Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | May 06, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-38501 | |
Entity Registrant Name | BLACK DIAMOND THERAPEUTICS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 81-4254660 | |
Entity Address, Address Line One | One Main Street, 14th Floor | |
Entity Address, City or Town | Cambridge | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02142 | |
City Area Code | (617) | |
Local Phone Number | 252-0848 | |
Title of each class | Common stock, par value $0.0001 | |
Trading Symbol(s) | BDTX | |
Name of each exchange on which registered | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 56,252,794 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2024 | |
Entity Central Index Key | 0001701541 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 25,422 | $ 56,221 |
Investments | 89,777 | 75,179 |
Prepaid expenses and other current assets | 3,607 | 2,634 |
Total current assets | 118,806 | 134,034 |
Property and equipment, net | 1,644 | 1,730 |
Restricted cash | 819 | 823 |
Right-of-use assets | 21,252 | 21,980 |
Total assets | 142,521 | 158,567 |
Current liabilities: | ||
Accounts payable | 1,176 | 2,324 |
Accrued expenses and other current liabilities | 15,678 | 17,322 |
Total current liabilities | 16,854 | 19,646 |
Non-current operating lease liabilities | 21,361 | 22,185 |
Total liabilities | 38,215 | 41,831 |
Commitments and contingencies (Note 11) | ||
Stockholders' equity: | ||
Preferred stock, $0.0001 par value; 10,000,000 shares authorized at March 31, 2024 and December 31, 2023; no shares issued or outstanding at March 31, 2024 and December 31, 2023 | 0 | 0 |
Common stock; $0.0001 par value; 500,000,000 shares authorized at March 31, 2024 and December 31, 2023; 52,527,626 shares issued and outstanding at March 31, 2024 and 51,645,557 shares issued and outstanding at December 31, 2023 | 7 | 7 |
Additional paid-in capital | 540,050 | 534,187 |
Accumulated other comprehensive loss | (95) | (27) |
Accumulated deficit | (435,656) | (417,431) |
Total stockholders' equity | 104,306 | 116,736 |
Total liabilities and stockholders' equity | $ 142,521 | $ 158,567 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 52,527,626 | 51,645,557 |
Common stock, shares outstanding (in shares) | 52,527,626 | 51,645,557 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating expenses: | ||
Research and development | $ 13,545 | $ 14,753 |
General and administrative | 6,701 | 6,808 |
Total operating expenses | 20,246 | 21,561 |
Loss from operations | (20,246) | (21,561) |
Other income (expense): | ||
Interest income | 637 | 622 |
Other income (expense) | 1,384 | 64 |
Total other income (expense), net | 2,021 | 686 |
Net loss | $ (18,225) | $ (20,875) |
Net loss per share, basic (in dollars per share) | $ (0.35) | $ (0.57) |
Net loss per share, diluted (in dollars per share) | $ (0.35) | $ (0.57) |
Weighted average common shares outstanding, basic (in shares) | 51,808,849 | 36,483,878 |
Weighted average common shares outstanding, diluted (in shares) | 51,808,849 | 36,483,878 |
Comprehensive loss: | ||
Net loss | $ (18,225) | $ (20,875) |
Other comprehensive income (loss): | ||
Unrealized gain (loss) on investments, net | (68) | 648 |
Comprehensive loss | $ (18,293) | $ (20,227) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net loss | $ (18,225) | $ (20,875) |
Adjustment to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation expense | 1,713 | 2,671 |
Depreciation expense | 86 | 122 |
(Accretion) amortization on investments | (932) | 109 |
Noncash rent expense | 728 | 690 |
Loss on sale of equipment | 0 | 37 |
Changes in current assets and liabilities: | ||
Prepaid expenses and other current assets | (973) | 383 |
Accounts payable | (1,128) | 1,169 |
Accrued expenses and other current liabilities | (1,644) | (3,583) |
Non-current operating lease liabilities | (824) | (754) |
Net cash used in operating activities | (21,199) | (20,031) |
Cash flows from investing activities: | ||
Proceeds from sales and maturities of investments | 38,500 | 24,806 |
Purchases of investments | (52,234) | 0 |
Net cash (used in) provided by investing activities | (13,734) | 24,806 |
Cash flows from financing activities: | ||
Proceeds from exercise of common stock options and ESPP | 150 | 51 |
Proceeds from issuance of common stock, net of issuance costs | 3,980 | 0 |
Net cash provided by financing activities | 4,130 | 51 |
Net increase (decrease) in cash and cash equivalents | (30,803) | 4,826 |
Cash, cash equivalents and restricted cash, beginning of period | 57,044 | 35,483 |
Cash, cash equivalents and restricted cash, end of period | 26,241 | 40,309 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | ||
Cash and cash equivalents, end of period | 25,422 | 39,141 |
Restricted cash, end of period | 819 | 1,168 |
Cash, cash equivalents and restricted cash, end of period | $ 26,241 | $ 40,309 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Accumulated deficit |
Beginning balance (in shares) at Dec. 31, 2022 | 36,434,297 | ||||
Beginning balance at Dec. 31, 2022 | $ 115,695 | $ 5 | $ 452,503 | $ (1,824) | $ (334,989) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Vesting of restricted stock units (in shares) | 23,575 | ||||
Surrender of shares for taxes (in shares) | (3,903) | ||||
Issuance of common stock related to ESPP (in shares) | 33,202 | ||||
Issuance of common stock related to ESPP | 51 | 51 | |||
Stock-based compensation (in shares) | 24,776 | ||||
Stock-based compensation | 2,671 | 2,671 | |||
Unrealized gain (loss) on investments | 648 | 648 | |||
Net loss | (20,875) | (20,875) | |||
Ending balance (in shares) at Mar. 31, 2023 | 36,511,947 | ||||
Ending balance at Mar. 31, 2023 | $ 98,190 | $ 5 | 455,225 | (1,176) | (355,864) |
Beginning balance (in shares) at Dec. 31, 2023 | 51,645,557 | 51,645,557 | |||
Beginning balance at Dec. 31, 2023 | $ 116,736 | $ 7 | 534,187 | (27) | (417,431) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock, net of issuance costs (in shares) | 800,000 | ||||
Issuance of common stock, net of issuance costs | $ 4,000 | 4,000 | |||
Exercise of common stock options (in shares) | 47,741 | 47,741 | |||
Exercise of common stock options | $ 86 | 86 | |||
Vesting of restricted stock units (in shares) | 1,250 | ||||
Issuance of common stock related to ESPP (in shares) | 26,659 | ||||
Issuance of common stock related to ESPP | 64 | 64 | |||
Stock-based compensation (in shares) | 6,419 | ||||
Stock-based compensation | 1,713 | 1,713 | |||
Unrealized gain (loss) on investments | (68) | (68) | |||
Net loss | $ (18,225) | (18,225) | |||
Ending balance (in shares) at Mar. 31, 2024 | 52,527,626 | 52,527,626 | |||
Ending balance at Mar. 31, 2024 | $ 104,306 | $ 7 | $ 540,050 | $ (95) | $ (435,656) |
NATURE OF BUSINESS AND BASIS OF
