 ) 11.67 Outstanding at September 30, 2021 3,361,497 $ 10.83 8.43 $ 15,006 Exercisable at September 30, 2021 1,228,549 $ 6.17 7.65 $ 8,677 Vested and expected to vest at September 30, 2021 3,361,497 $ 10.83 8.43 $ 15,006 (1) The aggregate intrinsic value of stock options is calculated as the difference between the exercise price of the stock options and the fair value of the Company’s common stock for those stock options that had exercise prices lower than the fair value of the Company’s common stock. |
Summary of Total Compensation Cost Recognized in Statements of Operations | The total compensation cost recognized in the statements of operations associated with all the stock-based compensation awards granted by the Company is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Research and development $ 798 $ 295 $ 2,495 $ 422 General and administrative 954 491 2,647 613 Total $ 1,752 $ 786 $ 5,142 $ 1,035 |
Employees | |
Summary of Assumptions Used to Value Stock Options Granted Using Black-Scholes Option-Pricing | For purposes of calculating stock-based compensation expense, the Company estimates the fair value of stock options using the Black-Scholes option-pricing model. This model incorporates various assumptions, including the expected volatility, expected term, and interest rates. The underlying assumptions used to value stock options granted to participants using the Black-Scholes option-pricing were as follows: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2021 2020 2021 2020 Risk-free interest rate range 0.93 % to 0.98 % 0.38 % to 0.43 % 0.48 % to 1.15 % 0.38 % to 0.47 % Dividend yield 0 % 0 % 0 % 0 % Expected term of options (years) 5.98 to 6.08 6.78 5.37 to 6.48 6.78 Volatility rate range 88.57 % to 89.25 % 86.54 % to 86.88 % 88.57 % to 91.19 % 86.54 % to 99.85 % |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Potential Dilutive Securities from Computation of Diluted Net Loss Per Share Attributable to Common Stockholders | Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Options to purchase common stock 3,361,497 2,911,875 3,361,497 2,911,875 3,361,497 2,911,875 3,361,497 2,911,875 |
Organization and Basis of Pre_2
Organization and Basis of Presentation - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||||||||
Net loss | $ 14,280 | $ 12,540 | $ 11,050 | $ 28,095 | $ 9,473 | $ 7,738 | $ 37,870 | $ 45,306 | $ (56,400) |
Accumulated deficit | 128,946 | 128,946 | $ 91,076 | ||||||
Cash and cash equivalents and short term investments | $ 125,300 | $ 125,300 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Accounting Policies [Abstract] | |
Off-balance sheet concentrations of credit risk description | The Company has no significant off-balance sheet risk such as foreign exchange contracts, option contracts, or other foreign hedging arrangements. |
Off-balance sheet concentrations of credit risk | $ 0 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jan. 01, 2021 | Dec. 31, 2020 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Right-of-use assets | $ 2,152 | $ 0 | |
Accumulated deficit | $ (128,946) | $ (91,076) | |
ASU 2016-02 | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2021 | ||
Change in accounting principle, accounting standards update, adopted | true | ||
Right-of-use assets | $ 2,400 | ||
Operating lease liabilities | 4,000 | ||
Operating lease, reversed lease liability | 1,600 | ||
ASU 2016-02 | Revision of Prior Period, Accounting Standards Update, Adjustment | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Accumulated deficit | $ 0 | ||
ASU 2018-15 | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2021 | ||
Change in accounting principle, accounting standards update, adopted | true | ||
Change in accounting principle, accounting standards update, immaterial effect | true |
Balance Sheet Details - Schedul
Balance Sheet Details - Schedule of Short-Term Investments (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Costs | $ 98,042 | $ 119,656 |
Gross Unrealized Gains | 12 | 8 |
Gross Unrealized Losses | 0 | (7) |
Estimated Fair Value | $ 98,054 | $ 119,657 |
Commercial Paper | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Maturity | 1 year or less | 1 year or less |
Amortized Costs | $ 80,953 | $ 94,873 |
Gross Unrealized Gains | 8 | 5 |
Gross Unrealized Losses | 0 | (6) |
Estimated Fair Value | $ 80,961 | $ 94,872 |
U.S. Treasury Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Maturity | 1 year or less | 1 year or less |
Amortized Costs | $ 10,069 | $ 11,614 |
