Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 29, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | HARP | |
Entity Registrant Name | Harpoon Therapeutics, Inc. | |
Entity Central Index Key | 0001708493 | |
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 File Number | 001-38800 | |
Entity Tax Identification Number | 47-3458693 | |
Entity Common Stock, Shares Outstanding | 33,084,139 | |
Title of 12(b) Security | Common stock, par value $0.0001 per share | |
Security Exchange Name | NASDAQ | |
Entity Address, Address Line One | 131 Oyster Point Blvd | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | South San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94080 | |
City Area Code | 650 | |
Local Phone Number | 443-7400 | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Balance Sheets (unaud
Condensed Balance Sheets (unaudited) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 50,738 | $ 44,687 |
Short-term marketable securities | 61,727 | 90,411 |
Prepaid expenses and other current assets | 4,480 | 2,597 |
Total current assets | 116,945 | 137,695 |
Property and equipment, net | 8,722 | 9,248 |
Long-term marketable securities | 0 | 1,522 |
Operating lease right-of-use asset | 5,967 | 6,127 |
Other assets | 813 | 860 |
Total assets | 132,447 | 155,452 |
Current liabilities | ||
Accounts payable | 4,189 | 2,666 |
Accrued liabilities | 15,812 | 17,362 |
Deferred revenue, current | 36,875 | 37,462 |
Operating lease liabilities, current | 1,707 | 1,649 |
Total current liabilities | 58,583 | 59,139 |
Deferred revenue, noncurrent | 22,386 | 27,705 |
Operating lease liabilities, net of current portion | 10,094 | 10,538 |
Total liabilities | 91,063 | 97,382 |
Commitments and contingencies (Note 6) | ||
Stockholders' equity | ||
Common stock, $0.0001 par value; 150,000,000 shares authorized at September 30, 2021 and December 31, 2020; 32,740,925 shares and 25,553,172 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively | 4 | 4 |
Additional paid-in capital | 346,581 | 342,905 |
Accumulated other comprehensive loss | (88) | (47) |
Accumulated deficit | (305,113) | (284,792) |
Total stockholders' equity | 41,384 | 58,070 |
Total liabilities and stockholders' equity | $ 132,447 | $ 155,452 |
Condensed Balance Sheets (una_2
Condensed Balance Sheets (unaudited) (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, Authorized | 150,000,000 | 150,000,000 |
Common stock, issued | 33,077,421 | 32,765,788 |
Common stock, outstanding | 33,077,421 | 32,765,788 |
Condensed Statements of Operati
Condensed Statements of Operations and Comprehensive Loss (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue | ||
Total revenue | $ 5,906 | $ 9,007 |
Operating expenses | ||
Research and development | 20,818 | 16,216 |
General and administrative | 5,401 | 4,604 |
Litigation settlement | 0 | 49,954 |
Total operating expenses | 26,219 | 70,774 |
Loss from operations | (20,313) | (61,767) |
Interest income, net | 40 | 94 |
Other expense, net | (48) | (51) |
Net loss | (20,321) | (61,724) |
Other comprehensive loss: | ||
Net unrealized loss on marketable securities | (41) | (20) |
Comprehensive loss | $ (20,362) | $ (61,744) |
Net loss per share, basic and diluted | $ (0.62) | $ (1.95) |
Weighted-average shares used in computing net loss per share, basic and diluted | 32,879,188 | 31,578,636 |
Collaboration and License | ||
Revenue | ||
Total revenue | $ 5,906 | $ 9,007 |
Condensed Statements of Stockho
Condensed Statements of Stockholders' Equity (Deficit) (unaudited) - USD ($) $ in Thousands | Total | Follow On Offering | Common Stock | Common StockFollow On Offering | Additional Paid-In Capital | Additional Paid-In CapitalFollow On Offering | Accumulated Other Comprehensive (Loss) | Accumulated Deficit |
Beginning balances at Dec. 31, 2020 | $ 53,839 | $ 3 | $ 221,904 | $ 3 | $ (168,071) | |||
Beginning balances, shares at Dec. 31, 2020 | 25,553,172 | |||||||
Issuance of common stock | $ 107,582 | $ 1 | $ 107,581 | |||||
Issuance of common stock, shares | 6,764,704 | |||||||
Issuance of common stock under equity incentive plans including exercise of stock options | 561 | 561 | ||||||
Issuance of common stock under equity incentive plans including exercise of stock options, shares | 113,538 | |||||||
Vesting of early exercised stock options | 6 | 6 | ||||||
Vesting of early exercised stock options, shares | 7,319 | |||||||
Stock-based compensation | 2,136 | 2,136 | ||||||
Net loss | (61,724) | (61,724) | ||||||
Unrealized (loss) gain on marketable securities | (20) | (20) | ||||||
Ending balance at Mar. 31, 2021 | 102,380 | $ 4 | 332,188 | (17) | (229,795) | |||
Ending balance, shares at Mar. 31, 2021 | 32,438,733 | |||||||
Beginning balances at Dec. 31, 2021 | 58,070 | $ 4 | 342,905 | (47) | (284,792) | |||
Beginning balances, shares at Dec. 31, 2021 | 32,765,788 | |||||||
Issuance of common stock under equity incentive plans including exercise of stock options | 830 | 830 | ||||||
Issuance of common stock under equity incentive plans including exercise of stock options, shares | 309,905 | |||||||
Vesting of early exercised stock options | 3 | 3 | ||||||
Vesting of early exercised stock options, shares | 1,728 | |||||||
Stock-based compensation | 2,843 | 2,843 | ||||||
Net loss | (20,321) | (20,321) | ||||||
Unrealized (loss) gain on marketable securities | (41) | (41) | ||||||
Ending balance at Mar. 31, 2022 | $ 41,384 | $ 4 | $ 346,581 | $ (88) | $ (305,113) | |||
Ending balance, shares at Mar. 31, 2022 | 33,077,421 |
Condensed Statements of Stock_2
Condensed Statements of Stockholders' Equity (Deficit) (unaudited) (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Follow On Offering | |
Payment Of underwriter discounts commissions and issuance cost | $ 7,400 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities | ||
Net loss | $ (20,321) | $ (61,724) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities | ||
Stock-based compensation expense | 2,843 | 2,136 |
Depreciation and amortization | 604 | 549 |
Non-cash lease expense | 160 | 25 |
Net amortization of discounts on marketable securities | 305 | 574 |
Changes in operating assets and liabilities | ||
Prepaid expenses and other assets | (1,884) | (1,143) |
Other assets | 47 | 316 |
Accounts payable | 946 | 1,070 |
Accrued liabilities | (1,645) | 49,359 |
Deferred revenue | (5,906) | (9,007) |
Operating lease liabilities | (387) | (232) |
Net cash used in operating activities | (25,238) | (18,077) |
Cash flows from investing activities | ||
Purchases of property and equipment | 597 | 45 |
Purchases of marketable securities | (10,505) | (82,956) |
Maturities of marketable securities | 40,367 | 43,101 |
Net cash provided by (used in) investing activities | 30,459 | (39,900) |
Cash flows from financing activities | ||
Proceeds from follow-on offering, net of issuance costs | 0 | 107,581 |
Proceeds from issuance of common stock in connection with employee benefit plans | 830 | 561 |
Net cash provided by financing activities | 830 | 108,142 |
Net increase in cash, cash equivalents, and restricted cash | 6,051 | 50,165 |
Cash, cash equivalents, and restricted cash at beginning of period | 45,360 | 21,637 |
Cash, cash equivalents, and restricted cash at end of period | 51,411 | 71,802 |
Supplemental disclosures of non-cash investing and financing information | ||
Purchases of property and equipment included in accrued liabilities and accounts payable | 675 | 0 |
Reclassification of employee stock liability to equity upon vesting | $ 3 | $ 6 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | 1. Organization Description of Business Harpoon Therapeutics, Inc. (the “Company”) is a clinical-stage immunotherapy company developing a novel class of T cell engagers that harness the power of the body’s immune system to treat patients suffering from cancer and other diseases. T cell engagers are engineered proteins that direct a patient’s own T cells to kill target cells that express specific proteins, or antigens, carried by the target cells. Using a proprietary Tri-specific T cell Activating Construct (“TriTAC”), platform, the Company is developing a pipeline of novel T cell engagers, or TriTACs, initially focused on the treatment of solid tumors and hematologic malignancies. The Company is also developing its ProTriTAC platform, which builds upon the core elements of the TriTAC platform by utilizing a prodrug approach designed to allow T cell engagers to address cancer targets that would otherwise be limited by on-target toxicities. The Company's third proprietary technology platform, extended release TriTAC-XR, is designed to mitigate cytokine release syndrome. The Company was incorporated in Delaware in March 2015 and is headquartered in South San Francisco, California. Follow-On Offering In January 2021, the Company sold an aggregate of 6,764,704 shares of its common stock for $ 107.6 million in net proceeds after deducting underwriting discounts and commissions and offering expenses. The offering was made pursuant to the Company’s shelf registration statement on Form S-3 (File No. 333-237175), declared effective by the SEC on April 23, 2020, a base prospectus dated April 23, 2020 and the related prospectus supplement dated January 6, 2021. Liquidity Since inception, the Company has incurred significant losses and has negative cash flows from operations. As of March 31, 2022, the Company had an accumulated deficit of $ 305.1 million . Management expects to continue to incur additional substantial losses in the foreseeable future as a result of the Company’s research and development activities. As of March 31, 2022, the Company had cash, cash equivalents, and marketable securities of $ 112.5 million, which is available to fund future operations. The Company believes as of March 31, 2022 that its cash, cash equivalents and marketable securities provide sufficient capital resources to continue its operations for at least 12 months from the issuance date of the accompanying condensed financial statements. The Company will need to raise additional capital to support the completion of its research and development activities. The Company’s activities are subject to significant risks and uncertainties, including failing to secure additional funding to continue to operationalize the Company’s current technology and to advance the development of its product candidates. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of SEC Regulation S-X for interim financial information. The accompanying unaudited condensed financial statements and notes should be read in conjunction with the audited annual financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the SEC on March 10, 2022 (the “2021 Annual Report on Form 10-K”). The Balance Sheet as of December 31, 2021 was derived from the audited annual financial statements as of the period then ended. Certain information and footnote disclosures typically included in the Company's audited annual financial statements have been condensed or omitted. The accompanying unaudited condensed financial statements reflect all adjustments that, in the opinion of management, are necessary for a fair statement of the results of the interim periods presented. All such adjustments are of a normal recurring nature except for the impacts of adopting new accounting standards discussed below. The accompanying unaudited condensed financial results are not necessarily indicative of results expected for the full fiscal year or for any subsequent interim period. During the three months ended March 31, 2022, there were no material changes to the Company's significant accounting and financial reporting policies from those reflected in the 2021 Annual Report on Form 10-K. For further information with regard to the Company’s Significant Accounting Policies, please refer to Note 2, “Summary of Significant Accounting Policies,” to the Company’s audited annual financial statements included in the 2021 Annual Report on Form 10-K which have been prepared in accordance with GAAP. Use of Estimates The preparation of condensed financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates and assumptions made in the accompanying condensed financial statements include, but are not limited to, the fair value of stock options, the research period of the collaboration agreements with AbbVie Biotechnology Ltd. (“AbbVie”), operating lease asset and lease liabilities, income tax uncertainties and certain accruals. As of March 31, 2022, the Company has not experienced a significant financial impact directly related to the COVID-19 pandemic. See Note 1 Organization – Liquidity for more information. Segment Reporting Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the Company’s Chief Operating Decision Maker in making decisions regarding resource allocation and assessing performance. To date, the Company has viewed its operations and manages its business as one segment operating primarily in the United States. Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments purchased with original maturities of three months or less from the purchase date to be cash equivalents. Cash equivalents consist primarily of amounts invested in money market accounts and are stated at fair value. There are no significant unrealized gains or losses on the money market funds for the periods presented. For the periods ended March 31, 2022 and December 31, 2021, the Company classified $ 0.7 million as restricted cash related to a letter of credit established for an operating lease entered into in August 2018 and collateral related to a deposit for an operating lease entered into in October 2021. The restricted cash is classified in “Other assets” in the condensed balance sheets. See Note 6 Commitments and Contingencies for more information. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the condensed balance sheets that sum to the total of the same amounts shown in the condensed statements of cash flows. As of March 31, 2022 March 31, 2021 (in thousands) Balance Sheets Cash and cash equivalents $ 50,738 $ 71,335 Restricted cash (included in other assets) 673 467 Cash, cash equivalents and restricted cash in condensed Statements of Cash Flows $ 51,411 $ 71,802 Marketable Securities The Company generally invests its excess cash in money market funds and investment grade short-term to intermediate-term fixed income securities. Such investments are included in cash and cash equivalents, short-term marketable securities or long-term marketable securities on the condensed balance sheets. Marketable securities with a maturity date greater than 90 days and less than one year at each condensed balance sheet date are classified as short-term. Marketable securities with a maturity date greater than one year at each condensed balance sheet date are classified as long-term. All of the Company’s marketable securities are considered available-for-sale and are reported at fair value with unrealized gains and losses included as a component of stockholders’ equity. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity, which is included in interest income, net on the condensed statements of operations. Realized gains and losses and declines in value judged to be other-than-temporary, if any, on marketable securities are included in interest income, net on the condensed statements of operations. The cost of securities sold is determined using specific identification. The Company periodically evaluates whether declines in the fair values of its marketable securities below their amortized cost are other-than-temporary. This evaluation consists of several qualitative and quantitative factors regarding the severity and duration of the unrealized loss, as well as the Company’s ability and intent to hold the marketable security until a forecasted recovery occurs. Additionally, the Company assesses whether it has plans to sell the marketable security or it is more likely than not it will be required to sell any marketable securities before recovery of its amortized cost basis. Factors considered include quoted market prices, recent financial results and operating trends, implied values from any recent transactions or offers of investee securities, credit quality of debt instrument issuers, other publicly available information that may affect the value of the marketable security, duration and severity of the decline in value, and the Company’s strategy and intentions for holding the marketable security. Concentration of Credit Risk The Company is subject to credit risk from its portfolio of cash equivalents and marketable securities. The Company invests in money market funds through a major U.S. bank and is exposed to credit risk in the event of default by the financial institution to the extent of amounts recorded on the condensed balance sheets. The Company invests in money market funds and investment grade short- to intermediate-term fixed income securities. Under its investment policy, the Company limits amounts invested in such securities by credit rating, maturity, industry group, investment type and issuer, except for securities issued by the U.S. government. The Company is not exposed to any significant concentrations of credit risk from these financial instruments. The goals of the Company’s investment policy, in order of priority, are as follows: preservation of principal, liquidity of investments, fiduciary control of cash and investments, prevention of inappropriate concentrations of investments, and obtaining the best yields. The Company minimizes the amount of credit exposure by investing cash that is not required for immediate operating needs in money market funds and marketable securities. Leases The Company evaluates arrangements at inception to determine if an arrangement is or contains a lease. Operating lease assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at the commencement date of the lease based upon the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company uses an incremental borrowing rate that the Company would expect to incur for a fully collateralized loan over a similar term under similar economic conditions to determine the present value of the lease payments. The lease payments used to determine the Company’s operating lease assets may include lease incentives and stated rent increases and are recognized in the Company’s operating lease assets in the condensed balance sheets. Operating lease liabilities are accreted over the term of the lease using the incremental borrowing rate and the associated expense is recorded to operating expenses in the condensed statement of operations and comprehensive loss. The Company recognizes lease expenses on a straight-line basis over the lease term. Variable lease payments are recognized as the associated obligation is incurred. Fair Value Measurement Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability, or an exit price, in the principal or most advantageous market for that asset or liability in an orderly transaction between market participants on the measurement date, and established a fair value hierarchy that requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. The Company measures fair value based on a three-level hierarchy of inputs, of which the first two are considered observable and the last unobservable. Unobservable inputs reflect the Company’s own assumptions about current market conditions. The three-level hierarchy of inputs is as follows: Level 1—Observable inputs such as unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; Level 2—Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active; and Level 3— Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The carrying amounts reflected in the accompanying condensed balance sheets for cash and cash equivalents, restricted cash, short-term marketable securities, prepaid expenses, other current assets, accounts payable, accrued expenses and other current liabilities approximate their fair values due to their short-term nature. Revenue Recognition In accordance with Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“Topic 606”), the Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of Topic 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that it will collect the consideration it is entitled to in exchange for the goods and services it transfers to the customer. At contract inception, the Company assesses the goods or services promised within each contract that falls under the scope of Topic 606, determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. The Company enters into corporate collaborations under which it may obtain upfront license fees, research and development funding, and development, regulatory and commercial milestone payments and royalty payments. The Company’s performance obligations under these arrangements may include licenses of intellectual property, distribution rights, research and development services, delivery of manufactured product and/or participation on joint steering committees. Licenses of intellectual property: If the license to the Company’s intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenue from upfront license fees allocated to the license when the license is transferred to the customer and the customer is able to use and benefit from the license. For licenses that are bundled with other promises, the Company utilizes judgement to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring proportional performance for purposes of recognizing revenue from non-refundable, up-front fees. The Company evaluates the measure of proportional performance each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. The Company recognizes collaboration revenue by measuring the progress toward complete satisfaction of the performance obligation using an input measure. In order to recognize revenue over the research and development period, the Company measures actual costs incurred to date compared to the overall total expected costs to satisfy the performance obligation. Revenues are recognized as the program costs are incurred. The Company will re-evaluate the estimate of expected costs to satisfy the performance obligation each reporting period and make adjustments for any significant changes. Milestone payments: At the inception of each arrangement that includes development, regulatory or commercial milestone payments, the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price. Topic 606 suggests two alternatives to use when estimating the amount of variable consideration: the expected value method and the most likely amount method. Under the expected value method, an entity considers the sum of probability-weighted amounts in a range of possible consideration amounts. Under the most likely amount method, an entity considers the single most likely amount in a range of possible consideration amounts. Whichever method is used, it should be consistently applied throughout the life of the contract; however, it is not necessary for the Company to use the same approach for all contracts. The Company expects to use the most likely amount method for development and regulatory milestone payments. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the Company’s or the licensee’s control, such as regulatory approvals, are not considered probable of being achieved until those approvals are received. The transaction price is then allocated to each performance obligation on a relative stand-alone selling price basis. The Company recognizes revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, the Company re-evaluates the probability or achievement of each such milestone and any related constraint, and if necessary, adjusts its estimates of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect revenues and earnings in the period of adjustment. Commercial milestones and royalties: For arrangements that include sales-based royalties, including milestone payments based on the level of sales, and in which the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue when the related sales occur. To date, the Company has not recognized any royalty revenue resulting from its collaboration arrangements. Upfront payments and fees are recorded as deferred revenue upon receipt or when due, and may require deferral of revenue recognition to a future period until the Company performs its obligations (i.e. research and development services) under these arrangements. Amounts due to the Company are recorded as accounts receivable when the Company’s right to consideration is unconditional. Amounts recognized as revenue prior to receipt are recorded as contract assets included in prepaid expenses and other current assets on the Company’s condensed balance sheet. If the Company expects to have an unconditional right to receive the consideration in the next twelve months, this will be classified in current assets. Research and Development Expenses and Accrued Research and Development Costs The Company expenses research and development costs as incurred. Research and development expenses consist of personnel costs for the Company’s research and product development employees. Also included are non-personnel costs such as professional fees payable to third parties for preclinical studies, clinical trials, research services, production of materials for clinical trials, laboratory supplies and equipment maintenance and depreciation, intellectual property licenses and other consulting costs. The Company estimates preclinical and clinical study and research expenses based on the services performed, pursuant to contracts with research institutions that conduct and manage preclinical studies, clinical trials and research services and manufacturing organizations in connection with the production of materials for clinical trials on its behalf. The Company estimates these expenses based on discussions with internal management personnel and external service providers as to the progress or stage of completion of services and the contracted fees to be paid for such services. The Company records the estimated costs of research and development activities based upon the estimated amount services provided but not yet invoiced and includes these costs in development expenses. The Company accrues for these costs based on factors such as estimates of the work completed and in accordance with agreements established with its third-party service provides under the service agreements. 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. However, the status and timing of actual services performed may vary from the Company’s estimates, resulting in adjustments to expense in future periods. Changes in these estimates that result in material changes to the Company’s accruals could materially affect the Company’s results of operations. Payments associated with licensing agreements to acquire exclusive license to develop, use, manufacture and commercialize products that have not reached technological feasibility and do not have alternate future use are expensed as incurred. Payments made to third parties under these arrangements in advance of the performance of the related services by the third parties are recorded as prepaid expenses until the services are rendered. Such payments are evaluated for current or long-term classification based on when such services are expected to be received. Stock-Based Compensation The Company maintains a stock-based compensation plan as a long-term incentive for employees, consultants and members of the Company’s board of directors (the “Board”). The plan allows for the issuance of non-statutory options (“NSOs”) and incentive stock options to employees and NSOs to non-employees. Share-based payments are measured using fair-value-based measurements and recognized as compensation expense over the service period in which the awards are expected to vest. The Company’s fair-value-based measurements of awards to employees, directors and consultants as of the grant date utilize the single-option award-valuation approach, and the Company uses the straight-line method for expense attribution. The fair-value-based measurements of options granted to nonemployees are remeasured at each period end until the options vest and are amortized to expense as earned. The valuation model used for calculating the estimated fair value of stock awards is the Black-Scholes option-pricing model. The Black-Scholes option-pricing model requires the Company to make assumptions and judgments about the variables used in the calculations, including the expected term (weighted-average period of time that the options granted are expected to be outstanding), the expected volatility of the Company’s common stock, the related risk-free interest rate and the expected dividend yield. The Company has elected to recognize forfeitures of share-based payment awards as they occur. Income Taxes Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates applied to taxable income in the years in which those temporary differences are expected to be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income in the period that includes the enactment date. A valuation allowance is established when necessary to reduce deferred tax assets to the amount expected to be realized. Financial statement effects of uncertain tax positions are recognized when it is more-likely-than-not, based on the technical merits of the position, that it will be sustained upon examination. Interest and penalties related to unrecognized tax benefits are included as a component of other expense. To date, there have been no interest or penalties charged in relation to the unrecognized tax benefits. The Company accounts for uncertain tax positions in accordance with ASC 740-10, Accounting for Uncertainty in Income Taxes . The Company assesses all material positions taken in any income tax return, including all significant uncertain positions, in all tax years that are still subject to assessment or challenge by relevant taxing authorities. Assessing an uncertain tax position begins with the initial determination of the position’s sustainability and is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. As of each balance sheet date, unresolved uncertain tax positions must be reassessed, and the Company will determine whether (i) the factors underlying the sustainability assertion have changed and (ii) the amount of the recognized tax benefit is still appropriate. The recognition and measurement of tax benefits requires significant judgment. Judgment concerning the recognition and measurement of a tax benefit might change as new information becomes available. The Company includes any penalties and interest expense related to income taxes as a component of provision for income tax, as necessary. To date, there have been no interest or penalties charged in relation to the unrecognized tax benefits. Net Loss Per Share Basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period, without consideration for potentially dilutive securities. As discussed in Note 9 Net Loss Per Share , the unvested portion of early exercised stock options are excluded from the computation of weighted average shares as the continuing vesting of such shares is contingent on the holders’ continued service to the Company. Diluted net loss per share is the same as basic net loss per share for each period presented since the effects of potentially dilutive securities are antidilutive given the net loss of the Company. Comprehensive Loss Comprehensive loss includes net loss and certain changes in stockholders’ equity that are excluded from net loss, primarily unrealized gains or losses on the Company’s marketable securities. Emerging Growth Company Status The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that the Company (i) is no longer an emerging growth company or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, the accompanying condensed financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates. Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and subsequent amendments to the initial guidance: ASU 2018-19 and ASU 2019-04 (collectively, “Topic 326”). Topic 326 requires measurement and recognition of expected credit losses for financial assets held. The amendments apply to entities which hold financial assets that are not accounted for at fair value through net income as well as loans, debt securities, accounts receivables and any other financial assets not excluded from the scope that have the contractual right to receive cash. Topic 326 requires entities to record expected credit losses for certain financial instruments, including available-for-sale securities, as an allowance that reflect the entity’s current estimate of credit losses expected to be incurred. For available-for-sale debt securities in unrealized loss positions, ASU 2016-13 requires allowances to be recorded instead of reducing the amortized cost of the investment. Under ASU 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates , the effective date for ASU 2016-13 has been deferred for credit losses for SEC filers that are eligible as a smaller reporting company. As such, the amended effective date for ASU 2016-13 is January 1, 2023. The Company is currently evaluating the effect of the adoption of this guidance on its financial statements. |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | 3. Fair Value Measurement The following table presents information about the Company’s financial assets that are measured at fair value and indicates the fair value hierarchy of the valuation: March 31, 2022 Total Level 1 Level 2 Level 3 (in thousands) Assets Cash Equivalents: Money market funds $ 44,193 $ 44,193 $ — $ — Corporate debt securities 1,500 1,500 — — Short-term marketable securities U.S. government treasuries 9,969 9,969 — — U.S. government securities 33,068 33,068 — — Corporate debt securities 12,450 — 12,450 — U.S. government agency securities 4,738 — 4,738 — Non-U.S. government securities 1,502 — 1,502 — Total cash equivalents and marketable securities $ 107,420 $ 88,730 $ 18,690 $ — December 31, 2021 Total Level 1 Level 2 Level 3 (in thousands) Assets Cash Equivalents: Money market funds $ 42,867 42,867 $ — $ — Short-term marketable securities U.S. government treasuries 9,999 9,999 — — U.S. government securities 45,241 45,241 — — Corporate debt securities 23,475 — 23,475 — U.S. government agency securities 11,697 — 11,697 — Long-term marketable securities U.S. government securities 1,522 — 1,522 — Total cash equivalents and marketable securities $ 134,801 $ 98,107 $ 36,694 $ — The Company’s Level 2 securities are valued using third-party pricing sources. The pricing services utilize industry standard valuation models, including both income and market-based approaches, for which all significant inputs are observable, either directly or indirectly. The Company had no Level 3 assets or liabilities as of March 31, 2022 and December 31, 2021. There were no transfers between Level 1 and Level 2 for the periods ended March 31, 2022 and December 31, 2021. The Company did no t have any financial liabilities subject to fair value measurements on a recurring basis as of March 31, 2022 and December 31, 2021. |
Available-for-Sale Securities
Available-for-Sale Securities | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-Sale Securities | 4. Available-for Sale Securities All marketable securities were considered available-for-sale at March 31, 2022. The amortized cost, gross unrealized holding gains or losses, and fair value of the Company’s marketable securities by major security type at each condensed balance sheets date are summarized in the tables below: March 31, 2022 Amortized Cost Gross Gross Fair Value (in thousands) Cash equivalents Corporate debt securities $ 1,500 $ — $ — $ 1,500 Money market funds 44,193 — — 44,193 Total cash equivalents 45,693 — — 45,693 Short-term marketable securities: U.S. government treasuries 9,980 — ( 11 ) 9,969 U.S. government agency securities 4,739 — ( 1 ) 4,738 U.S. government securities 33,092 — ( 24 ) 33,068 Corporate debt securities 12,479 — ( 29 ) 12,450 Non-U.S. government securities 1,525 ( 23 ) 1,502 Total short-term marketable securities 61,815 — ( 88 ) 61,727 Total $ 107,508 $ — $ ( 88 ) $ 107,420 December 31, 2021 Amortized Cost Gross Gross Fair Value (in thousands) Cash equivalents Money market funds $ 42,867 — — $ 42,867 Total cash equivalents 42,867 — — 42,867 Short-term marketable securities: U.S. government treasuries 9,999 — — 9,999 U.S. government agency securities 11,697 1 ( 1 ) 11,697 U.S. government securities 45,257 — ( 16 ) 45,241 Corporate debt securities 23,495 — ( 20 ) 23,475 Total short-term marketable securities 90,448 1 ( 37 ) 90,412 Long-term marketable securities: U.S. government securities 1,532 — ( 10 ) 1,522 Total long-term marketable securities 1,532 — ( 10 ) 1,522 Total $ 134,847 $ 1 $ ( 47 ) $ 134,801 As of March 31, 2022 and December 31, 2021, some of the Company’s marketable securities were in an unrealized loss position. The Company determined that it did have the ability and intent to hold all marketable securities that have been in a continuous loss position until maturity or recovery, thus there has been no recognition of any other-than-temporary impairment in the three months ended March 31, 2022. All marketable securities with unrealized losses as of each condensed balance sheet date have been in a loss position for less than twelve months or the loss is not material. All of the Company’s marketable securities have an effective maturity of less than two years . |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Mar. 31, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | 5. Balance Sheet Components Property and Equipment, Net Property and equipment, net consists of the following: March 31, December 31, 2022 2021 (in thousands) Laboratory equipment $ 5,963 $ 5,886 Furniture and fixtures 585 585 Computer equipment and software 91 91 Leasehold improvements 8,872 8,872 15,511 15,434 Less: Accumulated depreciation and amortization ( 6,789 ) ( 6,186 ) Total property and equipment, net $ 8,722 $ 9,248 Depreciation and amortization expense for property and equipment amounted to $ 0.6 milli o n and $ 0.5 million for the three months periods ended March 31, 2022 and March 31, 2021, respectively. Accrued Liabilities Accrued liabilities consist of the following: March 31, December 31, 2022 2021 Accrued research and development $ 11,239 $ 11,041 Accrued personnel costs 3,206 5,238 Accrued professional and consulting fees 1,068 200 Other 299 883 Total accrued liabilities $ 15,812 $ 17,362 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6. Commitments and Contingencies Leases In August 2018, the Company entered into a lease agreement for the office and laboratory space in South San Francisco, California (the “Cove Lease”). The lease commencement date was July 1, 2019 , at which time the Company took occupancy. The Cove Lease includes an option to renew, exercisable at the Company’s sole discretion, with a renewal term for an additional period of eight years . As of March 31, 2022, the Company has not determined whether it will exercise its option to extend the lease term. Therefore, the operating lease assets and lease liabilities only contemplate the initial lease terms. The Cove Lease qualifies as an operating lease. In October 2021, the Company entered into a lease agreement for additional office space in South San Francisco, California. Upon the execution of the lease agreement, the Company provided the landlord with a security deposit of $ 0.2 million, which is included in other assets on the balance sheet. In addition, as of March 31, 2022, the lease commencement date has not yet taken effect, as such, the Company did not recognize a right of use asset and lease liability associated with this lease. The following table summarizes the presentation in the Company’s condensed balance sheets of its operating lease (in thousands): As of Assets: Operating lease right-of-use assets $ 5,967 Liabilities Operating lease liabilities $ 1,707 Operating lease liabilities, net of current portion 10,094 Total operating lease liabilities $ 11,801 The Company incurred $ 0.2 million in variable lease costs for each of the three months ended March 31, 2022 and March 31, 2021. Future minimum lease payments under the Cove Lease as of March 31, 2022 are as follows (in thousands): Operating Lease Remainder of 2022 2,002 2023 2,738 2024 2,825 2025 2,916 2026 3,009 Thereafter 1,271 Total future minimum lease payments 14,761 Less imputed interest ( 2,960 ) Total $ 11,801 As of March 31, 2022, the weighted average remaining lease term was 5.3 years and the weighted average incremental borrowing rate used to determine the operating lease liability was 8.95 %. Rent expense was $ 0.7 million and $ 0.6 million for the three months ended March 31, 2022 and March 31, 2021, respectively. Amortization expense of the right-of-use lease assets was $ 0.2 million and $ 0.1 million for the three months ended March 31, 2022 and March 31, 2021, respectively. Indemnification In the ordinary course of business, the Company enters into agreements that may include indemnification provisions. Pursuant to such agreements, the Company may indemnify, hold harmless and defend an indemnified party for losses suffered or incurred by the indemnified party. Some of the provisions will limit losses to those arising from third-party actions. In some cases, the indemnification will continue after the termination of the agreement. The maximum potential amount of future payments the Company could be required to make under these provisions is not determinable. The Company has never incurred material costs to defend lawsuits or settle claims related to these indemnification provisions. The Company has also entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers to the fullest extent permitted by Delaware corporate law. The Company currently has directors’ and officers’ insurance. Maverick Litigation On April 3, 2020, the Delaware Chancery Court (the “Court”) issued a memorandum opinion, which related only to the Company’s ProTriTAC platform. The Court ruled in favor of the Company on claims by Maverick Therapeutics, Inc. (“Maverick”) for breach of contract and misappropriation of trade secrets and dismissed those claims. As part of that ruling, the Court determined that the Company’s ProTriTAC technology is not in a field that is subject to a four year non-compete. The Court found in favor of Millennium Pharmaceuticals, Inc. (“Millennium”) on its claim against the Company for fraud in inducing Millennium’s January 2017 investment in Maverick. The Court found that Millennium had not proved its claims for tortious interference with contract and business relations or unfair competition, and those claims were dismissed. The Court held a one-day trial on Millennium’s damages claim on September 22, 2020, and closing arguments were held December 8, 2020. On April 23, 2021, following a damages phase, the Court issued a memorandum opinion awarding Millennium $ 38.2 million in damages, plus pre-judgment interest. The Court’s opinion stated that pre-judgment interest would be calculated as set forth in 6 Del. Code Section 2301(a), which generally provides that the legal rate of interest shall be 5 % over the Federal Reserve discount rate. On May 5, 2021, the Company entered into a settlement agreement (the “Settlement Agreement”) with Millennium and Maverick to resolve the parties’ previously reported lawsuit. Pursuant to the terms of the Settlement Agreement, Millennium filed a proposed order and final judgment with the Court on May 5, 2021; the Company paid on May 5, 2021 the full amount of damages awarded by the Court, equal to $ 50.0 million, consisting of $ 38.2 million in damages plus $ 11.8 million in pre-judgment interest through May 5, 2021; and the Company, Millennium and Maverick each agreed to forego and waive its right to appeal the order and final judgment. Following execution of the Settlement Agreement, the Company is free to continue to develop its ProTriTAC platform and product candidates. The Court approved the proposed order and entered a final judgment on May 5, 2021. The $ 50.0 million litigation settlement payment is reflected in the condensed statement of operations for the three months ended March 31, 2021. |
Collaboration, License & Clinic
Collaboration, License & Clinical Supply Agreements | 3 Months Ended |
Mar. 31, 2022 | |
Collaboration And License Agreements [Abstract] | |