NATURE OF BUSINESS AND BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF BUSINESS AND BASIS OF PRESENTATION | NATURE OF BUSINESS AND BASIS OF PRESENTATION Black Diamond Therapeutics, Inc. (the Company) is a clinical-stage oncology company developing MasterKey therapies that target families of oncogenic mutations in patients with cancer. The Company was originally organized as a limited liability company in December 2014 under the name ASET Therapeutics LLC. In September 2016, the Company was converted to a corporation under the laws of the State of Delaware under the name ASET Therapeutics, Inc. The Company changed its name to Black Diamond Therapeutics, Inc. in January 2018. Since its inception, the Company has devoted substantially all of its efforts to raising capital, obtaining financing and incurring research and development costs related to the development and advancement of its product candidates identified by its Mutation-Allostery-Pharmacology (MAP) drug discovery engine. The Company is subject to risks and uncertainties common to clinical-stage companies in the biotechnology industry. There can be no assurance that the Company’s research and development will be successfully completed, that adequate protection for the Company’s technology will be obtained, that any products developed will obtain necessary government regulatory approval or that any products, if approved, will be commercially viable. The Company operates in an environment of rapid technological innovation and substantial competition from pharmaceutical and biotechnological companies. In addition, the Company is dependent upon the services of its employees, consultants and service providers. Even if the Company’s product development efforts are successful, it is uncertain when, if ever, the Company will realize significant revenue from product sales. On November 14, 2022, the Company filed a shelf registration statement on Form S-3 (the Shelf Registration Statement), with the Securities and Exchange Commission (the SEC), which covers the offering, issuance and sale of the Company’s common stock, preferred stock, debt securities, warrants and/or units of any combination thereof up to a maximum offering price of $500 million. The Company simultaneously entered into an Open Market Sale Agreement SM with Jefferies LLC (Jefferies), as sales agent, to provide for the issuance and sale by the Company of up to $150 million of its common stock from time to time through Jefferies (the ATM Program). The Shelf Registration Statement became effective on November 22, 2022. As of March 31, 2024, the Company sold 800,000 shares of its common stock pursuant to the ATM Program, resulting in gross proceeds to the Company of approximately $4.0 million ($3.9 million net of offering costs). On July 5, 2023, the Company completed an underwritten public offering (the Follow-on Offering) of 15,000,000 shares of the Company’s common stock at a price to the public of $5.00 per share. The aggregate net proceeds from the Follow-on Offering totaled approximately $71.9 million, after deducting underwriting discounts and commissions. The accompanying 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. Historically, the Company has funded its operations primarily with proceeds from the sale of common stock and preferred stock. The Company has had recurring losses and negative cash flows from operations in all periods since inception and had an accumulated deficit of $435.7 million as of March 31, 2024. The Company expects to continue to generate operating losses for the foreseeable future. As of May 9, 2024, the issuance date of the condensed consolidated financial statements, the Company expects that its cash, cash equivalents and investments will be sufficient to fund its currently planned operations for at least the next 12 months from the filing date of these condensed consolidated financial statements. The Company will seek additional funding through private or public equity financings, debt financings, collaborations, strategic alliances and marketing, distribution or licensing arrangements. The Company may not be able to obtain financing on acceptable terms, or at all, and the Company may not be able to enter into collaborations or other arrangements. The terms of any financing may adversely affect the holdings or the rights of the Company's stockholders. If the Company is unable to obtain funding, the Company could be forced to delay, reduce or eliminate some or all of its research and development programs, product portfolio expansion or commercialization efforts, or reduce headcount and general and administrative costs, which could adversely affect its business prospects. Although management continues to pursue these plans, there is no assurance that the Company will be successful in obtaining sufficient funding on terms acceptable to the Company to fund continuing operations, if at all. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies followed in the preparation of these condensed consolidated financial statements. Principles of consolidation The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and include the accounts of the Company and its wholly owned subsidiaries, Black Diamond Therapeutics Security Corporation and Black Diamond Therapeutics (Canada), Inc., after elimination of all significant intercompany accounts and transactions. On October 10, 2023, Black Diamond Therapeutics (Canada), Inc. was dissolved by way of voluntary dissolution. Unaudited interim financial information The condensed consolidated financial statements of the Company included herein have been prepared, without audit, pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted from this Quarterly Report, as is permitted by such rules and regulations. Accordingly, these condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. In the opinion of the Company’s management, all adjustments (consisting of normal and recurring adjustments) considered necessary for a fair statement of the results for the interim periods presented have been included. Use of estimates The preparation of the Company’s condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of expenses during the reporting periods. Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, the accrual of research and development expenses and the valuation of stock-based awards. The Company bases its estimates on historical experience, known trends and other market-specific or other relevant factors that it believes to be reasonable under the circumstances. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results may differ from those estimates or assumptions. The Company continues to monitor the impact of global economic developments, political unrest, high inflation, disruptions in capital markets, changes in international trade relationships and military conflicts, and health crises, on all aspects of its business, and has considered the impact of these factors on estimates within its financial statements. The extent to which future developments may impact the Company’s business, results of operations or financial condition are uncertain and cannot be predicted with confidence and there may be changes to estimates in future periods. As of the date of issuance of these condensed consolidated financial statements, the Company has not experienced material business disruptions or incurred impairment losses in the carrying value of its assets as a result of these factors and is not aware of any specific related event or circumstance that would require it to update its estimates. Recently issued accounting pronouncements In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09). ASU 2023-09 requires that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate). The standard is effective for annual and interim periods beginning after December 15, 2024. Adoption of the standard requires certain changes to be made prospectively, with some changes to be made retrospectively. The adoption is not expected to have a material impact on the Company’s consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures (Topic 280) (ASU 2023-07) which requires enhanced disclosure of (1) significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within each reported measure of segment profit or loss, (2) the amount and description of the composition of other segment items which reconcile to segment profit or loss, and (3) the title and position of the entity’s CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and allocating resources. The amendments also expand the interim segment disclosure requirements. This new guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments in this ASU apply retrospectively to all prior periods presented in the financial statements. The Company is in the process of assessing the impact on its financial statements from the adoption of the new guidance and the period in which the new guidance will be adopted. In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements - Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative (ASU 2023-06). The standard is effective for annual and interim periods beginning after December 15, 2024. Adoption of the standard requires certain changes to be made prospectively, with some changes to be made retrospectively. The adoption is not expected to have a material impact on the Company’s consolidated financial statements. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The following tables present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis and indicate the level of the fair value hierarchy used to determine such fair values: Fair value measurements at March 31, 2024 using: Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 20,498 $ — $ — $ 20,498 Investments: Commercial paper — 82,830 — 82,830 Corporate bonds — 6,947 — 6,947 Total $ 20,498 $ 89,777 $ — $ 110,275 Fair value measurements at December 31, 2023 using: Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 30,803 $ — $ — $ 30,803 Investments: Commercial paper — 44,871 — 44,871 Corporate bonds — 30,308 — 30,308 Total $ 30,803 $ 75,179 $ — $ 105,982 When developing fair value estimates, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs. When available, the Company uses quoted market prices to measure fair value. The valuation technique used to measure fair value for the Company's Level 1 and Level 2 assets is a market approach, using prices and other relevant information generated by market transactions involving identical or comparable assets. If market prices are not available, the fair value measurement is based on models that use primarily market-based parameters including yield curves, volatilities, credit ratings and currency rates. In certain cases where market rate assumptions are not available, the Company is required to make judgments about assumptions market participants would use to estimate the fair value of a financial instrument. There were no transfers in or out of Level 3 categories in the periods presented. |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS As of March 31, 2024, investments were comprised of the following: Amortized Cost Unrealized Gains Unrealized Losses Fair Value Commercial paper $ 82,921 $ — $ (91) $ 82,830 Corporate bonds 6,951 — (4) 6,947 Total $ 89,872 $ — $ (95) $ 89,777 As of December 31, 2023, investments were comprised of the following: Amortized Cost Unrealized Gains Unrealized Losses Fair Value Commercial paper $ 44,880 $ 4 $ (13) $ 44,871 Corporate bonds 30,326 — (18) 30,308 Total $ 75,206 $ 4 $ (31) $ 75,179 As of March 31, 2024, all marketable securities held by the Company had remaining contractual maturities of one year or less. As of December 31, 2023, all marketable securities held by the Company had remaining contractual maturities of one year or less. As of March 31, 2024, the Company reviewed its investment portfolio to assess the unrealized losses on its available-for-sale investments. The Company evaluated whether it intended to sell the security and whether it was more likely than not that the Company would be required to sell the security before recovering its amortized cost basis. The Company also determined no portion of the unrealized losses relate to a credit loss. There have been no impairments of the Company’s assets measured and carried at fair value during the three months ended March 31, 2024 and the year ended December 31, 2023. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment, net consisted of the following: March 31, December 31, Furniture and fixtures $ 17 $ 17 Leasehold improvements 2,512 2,512 Property and equipment 2,529 2,529 Less: accumulated depreciation (885) (799) Total Property and Equipment, net $ 1,644 $ 1,730 Depreciation expense for the three months ended March 31, 2024 and 2023 was $86 and $122, respectively. |
EQUITY METHOD INVESTMENT
EQUITY METHOD INVESTMENT | 3 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
EQUITY METHOD INVESTMENT | EQUITY METHOD INVESTMENT In December 2022, the Company received 9,000,000 shares of common stock in a newly formed antibody-focused precision oncology company, Launchpad Therapeutics, Inc. (Launchpad), in exchange for contributing early discovery-stage antibody programs and granting Launchpad a license to use its MAP drug discovery engine to discover, develop and commercialize large molecule therapeutics. As of the transaction date and as of March 31, 2024, the Company has a 39.1% voting interest in Launchpad and one seat on Launchpad’s Board of Directors which provide the Company with significant influence over Launchpad. The remaining voting interest in Launchpad is held by Versant Ventures and New Enterprise Associates (NEA), who are shareholders of the Company. The Company accounted for the transaction under the equity method and recorded the carrying value of the Company’s investment in Launchpad common shares of $2,250 in equity method investments in the consolidated balance sheets. The contributed in process research and development (IPR&D) had zero basis on the Company’s books prior to the transaction, therefore the Company recognized a gain on sale of IPR&D of $2,232 in the consolidated statements of operations and comprehensive loss for the year ended December 31, 2022. The Company also recognized a loss from investments in equity method investee of $1,540 in the consolidated statement of operations and comprehensive loss for the year ended December 31, 2022, associated with the Company’s proportionate share of Launchpad’s losses. The assets contributed by the Company were principally IPR&D and were not deemed a business by Launchpad, therefore the Company determined its remaining basis difference of $710 was substantially related to IPR&D and immediately expensed it. As of December 31, 2022, the carrying value of the investment in Launchpad was reduced to zero. Since the Company has no obligation to provide financing support to Launchpad, the Company is not required to record further losses exceeding the carrying value of the investment. The Company also determined that its investment in Launchpad is not material or significant to its operations or financial position. As of March 31, 2024, the carrying value of the investment in Launchpad was zero. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 3 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of the following: March 31, December 31, Contracted research services $ 8,984 $ 8,071 Payroll and related expenses 2,510 5,175 Professional and consulting fees 1,000 963 Current portion of operating lease liability 3,184 3,113 Total accrued expenses and other current liabilities $ 15,678 $ 17,322 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION 2020 Stock Option and Incentive Plan The 2020 Stock Option and Incentive Plan (the 2020 Plan) was approved by the Company’s board of directors on December 5, 2019, and the Company’s stockholders on January 14, 2020 and became effective on the date immediately prior to the date on which the registration statement for the Company’s initial public offering (IPO) was declared effective. The 2020 Plan provides for the grant of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock units, restricted stock awards, unrestricted stock awards, cash-based awards and dividend equivalent rights to the Company’s officers, employees, directors and consultants. The 2020 Plan provides for an annual increase, to be added on the first day of each fiscal year, by up to 4% of the Company’s outstanding shares of common stock as of the last day of the prior year. On January 1, 2024, 2,065,822 shares of common stock, representing 4% of the Company’s outstanding shares of common stock as of December 31, 2023, were added to the 2020 Plan. 2020 Employee Stock Purchase Plan The 2020 Employee Stock Purchase Plan (the 2020 ESPP) was approved by the Company’s board of directors on December 5, 2019, and the Company’s stockholders on January 14, 2020, and became effective on the date immediately prior to the date on which the registration statement for the Company’s IPO was declared effective. The 2020 ESPP provides for an annual increase, to be added on the first day of each fiscal year, by up to 1% of the number of shares of the Company’s common stock outstanding on the immediately preceding December 31. The number of authorized shares reserved for issuance under the 2020 ESPP was increased by 326,364 shares effective as of January 1, 2024. Stock-based compensation expense The Company recorded stock-based compensation expense in the following award type categories included within the condensed consolidated statements of operations and comprehensive loss: Three Months Ended 2024 2023 Stock options $ 1,623 $ 2,455 Restricted stock units 16 112 Employee Stock Purchase Plan and Other 74 104 $ 1,713 $ 2,671 For the three months ended March 31, 2024, the Company issued 6,419 shares of common stock under its 2020 Plan in accordance with its policy where non-employee directors may elect to receive their compensation in the form of common stock in lieu of cash. The Company recorded stock-based compensation expense in the following expense categories of its condensed consolidated statements of operations and comprehensive loss: Three Months Ended 2024 2023 Research and development $ 635 $ 949 General and administrative 1,078 1,722 $ 1,713 $ 2,671 Options The following table summarizes the stock option activity under the Company’s equity awards plans: Options Weighted Average Exercise Price Weighted Average Remaining Life (in Years) Intrinsic Value (in thousands) Outstanding December 31, 2023 8,135,711 $ 7.85 8.0 $ 1,146 Granted 2,895,550 $ 4.85 Exercised (47,741) $ 1.78 Cancelled or forfeited (16,500) $ 1.82 Expired (300) $ 7.73 Outstanding March 31, 2024 10,966,720 $ 7.09 8.3 $ 11,996 Options vested or expected to vest at March 31, 2024 10,966,720 $ 7.09 8.3 $ 11,996 Options exercisable at March 31, 2024 4,242,313 $ 11.65 6.7 $ 3,488 For the three months ended March 31, 2024, total unrecognized compensation cost related to the unvested stock-options was $18,345, which is expected to be recognized over a weighted average period of 3.1 years. Restricted stock units The fair values of restricted stock units are based on the market value of the Company’s stock on the date of the grant. Under terms of the time-based restricted stock agreements covering the common stock, shares of restricted common stock are subject to a vesting schedule. The following table summarizes time-based restricted stock activity since January 1, 2024: Number of shares Weighted average grant date fair value Unvested restricted common stock as of December 31, 2023 20,799 $ 2.41 Vested (1,250) $ 3.79 Unvested restricted common stock as of March 31, 2024 19,549 $ 2.32 The total fair value of time-based restricted stock units vested during the three months ended March 31, 2024 was $5. For the three months ended March 31, 2024, total unrecognized compensation cost related to the time-based unvested restricted stock units was $6, which is expected to be recognized over a weighted average period of 0.1 years. The Company had 19,000 performance restricted stock units outstanding at the year ended December 31, 2023. For the three months ended March 31, 2024, the Company granted no performance restricted stock units to its employees, released no performance restricted stock units due to the achievement of certain financing milestones, and had no performance restricted stock units forfeited. As of March 31, 2024, the Company had 19,000 performance restricted stock units outstanding. Recognition of stock-based compensation expense associated with performance restricted stock units commences when the performance conditions are considered probable of achievement, using management’s best estimates, which consider the inherent risk and uncertainty regarding the future outcomes of the milestones. As of March 31, 2024, for performance-based restricted stock units that were outstanding, the achievement of the milestones that had not been met was considered not probable, and therefore no expense has been recognized related to these awards in the three months ended March 31, 2024. Employee stock purchase plan The 2020 ESPP enables eligible employees to purchase shares of the Company's common stock at the end of each six-month offering period at a price equal to 85% of the fair market value of the shares on the first business day or the last business day of the offering period, whichever is lower. Eligible employees generally included all employees. Offering periods begin on the first trading day of January and July of each year and end on the last trading day in June and December of each year, except for the first offering period which began on the first trading day in March and ended on the last trading day in June. Share purchases are funded through payroll deductions of up to 10% of an employee’s eligible compensation for each payroll period, up to $25 each calendar year. During the three months ended March 31, 2024 and 2023, there were 26,659 and 33,202 shares, respectively, issued under the 2020 ESPP. |
NET LOSS PER SHARE
NET LOSS PER SHARE | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
NET LOSS PER SHARE | NET LOSS PER SHARE Net loss per share The following table summarizes the computation of basic and diluted net loss per share attributable to common shareholders of the Company (in thousands, except share and per share amounts): Three Months Ended 2024 2023 Net loss $ (18,225) $ (20,875) Weighted average common shares outstanding, basic and diluted 51,808,849 36,483,878 Net loss per share, basic and diluted $ (0.35) $ (0.57) The Company’s potentially dilutive securities, which include options, unvested restricted stock and warrants to purchase common stock, have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share. Therefore, the weighted average number of common shares outstanding used to calculate both basic and diluted net loss per share is the same. The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share for the periods indicated because including them would have had an anti-dilutive effect: Three Months Ended 2024 2023 Options to purchase common stock 10,966,720 7,710,285 Unvested restricted stock 19,549 86,290 Shares issuable under employee stock purchase plan 86,858 102,351 Unvested performance restricted stock units 19,000 229,859 Warrants to purchase common stock 10,757 10,757 11,102,884 8,139,542 |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