Gross Unrealized Gains | 3 | 2 |
Gross Unrealized Losses | 0 | (1) |
Estimated Fair Value | $ 10,072 | $ 11,615 |
U.S. Government Agency Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Maturity | 1 year or less | 1 year or less |
Amortized Costs | $ 7,020 | $ 13,169 |
Gross Unrealized Gains | 1 | 1 |
Gross Unrealized Losses | 0 | |
Estimated Fair Value | $ 7,021 | $ 13,170 |
Balance Sheet Details - Additio
Balance Sheet Details - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||||
Long-term investments | $ 0 | $ 0 | $ 12,199 | ||
Depreciation expense | $ 167 | $ 42 | $ 492 | $ 94 |
Balance Sheet Details - Sched_2
Balance Sheet Details - Schedule of Long-Term Investments (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Costs | $ 98,042 | $ 119,656 |
Gross Unrealized Gains | 12 | 8 |
Gross Unrealized Losses | 0 | (7) |
Estimated Fair Value | $ 98,054 | $ 119,657 |
U.S. Treasury Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Maturity | 1 year or less | 1 year or less |
Amortized Costs | $ 10,069 | $ 11,614 |
Gross Unrealized Gains | 3 | 2 |
Gross Unrealized Losses | 0 | (1) |
Estimated Fair Value | $ 10,072 | $ 11,615 |
U.S. Government Agency Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Maturity | 1 year or less | 1 year or less |
Amortized Costs | $ 7,020 | $ 13,169 |
Gross Unrealized Gains | 1 | 1 |
Gross Unrealized Losses | 0 | |
Estimated Fair Value | $ 7,021 | 13,170 |
Long Term Investments | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Costs | 12,198 | |
Gross Unrealized Gains | 1 | |
Estimated Fair Value | $ 12,199 | |
Long Term Investments | U.S. Treasury Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Maturity | After 1 year through 5 years | |
Amortized Costs | $ 5,126 | |
Estimated Fair Value | $ 5,126 | |
Long Term Investments | U.S. Government Agency Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Maturity | After 1 year through 5 years | |
Amortized Costs | $ 7,072 | |
Gross Unrealized Gains | 1 | |
Estimated Fair Value | $ 7,073 |
Balance Sheet Details - Sched_3
Balance Sheet Details - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Interest receivable | $ 73 | $ 155 |
Prepaid insurance | 2,494 | 1,723 |
Prepaid research studies | 2,143 | 804 |
Prepaid other | 586 | 600 |
Total | $ 5,296 | $ 3,282 |
Balance Sheet Details - Sched_4
Balance Sheet Details - Schedule of Prepaid Expenses, Net of Current Portion (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Payables And Accruals [Abstract] | ||
Prepaid clinical trial and other | $ 2,070 | $ 3,183 |
Prepaid expenses, net of current portion | $ 2,070 | $ 3,183 |
Balance Sheet Details - Sched_5
Balance Sheet Details - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 3,410 | $ 2,975 |
Less accumulated depreciation | (819) | (327) |
Total | 2,591 | 2,648 |
Laboratory Equipment and Manufacturing Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 593 | 339 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 278 | 254 |
Computer Equipment and Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 444 | 287 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 2,095 | $ 2,095 |
Balance Sheet Details - Sched_6
Balance Sheet Details - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Payables And Accruals [Abstract] | ||
Payroll and related liabilities | $ 1,913 | $ 2,296 |
Professional fees | 641 | 454 |
Research and development costs | 4,655 | 2,997 |
Deferred rent | 0 | 279 |
Other | 397 | 878 |
Total | $ 7,606 | $ 6,904 |
Fair Value Measurement - Summar
Fair Value Measurement - Summary of Financial Assets Measured at Fair Value (Details) - Recurring - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value disclosure | $ 117,767 | $ 147,595 |
Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents fair value disclosure | 19,713 | 15,739 |
Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value disclosure | 80,961 | 94,872 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value disclosure | 29,785 | 32,480 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents fair value disclosure | 19,713 | 15,739 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value disclosure | ||
Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value disclosure | 87,982 | 115,115 |
Significant Other Observable Inputs (Level 2) | Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents fair value disclosure | ||