Collaboration, License & Clinical Supply Agreements | 7. Collaboration, License & Clinical Supply Agreements Development and Option with AbbVie On November 20, 2019, the Company entered into a Development and Option Agreement with AbbVie (as amended, the “Development and Option Agreement”) in connection with the Company’s HPN217 program, which targets B cell maturation antigen (“BCMA”). Pursuant to such agreement, the Company granted to AbbVie an option to a worldwide, exclusive license under the Company’s patents and know-how applicable to the HPN217 program to develop, manufacture, and commercialize products arising from the HPN217 program and targeting BCMA (“the “HPN217 Products”). Under the Development and Option Agreement, the Company filed an Investigational New Drug Application for HPN217 and is responsible for conducting clinical development activities pursuant to a mutually agreed development plan, including conducting a Phase 1/2 clinical trial of HPN217, in order for AbbVie to determine whether it wishes to exercise its option to take a worldwide, exclusive license to such HPN217 program. Under the Development and Option Agreement, AbbVie may exercise its license option at any time during a period commencing on the effective date of the agreement and expiring after a specified period following delivery by the Company of a specified data package arising from the first Phase 1/2 trial for the HPN217 Products. Following AbbVie’s exercise of its option, and except for completion of certain development activities by the Company under the development plan, AbbVie will be solely responsible, at its cost, for the development, manufacture and commercialization of HPN217 and any other HPN217 Products. AbbVie is required to use commercially reasonable efforts to develop and obtain regulatory approval for one HPN217 Product, for at least one indication, for use in each of the United States and specified European markets. Upon execution of the Development and Option Agreement, the Company received an upfront payment of $ 30.0 million. Additionally, in June 2020, the Company received a development milestone payment of $ 50.0 million as a result of initiating its Phase 1/2 clinical trial by dosing the first patient in the trial in April 2020. If AbbVie exercises its option to a worldwide, exclusive license, AbbVie will pay the Company an option exercise fee of $ 200.0 million. Following option exercise, AbbVie will be required to make further payments to the Company of up to $ 230.0 million in the aggregate for the achievement of specified development, regulatory and commercial sales milestones for HPN217 Products. The Company will also receive tiered royalties on net sales by AbbVie, its affiliates and sublicensees of HPN217 Products at percentages ranging from the high single digits to the very low double digits, subject to specified offsets and reductions. Royalties will be payable under the Development and Option Agreement on a product-by-product and country-by-country basis commencing on the date of first commercial sale of HPN217 and other HPN217 Products, and ending on the later of expiration of all valid claims of specified licensed patents in such country, expiration of regulatory exclusivity in such country, or ten years following first commercial sale of such HPN217 Product in such country. The Development and Option Agreement will terminate upon the date of the expiration of all AbbVie’s royalty payment obligations in all countries, or upon expiration of the license option period and the failure of AbbVie to exercise its license option. The Development and Option Agreement may be terminated by either party immediately for the insolvency of the other party or on 90 days’ written notice for an uncured material breach of the Development and Option Agreement by the other party. AbbVie may also terminate the Development and Option Agreement in its entirety or on a country-by-country basis for any reason on 90 days’ written notice to the Company. The Company assessed the Development and Option Agreement in accordance with Topic 606 and concluded that AbbVie is a customer under this agreement. The Company identified the following performance obligation at the inception of the Development and Option Agreement consisting of the initial development activities. The Company evaluated AbbVie’s option to obtain a worldwide exclusive license for HPN217 to determine whether it provides AbbVie with any material rights. The Company concluded that the option was not issued at a significant and incremental discount, and therefore do not provide material rights. As such, the option is excluded as a performance obligation at the outset of the agreement. At the inception of the agreement, the transaction price included the $ 30.0 million up-front consideration received in December 2019 and a development milestone of up to $ 50.0 million to be received upon dosing of the first patient in the HPN217 Phase 1/2 clinical trial within a specified time period, for a total transaction price of $ 80.0 million. In April 2020, the Company had achieved this development milestone as a result of dosing its first patient in the Phase 1/2 clinical trial of HPN 217 and received $ 50.0 million in June 2020. The remaining development, commercialization, and sales milestones along with sales-based royalties were not included in the transaction price, as these milestone amounts were fully constrained on the probability of achievement. The Company will reevaluate the transaction price at the end of each reporting period and as uncertain events are resolved or other changes in circumstances occur, and, if necessary, adjust its estimate of the transaction price. The transaction price of $ 80.0 million, relates to a single unit of accounting. The initial development activities are considered a single unit of accounting. The Company recognizes revenue associated with the performance obligation as the initial development activities are performed using an input method, according to the costs incurred as related to the estimated costs for the development and regulatory activities to be performed through the completion of a Phase 1/2 clinical trial of HPN217. The transfer of control occurs over this time period and, in management’s judgment, is the best measure of progress towards satisfying the performance obligation. Such estimates are reviewed by the Company on a periodic basis and, if necessary, the Company will adjust the measure of performance and related revenue recognition. As of March 31, 2022, there were no changes to the estimate of the transaction price or adjustments to measure of performance and related revenue recognition. The Company recognized $ 5.9 million and $ 4.4 million of revenue for the three months ended March 31, 2022 and March 31, 2021, respectively. As of March 31, 2022, the Company had recorded $ 40.2 million in deferred revenue, of which $ 9.1 million was classified as long-term deferred revenue and $ 31.1 million as short-term deferred revenue, in the accompanying condensed balance sheets. As of March 31, 2022, the Company will recognize royalty revenue in the period of sale of the related products, if any, based on the underlying contract terms. No such amounts were recognized for the three months ended March 31, 2022. Amended and Restated Discovery Collaboration Agreement with AbbVie On August 16, 2021, the Company entered into Amendment No. 1 to the Amended and Restated Discovery Collaboration and License Agreement with AbbVie, or the First Amendment, which amends the Amended and Restated Discovery Collaboration and License Agreement entered on November 20, 2019, between the Company and AbbVie (such agreement, as amended by the First Amendment, the "Restated Collaboration Agreement"). The Restated Collaboration Agreement amends and restates the Discovery Collaboration and License Agreement entered into between the Company and AbbVie, dated October 20, 2017 and amended April 3, 2019, or the Original Collaboration Agreement. Pursuant to the First Amendment, the Company and AbbVie agreed to include the ProTriTAC technology within the Restated Collaboration Agreement. Pursuant to the Original Collaboration Agreement, the Company granted to AbbVie worldwide exclusive rights to develop and commercialize products that incorporate the Company’s proprietary TriTAC technology together with soluble TCRs provided by AbbVie that bind to targets accepted by the parties. Under the terms of the Original Collaboration Agreement, AbbVie was granted the right to designate up to two targets for development of TriTAC constructs, which it selected in 2017 and 2019, respectively. Pursuant to the Restated Collaboration Agreement, AbbVie is permitted to designate two further targets, with an option to select up to four additional targets, selected during a specified period following the effective date, to be the subject of activities under the collaboration, and is granted a worldwide, exclusive license to develop and commercialize products that incorporate either the Company’s proprietary TriTAC platform technology, or (as a result of and pursuant to the First Amendment) its ProTriTAC platform technology, to pursue available T cell receptors, or TCRs and/or antibody targets. Such products may incorporate antibodies provided by AbbVie or by the Company. During a period of up to four years following the date of AbbVie’s designation of each target for the products, and subject to confirmation of target availability, the Company and AbbVie will conduct certain research and discovery activities under a mutually agreed discovery and research plan in connection with the creation and evaluation of constructs comprising the Company’s proprietary TriTAC or ProTriTAC technologies, as applicable, in conjunction with the soluble TCR or antibody sequences directed at the agreed upon targets of interest. The Company may not, including through any third party, develop or commercialize any competing product that binds to any of the included targets. As was the case under the Original Collaboration Agreement, following the discovery phase, AbbVie will be solely responsible, at its cost, for the development, manufacture and commercialization of the products that arise from the activities under the discovery plan. AbbVie is required to use commercially reasonable efforts to develop and commercialize one such product directed to each target for which the discovery activities were completed in each Major Market (as defined in the Restated Collaboration Agreement). In addition to the upfront payment of $ 17.0 million already paid under the Original Collaboration Agreement, the Company received an upfront payment of $ 20.0 million under the Restated Collaboration Agreement for AbbVie’s right to select two additional targets and an option to select up to four further targets. AbbVie will be required to make payments to the Company, upon target selection, of $ 10.0 million for each target, for up to four additional targets selected by AbbVie. For each of the up to eight targets selected, the Company is eligible to receive up to $ 300.0 million in the aggregate for the achievement of specified development, regulatory and commercial sales milestones for licensed products indicated for human therapeutic or prophylactic use. The Company will also be eligible to receive tiered royalties on net sales by AbbVie, its affiliates and sublicensees of licensed products at percentages in the mid-single digits, subject to specified offsets and reductions. Royalties will be payable under the First Amendment and Restated Collaboration Agreement on a product-by-product and country-by-country basis commencing on the date of first commercial sale of each product, and ending on the later of expiration of all valid claims of specified licensed patents in such country, expiration of regulatory exclusivity in such country or ten years following first commercial sale of such product in such country. If licensed products are developed and commercialized for diagnostic or veterinary use, or certain screening or monitoring uses, the parties have agreed to negotiate an appropriate reduction in the economic terms applicable to such non-therapeutic and prophylactic applications. The Restated Collaboration Agreement will terminate upon the date of the expiration of all AbbVie’s royalty payment obligations in all countries. The Restated Collaboration Agreement may be terminated by either party immediately for the insolvency of the other party or on 90 days ’ written notice for an uncured material breach of such agreement by the other party. AbbVie may also terminate the Restated Collaboration Agreement in its entirety or on a target-by-target or country-by-country basis for any reason on 30 days ’ written notice to the Company. In addition, AbbVie may terminate the Restated Collaboration Agreement immediately in its entirety or on a target-by-target basis if AbbVie considers in good faith that there has been a failure of the discovery or development efforts with respect to such target, or that further development or commercialization of products directed to such target is not advisable as a result of a serious safety issue. The Company assessed the Original Collaboration Agreement and Restated Collaboration Agreement including the First Amendment in accordance with Topic 606 and concluded that AbbVie is a customer under all agreements. The Company concluded that there are multiple promises under the Original Collaboration Agreement and Restated Collaboration Agreement including the First Amendment which include (1) research and development activities; (2) regulatory documentation and know-how; and (3) the license to the related technology. The Company combined these promises into a single performance obligation, as the Company is obliged to render specialized services for the research program, and other promises have either no significant value or are not distinct. The Company estimates that the $ 17.0 million upfront payment under the Original Collaboration Agreement will be recognized over a period in which ongoing research and development activities are incurred based on the projected activities to be performed over each reporting period relative to the total estimated performance period. Such estimates are reviewed by the Company on a periodic basis and, if necessary, the Company will adjust the measure of performance and related revenue recognition. At the inception of the Original Collaboration Agreement, the Company determined that the transaction price was $ 17.0 million, which was all allocated to the two initial targets. The Company has evaluated the transaction price and has determined $17.0 million is still appropriate as of March 31, 2022. As of March 31, 2022, the Company had recognized the full $17.0 million upfront payment related to the initial two targets. At the inception of the Restated Collaboration Agreement, the Company determined that the transaction price included the $ 20.0 million upfront payment received in December 2019. The Company allocates $ 10.0 million to each additional target selected. The Company estimates that the $ 20.0 million upfront payment under the Restated Collaboration Agreement will be recognized over a period in which ongoing research and development