LEASES | LEASES The Company has historically entered into lease arrangements for its facilities. As of March 31, 2024, the Company had two operating leases with required future minimum payments. The Company determined the classification of these leases to be operating leases and recorded right-of-use assets and lease liabilities as of the effective dates. The Company’s leases generally do not include termination or purchase options. Operating leases In July 2020, the Company entered into a seven-year agreement with an option to extend for five In December 2020, the Company entered into an eleven-year agreement to lease approximately 18,120 square feet of office and laboratory space in New York, NY. The Company has an option to extend the lease for five The following table contains a summary of the lease costs recognized under ASC 842 and other information pertaining to the Company’s operating lease for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 2023 Lease Cost Operating lease cost $ 1,054 $ 1,054 Short-term lease cost 17 17 Variable lease cost 237 256 Sublease income (456) (135) Total lease cost $ 852 $ 1,192 Other Operating Lease Information March 31, 2024 March 31, 2023 Cash paid for amounts included in the measurement of lease liability $ 1,080 $ 1,051 Weighted-average remaining lease term 6.7 7.6 Weighted-average discount rate 5.3 % 5.3 % The variable lease costs for the three months ended March 31, 2024 and 2023 include common area maintenance and other operating charges. As the Company’s leases do not provide an implicit rate, the Company utilized its incremental borrowing rate to discount lease payments, which reflects the fixed rate at which the Company could borrow on a collateralized basis the amount of the lease payments in the same currency, for a similar term, in a similar economic environment. Future minimum lease payments under the Company’s operating leases as of March 31, 2024 were as follows: As of March 31, 2024 2024 (excluding the three months ended March 31, 2024) $ 3,279 2025 4,477 2026 4,599 2027 4,724 2028 3,926 Thereafter 8,324 Total lease payments 29,329 Less: interest (4,784) Total lease liability $ 24,545 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The Company enters into contracts in the normal course of business with contract research organizations (CROs), contract manufacturing organizations (CMOs) and other third parties for preclinical research studies, clinical trials and testing and manufacturing services. These contracts do not contain minimum purchase commitments and are cancelable upon prior written notice. Payments due upon cancellation consist only of payments for services provided or expenses incurred, including noncancelable obligations of service providers, up to the date of cancellation. License agreements The Company is a party to license agreements, which include contingent payments. These payments will become payable if and when certain development, regulatory and commercial milestones are achieved. As of March 31, 2024, the satisfaction and timing of the contingent payments is uncertain and not reasonably estimable. 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 including, but not limited to, losses arising out of breach of such agreements or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with members of its board of directors and executive officers 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 indemnification arrangements that could have a material effect on its financial position, results of operations or cash flows, and it has not accrued any liabilities related to such obligations in its consolidated financial statements as of March 31, 2024 or December 31, 2023. Legal proceedings The Company is not currently party to and is not aware of 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 as incurred the costs related to such legal proceedings. |
BENEFIT PLANS
BENEFIT PLANS | 3 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
BENEFIT PLANS | BENEFIT PLANS The Company has a tax-qualified 401(k) and Profit Sharing defined contribution plan (the 401(k) Plan). Under the 401(k) Plan, the Company provides an employer safe harbor matching contribution equal to 100% of a participant’s eligible contributions of up to 6% of eligible compensation, subject to limits established by the Internal Revenue Code of 1986, as amended, and any regulations promulgated thereunder (the Code). All matching contributions are fully vested when made. During the three months ended March 31, 2024 and 2023, the Company contributed $348 and $376, respectively, to the 401(k) Plan. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS In April 2024, the Company sold 1,000,000 shares of its common stock pursuant to the ATM Program, resulting in gross proceeds to the Company of approximately $5.4 million ($5.3 million net of offering costs). In May 2024, the Company sold 2,690,853 shares of its common stock pursuant to the ATM Program, resulting in gross proceeds to the Company of approximately $15.6 million ($15.3 million net of offering costs). |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net loss | $ (18,225) | $ (20,875) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Fang Ni [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On March 28, 2024, Fang Ni, our Chief Business Officer and Chief Financial Officer, entered into a trading arrangement intended to satisfy the affirmative defense of Rule 10b5-1(c) (the Ni 10b5-1 Plan). The Ni 10b5-1 Plan is scheduled to commence on June 29, 2024, and will run through June 29, 2025. The aggregate maximum number of shares of common stock that may be sold pursuant to the Ni 10b5-1 Plan is up to 40,470 shares. |
Name | Fang Ni |
Title | Chief Business Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 28, 2024 |
Arrangement Duration | 365 days |
Aggregate Available | 40,470 |
Brent Hatzis-Schoch [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On March 27, 2024, Brent Hatzis-Schoch, our Chief Operating Officer and General Counsel, entered into a trading arrangement intended to satisfy the affirmative defense of Rule 10b5-1(c) (the Hatzis-Schoch 10b5-1 Plan). The Hatzis-Schoch 10b5-1 Plan is scheduled to commence on July 1, 2024, and will run through July 1, 2025. The aggregate maximum number of shares of common stock that may be sold pursuant to the Hatzis-Schoch 10b5-1 Plan is up to 72,400 shares. |
Name | Brent Hatzis-Schoch |
Title | Chief Operating Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 27, 2024 |
Arrangement Duration | 365 days |
Aggregate Available | 72,400 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Principles of consolidation and unaudited interim financial information | Black Diamond Therapeutics, Inc. (the Company) is a clinical-stage oncology company developing MasterKey therapies that target families of oncogenic mutations in patients with cancer. The Company was originally organized as a limited liability company in December 2014 under the name ASET Therapeutics LLC. In September 2016, the Company was converted to a corporation under the laws of the State of Delaware under the name ASET Therapeutics, Inc. The Company changed its name to Black Diamond Therapeutics, Inc. in January 2018. Since its inception, the Company has devoted substantially all of its efforts to raising capital, obtaining financing and incurring research and development costs related to the development and advancement of its product candidates identified by its Mutation-Allostery-Pharmacology (MAP) drug discovery engine. The Company is subject to risks and uncertainties common to clinical-stage companies in the biotechnology industry. There can be no assurance that the Company’s research and development will be successfully completed, that adequate protection for the Company’s technology will be obtained, that