Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-39112 | |
Entity Registrant Name | OYSTER POINT PHARMA, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 81-1030955 | |
Entity Address, Address Line One | 202 Carnegie Center, Suite 109 | |
Entity Address, City or Town | Princeton | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 08540 | |
City Area Code | 609 | |
Local Phone Number | 382-9032 | |
Title of 12(b) Security | Common stock, par value $0.001 | |
Trading Symbol | OYST | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 25,977,778 | |
Amendment Flag | false | |
Entity Central Index Key | 0001720725 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 175,910 | $ 192,585 |
Prepaid expenses and other current assets | 6,738 | 3,782 |
Total current assets | 182,648 | 196,367 |
Property and equipment, net | 1,121 | 804 |
Restricted cash | 61 | 61 |
Other assets | 30 | 0 |
Right-of-use assets, net | 912 | 678 |
Total Assets | 184,772 | 197,910 |
Current Liabilities | ||
Accounts payable | 7,093 | 2,279 |
Accrued expenses and other current liabilities | 6,110 | 8,285 |
Lease liabilities | 533 | 418 |
Total current liabilities | 13,736 | 10,982 |
Lease liabilities, non-current | 388 | 269 |
Total Liabilities | 14,124 | 11,251 |
Commitments and Contingencies (Note 7) | ||
Stockholders’ Equity | ||
Preferred stock, $0.001 par value per share; 5,000,000 shares authorized; none outstanding | 0 | 0 |
Common stock, $0.001 par value per share; 1,000,000,000 shares authorized, 25,960,788 and 25,890,490 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively | 26 | 26 |
Additional paid-in capital | 344,282 | 341,384 |
Accumulated deficit | (173,660) | (154,751) |
Total Stockholders’ Equity | 170,648 | 186,659 |
Total Liabilities and Stockholders’ Equity | $ 184,772 | $ 197,910 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Par value of preferred stock (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock outstanding (in shares) | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock shares issued (in shares) | 25,960,788 | 25,890,490 |
Common stock shares outstanding (in shares) | 25,960,788 | 25,890,490 |
Condensed Statements of Operati
Condensed Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating expenses: | ||
Research and development | $ 5,828 | $ 11,340 |
Selling, general and administrative | 13,092 | 5,589 |
Total operating expenses | 18,920 | 16,929 |
Loss from operations | (18,920) | (16,929) |
Other income, net | 11 | 410 |
Net loss and comprehensive loss | $ (18,909) | $ (16,519) |
Net loss per share, basic and diluted (in dollars per share) | $ (0.73) | $ (0.77) |
Net loss per share, basic and diluted (in dollars per share) | $ (0.73) | $ (0.77) |
Weighted average shares outstanding, basic and diluted (in shares) | 25,924,096 | 21,367,532 |
Weighted average shares outstanding, basic and diluted (in shares) | 25,924,096 | 21,367,532 |
Condensed Statements of Stockho
Condensed Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Common StockRestricted Stock Units (RSUs) | Additional Paid-In Capital | Accumulated Deficit |
Beginning balance, common stock (in shares) at Dec. 31, 2019 | 21,366,950 | ||||
Beginning balance at Dec. 31, 2019 | $ 137,298 | $ 21 | $ 221,508 | $ (84,231) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (16,519) | (16,519) | |||
Issuance of common stock upon exercise of stock options (in shares) | 3,530 | ||||
Issuance of common stock upon exercise of stock options | 4 | 4 | |||
Stock-based compensation expense | 1,180 | 1,180 | |||
Ending balance, common stock (in shares) at Mar. 31, 2020 | 21,370,480 | ||||
Ending balance at Mar. 31, 2020 | $ 121,963 | $ 21 | 222,692 | (100,750) | |
Beginning balance, common stock (in shares) at Dec. 31, 2020 | 25,890,490 | 25,890,490 | |||
Beginning balance at Dec. 31, 2020 | $ 186,659 | $ 26 | 341,384 | (154,751) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | $ (18,909) | (18,909) | |||
Issuance of common stock upon exercise of stock options (in shares) | 55,046 | 55,046 | 15,252 | ||
Issuance of common stock upon exercise of stock options | $ 218 | 218 | |||
Stock-based compensation expense | $ 2,680 | 2,680 | |||
Ending balance, common stock (in shares) at Mar. 31, 2021 | 25,960,788 | 25,960,788 | |||
Ending balance at Mar. 31, 2021 | $ 170,648 | $ 26 | $ 344,282 | $ (173,660) |
Condensed Statement of Cash Flo
Condensed Statement of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities | ||