activities are incurred based on the projected activities to be performed over each reporting period relative to the total estimated performance period. Such estimates are reviewed by the Company on a periodic basis and, if necessary, the Company will adjust the measure of performance and related revenue recognition. As of March 31, 2022, the Company determined that a transaction price of $20.0 million was still appropriate. The Company recognized zero of revenue related to the upfront payment for the three months ended March 31, 2022. As of March 31, 2022, the Company had recorded $ 19.1 million in deferred revenue, of which $ 13.3 million was classified as long-term deferred revenue and $ 5.8 million as short-term deferred revenue, in the accompanying condensed balance sheets. The Company determined that future contingent payments that may be received related to development and regulatory milestones under the Restated Collaboration Agreement are based on the performance of AbbVie and are constrained due to the fact that it was not probable that a significant reversal of cumulative revenue would not occur, as their achievement is highly dependent on the successful completion of the research activities. Accordingly, revenue for the achievement of these milestones will be recognized in the period that it is deemed probable that the milestone will be achieved. Any consideration related to commercialization and sales milestones, and sales-based royalties will be recognized when the related sales occur as they were determined to relate predominantly to the license granted to AbbVie and have been excluded from the transaction price. The Company will re-evaluate the transaction price in each reporting period as uncertain events are resolved or other changes in circumstances occur. As of March 31, 2022, the Company had no t recognized or earned any milestone payments under the Original Collaboration or Restated Collaboration Agreement including the First Amendment. The Company will recognize royalty revenue in the period of sale of the related products, based on the underlying contract terms. No such amounts were recognized for the three months ended March 31, 2022. Collaboration and License Revenue For the three months periods ended March 31, 2022 and March 31, 2021, collaboration and license revenue in the accompanying condensed statements of operations and comprehensive loss is comprised of the following: For the Three Months Ended March 31, Collaboration and License Revenue 2022 2021 AbbVie Restated Collaboration Agreement $ — $ 4,583 AbbVie Development and Option Agreement 5,906 4,424 Total collaboration and license revenue $ 5,906 $ 9,007 |
Equity
Equity | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Equity | 8. Equity Incentive Plans Stock Option Activity As of March 31, 2022, there were 1,357,607 shares reserved by the Company to grant under its 2019 Equity Incentive Plan (the “2019 Plan”). The following summarizes option activity under the Company’s 2019 Plan and 2015 Equity Incentive Plan (the “2015 Plan”): Weighted Weighted Number of Average Average Aggregate Outstanding Exercise Remaining Intrinsic Options Price Contractual Life Value (in years) (in thousands) Balance as of December 31, 2021 5,470,817 $ 9.23 7.96 $ 12,064 Options granted 1,890,519 5.01 Options exercised ( 203,672 ) 1.87 Options cancelled ( 104,197 ) 13.36 Balance as of March 31, 2022 7,053,467 $ 8.23 8.31 $ 5,887 Exercisable as of March 31, 2022 2,644,248 $ 7.06 6.79 $ 5,204 The aggregate intrinsic values of options outstanding, vested and exercisable, and vested and expected to vest were calculated as the difference between the exercise price of the options and the estimated fair value of the Company’s common stock. The intrinsic value of options exercised was $ 1.0 million and $ 1.4 million for the three months ended Mach 31, 2022 and March 31, 2021, respectively. There is no future tax benefit related to options exercised, as the Company has accumulated net operating losses on March 31, 2022 and March 31, 2021. During the three months ended March 31, 2022 and March 31, 2021, the estimated weighted-average grant-date fair value of the stock options vested was $ 4.94 and $ 3.13 per share, respectively, and the estimated weighted-average grant-date fair value of stock options granted was $ 3.48 and $ 13.63 per share, respectively. The fair value of employee and director stock option awards was estimated at the date of grant using a Black-Scholes option-pricing model with the following weighted-average assumptions: Three Months Ended March 31, 2022 2021 Expected term (years) 6.02 6.02 Expected volatility 80.76 % 88.63 % Risk-free interest rate 1.67 % 0.60 % Expected dividend yield 0 % 0 % Total stock-based compensation was as follows: Three Months Ended March 31, 2022 2021 (in thousands) Operating Expenses Research and development $ 1,462 $ 1,197 General and administrative 1,381 939 Total stock-based compensation $ 2,843 $ 2,136 Stock-based compensation related to non-employee awards, which is included in the table above, was zero and $ 0.1 million for each of the three months ended March 31, 2022 and March 31, 2021, respectively. Early Exercised Stock Options The terms of the 2015 Plan permit option holders to exercise stock options before they are vested, subject to certain limitations. The common shares related to early exercised stock options are subject to the Company’s lapsing repurchase right upon termination of employment at the original purchase price. In order to vest, the holders are required to provide continued service to the Company. The proceeds are initially recorded in other current liabilities and are reclassified to common stock and paid-in capital as the Company’s repurchase right lapses. As of March 31, 2022 and December 31, 2021, there was approximately $ 5,000 and $ 8,000 , respectively, recorded in other current liabilities relating to common shares subject to repurchase. For accounting purposes, unvested early exercised stock options are not considered issued and outstanding common shares until the stock options vest. As a result of early stock option exercises under the 2015 Plan, 2,880 and 4,608 common shares had not vested and were subject to repurchase as of March 31, 2022 and December 31, 2021, respectively. Employee Stock Purchase Plan In January 2019, the Company adopted the 2019 Employee Stock Purchase Plan (the “2019 ESPP”), which became effective upon the closing of the Company’s IPO in February 2019. The 2019 ESPP initially reserved 250,000 shares of common stock for employee purchases under terms and provisions established by the Board of Directors. The 2019 ESPP evergreen provision provides that the number of shares reserved and available for issuance under the 2019 ESPP will automatically increase January 1 st of, each year for a period of up to ten years, commencing on January 1, 2020 and ending on (and including) January 1, 2029, in an amount equal to the lesser of (i) 1 % of the total number of shares of our common stock outstanding on December 31 of the preceding calendar year, (ii) 750,000 shares of our common stock or (iii) such lesser number of shares of common stock as determined by our Board of Directors. In January 2022, common stock available for issuance under the 2019 ESPP was increased by approximately 328,000 shares as a result of this evergreen provision. The Company issued 106,233 shares under the 2019 ESPP during the three months ended March 31, 2022. The Company has approximately 839,000 shares reserved for future issuance as of March 31, 2022. Common Stock In March 2020, we entered into a Controlled Equity Offering SM Sales Agreement, or Sales Agreement, with Cantor Fitzgerald & Co., or Cantor Fitzgerald, under which we may offer and sell, from time to time at our sole discretion through Cantor Fitzgerald, as our sales agent, shares of our common stock having an aggregate offering price of up to $75.0 million. Any shares of our common stock sold will be issued pursuant to our shelf registration statement on Form S-3 (File No. 333-237175). Through March 31, 2022, we had sold a total of 330,222 shares of our common stock under the Sales Agreement, resulting in aggregate net proceeds of $5.8 million. As of March 31, 2022, there was approximately $69.0 million remaining available to be sold under the terms of the Sales Agreement. |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 9. Net Loss Per Share The following outstanding potentially dilutive common stock equivalents have been excluded from the calculation of diluted net loss per share for the periods presented due to their anti-dilutive effect: As of March 31, As of March 31, 2022 2021 Common stock options issued and outstanding 7,053,467 4,453,584 Early exercised stock options subject to future vesting 2,880 13,520 Total 7,056,347 4,467,104 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of SEC Regulation S-X for interim financial information. The accompanying unaudited condensed financial statements and notes should be read in conjunction with the audited annual financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the SEC on March 10, 2022 (the “2021 Annual Report on Form 10-K”). The Balance Sheet as of December 31, 2021 was derived from the audited annual financial statements as of the period then ended. Certain information and footnote disclosures typically included in the Company's audited annual financial statements have been condensed or omitted. The accompanying unaudited condensed financial statements reflect all adjustments that, in the opinion of management, are necessary for a fair statement of the results of the interim periods presented. All such adjustments are of a normal recurring nature except for the impacts of adopting new accounting standards discussed below. The accompanying unaudited condensed financial results are not necessarily indicative of results expected for the full fiscal year or for any subsequent interim period. During the three months ended March 31, 2022, there were no material changes to the Company's significant accounting and financial reporting policies from those reflected in the 2021 Annual Report on Form 10-K. For further information with regard to the Company’s Significant Accounting Policies, please refer to Note 2, “Summary of Significant Accounting Policies,” to the Company’s audited annual financial statements included in the 2021 Annual Report on Form 10-K which have been prepared in accordance with GAAP. |
Use of Estimates | Use of Estimates The preparation of condensed financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates and assumptions made in the accompanying condensed financial statements include, but are not limited to, the fair value of stock options, the research period of the collaboration agreements with AbbVie Biotechnology Ltd. (“AbbVie”), operating lease asset and lease liabilities, income tax uncertainties and certain accruals. As of March 31, 2022, the Company has not experienced a significant financial impact directly related to the COVID-19 pandemic. See Note 1 Organization – Liquidity for more information. |
Segment Reporting | Segment Reporting Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the Company’s Chief Operating Decision Maker in making decisions regarding resource allocation and assessing performance. To date, the Company has viewed its operations and manages its business as one segment operating primarily in the United States. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments purchased with original maturities of three months or less from the purchase date to be cash equivalents. Cash equivalents consist primarily of amounts invested in money market accounts and are stated at fair value. There are no significant unrealized gains or losses on the money market funds for the periods presented. For the periods ended March 31, 2022 and December 31, 2021, the Company classified $ 0.7 million as restricted cash related to a letter of credit established for an operating lease entered into in August 2018 and collateral related to a deposit for an operating lease entered into in October 2021. The restricted cash is classified in “Other assets” in the condensed balance sheets. See Note 6 Commitments and Contingencies for more information. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the condensed balance sheets that sum to the total of the same amounts shown in the condensed statements of cash flows. As of March 31, 2022 March 31, 2021 (in thousands) Balance Sheets Cash and cash equivalents $ 50,738 $ 71,335 Restricted cash (included in other assets) 673 467 Cash, cash equivalents and restricted cash in condensed Statements of Cash Flows $ 51,411 $ 71,802 |
Marketable Securities | Marketable Securities The Company generally invests its excess cash in money market funds and investment grade short-term to intermediate-term fixed income securities. Such investments are included in cash and cash equivalents, short-term marketable securities or long-term marketable securities on the condensed balance sheets. Marketable securities with a maturity date greater than 90 days and less than one year at each condensed balance sheet date are classified as short-term. Marketable securities with a maturity date greater than one year at each condensed balance sheet date are classified as long-term. All of the Company’s marketable securities are considered available-for-sale and are reported at fair value with unrealized gains and losses included as a component of stockholders’ equity. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity, which is included in interest income, net on the condensed statements of operations. Realized gains and losses and declines in value judged to be other-than-temporary, if any, on marketable securities are included in interest income, net on the condensed statements of operations. The cost of securities sold is determined using specific identification. The Company periodically evaluates whether declines in the fair values of its marketable securities below their amortized cost are other-than-temporary. This evaluation consists of several qualitative and quantitative factors regarding the severity and duration of the unrealized loss, as well as the Company’s ability and intent to hold the marketable security until a forecasted recovery occurs. Additionally, the Company assesses whether it has plans to sell the marketable security or it is more likely than not it will be required to sell any marketable securities before recovery of its amortized cost basis. Factors considered include quoted market prices, recent financial results and operating trends, implied values from any recent transactions or offers of investee securities, credit quality of debt instrument issuers, other publicly available information that may affect the value of the marketable security, duration and severity of the decline in value, and the Company’s strategy and intentions for holding the marketable security. |