any products developed will obtain necessary government regulatory approval or that any products, if approved, will be commercially viable. The Company operates in an environment of rapid technological innovation and substantial competition from pharmaceutical and biotechnological companies. In addition, the Company is dependent upon the services of its employees, consultants and service providers. Even if the Company’s product development efforts are successful, it is uncertain when, if ever, the Company will realize significant revenue from product sales. Principles of consolidation The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and include the accounts of the Company and its wholly owned subsidiaries, Black Diamond Therapeutics Security Corporation and Black Diamond Therapeutics (Canada), Inc., after elimination of all significant intercompany accounts and transactions. On October 10, 2023, Black Diamond Therapeutics (Canada), Inc. was dissolved by way of voluntary dissolution. Unaudited interim financial information The condensed consolidated financial statements of the Company included herein have been prepared, without audit, pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted from this Quarterly Report, as is permitted by such rules and regulations. Accordingly, these condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. In the opinion of the Company’s management, all adjustments (consisting of normal and recurring adjustments) considered necessary for a fair statement of the results for the interim periods presented have been included. |
Principles of consolidation | Principles of consolidation The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and include the accounts of the Company and its wholly owned subsidiaries, Black Diamond Therapeutics Security Corporation and Black Diamond Therapeutics (Canada), Inc., after elimination of all significant intercompany accounts and transactions. On October 10, 2023, Black Diamond Therapeutics (Canada), Inc. was dissolved by way of voluntary dissolution. |
Use of estimates | Use of estimates |
Recently issued accounting pronouncements | Recently issued accounting pronouncements In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09). ASU 2023-09 requires that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate). The standard is effective for annual and interim periods beginning after December 15, 2024. Adoption of the standard requires certain changes to be made prospectively, with some changes to be made retrospectively. The adoption is not expected to have a material impact on the Company’s consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures (Topic 280) (ASU 2023-07) which requires enhanced disclosure of (1) significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within each reported measure of segment profit or loss, (2) the amount and description of the composition of other segment items which reconcile to segment profit or loss, and (3) the title and position of the entity’s CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and allocating resources. The amendments also expand the interim segment disclosure requirements. This new guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments in this ASU apply retrospectively to all prior periods presented in the financial statements. The Company is in the process of assessing the impact on its financial statements from the adoption of the new guidance and the period in which the new guidance will be adopted. In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements - Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative (ASU 2023-06). The standard is effective for annual and interim periods beginning after December 15, 2024. Adoption of the standard requires certain changes to be made prospectively, with some changes to be made retrospectively. The adoption is not expected to have a material impact on the Company’s consolidated financial statements. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis and indicate the level of the fair value hierarchy used to determine such fair values: Fair value measurements at March 31, 2024 using: Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 20,498 $ — $ — $ 20,498 Investments: Commercial paper — 82,830 — 82,830 Corporate bonds — 6,947 — 6,947 Total $ 20,498 $ 89,777 $ — $ 110,275 Fair value measurements at December 31, 2023 using: Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 30,803 $ — $ — $ 30,803 Investments: Commercial paper — 44,871 — 44,871 Corporate bonds — 30,308 — 30,308 Total $ 30,803 $ 75,179 $ — $ 105,982 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Marketable Securities | As of March 31, 2024, investments were comprised of the following: Amortized Cost Unrealized Gains Unrealized Losses Fair Value Commercial paper $ 82,921 $ — $ (91) $ 82,830 Corporate bonds 6,951 — (4) 6,947 Total $ 89,872 $ — $ (95) $ 89,777 As of December 31, 2023, investments were comprised of the following: Amortized Cost Unrealized Gains Unrealized Losses Fair Value Commercial paper $ 44,880 $ 4 $ (13) $ 44,871 Corporate bonds 30,326 — (18) 30,308 Total $ 75,206 $ 4 $ (31) $ 75,179 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property and equipment, net consisted of the following: March 31, December 31, Furniture and fixtures $ 17 $ 17 Leasehold improvements 2,512 2,512 Property and equipment 2,529 2,529 Less: accumulated depreciation (885) (799) Total Property and Equipment, net $ 1,644 $ 1,730 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses and other current liabilities consisted of the following: March 31, December 31, Contracted research services $ 8,984 $ 8,071 Payroll and related expenses 2,510 5,175 Professional and consulting fees 1,000 963 Current portion of operating lease liability 3,184 3,113 Total accrued expenses and other current liabilities $ 15,678 $ 17,322 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation | The Company recorded stock-based compensation expense in the following award type categories included within the condensed consolidated statements of operations and comprehensive loss: Three Months Ended 2024 2023 Stock options $ 1,623 $ 2,455 Restricted stock units 16 112 Employee Stock Purchase Plan and Other 74 104 $ 1,713 $ 2,671 The Company recorded stock-based compensation expense in the following expense categories of its condensed consolidated statements of operations and comprehensive loss: Three Months Ended 2024 2023 Research and development $ 635 $ 949 General and administrative 1,078 1,722 $ 1,713 $ 2,671 |
Schedule of Stock Option Activity | The following table summarizes the stock option activity under the Company’s equity awards plans: Options Weighted Average Exercise Price Weighted Average Remaining Life (in Years) Intrinsic Value (in thousands) Outstanding December 31, 2023 8,135,711 $ 7.85 8.0 $ 1,146 Granted 2,895,550 $ 4.85 Exercised (47,741) $ 1.78 Cancelled or forfeited (16,500) $ 1.82 Expired (300) $ 7.73 Outstanding March 31, 2024 10,966,720 $ 7.09 8.3 $ 11,996 Options vested or expected to vest at March 31, 2024 10,966,720 $ 7.09 8.3 $ 11,996 Options exercisable at March 31, 2024 4,242,313 $ 11.65 6.7 $ 3,488 |
Schedule of Restricted Stock Activity | The following table summarizes time-based restricted stock activity since January 1, 2024: Number of shares Weighted average grant date fair value Unvested restricted common stock as of December 31, 2023 20,799 $ 2.41 Vested (1,250) $ 3.79 Unvested restricted common stock as of March 31, 2024 19,549 $ 2.32 |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Net Loss per Share | The following table summarizes the computation of basic and diluted net loss per share attributable to common shareholders of the Company (in thousands, except share and per share amounts): Three Months Ended 2024 2023 Net loss $ (18,225) $ (20,875) Weighted average common shares outstanding, basic and diluted 51,808,849 36,483,878 Net loss per share, basic and diluted $ (0.35) $ (0.57) |