Net loss | $ (18,909) | $ (16,519) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation expense | 2,680 | 1,180 |
Depreciation | 23 | 17 |
Reduction in the carrying amount of the right-of-use assets | 110 | 92 |
Changes in assets and liabilities: | ||
Prepaid expenses and other current assets | (2,949) | 645 |
Accounts payable | 4,812 | 6,384 |
Change in lease liabilities | (109) | (93) |
Accrued expenses and other current liabilities | (2,158) | (2,118) |
Other assets | (30) | 0 |
Net cash used in operating activities | (16,530) | (10,412) |
Cash flows from investing activities | ||
Purchase of property and equipment | (340) | (99) |
Net cash used in investing activities | (340) | (99) |
Cash flows from financing activities | ||
Payment of deferred offering costs | (23) | 0 |
Proceeds from the exercise of stock options | 218 | 4 |
Net cash provided by financing activities | 195 | 4 |
Net decrease in cash, cash equivalents and restricted cash | (16,675) | (10,507) |
Cash, cash equivalents and restricted cash at the beginning of the period | 192,646 | 139,198 |
Cash, cash equivalents and restricted cash at the end of the period | 175,971 | 128,691 |
Reconciliation of cash, cash equivalents and restricted cash | ||
Cash, cash equivalents and restricted cash | 175,971 | 128,691 |
Supplemental cash flow information | ||
Right-of-use for office space and office equipment acquired through leases | $ 344 | $ 320 |
Nature of Business, Basis of Pr
Nature of Business, Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Nature of Business, Basis of Presentation and Significant Accounting Policies | Nature of Business, Basis of Presentation and Significant Accounting Policies Description of the Business Oyster Point Pharma, Inc. (the Company) is a clinical stage biopharmaceutical company focused on the discovery, development and commercialization of pharmaceutical therapies to treat ocular surface diseases. The Company’s principal office is located in Princeton, New Jersey. From inception through March 31, 2021, the Company has been engaged in business planning, research, clinical development of its therapeutic product candidates, recruiting and raising capital. Liquidity The Company incurred net losses of $18.9 million and $16.5 million for the three months ended March 31, 2021 and 2020, respectively, and had an accumulated deficit of $173.7 million as of March 31, 2021. The Company expects to incur an increase in expense related to the Company's preparation for the commercialization of its lead product candidate, OC-01 (varenicline) nasal spray, if approved by the U.S. Food and Drug Administration (FDA), including to establish commercial scale manufacturing arrangements and to provide for the marketing, commercial operations and distribution of the product. The Company expended and will continue to expend additional funds to complete the research, development and clinical testing of its product candidates. The Company will require additional funds to commercialize its products. The Company is unable to entirely fund these efforts with its current financial resources and there can be no assurance that it will be able to secure such additional financing on a timely basis, if at all, that will be sufficient to meet these needs. If adequate funds are unavailable on a timely basis from operations or additional sources of financing, the Company may have to delay, reduce and or eliminate certain commercial related expenses, included in selling, general and administrative expenses, as well as delay, reduce and or eliminate the scope of one or more of its research or development programs, which would materially and adversely affect its business, financial condition and operations. The Company is subject to risks and uncertainties as a result of the SARS-CoV-2 virus pandemic. The pandemic and any related public health developments, have adversely affected workforces, economies, and financial markets globally, potentially leading to an economic downturn. It is not possible for the Company to predict the duration or magnitude of the adverse results of the pandemic or the full extent of its effects on the Company's financial condition, liquidity or results of operations. The Company had cash and cash equivalents of $175.9 million as of March 31, 2021. Management believes that the Company’s current cash and cash equivalents will be sufficient to fund its planned operations for at least 12 months from the date of issuance