Concentration of Credit Risk | Concentration of Credit Risk The Company is subject to credit risk from its portfolio of cash equivalents and marketable securities. The Company invests in money market funds through a major U.S. bank and is exposed to credit risk in the event of default by the financial institution to the extent of amounts recorded on the condensed balance sheets. The Company invests in money market funds and investment grade short- to intermediate-term fixed income securities. Under its investment policy, the Company limits amounts invested in such securities by credit rating, maturity, industry group, investment type and issuer, except for securities issued by the U.S. government. The Company is not exposed to any significant concentrations of credit risk from these financial instruments. The goals of the Company’s investment policy, in order of priority, are as follows: preservation of principal, liquidity of investments, fiduciary control of cash and investments, prevention of inappropriate concentrations of investments, and obtaining the best yields. The Company minimizes the amount of credit exposure by investing cash that is not required for immediate operating needs in money market funds and marketable securities. |
Leases | Leases The Company evaluates arrangements at inception to determine if an arrangement is or contains a lease. Operating lease assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at the commencement date of the lease based upon the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company uses an incremental borrowing rate that the Company would expect to incur for a fully collateralized loan over a similar term under similar economic conditions to determine the present value of the lease payments. The lease payments used to determine the Company’s operating lease assets may include lease incentives and stated rent increases and are recognized in the Company’s operating lease assets in the condensed balance sheets. Operating lease liabilities are accreted over the term of the lease using the incremental borrowing rate and the associated expense is recorded to operating expenses in the condensed statement of operations and comprehensive loss. The Company recognizes lease expenses on a straight-line basis over the lease term. Variable lease payments are recognized as the associated obligation is incurred. |
Fair Value Measurement | Fair Value Measurement Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability, or an exit price, in the principal or most advantageous market for that asset or liability in an orderly transaction between market participants on the measurement date, and established a fair value hierarchy that requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. The Company measures fair value based on a three-level hierarchy of inputs, of which the first two are considered observable and the last unobservable. Unobservable inputs reflect the Company’s own assumptions about current market conditions. The three-level hierarchy of inputs is as follows: Level 1—Observable inputs such as unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; Level 2—Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active; and Level 3— Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The carrying amounts reflected in the accompanying condensed balance sheets for cash and cash equivalents, restricted cash, short-term marketable securities, prepaid expenses, other current assets, accounts payable, accrued expenses and other current liabilities approximate their fair values due to their short-term nature. |
Revenue Recognition | Revenue Recognition In accordance with Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“Topic 606”), the Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of Topic 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that it will collect the consideration it is entitled to in exchange for the goods and services it transfers to the customer. At contract inception, the Company assesses the goods or services promised within each contract that falls under the scope of Topic 606, determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. The Company enters into corporate collaborations under which it may obtain upfront license fees, research and development funding, and development, regulatory and commercial milestone payments and royalty payments. The Company’s performance obligations under these arrangements may include licenses of intellectual property, distribution rights, research and development services, delivery of manufactured product and/or participation on joint steering committees. Licenses of intellectual property: If the license to the Company’s intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenue from upfront license fees allocated to the license when the license is transferred to the customer and the customer is able to use and benefit from the license. For licenses that are bundled with other promises, the Company utilizes judgement to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring proportional performance for purposes of recognizing revenue from non-refundable, up-front fees. The Company evaluates the measure of proportional performance each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. The Company recognizes collaboration revenue by measuring the progress toward complete satisfaction of the performance obligation using an input measure. In order to recognize revenue over the research and development period, the Company measures actual costs incurred to date compared to the overall total expected costs to satisfy the performance obligation. Revenues are recognized as the program costs are incurred. The Company will re-evaluate the estimate of expected costs to satisfy the performance obligation each reporting period and make adjustments for any significant changes. Milestone payments: At the inception of each arrangement that includes development, regulatory or commercial milestone payments, the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price. Topic 606 suggests two alternatives to use when estimating the amount of variable consideration: the expected value method and the most likely amount method. Under the expected value method, an entity considers the sum of probability-weighted amounts in a range of possible consideration amounts. Under the most likely amount method, an entity considers the single most likely amount in a range of possible consideration amounts. Whichever method is used, it should be consistently applied throughout the life of the contract; however, it is not necessary for the Company to use the same approach for all contracts. The Company expects to use the most likely amount method for development and regulatory milestone payments. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the Company’s or the licensee’s control, such as regulatory approvals, are not considered probable of being achieved until those approvals are received. The transaction price is then allocated to each performance obligation on a relative stand-alone selling price basis. The Company recognizes revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, the Company re-evaluates the probability or achievement of each such milestone and any related constraint, and if necessary, adjusts its estimates of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect revenues and earnings in the period of adjustment. Commercial milestones and royalties: For arrangements that include sales-based royalties, including milestone payments based on the level of sales, and in which the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue when the related sales occur. To date, the Company has not recognized any royalty revenue resulting from its collaboration arrangements. Upfront payments and fees are recorded as deferred revenue upon receipt or when due, and may require deferral of revenue recognition to a future period until the Company performs its obligations (i.e. research and development services) under these arrangements. Amounts due to the Company are recorded as accounts receivable when the Company’s right to consideration is unconditional. Amounts recognized as revenue prior to receipt are recorded as contract assets included in prepaid expenses and other current assets on the Company’s condensed balance sheet. If the Company expects to have an unconditional right to receive the consideration in the next twelve months, this will be classified in current assets. |
Research and Development Expenses and Accrued Research and Development Costs | Research and Development Expenses and Accrued Research and Development Costs The Company expenses research and development costs as incurred. Research and development expenses consist of personnel costs for the Company’s research and product development employees. Also included are non-personnel costs such as professional fees payable to third parties for preclinical studies, clinical trials, research services, production of materials for clinical trials, laboratory supplies and equipment maintenance and depreciation, intellectual property licenses and other consulting costs. The Company estimates preclinical and clinical study and research expenses based on the services performed, pursuant to contracts with research institutions that conduct and manage preclinical studies, clinical trials and research services and manufacturing organizations in connection with the production of materials for clinical trials on its behalf. The Company estimates these expenses based on discussions with internal management personnel and external service providers as to the progress or stage of completion of services and the contracted fees to be paid for such services. The Company records the estimated costs of research and development activities based upon the estimated amount services provided but not yet invoiced and includes these costs in development expenses. The Company accrues for these costs based on factors such as estimates of the work completed and in accordance with agreements established with its third-party service provides under the service agreements. 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. However, the status and timing of actual services performed may vary from the Company’s estimates, resulting in adjustments to expense in future periods. Changes in these estimates that result in material changes to the Company’s accruals could materially affect the Company’s results of operations. Payments associated with licensing agreements to acquire exclusive license to develop, use, manufacture and commercialize products that have not reached technological feasibility and do not have alternate future use are expensed as incurred. Payments made to third parties under these arrangements in advance of the performance of the related services by the third parties are recorded as prepaid expenses until the services are rendered. Such payments are evaluated for current or long-term classification based on when such services are expected to be received. |
Stock-Based Compensation | Stock-Based Compensation The Company maintains a stock-based compensation plan as a long-term incentive for employees, consultants and members of the Company’s board of directors (the “Board”). The plan allows for the issuance of non-statutory options (“NSOs”) and incentive stock options to employees and NSOs to non-employees. Share-based payments are measured using fair-value-based measurements and recognized as compensation expense over the service period in which the awards are expected to vest. The Company’s fair-value-based measurements of awards to employees, directors and consultants as of the grant date utilize the single-option award-valuation approach, and the Company uses the straight-line method for expense attribution. The fair-value-based measurements of options granted to nonemployees are remeasured at each period end until the options vest and are amortized to expense as earned. The valuation model used for calculating the estimated fair value of stock awards is the Black-Scholes option-pricing model. The Black-Scholes option-pricing model requires the Company to make assumptions and judgments about the variables used in the calculations, including the expected term (weighted-average period of time that the options granted are expected to be outstanding), the expected volatility of the Company’s common stock, the related risk-free interest rate and the expected dividend yield. The Company has elected to recognize forfeitures of share-based payment awards as they occur. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates applied to taxable income in the years in which those temporary differences are expected to be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income in the period that includes the enactment date. A valuation allowance is established when necessary to reduce deferred tax assets to the amount expected to be realized. Financial statement effects of uncertain tax positions are recognized when it is more-likely-than-not, based on the technical merits of the position, that it will be sustained upon examination. Interest and penalties related to unrecognized tax benefits are included as a component of other expense. To date, there have been no interest or penalties charged in relation to the unrecognized tax benefits. The Company accounts for uncertain tax positions in accordance with ASC 740-10, Accounting for Uncertainty in Income Taxes . The Company assesses all material positions taken in any income tax return, including all significant uncertain positions, in all tax years that are still subject to assessment or challenge by relevant taxing authorities. Assessing an uncertain tax position begins with the initial determination of the position’s sustainability and is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. As of each balance sheet date, unresolved uncertain tax positions must be reassessed, and the Company will determine whether (i) the factors underlying the sustainability assertion have changed and (ii) the amount of the recognized tax benefit is still appropriate. The recognition and measurement of tax benefits requires significant judgment. Judgment concerning the recognition and measurement of a tax benefit might change as new information becomes available. The Company includes any penalties and interest expense related to income taxes as a component of provision for income tax, as necessary. To date, there have been no interest or penalties charged in relation to the unrecognized tax benefits. |