Schedule of Antidilutive Securities Excluded from Computation of Net Loss per Share | The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share for the periods indicated because including them would have had an anti-dilutive effect: Three Months Ended 2024 2023 Options to purchase common stock 10,966,720 7,710,285 Unvested restricted stock 19,549 86,290 Shares issuable under employee stock purchase plan 86,858 102,351 Unvested performance restricted stock units 19,000 229,859 Warrants to purchase common stock 10,757 10,757 11,102,884 8,139,542 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Schedule of Lease Cost and Other Operating Lease Information | The following table contains a summary of the lease costs recognized under ASC 842 and other information pertaining to the Company’s operating lease for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 2023 Lease Cost Operating lease cost $ 1,054 $ 1,054 Short-term lease cost 17 17 Variable lease cost 237 256 Sublease income (456) (135) Total lease cost $ 852 $ 1,192 Other Operating Lease Information March 31, 2024 March 31, 2023 Cash paid for amounts included in the measurement of lease liability $ 1,080 $ 1,051 Weighted-average remaining lease term 6.7 7.6 Weighted-average discount rate 5.3 % 5.3 % |
Schedule of Future Minimum Lease Payments | Future minimum lease payments under the Company’s operating leases as of March 31, 2024 were as follows: As of March 31, 2024 2024 (excluding the three months ended March 31, 2024) $ 3,279 2025 4,477 2026 4,599 2027 4,724 2028 3,926 Thereafter 8,324 Total lease payments 29,329 Less: interest (4,784) Total lease liability $ 24,545 |
NATURE OF BUSINESS AND BASIS _2
NATURE OF BUSINESS AND BASIS OF PRESENTATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Jul. 05, 2023 | Nov. 14, 2022 | Mar. 31, 2024 | Dec. 31, 2023 | |
Subsidiary, Sale of Stock [Line Items] | ||||
Sale of stock, gross | $ 4,000 | |||
Accumulated deficit | $ 435,656 | $ 417,431 | ||
Shelf Registration Statement | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Sale of stock, authorized consideration | $ 500,000 | |||
ATM Program | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Sale of stock, authorized consideration | $ 150,000 | |||
Number of shares sold (in shares) | 800,000 | |||
Sale of stock, gross | $ 4,000 | |||
Sale of stock, net of offering costs | $ 3,900 | |||
Follow-on Offering | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Number of shares sold (in shares) | 15,000,000 | |||
Stock price (in dollars per share) | $ 5 | |||
Proceeds from equity financing | $ 71,900 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - Recurring - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets: | ||
Total | $ 110,275 | $ 105,982 |
Money market funds | ||
Assets: | ||
Cash equivalents: | 20,498 | 30,803 |
Commercial paper | ||
Assets: | ||
Investments: | 82,830 | 44,871 |
Corporate bonds | ||
Assets: | ||
Investments: | 6,947 | 30,308 |
Level 1 | ||
Assets: | ||
Total | 20,498 | 30,803 |
Level 1 | Money market funds | ||
Assets: | ||
Cash equivalents: | 20,498 | 30,803 |
Level 1 | Commercial paper | ||
Assets: | ||
Investments: | 0 | 0 |
Level 1 | Corporate bonds | ||
Assets: | ||
Investments: | 0 | 0 |
Level 2 | ||
Assets: | ||
Total | 89,777 | 75,179 |
Level 2 | Money market funds | ||
Assets: | ||
Cash equivalents: | 0 | 0 |
Level 2 | Commercial paper | ||
Assets: | ||
Investments: | 82,830 | 44,871 |
Level 2 | Corporate bonds | ||
Assets: | ||
Investments: | 6,947 | 30,308 |
Level 3 | ||
Assets: | ||
Total | 0 | 0 |
Level 3 | Money market funds | ||
Assets: | ||
Cash equivalents: | 0 | 0 |
Level 3 | Commercial paper | ||
Assets: | ||
Investments: | 0 | 0 |
Level 3 | Corporate bonds | ||
Assets: | ||
Investments: | $ 0 | $ 0 |
INVESTMENTS - Schedule of Marke
INVESTMENTS - Schedule of Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 89,872 | $ 75,206 |
Unrealized Gains | 0 | 4 |
Unrealized Losses | (95) | (31) |
Fair Value | 89,777 | 75,179 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 82,921 | 44,880 |
Unrealized Gains | 0 | 4 |
Unrealized Losses | (91) | (13) |
Fair Value | 82,830 | 44,871 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 6,951 | 30,326 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (4) | (18) |
Fair Value | $ 6,947 | $ 30,308 |
INVESTMENTS - Additional Inform
INVESTMENTS - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | ||
Impairment of fair value assets | $ 0 | $ 0 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 2,529 | $ 2,529 | |
Less: accumulated depreciation | (885) | (799) | |
Total Property and Equipment, net | 1,644 | 1,730 | |
Depreciation expense | 86 | $ 122 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 17 | 17 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 2,512 | $ 2,512 |
EQUITY METHOD INVESTMENT (Detai
EQUITY METHOD INVESTMENT (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 31, 2024 | Dec. 01, 2022 | |
Schedule of Equity Method Investments [Line Items] | |||
Gain on sale of IP | $ 2,232,000 | ||
Research and development asset acquired other than through business combination, written-off | $ 710,000 | ||
Launchpad Therapeutics, Inc. | |||
Schedule of Equity Method Investments [Line Items] | |||
Common shares received from equity method investment (in shares) | 9,000,000 | ||
Equity method investment, ownership percentage | 39.10% | ||
Equity method investment | $ 0 | $ 0 | $ 2,250,000 |
Loss recognized from equity method investment | $ 1,540,000 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Payables and Accruals [Abstract] | ||
Contracted research services | $ 8,984 | $ 8,071 |
Payroll and related expenses | 2,510 | 5,175 |
Professional and consulting fees | 1,000 | 963 |
Current portion of operating lease liability | $ 3,184 | $ 3,113 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Total accrued expenses and other current liabilities | Total accrued expenses and other current liabilities |
Total accrued expenses and other current liabilities | $ 15,678 | $ 17,322 |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) | 3 Months Ended | ||||
Jan. 01, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Jan. 14, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost, options | $ 18,345,000 | ||||
Stock-based compensation expense | $ 1,713,000 | $ 2,671,000 | |||
2020 Stock Option Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Increase of authorized shares, percent of common stock outstanding | 4% | 4% | |||
Number of additional shares authorized (in shares) | 2,065,822 | ||||
2020 ESPP | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Increase of authorized shares, percent of common stock outstanding | 1% | ||||
Number of additional shares authorized (in shares) | 326,364 | ||||
Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost, recognition period (in years) | 3 years 1 month 6 days | ||||
Stock-based compensation expense | $ 1,623,000 | 2,455,000 | |||
Stock options | 2020 Stock Option Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issued under share-based compensation plan | 6,419 | ||||
Restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost, recognition period (in years) | 1 month 6 days | ||||
Fair value of units vested | $ 5,000 | ||||