Significant Other Observable Inputs (Level 2) | Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value disclosure | 80,961 | 94,872 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value disclosure | ||
Significant Unobservable Inputs (Level 3) | Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents fair value disclosure | ||
Significant Unobservable Inputs (Level 3) | Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value disclosure | ||
U.S. Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value disclosure | 10,072 | 16,741 |
U.S. Treasury Securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value disclosure | 10,072 | 16,741 |
U.S. Treasury Securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value disclosure | ||
U.S. Treasury Securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value disclosure | ||
U.S. Government Agency Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value disclosure | 7,021 | 20,243 |
U.S. Government Agency Debt Securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value disclosure | ||
U.S. Government Agency Debt Securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value disclosure | 7,021 | 20,243 |
U.S. Government Agency Debt Securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value disclosure |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021USD ($) | Sep. 30, 2021USD ($) | |
Fair Value Disclosures [Abstract] | ||
Fair value assets level 1 to level 2 transfers amount | $ 0 | $ 0 |
Fair value assets level 2 to level 1 transfers amount | 0 | 0 |
Fair value measurement with unobservable inputs reconciliation recurring basis asset transfers into level 3 | 0 | 0 |
Fair value measurement with unobservable inputs reconciliation recurring basis asset transfers out of level 3 | $ 0 | $ 0 |
License and Sponsored Researc_2
License and Sponsored Research Agreements - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||
Research support funding expiration year | 2021-12 | ||||
Research and development expenses | $ 9,346 | $ 25,174 | $ 24,169 | $ 39,457 | |
Yale | |||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||
Partial upfront consideration payment under license agreement | 100 | ||||
Milestone payment upon achievement of certain milestones | 3,000 | 3,000 | |||
Yale | Sponsored Research Agreement | |||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||
Research support funding amount | $ 2,400 | ||||
Research support funding period | 5 years | ||||
Research and development expenses | $ 100 | $ 100 | 400 | $ 300 | |
Yale | License | |||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||
Maintenance fees | $ 200 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | Jan. 01, 2021USD ($)ft² | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) |
Lessee Lease Description [Line Items] | ||||||
Weighted average incremental borrowing rate for operating leases | 8.00% | 8.00% | ||||
Weighted average remaining lease term for operating leases | 5 years | 4 years 2 months 12 days | 4 years 2 months 12 days | |||
Right-of-use assets | $ 2,152,000 | $ 2,152,000 | $ 0 | |||
Cash paid for amounts included for measurement of lease liabilities | 700,000 | |||||
Operating lease expense | 500,000 | |||||
Costs related to legal proceedings | 0 | $ 0 | 0 | $ 0 | ||
Restricted Cash | Letters of Credit | ||||||
Lessee Lease Description [Line Items] | ||||||
Security deposits | $ 354,000 | $ 354,000 | $ 354,000 | |||
Office Space | Boston, Massachusetts | ||||||
Lessee Lease Description [Line Items] | ||||||
Area of leased space | ft² | 8,499 | |||||
Lessee operating lease expiration year | 2025 | |||||
Lessee, Operating Lease, Existence of Option to Extend [true false] | true | |||||
Lessee operating lease option to extend description | option to extend the term for five years | |||||
Operating lease renewal term | 5 years | |||||
Laboratory Space | Boston, Massachusetts | ||||||
Lessee Lease Description [Line Items] | ||||||
Area of leased space | ft² | 6,244 | |||||
Lessee operating lease expiration year | 2025 | |||||
ASU 2016-02 | ||||||
Lessee Lease Description [Line Items] | ||||||
Change in accounting principle, accounting standards update, adopted | true | true | ||||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2021 | Jan. 1, 2021 | ||||
Right-of-use assets | $ 2,400,000 | |||||
Operating lease liabilities | $ 4,000,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Lease Payments Under Non-Cancelable Leases (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2021 (remaining 3 months) | $ 237 |
2022 | 968 |
2023 | 992 |