Net Loss Per Share | Net Loss Per Share Basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period, without consideration for potentially dilutive securities. As discussed in Note 9 Net Loss Per Share , the unvested portion of early exercised stock options are excluded from the computation of weighted average shares as the continuing vesting of such shares is contingent on the holders’ continued service to the Company. Diluted net loss per share is the same as basic net loss per share for each period presented since the effects of potentially dilutive securities are antidilutive given the net loss of the Company. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss includes net loss and certain changes in stockholders’ equity that are excluded from net loss, primarily unrealized gains or losses on the Company’s marketable securities. |
Emerging Growth Company Status | Emerging Growth Company Status The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that the Company (i) is no longer an emerging growth company or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, the accompanying condensed financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and subsequent amendments to the initial guidance: ASU 2018-19 and ASU 2019-04 (collectively, “Topic 326”). Topic 326 requires measurement and recognition of expected credit losses for financial assets held. The amendments apply to entities which hold financial assets that are not accounted for at fair value through net income as well as loans, debt securities, accounts receivables and any other financial assets not excluded from the scope that have the contractual right to receive cash. Topic 326 requires entities to record expected credit losses for certain financial instruments, including available-for-sale securities, as an allowance that reflect the entity’s current estimate of credit losses expected to be incurred. For available-for-sale debt securities in unrealized loss positions, ASU 2016-13 requires allowances to be recorded instead of reducing the amortized cost of the investment. Under ASU 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates , the effective date for ASU 2016-13 has been deferred for credit losses for SEC filers that are eligible as a smaller reporting company. As such, the amended effective date for ASU 2016-13 is January 1, 2023. The Company is currently evaluating the effect of the adoption of this guidance on its financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Reconciliation of Cash and Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the condensed balance sheets that sum to the total of the same amounts shown in the condensed statements of cash flows. As of March 31, 2022 March 31, 2021 (in thousands) Balance Sheets Cash and cash equivalents $ 50,738 $ 71,335 Restricted cash (included in other assets) 673 467 Cash, cash equivalents and restricted cash in condensed Statements of Cash Flows $ 51,411 $ 71,802 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets Measured at Fair Value and Fair Value Hierarchy of Valuation | The following table presents information about the Company’s financial assets that are measured at fair value and indicates the fair value hierarchy of the valuation: March 31, 2022 Total Level 1 Level 2 Level 3 (in thousands) Assets Cash Equivalents: Money market funds $ 44,193 $ 44,193 $ — $ — Corporate debt securities 1,500 1,500 — — Short-term marketable securities U.S. government treasuries 9,969 9,969 — — U.S. government securities 33,068 33,068 — — Corporate debt securities 12,450 — 12,450 — U.S. government agency securities 4,738 — 4,738 — Non-U.S. government securities 1,502 — 1,502 — Total cash equivalents and marketable securities $ 107,420 $ 88,730 $ 18,690 $ — December 31, 2021 Total Level 1 Level 2 Level 3 (in thousands) Assets Cash Equivalents: Money market funds $ 42,867 42,867 $ — $ — Short-term marketable securities U.S. government treasuries 9,999 9,999 — — U.S. government securities 45,241 45,241 — — Corporate debt securities 23,475 — 23,475 — U.S. government agency securities 11,697 — 11,697 — Long-term marketable securities U.S. government securities 1,522 — 1,522 — Total cash equivalents and marketable securities $ 134,801 $ 98,107 $ 36,694 $ — |
Available-for-Sale Securities (
Available-for-Sale Securities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-Sale Securities at Fair Value | All marketable securities were considered available-for-sale at March 31, 2022. The amortized cost, gross unrealized holding gains or losses, and fair value of the Company’s marketable securities by major security type at each condensed balance sheets date are summarized in the tables below: March 31, 2022 Amortized Cost Gross Gross Fair Value (in thousands) Cash equivalents Corporate debt securities $ 1,500 $ — $ — $ 1,500 Money market funds 44,193 — — 44,193 Total cash equivalents 45,693 — — 45,693 Short-term marketable securities: U.S. government treasuries 9,980 — ( 11 ) 9,969 U.S. government agency securities 4,739 — ( 1 ) 4,738 U.S. government securities 33,092 — ( 24 ) 33,068 Corporate debt securities 12,479 — ( 29 ) 12,450 Non-U.S. government securities 1,525 ( 23 ) 1,502 Total short-term marketable securities 61,815 — ( 88 ) 61,727 Total $ 107,508 $ — $ ( 88 ) $ 107,420 December 31, 2021 Amortized Cost Gross Gross Fair Value (in thousands) Cash equivalents Money market funds $ 42,867 — — $ 42,867 Total cash equivalents 42,867 — — 42,867 Short-term marketable securities: U.S. government treasuries 9,999 — — 9,999 U.S. government agency securities 11,697 1 ( 1 ) 11,697 U.S. government securities 45,257 — ( 16 ) 45,241 Corporate debt securities 23,495 — ( 20 ) 23,475 Total short-term marketable securities 90,448 1 ( 37 ) 90,412 Long-term marketable securities: U.S. government securities 1,532 — ( 10 ) 1,522 Total long-term marketable securities 1,532 — ( 10 ) 1,522 Total $ 134,847 $ 1 $ ( 47 ) $ 134,801 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Property and Equipment, Net | Property and equipment, net consists of the following: March 31, December 31, 2022 2021 (in thousands) Laboratory equipment $ 5,963 $ 5,886 Furniture and fixtures 585 585 Computer equipment and software 91 91 Leasehold improvements 8,872 8,872 15,511 15,434 Less: Accumulated depreciation and amortization ( 6,789 ) ( 6,186 ) Total property and equipment, net $ 8,722 $ 9,248 |
Accrued Liabilities | Accrued liabilities consist of the following: March 31, December 31, 2022 2021 Accrued research and development $ 11,239 $ 11,041 Accrued personnel costs 3,206 5,238 Accrued professional and consulting fees 1,068 200 Other 299 883 Total accrued liabilities $ 15,812 $ 17,362 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Operating Leases in Condensed Balance Sheets | The following table summarizes the presentation in the Company’s condensed balance sheets of its operating lease (in thousands): As of Assets: Operating lease right-of-use assets $ 5,967 Liabilities Operating lease liabilities $ 1,707 Operating lease liabilities, net of current portion 10,094 Total operating lease liabilities $ 11,801 |
Schedule of Future Minimum Lease Payments Under Tizona Lease and Cove Lease | Future minimum lease payments under the Cove Lease as of March 31, 2022 are as follows (in thousands): Operating Lease Remainder of 2022 2,002 2023 2,738 2024 2,825 2025 2,916 2026 3,009 Thereafter 1,271 Total future minimum lease payments 14,761 Less imputed interest ( 2,960 ) Total $ 11,801 |
Collaboration, License & Clin_2
Collaboration, License & Clinical Supply Agreements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Collaboration And License Agreements [Abstract] | |
Schedule of Collaboration and License Revenue | For the three months periods ended March 31, 2022 and March 31, 2021, collaboration and license revenue in the accompanying condensed statements of operations and comprehensive loss is comprised of the following: For the Three Months Ended March 31, Collaboration and License Revenue 2022 2021 AbbVie Restated Collaboration Agreement $ — $ 4,583 AbbVie Development and Option Agreement 5,906 4,424 Total collaboration and license revenue $ 5,906 $ 9,007 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Summary of Option Activity Under Equity Incentive Plan | The following summarizes option activity under the Company’s 2019 Plan and 2015 Equity Incentive Plan (the “2015 Plan”): Weighted Weighted Number of Average Average Aggregate Outstanding Exercise Remaining Intrinsic Options Price Contractual Life Value (in years) (in thousands) Balance as of December 31, 2021 5,470,817 $ 9.23 7.96 $ 12,064 Options granted 1,890,519 5.01 Options exercised ( 203,672 ) 1.87 Options cancelled ( 104,197 ) 13.36 Balance as of March 31, 2022 7,053,467 $ 8.23 8.31 $ 5,887 Exercisable as of March 31, 2022 2,644,248 $ 7.06 6.79 $ 5,204 |
Summary of Fair Value of Employee and Director Stock Option Awards using a Black-Scholes Option-Pricing Model | The fair value of employee and director stock option awards was estimated at the date of grant using a Black-Scholes option-pricing model with the following weighted-average assumptions: Three Months Ended March 31, 2022 2021 Expected term (years) 6.02 6.02 Expected volatility 80.76 % 88.63 % Risk-free interest rate 1.67 % 0.60 % Expected dividend yield 0 % 0 % |
Summary of Stock-based Compensation | Total stock-based compensation was as follows: Three Months Ended March 31, 2022 2021 (in thousands) Operating Expenses Research and development $ 1,462 $ 1,197 General and administrative 1,381 939 Total stock-based compensation $ 2,843 $ 2,136 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Summary of Outstanding Potentially Dilutive Common Stock Equivalents Excluded from Calculation of Diluted Net Loss Per Share | The following outstanding potentially dilutive common stock equivalents have been excluded from the calculation of diluted net loss per share for the periods presented due to their anti-dilutive effect: As of March 31, As of March 31, 2022 2021 Common stock options issued and outstanding 7,053,467 4,453,584 Early exercised stock options subject to future vesting 2,880 13,520 Total 7,056,347 4,467,104 |
Organization - Additional Infor
Organization - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Jan. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Month and year of incorporation | 2015-03 | |||
Common stock shares sold | 33,077,421 | 32,765,788 | ||
Proceeds from follow-on offering, net of issuance costs | $ 0 | $ 107,581 | ||
Accumulated deficit | (305,113) | $ (284,792) | ||
Cash, cash equivalents and marketable securities | $ 112,500 | |||
Common Stock [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Common stock shares sold | 6,764,704 | |||
Proceeds from follow-on offering, net of issuance costs | $ 107,600 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 3 Months Ended | ||
Mar. 31, 2022USD ($)Segment | Dec. 31, 2021USD ($) | Mar. 31, 2021USD ($) | |
Summary Of Significant Accounting Policy [Line Items] | |||
Highly liquid investments purchased with maximum original maturities | 3 months | ||
Restricted cash | $ 673,000 | $ 700,000 | $ 467,000 |
Interest or penalties charged related to unrecognized tax benefits | 0 | ||
ASC 740-10 | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Interest or penalties charged related to unrecognized tax benefits | $ 0 | ||
United States | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Number of operating segments | Segment | 1 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Reconciliation of Cash and Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 50,738 | $ 44,687 | $ 71,335 | |
Restricted cash (included in other assets) | 673 | 700 | 467 | |
Cash, cash equivalents and restricted cash in condensed Statements of Cash Flows | $ 51,411 | $ 45,360 | $ 71,802 | $ 21,637 |
Fair Value Measurement - Summar
Fair Value Measurement - Summary of Financial Assets Measured at Fair Value and Fair Value Hierarchy of Valuation (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Assets fair value | $ 107,420 | $ 134,801 |
Level 1 | ||
Assets | ||
Assets fair value | 88,730 | 98,107 |
Level 2 | ||
Assets | ||
Assets fair value | 18,690 | 36,694 |
Level 3 | ||
Assets | ||
Assets fair value | 0 | 0 |
Cash Equivalents | Money Market Funds | ||
Assets | ||
Assets fair value | 44,193 | 42,867 |
Cash Equivalents | Corporate debt securities | ||
Assets | ||
Assets fair value | 1,500 | |
Cash Equivalents | Level 1 | Money Market Funds | ||
Assets | ||
Assets fair value | 44,193 | 42,867 |
Cash Equivalents | Level 1 | Corporate debt securities | ||
Assets | ||
Assets fair value | 1,500 | |
Cash Equivalents | Level 2 | Money Market Funds | ||
Assets | ||
Assets fair value | 0 | 0 |
Cash Equivalents | Level 2 | Corporate debt securities | ||
Assets | ||
Assets fair value | 0 | |
Cash Equivalents | Level 3 | Money Market Funds | ||
Assets | ||
Assets fair value | 0 | 0 |
Cash Equivalents | Level 3 | Corporate debt securities | ||
Assets | ||
Assets fair value | 0 | |
Short-term marketable securities | U.S. government securities | ||
Assets | ||
Assets fair value | 33,068 | 45,241 |
Short-term marketable securities | U.S. government treasuries | ||
Assets | ||
Assets fair value | 9,969 | 9,999 |
Short-term marketable securities | Corporate debt securities | ||
Assets | ||
Assets fair value | 12,450 | 23,475 |
Short-term marketable securities | U.S. government agency securities | ||
Assets | ||
Assets fair value | 4,738 | 11,697 |
Short-term marketable securities | Non-U.S. government securities | ||
Assets | ||
Assets fair value | 1,502 | |
Short-term marketable securities | Level 1 | U.S. government securities | ||
Assets | ||
Assets fair value | 33,068 | 45,241 |
Short-term marketable securities | Level 1 | U.S. government treasuries | ||
Assets | ||
Assets fair value | 9,969 | 9,999 |
Short-term marketable securities | Level 1 | Corporate debt securities | ||
Assets | ||
Assets fair value | 0 | |
Short-term marketable securities | Level 1 | U.S. government agency securities | ||
Assets | ||
Assets fair value | 0 | |
Short-term marketable securities | Level 2 | U.S. government securities | ||
Assets | ||
Assets fair value | 0 | 0 |
Short-term marketable securities | Level 2 | U.S. government treasuries | ||
Assets | ||
Assets fair value | 0 | 0 |
Short-term marketable securities | Level 2 | Corporate debt securities | ||
Assets | ||
Assets fair value | 12,450 | 23,475 |
Short-term marketable securities | Level 2 | U.S. government agency securities | ||
Assets | ||
Assets fair value | 4,738 | 11,697 |
Short-term marketable securities | Level 2 | Non-U.S. government securities | ||
Assets | ||
Assets fair value | 1,502 | |
Short-term marketable securities | Level 3 | U.S. government securities | ||
Assets | ||
Assets fair value | 0 | 0 |
Short-term marketable securities | Level 3 | U.S. government treasuries | ||
Assets | ||
Assets fair value | 0 | 0 |
Short-term marketable securities | Level 3 | Corporate debt securities | ||
Assets | ||
Assets fair value | 0 | 0 |
Short-term marketable securities | Level 3 | U.S. government agency securities | ||
Assets | ||
Assets fair value | $ 0 | 0 |
Long-term marketable securities | U.S. government securities | ||
Assets | ||
Assets fair value | 1,522 | |