of these financial statements. Basis of Presentation The unaudited interim condensed financial statements and accompanying notes have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the accompanying unaudited condensed financial statements contain all adjustments, which are of a normal recurring nature, necessary to state fairly the Company’s financial position as of March 31, 2021 and as of December 31, 2020, the results of operations for the three months ended March 31, 2021 and 2020, and cash flows for the three months ended March 31, 2021 and 2020. While management believes that the disclosures presented are adequate to mitigate the risk of the information being misleading, these unaudited condensed financial statements should be read in conjunction with the audited financial statements and the related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The results of the Company’s operations for any interim period are not necessarily indicative of the results of operations for any other interim period or for the full year. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of expenses in the condensed financial statements and accompanying notes. Significant items subject to such estimates and assumptions include stock-based compensation and certain research and development accruals. Actual results could differ from these estimates, and such differences could be material to the Company’s financial position and results of operations. Summary of Significant Accounting Policies The Company’s significant accounting policies are disclosed in Note 1 . Nature of Business, Basis of Presentation and Significant Accounting Policies in the Annual Report on Form 10-K for the year ended December 31, 2020. There have been no material changes in the Company's accounting policies from those disclosed in the financial statements and the related notes included in the Annual Report on Form 10-K for the year ended December 31, 2020. Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (the FASB) under its accounting standard codifications (ASC) or other standard setting bodies and are adopted by the Company as of the specified effective date, unless otherwise discussed below. ASU 2020-10 — In October 2020, the FASB issued ASU 2020-10, Codification Improvements, which updated various codification topics by clarifying or improving disclosure requirements to align with the SEC’s regulations. The amendments in ASU 2020-10 are effective for annual periods beginning after December 15, 2020, for public business entities. The Company adopted ASU 2020-10 on January 1, 2021 and its adoption did not have a material effect on the Company’s financial statements and related disclosures. Reclassification |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company assesses the fair value of financial instruments as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a three-tier fair value hierarchy has been established, which prioritizes the inputs used in measuring fair value as follows: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. As of March 31, 2021, financial assets measured and recognized at fair value on a recurring basis were as follows (in thousands): Fair Value Measurements at March 31, 2021 Quoted Price in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets Money market funds $ 174,910 $ — $ — $ 174,910 Total fair value of assets $ 174,910 $ — $ — $ 174,910 As of December 31, 2020, financial assets measured and recognized at fair value on a recurring basis were as follows (in thousands): Fair Value Measurements at December 31, 2020 Quoted Price in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets Money market funds $ 191,585 $ — $ — $ 191,585 Total fair value of assets $ 191,585 $ — $ — $ 191,585 Money market funds are included in cash and cash equivalents on the Company's condensed balance sheets and are classified within Level 1 of the fair value hierarchy as they are valued using quoted market prices. The carrying amounts reflected in the Company's condensed balance sheets for cash equivalents, prepaid expenses and other current assets, restricted cash, accounts payable and accrued expenses and other liabilities approximate their fair values, due to their short-term nature. Concentration of Credit Risk |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): March 31, 2021 December 31, 2020 Accrued compensation $ 2,081 $ 3,500 Accrued professional services 2,078 1,244 Accrued research and