2024 | 1,016 |
2025 | 944 |
Thereafter | 0 |
Operating lease liability | $ 4,157 |
Convertible Preferred Stock a_3
Convertible Preferred Stock and Stockholders' Equity - Additional Information (Details) - USD ($) | Jul. 23, 2020 | Jun. 30, 2020 | Mar. 31, 2019 | Nov. 30, 2018 | Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Aug. 11, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | Jul. 31, 2020 | Jul. 28, 2020 | Jul. 17, 2020 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Net proceeds from issuance of shares | $ 33,638,000 | ||||||||||||
Preferred stock, shares outstanding | 0 | 0 | 0 | ||||||||||
Number of outstanding preferred stock converted into common stock | 13,953,850 | ||||||||||||
Common stock, shares authorized | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | |||||||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | |||||||||
Dividends declared on preferred stock or common stock | $ 0 | ||||||||||||
Plan description | On July 17, 2020, the Company’s stockholders approved the 2020 Stock Incentive Plan (the “2020 Plan”), which became effective on July 23, 2020. The 2020 Plan provides for the grant of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock awards, restricted stock units and other stock-based awards. The number of shares of the Company’s common stock reserved for issuance under the 2020 Plan | ||||||||||||
Granted options | 1,009,354 | ||||||||||||
Weighted-average exercise price of options granted | $ 19.56 | ||||||||||||
Weighted-average grant date fair value of options granted | $ 12.40 | $ 14.70 | |||||||||||
Aggregate intrinsic value of stock options exercised | $ 1,400,000 | $ 3,000,000 | |||||||||||
Total unrecognized compensation cost related to outstanding employee awards | $ 20,000,000 | $ 20,000,000 | |||||||||||
Total unrecognized compensation cost related to outstanding employee awards, expected to be recognized over a weighted-average period | 3 years | ||||||||||||
Share based compensation options to purchase number of common stock | 3,361,497 | 3,361,497 | 3,064,457 | ||||||||||
2020 Stock Incentive Plan | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Common stock reserved for issuance | 1,588,315 | 1,147,179 | 1,147,179 | 935,398 | |||||||||
Number of common stock reserved for issuance increase percentage on stock outstanding | 4.00% | ||||||||||||
2017 Stock Incentive Plan | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Common stock reserved for issuance | 426,065 | ||||||||||||
2017 Equity Incentive Plan | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Number of shares authorized for issuance | 2,730,496 | ||||||||||||
Number of awards available for issuance | 0 | ||||||||||||
2020 Employee Stock Purchase Plan | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Common stock reserved for issuance | 233,849 | ||||||||||||
Number of common stock reserved for issuance increase percentage on stock outstanding | 1.00% | ||||||||||||
Plan description | The number of shares of common stock reserved for issuance under the ESPP will automatically increase on each January 1 through January 1, 2031, in an amount equal to the lowest of (1) 397,079 shares of the Company’s common stock, (2) 1% of the number of shares of the Company’s common stock outstanding on the first day of such fiscal year and (3) an amount determined by the Company’s board of directors | ||||||||||||
Share based compensation options to purchase number of common stock | 198,539 | ||||||||||||
Increase in additional number of shares to be issued | 397,079 | ||||||||||||
Number of shares purchased | 0 | ||||||||||||
IPO | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Preferred stock, shares outstanding | 104,277,222 | ||||||||||||
Maximum | Jefferies LLC | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Offer and sell | $ 200,000,000 | ||||||||||||
Aggregate offering price | $ 50,000,000 | ||||||||||||
Series A-2 Convertible Preferred Stock | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Shares issued | 16,083,916 | 7,482,515 | |||||||||||
Shares issued, price per share | $ 1.43 | $ 1.43 | $ 1.43 | ||||||||||
Net proceeds from issuance of shares | $ 33,600,000 | $ 22,900,000 | $ 10,400,000 | ||||||||||
Shares available for issuance to investors | 23,566,431 | ||||||||||||
Shares available for issuance, price per share | $ 1.43 | ||||||||||||
Additional shares issued | 23,566,431 | ||||||||||||