Long-term marketable securities | Level 1 | U.S. government securities | ||
Assets | ||
Assets fair value | 0 | |
Long-term marketable securities | Level 2 | U.S. government securities | ||
Assets | ||
Assets fair value | 1,522 | |
Long-term marketable securities | Level 3 | U.S. government securities | ||
Assets | ||
Assets fair value | $ 0 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value, assets | $ 107,420,000 | $ 134,801,000 |
Fair value, assets, level 1 to level 2 transfers, amount | 0 | 0 |
Financial liabilities fair value measurements | 0 | 0 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value, assets | 0 | 0 |
Fair value, liabilities | $ 0 | $ 0 |
Available-for-Sale Securities -
Available-for-Sale Securities - Schedule of Available-for-Sale Securities at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 107,508 | $ 134,847 |
Gross Unrealized Gain | 0 | 1 |
Gross Unrealized Loss | (88) | (47) |
Fair Value | 107,420 | 134,801 |
Cash Equivalents | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 45,693 | 42,867 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 45,693 | 42,867 |
Cash Equivalents | Money Market Funds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 44,193 | 42,867 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 44,193 | 42,867 |
Cash Equivalents | Corporate debt securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 1,500 | |
Gross Unrealized Gain | 0 | |
Gross Unrealized Loss | 0 | |
Fair Value | 1,500 | |
Short-term marketable securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 61,815 | 90,448 |
Gross Unrealized Gain | 0 | 1 |
Gross Unrealized Loss | (88) | (37) |
Fair Value | 61,727 | 90,412 |
Short-term marketable securities | U.S. government treasuries | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 9,980 | 9,999 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | (11) | 0 |
Fair Value | 9,969 | 9,999 |
Short-term marketable securities | U.S. government securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 33,092 | 45,257 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | (24) | (16) |
Fair Value | 33,068 | 45,241 |
Short-term marketable securities | U.S. government agency securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 4,739 | 11,697 |
Gross Unrealized Gain | 0 | 1 |
Gross Unrealized Loss | (1) | (1) |
Fair Value | 4,738 | 11,697 |
Short-term marketable securities | Non-U.S. government securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 1,525 | |
Gross Unrealized Loss | (23) | |
Fair Value | 1,502 | |
Short-term marketable securities | Corporate debt securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 12,479 | 23,495 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | (29) | (20) |
Fair Value | $ 12,450 | 23,475 |
Long-term marketable securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 1,532 | |
Gross Unrealized Gain | 0 | |
Gross Unrealized Loss | (10) | |
Fair Value | 1,522 | |
Long-term marketable securities | U.S. government securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 1,532 | |
Gross Unrealized Gain | 0 | |
Gross Unrealized Loss | (10) | |
Fair Value | $ 1,522 |
Available-for-Sale Securities_2
Available-for-Sale Securities - Additional Information (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Schedule Of Available For Sale Securities [Line Items] | |
Recognition of other-than-temporary impairment | $ 0 |
Maximum | |
Schedule Of Available For Sale Securities [Line Items] | |
Marketable securities maturity period | 2 years |
Balance Sheet Components - Prop
Balance Sheet Components - Property and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Property Plant And Equipment [Line Items] | ||
Property and equipment | $ 15,511 | $ 15,434 |
Less: Accumulated depreciation and amortization | (6,789) | (6,186) |
Total property and equipment, net | 8,722 | 9,248 |
Laboratory Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 5,963 | 5,886 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 585 | 585 |
Computer Equipment and Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 91 | 91 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | $ 8,872 | $ 8,872 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Balance Sheet Related Disclosures [Abstract] | ||
Depreciation and amortization expense | $ 0.6 | $ 0.5 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued research and development | $ 11,239 | $ 11,041 |
Accrued personnel costs | 3,206 | 5,238 |
Accrued professional and consulting fees | 1,068 | 200 |
Other | 299 | 883 |
Total accrued liabilities | $ 15,812 | $ 17,362 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | May 05, 2021 | Apr. 23, 2021 | Aug. 31, 2018 | Mar. 31, 2022 | Mar. 31, 2021 |
Commitments And Contingencies [Line Items] | |||||
Variable lease costs | $ 0.2 | $ 0.2 | |||
Weighted average remaining lease term | 5 years 3 months 18 days | ||||
Weighted average incremental borrowing rate | 8.95% | ||||
Rent expense | $ 0.7 | 0.6 | |||
Contingency lawsuit subject to non-compete year | 4 years | ||||
Damages amount received | $ 38.2 | ||||
Litigation settlement liability | 50 | ||||
Legal rate of interest | 5.00% | ||||
Operating Lease, Right-of-Use Asset, Amortization Expense | $ 0.2 | $ 0.1 | |||
Settlement Agreement | |||||
Commitments And Contingencies [Line Items] | |||||
Damages amount received | $ 38.2 | ||||
Pre judgment interest amount | 11.8 | ||||
Amount of damages fully paid | $ 50 | ||||
Land And Building | |||||
Commitments And Contingencies [Line Items] | |||||
Lease commencement date | Jul. 1, 2019 | ||||
Office Equipment | |||||
Commitments And Contingencies [Line Items] | |||||
Lease term option to extend period | 8 years | ||||
Lessee operating lease, option to extend, description | The Cove Lease includes an option to renew, exercisable at the Company’s sole discretion, with a renewal term for an additional period of eight years. | ||||
Security Deposit | $ 0.2 |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Operating Leases in Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Operating lease right-of-use asset | $ 5,967 | $ 6,127 |
Liabilities | ||
Operating lease liabilities | 1,707 | 1,649 |
Operating lease liabilities, net of current portion | 10,094 | $ 10,538 |
Total operating lease liabilities | $ 11,801 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Future Minimum Lease Payments Under Tizona Lease and Cove Lease (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2022 | $ 2,002 |
2023 | 2,738 |
2024 | 2,825 |
2025 | 2,916 |
2026 | 3,009 |
Thereafter | 1,271 |
Total future minimum lease payments | 14,761 |
Less imputed interest | (2,960) |
Total | $ 11,801 |
Collaboration, License & Clin_3
Collaboration, License & Clinical Supply Agreements - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2021 | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Deferred revenue, noncurrent | $ 22,386,000 | $ 27,705,000 | ||||
Deferred revenue, current | $ 36,875,000 | $ 37,462,000 | ||||
Collaborative Agreement | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Collaboration termination notice period | 90 days | |||||
AbbVie Inc. | Abb Vie Restated Collaboration Agreement | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Collaboration agreement upfront payment amount. | $ 20,000,000 | |||||
Transaction price | $ 20,000,000 | |||||
Collaboration agreement additional payment for target selection | 10,000,000 | |||||
AbbVie Inc. | Phase 1/2 clininical trial of HPN217 | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Collaboration agreement upfront payment amount. | 30,000,000 | |||||
Option exercise fee | 200,000,000 | |||||
AbbVie Inc. | Phase 1/2 clininical trial of HPN217 | Inception of Agreement | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Up-front consideration received | 30,000,000 | |||||
Transaction price | 80,000,000 | 80,000,000 | ||||
Development milestone received | $ 50,000,000 | |||||
AbbVie Inc. | Phase 1/2 clininical trial of HPN217 | Maximum | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Milestone payments under collaboration agreement | 50,000,000 | |||||
AbbVie Inc. | Phase 1/2 clininical trial of HPN217 | Maximum | Inception of Agreement | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Development milestone to be received | $ 50,000,000 | |||||
AbbVie Inc. | Development, Regulatory, and Commercial Sale Milestones For Licensed Products | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Collaboration agreement upfront payment amount. | 300,000,000 | |||||
AbbVie Inc. | Development, Regulatory, and Commercial Sale Milestones For Licensed Products | Maximum | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Collaboration agreement upfront payment amount. | 230,000,000 | |||||
AbbVie Inc. | Collaborative Agreement | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Collaboration agreement upfront payment amount. | 17,000,000 | |||||
Revenue | 5,900,000 | $ 4,400,000 | ||||
Deferred revenue | 40,200,000 | |||||
Deferred revenue, noncurrent | 9,100,000 | |||||
Deferred revenue, current | 31,100,000 | |||||
Recognize royalty revenue | $ 0 | |||||
Collaboration termination notice period | 30 days | |||||
AbbVie Inc. | Collaborative Agreement | Abb Vie Restated Collaboration Agreement | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Collaboration agreement upfront payment amount. | $ 0 | |||||
Transaction price | $ 17,000,000 | |||||
Deferred revenue | 19,100,000 | |||||
Deferred revenue, noncurrent | 13,300,000 | |||||
Deferred revenue, current | 5,800,000 | |||||
Collaborative Arrangements additional payments | 10,000,000 | |||||
Deferred revenue | $ 20,000,000 | |||||
AbbVie Inc. | Research and Development Activities | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Collaboration agreement upfront payment amount. | 17,000,000 | |||||
Werewolf Therapeutics Inc | Collaborative Agreement | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Milestone payments under collaboration agreement | 0 | |||||
Recognize royalty revenue | $ 0 |
Collaboration, License & Clin_4
Collaboration, License & Clinical Supply Agreements - Schedule of Collaboration and License Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Collaboration and license revenue | $ 5,906 | $ 9,007 |
Collaboration and License | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Collaboration and license revenue | 5,906 | 9,007 |
Collaboration and License | Abb Vie Restated Collaboration Agreement | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Collaboration and license revenue | 0 | 4,583 |
Collaboration and License | AbbVie Development And Option Agreement | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Collaboration and license revenue | $ 5,906 | $ 4,424 |
Equity - Additional Information
Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | |
Class Of Stock [Line Items] | |||||
Stock-based compensation expense | $ 2,843 | $ 2,136 | |||
Non-employee awards | |||||
Class Of Stock [Line Items] | |||||
Stock-based compensation expense | 0 | 100 | |||
Early Exercised Stock Options - 2015 Plan | |||||
Class Of Stock [Line Items] | |||||
Other current liabilities relating to shares subject to repurchase | $ 5,000 | 8,000 | |||
Early exercised shares repurchased | 2,880 | 4,608 | |||
2019 Equity Incentive Plan | |||||
Class Of Stock [Line Items] | |||||
Shares reserved for future issuance | 1,357,607 | ||||
Aggregate intrinsic value of options exercisable | $ 1,000 | 1,400 | |||
Future tax benefit related to options exercised | $ 0 | $ 0 | |||
2019 Equity Incentive Plan | Employee Stock Option | |||||
Class Of Stock [Line Items] | |||||
Weighted average grant date fair value of options vested | $ 3.13 | $ 4.94 | |||
Weighted average grant date fair value of options granted | $ 3.48 | $ 13.63 | |||
2019 Employee Stock Purchase Plan | |||||
Class Of Stock [Line Items] | |||||
Shares reserved for future issuance | 839,000 | 750,000 | |||
Number of shares issued under the plan | 106,233 | ||||
Percentage of capital stock outstanding | 1.00% | ||||
Number of shares increased reserved for issuance under plan | 328,000 | ||||
2019 Employee Stock Purchase Plan | Maximum | |||||
Class Of Stock [Line Items] | |||||
Shares reserved for future issuance | 250,000 |
Equity - Summary of Option Acti
Equity - Summary of Option Activity Under Equity Incentive Plan (Details) - 2019 Plan and 2015 Plan - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Number of Outstanding Options | ||
Outstanding Options, Beginning Balance | 5,470,817 | |
Options granted | 1,890,519 | |
Options exercised | (203,672) | |
Options cancelled | (104,197) | |
Outstanding Options, Ending Balance | 7,053,467 | 5,470,817 |
Exercisable as of March 31, 2022 | 2,644,248 | |
Weighted Average Exercise Price | ||
Outstanding Options, Weighted Average Exercise Price | $ 9.23 | |
Options granted, Weighted Average Exercise Price | 5.01 | |
Options exercised, Weighted Average Exercise Price | 1.87 | |
Options cancelled, Weighted Average Exercise Price | 13.36 | |
Outstanding Options, Weighted Average Exercise Price | 8.23 | $ 9.23 |
Exercisable as of March 31, 2022 | $ 7.06 | |
Weighted Average Remaining Contractual Life (in years) | ||
Outstanding Options, Weighted Average Remaining Contractual Life | 8 years 3 months 21 days | 7 years 11 months 15 days |
Exercisable as of March 31, 2022 | 6 years 9 months 14 days | |
Aggregate Intrinsic Value | ||
Options Outstanding, Aggregate Intrinsic Value | $ 5,887 | $ 12,064 |
Exercisable as of March 31, 2022 | $ 5,204 |
Equity - Summary of Fair Value
Equity - Summary of Fair Value of Employee and Director Stock Option Awards using a Black-Scholes Option-Pricing Model (Details) - Employee Stock Option | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term (years) | 6 years 7 days | 6 years 7 days |
Expected volatility | 80.76% | 88.63% |
Risk-free interest rate | 1.67% | 0.60% |
Expected dividend yield | 0.00% | 0.00% |
Equity - Total Stock-based Comp
Equity - Total Stock-based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation | $ 2,843 | $ 2,136 |
Research and development | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation | 1,462 | 1,197 |
General and administrative | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation | $ 1,381 | $ 939 |
Net Loss Per Share - Summary of
Net Loss Per Share - Summary of Outstanding Potentially Dilutive Common Stock Equivalents Excluded from Calculation of Diluted Net Loss Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Outstanding potentially dilutive common stock equivalents | 7,056,347 | 4,467,104 |
Common Stock Options Issued and Outstanding | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Outstanding potentially dilutive common stock equivalents | 7,053,467 | 4,453,584 |
Early Exercised Stock Options Subject To Future Vesting | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Outstanding potentially dilutive common stock equivalents | 2,880 | 13,520 |