development expense 1,951 3,541 Total accrued expenses and other current liabilities $ 6,110 $ 8,285 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Common Stock The Company is authorized to issue 1,000,000,000 shares of common stock, at a par value of $0.001 per share. Each share of common stock is entitled to one vote. The Company reserved common stock for future issuance as follows: March 31, 2021 December 31, 2020 Outstanding options under the 2016 Equity Incentive Plan 2,487,560 2,567,566 Outstanding options under the 2019 Equity Incentive Plan 1,545,484 918,145 Equity awards available for grant under the 2019 Plan (1) 2,128,714 1,790,106 Unvested restricted stock units (RSUs) 140,595 61,215 Shares reserved for purchase under the ESPP 270,000 270,000 Total 6,572,353 5,607,032 (1) — Effective January 1, 2021, in connection with the evergreen provision under the 2019 Equity Incentive Plan (the 2019 Plan) 1,035,619 shares were added to the 2019 Plan. Stock Options The following table summarizes stock option activity under the 2016 Equity Incentive Plan and the 2019 Plan during the three months ended March 31, 2021 (in thousands, except share, contractual term and per share data): Outstanding Options Number of Shares Underlying Outstanding Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Balance, January 1, 2021 3,485,711 $ 10.74 8.2 $ 36,506 Options granted 669,466 18.87 Options exercised (55,046) 3.95 925 Options forfeited (67,087) 16.27 335 Balance, March 31, 2021 4,033,044 12.09 8.2 34,041 Shares vested and exercisable as of March 31, 2021 1,788,572 5.93 7.4 24,180 Vested and expected to vest as of March 31, 2021 4,033,044 $ 12.09 8.2 $ 34,041 The weighted average fair value of options granted during the three months ended March 31, 2021 was $11.68 per share. As of March 31, 2021, the total unrecognized stock-based compensation expense for stock options was $26.5 million, which is expected to be recognized over a weighted average period of 3.1 years. Restricted Stock Units Restricted stock units (RSUs) are granted to the Company's directors and employees. The value of an RSU award is based on the Company's stock price on the date of the grant. The shares underlying the RSUs are not issued until the RSUs vest. Upon vesting, each RSU converts into one share of the Company's common stock. Activity with respect to the Company's restricted stock units during the three months ended March 31, 2021 was as follows (in thousands, except share, contractual term, and per share data): Outstanding RSUs Number of Shares Underlying Outstanding Awards Weighted Average Grant Date Fair Value per Share Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at January 1, 2021 61,215 $ 23.83 1.4 $ 1,152 Restricted stock units granted 95,004 18.77 1,783 Restricted stock units vested (15,252) 27.61 328 Restricted units forfeited (372) 18.77 8 Balance, March 31, 2021 140,595 20.02 7.1 2,570 Unvested and expected to vest as of March 31, 2021 140,595 $ 20.02 7.1 $ 2,570 As of March 31, 2021, the total unrecognized stock-based compensation expense for RSUs was $2.5 million, which is expected to be recognized over a weighted average period of 3.0 years. Stock-Based Compensation Expense Total stock-based compensation expense recorded related to awards granted to employees and non-employees was as follows (in thousands): Three Months Ended March 31, 2021 2020 Research and development $ 366 $ 217 Selling, general and administrative 2,314 963 Total stock-based compensation expense $ 2,680 $ 1,180 |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share The following table sets forth the computation of basic and diluted net loss per share (in thousands, except share and per share data): Three Months Ended March 31, 2021 2020 Numerator: Net loss $ (18,909) $ (16,519) Denominator: Weighted average shares outstanding, basic and diluted 25,924,096 21,367,532 Net loss per share, basic and diluted $ (0.73) $ (0.77) The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share for the periods presented because including them would have been antidilutive: As of March 31, 2021 2020 Options to purchase common stock 4,033,044 3,261,499 Unvested restricted stock units 140,595 23,125 Total 4,173,639 3,284,624 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases The Company is party to several operating and finance lease agreements related to office and laboratory space and office equipment. In February 2021, the Company entered into