Unrecognized compensation cost | 6,000 | ||||
Stock-based compensation expense | $ 16,000 | $ 112,000 | |||
Unvested performance restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Units outstanding (in shares) | 19,000 | ||||
Units vested (in shares) | 0 | ||||
Performance restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Units outstanding (in shares) | 19,000 | ||||
Units granted (in shares) | 0 | ||||
Units forfeited (in shares) | 0 | ||||
Stock-based compensation expense | $ 0 | ||||
Shares issuable under employee stock purchase plan | 2020 ESPP | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issued under share-based compensation plan | 26,659 | 33,202 | |||
Award purchase period (in months) | 6 months | ||||
Maximum percent of fair market value of common stock | 85% | ||||
Maximum employee subscription rate | 10% | ||||
Maximum employee subscription amount | $ 25,000 |
STOCK-BASED COMPENSATION - Sche
STOCK-BASED COMPENSATION - Schedule of Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | $ 1,713 | $ 2,671 |
Research and development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 635 | 949 |
General and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 1,078 | 1,722 |
Stock options | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 1,623 | 2,455 |
Restricted stock units | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 16 | 112 |
Employee Stock Purchase Plan and Other | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | $ 74 | $ 104 |
STOCK-BASED COMPENSATION - Sc_2
STOCK-BASED COMPENSATION - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Options | ||
Outstanding, beginning balance (in shares) | 8,135,711 | |
Granted (in shares) | 2,895,550 | |
Exercised (in shares) | (47,741) | |
Canceled or forfeited (in shares) | (16,500) | |
Expired (in shares) | (300) | |
Outstanding, ending balance (in shares) | 10,966,720 | 8,135,711 |
Options vested or expected to vest (in shares) | 10,966,720 | |
Options exercisable (in shares) | 4,242,313 | |
Weighted Average Exercise Price | ||
Outstanding, beginning balance (in dollars per share) | $ 7.85 | |
Granted (in dollars per share) | 4.85 | |
Exercised (in dollars per share) | 1.78 | |
Cancelled or forfeited (in dollars per share) | 1.82 | |
Expired (in dollars per share) | 7.73 | |
Outstanding, ending balance (in dollars per share) | 7.09 | $ 7.85 |
Options vested or expected to vest (in dollars per share) | 7.09 | |
Options exercisable (in dollars per share) | $ 11.65 | |
Weighted Average Remaining Life and Intrinsic Value | ||
Options outstanding, remaining life (in years) | 8 years 3 months 18 days | 8 years |
Options vested or expected to vest, remaining life (in years) | 8 years 3 months 18 days | |
Options exercisable, remaining life (in years) | 6 years 8 months 12 days | |
Options outstanding, intrinsic value | $ 11,996 | $ 1,146 |
Options vested or expected to vest, intrinsic value | 11,996 | |
Options exercisable, intrinsic value | $ 3,488 |
STOCK-BASED COMPENSATION - Sc_3
STOCK-BASED COMPENSATION - Schedule of Restricted Stock Activity (Details) - Unvested restricted stock | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Number of shares | |
Unvested restricted common stock, beginning balance (in shares) | shares | 20,799 |
Vested (in shares) | shares | (1,250) |
Unvested restricted common stock, ending balance (in shares) | shares | 19,549 |
Weighted average grant date fair value | |
Unvested restricted common stock, beginning balance (in dollars per share) | $ / shares | $ 2.41 |
Vested (in dollars per share) | $ / shares | 3.79 |
Unvested restricted common stock, ending balance (in dollars per share) | $ / shares | $ 2.32 |
NET LOSS PER SHARE - Computatio
NET LOSS PER SHARE - Computation of Net Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (18,225) | $ (20,875) |
Weighted average common shares outstanding, basic (in shares) | 51,808,849 | 36,483,878 |
Weighted average common shares outstanding, diluted (in shares) | 51,808,849 | 36,483,878 |
Net loss per share, basic (in dollars per share) | $ (0.35) | $ (0.57) |
Net loss per share, diluted (in dollars per share) | $ (0.35) | $ (0.57) |
NET LOSS PER SHARE - Schedule o
NET LOSS PER SHARE - Schedule of Antidilutive Securities Excluded from Computation of Net Loss per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 11,102,884 | 8,139,542 |
Options to purchase common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 10,966,720 | 7,710,285 |
Unvested restricted stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 19,549 | 86,290 |
Shares issuable under employee stock purchase plan | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 86,858 | 102,351 |
Unvested performance restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 19,000 | 229,859 |
Warrants to purchase common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 10,757 | 10,757 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2024 contract | Aug. 31, 2023 USD ($) | Dec. 31, 2020 ft² | Jul. 31, 2020 USD ($) ft² | |
Lessee, Lease, Description [Line Items] | ||||
Number of leases | contract | 2 | |||
Principal office, lease two | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term (in years) | 7 years | |||
Lease term, optional extension (in years) | 5 years | |||
Area leased (square feet) | 25,578 | |||
Letter of credit outstanding | $ | $ 779 | $ 1,168 | ||
Operating Lease, Office and Laboratory Space, NY | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term (in years) | 11 years | |||
Lease term, optional extension (in years) | 5 years | |||
Area leased (square feet) | 18,120 |
LEASES - Summary of Lease Cost
LEASES - Summary of Lease Cost and Other Operating Lease Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Lease Cost | ||
Operating lease cost | $ 1,054 | $ 1,054 |
Short-term lease cost | 17 | 17 |
Variable lease cost | 237 | 256 |
Sublease income | (456) | (135) |
Total lease cost | 852 | 1,192 |
Other Operating Lease Information | ||
Cash paid for amounts included in the measurement of lease liability | $ 1,080 | $ 1,051 |
Weighted-average remaining lease term (in years) | 6 years 8 months 12 days | 7 years 7 months 6 days |
Weighted-average discount rate | 5.30% | 5.30% |
LEASES - Schedule of Future Min
LEASES - Schedule of Future Minimum Lease Payments (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Lessee, Operating Lease, Liability, to be Paid [Abstract] | |
2024 (excluding the three months ended March 31, 2024) | $ 3,279 |
2025 | 4,477 |
2026 | 4,599 |
2027 | 4,724 |
2028 | 3,926 |
Thereafter | 8,324 |
Total lease payments | 29,329 |
Less: interest | (4,784) |
Total lease liability | $ 24,545 |
BENEFIT PLANS (Details)
BENEFIT PLANS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Retirement Benefits [Abstract] | ||
Employer contribution, matching contribution percentage | 100% | |
Employer contribution, percent of each participant's salary | 6% | |
Employer contribution amount | $ 348 | $ 376 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
May 09, 2024 | Apr. 30, 2024 | Mar. 31, 2024 | |
Subsequent Event [Line Items] | |||
Issuance of common stock, net of issuance costs | $ 4,000 | ||
ATM Program | |||
Subsequent Event [Line Items] | |||
Number of shares sold (in shares) | 800,000 | ||
Issuance of common stock, net of issuance costs | $ 4,000 | ||
Sale of stock, net of offering costs | $ 3,900 | ||
ATM Program | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Number of shares sold (in shares) | 2,690,853 | 1,000,000 | |
Issuance of common stock, net of issuance costs | $ 15,600 | $ 5,400 | |
Sale of stock, net of offering costs | $ 15,300 | $ 5,300 |