Series A-2 Convertible Preferred Stock | Alexion Pharmaceuticals, Inc | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Shares issued | 8,294,360 | ||||||||||||
Series A-2 Convertible Preferred Stock | Maximum | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Shares issued | 55,427,222 | ||||||||||||
Convertible preferred stock, shares authorized | 47,132,862 | ||||||||||||
Series A-2 Convertible Preferred Stock | Minimum | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Shares issued | 47,132,862 |
Convertible Preferred Stock a_4
Convertible Preferred Stock and Stockholders' Equity - Summary of Stock Option Activity Under Equity Incentive Plans (Details) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | |
Convertible Preferred Stock And Stockholders Equity [Abstract] | ||
Options Outstanding, Beginning Balance | shares | 3,064,457 | |
Options Outstanding, Granted | shares | 1,009,354 | |
Options Outstanding, Exercised | shares | (279,778) | |
Options Outstanding, Forfeited | shares | (432,536) | |
Options Outstanding, Ending Balance | shares | 3,361,497 | 3,064,457 |
Options Outstanding, Exercisable | shares | 1,228,549 | |
Options Outstanding, Vested and expected to vest | shares | 3,361,497 | |
Weighted Average Exercise Price, Outstanding, Beginning Balance | $ / shares | $ 7.28 | |
Weighted Average Exercise Price, Granted | $ / shares | 19.56 | |
Weighted Average Exercise Price, Exercised | $ / shares | 2.16 | |
Weighted Average Exercise Price, Forfeited | $ / shares | 11.67 | |
Weighted Average Exercise Price, Outstanding, Ending Balance | $ / shares | 10.83 | $ 7.28 |
Weighted Average Exercise Price, Exercisable | $ / shares | 6.17 | |
Weighted Average Exercise Price, Vested and expected to vest | $ / shares | $ 10.83 | |
Weighted Average Remaining Contractual Term (in years), Outstanding | 8 years 5 months 4 days | 8 years 9 months 3 days |
Weighted Average Remaining Contractual Term (in years), Exercisable | 7 years 7 months 24 days | |
Weighted Average Remaining Contractual Term (in years), Vested and expected to vest | 8 years 5 months 4 days | |
Aggregate Intrinsic Value, Outstanding | $ | $ 15,006 | $ 41,680 |
Aggregate Intrinsic Value, Exercisable | $ | 8,677 | |
Aggregate Intrinsic Value, Vested and expected to vest | $ | $ 15,006 |
Convertible Preferred Stock a_5
Convertible Preferred Stock and Stockholders' Equity - Summary of Assumptions Used to Value Stock Options Granted to Employees using Black-Scholes Option-Pricing (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Risk-free interest rate range, minimum | 0.93% | 0.38% | 0.48% | 0.38% |
Risk-free interest rate range, maximum | 0.98% | 0.43% | 1.15% | 0.47% |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Expected term of options (years) | 6 years 9 months 10 days | 6 years 9 months 10 days | ||
Volatility rate range, minimum | 88.57% | 86.54% | 88.57% | 86.54% |
Volatility rate range, maximum | 89.25% | 86.88% | 91.19% | 99.85% |
Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term of options (years) | 5 years 11 months 23 days | 5 years 4 months 13 days | ||
Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term of options (years) | 6 years 29 days | 6 years 5 months 23 days |
Convertible Preferred Stock a_6
Convertible Preferred Stock and Stockholders' Equity - Summary of Total Compensation Cost Recognized in Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total | $ 1,752 | $ 786 | $ 5,142 | $ 1,035 |
Research and Development | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total | 798 | 295 | 2,495 | 422 |
General and Administrative | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total | $ 954 | $ 491 | $ 2,647 | $ 613 |
Net Loss per Share - Schedule o
Net Loss per Share - Schedule of Potential Dilutive Securities from Computation of Diluted Net Loss Per Share Attributable to Common Stockholders (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from computation of earnings per share | 3,361,497 | 2,911,875 | 3,361,497 | 2,911,875 |
Options to Purchase Common Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from computation of earnings per share | 3,361,497 | 2,911,875 | 3,361,497 | 2,911,875 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Thousands | Jan. 01, 2021 | Sep. 30, 2021 | Sep. 30, 2021 |
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution, percentage of match | 50.00% | ||
Employer contribution amount | $ 58 | $ 174 | |
Maximum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution, percentage of employees base salary and bonus paid | 6.00% |