a lease agreement for laboratory and office space in New Jersey for a three-year term beginning on March 1, 2021 and ending on February 29, 2024. Total future minimum lease payments under the Company's lease agreements are $0.9 million as of March 31, 2021. Supplemental balance sheet information for the Company's leases is as follows (in thousands): March 31, 2021 December 31, 2020 Operating lease right-of-use asset $ 882 $ 644 Finance lease right-of-use asset 30 34 Total right-of-use asset $ 912 $ 678 Operating lease liabilities $ 515 $ 400 Finance lease liabilities 18 18 Total lease liabilities $ 533 $ 418 Operating lease liabilities, non-current $ 373 $ 250 Finance lease liabilities, non-current 15 19 Total lease liabilities, non-current $ 388 $ 269 The maturities of the lease liabilities under non-cancelable operating and finance leases are as follows (in thousands): As of March 31, 2021 Finance Leases Operating Leases Total 2021 (remainder) $ 14 $ 414 $ 428 2022 16 376 392 2023 4 126 130 2024 — 21 21 Total undiscounted cash flows 34 937 971 Less: imputed interest (1) (49) (50) Total lease liability 33 888 921 Less: current portion (18) (515) (533) Lease liability $ 15 $ 373 $ 388 |
Leases | Leases The Company is party to several operating and finance lease agreements related to office and laboratory space and office equipment. In February 2021, the Company entered into a lease agreement for laboratory and office space in New Jersey for a three-year term beginning on March 1, 2021 and ending on February 29, 2024. Total future minimum lease payments under the Company's lease agreements are $0.9 million as of March 31, 2021. Supplemental balance sheet information for the Company's leases is as follows (in thousands): March 31, 2021 December 31, 2020 Operating lease right-of-use asset $ 882 $ 644 Finance lease right-of-use asset 30 34 Total right-of-use asset $ 912 $ 678 Operating lease liabilities $ 515 $ 400 Finance lease liabilities 18 18 Total lease liabilities $ 533 $ 418 Operating lease liabilities, non-current $ 373 $ 250 Finance lease liabilities, non-current 15 19 Total lease liabilities, non-current $ 388 $ 269 The maturities of the lease liabilities under non-cancelable operating and finance leases are as follows (in thousands): As of March 31, 2021 Finance Leases Operating Leases Total 2021 (remainder) $ 14 $ 414 $ 428 2022 16 376 392 2023 4 126 130 2024 — 21 21 Total undiscounted cash flows 34 937 971 Less: imputed interest (1) (49) (50) Total lease liability 33 888 921 Less: current portion (18) (515) (533) Lease liability $ 15 $ 373 $ 388 |
Commitment and Contingencies
Commitment and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies License Agreement The Company is party to a non-exclusive patent license agreement with Pfizer, which granted the Company non-exclusive rights under Pfizer’s patent rights covering varenicline tartrate to develop, manufacture, and commercialize the OC-01 (varenicline) nasal spray product. Under the terms of the agreement, the Company made an upfront payment to Pfizer of $5 million during the year ended December 31, 2019. If the Company commercializes OC-01 (varenicline) nasal spray, it may be required to pay a single milestone payment in low double-digit millions and tiered royalties on net sales of OC-01(varenicline) nasal spray at percentages ranging from the mid-single digits to the mid-teens. The royalty obligation to Pfizer would commence upon the first commercial sale of OC-01 (varenicline) nasal spray and expire upon the later of (a) the expiration of all regulatory or data exclusivity granted to Pfizer in connection with varenicline in the United States; and (b) the expiration or abandonment of the last valid claims of the licensed patents. No milestone was achieved or probable to be achieved or royalties payable accrued as of March 31, 2021 and December 31, 2020. Contingencies |
Nature of Business, Basis of _2
Nature of Business, Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited interim condensed financial statements and accompanying notes have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the accompanying unaudited condensed financial statements contain all adjustments, which are of a normal recurring nature, necessary to state fairly the Company’s financial position as of March 31, 2021 and as of December 31, 2020, the results of operations for the three months ended March 31, 2021 and 2020, and cash flows for the three months ended March 31, 2021 and 2020. While management believes that the disclosures presented are adequate to mitigate the risk of the information being misleading, these unaudited condensed financial statements should be read in conjunction with the audited financial statements and the related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The results of the Company’s operations for any interim period are not necessarily indicative of the results of operations for any other interim period or for the full year. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of expenses in the condensed financial statements and accompanying notes. Significant items subject to such estimates and assumptions include stock-based compensation and certain research and development accruals. Actual results could differ from these estimates, and such differences could be material to the Company’s financial position and results of operations. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (the FASB) under its accounting standard codifications (ASC) or other standard setting bodies and are adopted by the Company as of the specified effective date, unless otherwise discussed below. ASU 2020-10 — In October 2020, the FASB issued ASU 2020-10, Codification Improvements, which updated various codification topics by clarifying or improving disclosure requirements to align with the SEC’s regulations. The amendments in ASU 2020-10 are effective for annual periods beginning after December 15, 2020, for public business entities. The Company adopted ASU 2020-10 on January 1, 2021 and its adoption did not have a material effect on the Company’s financial statements and related disclosures. |
Reclassification | ReclassificationCertain prior year amounts have been reclassified for comparative purposes. |
Fair Value Measurements | The Company assesses the fair value of financial instruments as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a three-tier fair value hierarchy has been established, which prioritizes the inputs used in measuring fair value as follows: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial assets measured and recognized at fair value | As of March 31, 2021, financial assets measured and recognized at fair value on a recurring basis were as follows (in thousands): Fair Value Measurements at March 31, 2021 Quoted Price in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets Money market funds $ 174,910 $ — $ — $ 174,910 Total fair value of assets $ 174,910 $ — $ — $ 174,910 As of December 31, 2020, financial assets measured and recognized at fair value on a recurring basis were as follows (in thousands): Fair Value Measurements at December 31, 2020 Quoted Price in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets Money market funds $ 191,585 $ — $ — $ 191,585 Total fair value of assets $ 191,585 $ — $ — $ 191,585 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses | Accrued expenses and other current liabilities consisted of the following (in thousands): March 31, 2021 December 31, 2020 Accrued compensation $ 2,081 $ 3,500 Accrued professional services 2,078 1,244 Accrued research and development expense 1,951 3,541 Total accrued expenses and other current liabilities $ 6,110 $ 8,285 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Schedule of Conversions of Stock | The Company reserved common stock for future issuance as follows: March 31, 2021 December 31, 2020 Outstanding options under the 2016 Equity Incentive Plan 2,487,560 2,567,566 Outstanding options under the 2019 Equity Incentive Plan 1,545,484 918,145 Equity awards available for grant under the 2019 Plan (1) 2,128,714 1,790,106 Unvested restricted stock units (RSUs) 140,595 61,215 Shares reserved for purchase under the ESPP 270,000 270,000 Total 6,572,353 5,607,032 (1) — Effective January 1, 2021, in connection with the evergreen provision under the 2019 Equity Incentive Plan (the 2019 Plan) 1,035,619 shares were added to the 2019 Plan. |
Schedule of stock options activity | The following table summarizes stock option activity under the 2016 Equity Incentive Plan and the 2019 Plan during the three months ended March 31, 2021 (in thousands, except share, contractual term and per share data): Outstanding Options Number of Shares Underlying Outstanding Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Balance, January 1, 2021 3,485,711 $ 10.74 8.2 $ 36,506 Options granted 669,466 18.87 Options exercised (55,046) 3.95 925 Options forfeited (67,087) 16.27 335 Balance, March 31, 2021 4,033,044 12.09 8.2 34,041 Shares vested and exercisable as of March 31, 2021 1,788,572 5.93 7.4 24,180 Vested and expected to vest as of March 31, 2021 4,033,044 $ 12.09 8.2 $ 34,041 |
Schedule of activity for restricted stock units | Activity with respect to the Company's restricted stock units during the three months ended March 31, 2021 was as follows (in thousands, except share, contractual term, and per share data): Outstanding RSUs Number of Shares Underlying Outstanding Awards Weighted Average Grant Date Fair Value per Share Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at January 1, 2021 61,215 $ 23.83 1.4 $ 1,152 Restricted stock units granted 95,004 18.77 1,783 Restricted stock units vested (15,252) 27.61 328 Restricted units forfeited (372) 18.77 8 Balance, March 31, 2021 140,595 20.02 7.1 2,570 Unvested and expected to vest as of March 31, 2021 140,595 $ 20.02 7.1 $ 2,570 |
Schedule of stock-based compensation expense | Total stock-based compensation expense recorded related to awards granted to employees and non-employees was as follows (in thousands): Three Months Ended March 31, 2021 2020 Research and development $ 366 $ 217 Selling, general and administrative 2,314 963 Total stock-based compensation expense $ 2,680 $ 1,180 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | The following table sets forth the computation of basic and diluted net loss per share (in thousands, except share and per share data): Three Months Ended March 31, 2021 2020 Numerator: Net loss $ (18,909) $ (16,519) Denominator: Weighted average shares outstanding, basic and diluted 25,924,096 21,367,532 Net loss per share, basic and diluted $ (0.73) $ (0.77) |
Schedule of antidilutive securities excluded from computation of earnings per share | The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share for the periods presented because including them would have been antidilutive: As of March 31, 2021 2020 Options to purchase common stock 4,033,044 3,261,499 Unvested restricted stock units 140,595 23,125 Total 4,173,639 3,284,624 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Supplemental balance sheet information for lessee | Supplemental balance sheet information for the Company's leases is as follows (in thousands): March 31, 2021 December 31, 2020 Operating lease right-of-use asset $ 882 $ 644 Finance lease right-of-use asset 30 34 Total right-of-use asset $ 912 $ 678 Operating lease liabilities $ 515 $ 400 Finance lease liabilities 18 18 Total lease liabilities $ 533 $ 418 Operating lease liabilities, non-current $ 373 $ 250 Finance lease liabilities, non-current 15 19 Total lease liabilities, non-current $ 388 $ 269 |
Schedule of maturities of lease liabilities | The maturities of the lease liabilities under non-cancelable operating and finance leases are as follows (in thousands): As of March 31, 2021 Finance Leases Operating Leases Total 2021 (remainder) $ 14 $ 414 $ 428 2022 16 376 392 2023 4 126 130 2024 — 21 21 Total undiscounted cash flows 34 937 971 Less: imputed interest (1) (49) (50) Total lease liability 33 888 921 Less: current portion (18) (515) (533) Lease liability $ 15 $ 373 $ 388 |
Nature of Business, Basis of _3
Nature of Business, Basis of Presentation and Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | |||
Net loss | $ (18,909) | $ (16,519) | |
Accumulated deficit | (173,660) | $ (154,751) | |
Cash and cash equivalents | $ 175,910 | $ 128,630 | $ 192,585 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets | $ 174,910 | $ 191,585 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 174,910 | 191,585 |
Quoted Price in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets | 174,910 | 191,585 |
Quoted Price in Active Markets for Identical Assets (Level 1) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 174,910 | 191,585 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 0 | $ 0 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Accrued compensation | $ 2,081 | $ 3,500 |
Accrued professional services | 2,078 | 1,244 |
Accrued research and development expense | 1,951 | 3,541 |
Total accrued expenses and other current liabilities | $ 6,110 | $ 8,285 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2021USD ($)shares$ / shares | Dec. 31, 2020$ / sharesshares | |
Class of Stock [Line Items] | ||
Common stock authorized (in shares) | shares | 1,000,000,000 | 1,000,000,000 |
Common stock par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 |
Number of votes per share | shares | 1 | |
Weighted-average grant-date fair value of options (in dollars per share) | $ / shares | $ 11.68 | |
Unrecognized stock-based compensation expense | $ | $ 26.5 | |
Weighted-average recognition period of unrecognized stock-based compensation expense (in years) | 3 years 1 month 6 days | |
Restricted Stock Units (RSUs) | ||
Class of Stock [Line Items] | ||
Unrecognized stock-based compensation expense | $ | $ 2.5 | |
Weighted-average recognition period of unrecognized stock-based compensation expense (in years) | 3 years |
Stockholders' Equity - Reserved
Stockholders' Equity - Reserved Common Stock (Details) - shares | Jan. 01, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Class of Stock [Line Items] | |||
Outstanding options (in shares) | 4,033,044 | 3,485,711 | |
Unvested RSUs and shares reserved for purchase under the ESPP | 140,595 | 61,215 | |
Total (in shares) | 6,572,353 | 5,607,032 | |
2016 Plan | |||
Class of Stock [Line Items] | |||
Outstanding options (in shares) | 2,487,560 | 2,567,566 | |
2019 Plan | |||
Class of Stock [Line Items] | |||
Outstanding options (in shares) | 1,545,484 | 918,145 | |
Unvested RSUs and shares reserved for purchase under the ESPP | 140,595 | 61,215 | |
Additional shares authorized (in shares) | 1,035,619 | ||
2019 Plan | Restricted Stock Units (RSUs) | |||
Class of Stock [Line Items] | |||
Equity awards available to grant (in shares) | 2,128,714 | 1,790,106 | |
2019 ESPP | |||
Class of Stock [Line Items] | |||
Unvested RSUs and shares reserved for purchase under the ESPP | 270,000 | 270,000 |
Stockholders' Equity - Option A
Stockholders' Equity - Option Activity During The Period (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Number of Shares Underlying Outstanding Options | ||
Beginning balance (in shares) | 3,485,711 | |
Options granted (in shares) | 669,466 | |
Options exercised (in shares) | (55,046) | |
Options canceled (in shares) | (67,087) | |
Ending balance (in shares) | 4,033,044 | 3,485,711 |
Shares vested at end of period (in shares) | 1,788,572 | |
Shares exercisable at end of period (in shares) | 1,788,572 | |
Shares vested and expected to vest at end of period (in shares) | 4,033,044 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Beginning balance (in dollars per share) | $ 10.74 | |
Options granted (in dollars per share) | 18.87 | |
Options exercise price (in dollars per share) | 3.95 | |
Options cancelled (in dollars per share) | 16.27 | |
Ending balance (in dollars per share) | 12.09 | $ 10.74 |
Shares vested and exercisable at end of period (in dollars per share) | 5,930 | |
Shares vested and expected to vest at end of period (in dollars per share) | $ 12,090 | |
Weighted-Average Remaining Contractual Term (Years) | ||
Weighted average contractual term (in years) | 8 years 2 months 12 days | 8 years 2 months 12 days |
Shares vested and exercisable at end of period, weighted average remaining contractual term (in years) | 7 years 4 months 24 days | |
Shares vested and expected to vest at end of period, weighted average remaining contractual term (in years) | 8 years 2 months 12 days | |
Aggregate Intrinsic Value | ||
Aggregate intrinsic value, outstanding ending balance | $ 36,506 | |
Aggregate intrinsic value, options exercised | 925 | |
Aggregate intrinsic value, options cancelled | 335 | |
Aggregate intrinsic value, outstanding ending balance | 34,041 | $ 36,506 |
Shares vested and expected to vest at end of period, aggregate intrinsic value | 34,041 | |
Shares vested and exercisable at end of period, aggregate intrinsic value | $ 24,180 |
Stockholders' Equity - RSU Acti
Stockholders' Equity - RSU Activity During The Period (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Number of Shares Underlying Outstanding Units | ||
Outstanding at beginning of period (in shares) | 61,215 | |
Restricted stock units granted (in shares) | 95,004 | |
Shares vested in period (in shares) | (15,252) | |
Restricted units forfeited (in shares) | (372) | |
Outstanding at end of period (in shares) | 140,595 | 61,215 |
Unvested and expected to vest (in shares) | 140,595 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Beginning outstanding balance (in dollars per share) | $ 23.83 | |
Restricted stock units granted, weighted average grant date fair value (in dollars per share) | 18.77 | |
Restricted stock units vested, weighted average grant date fair value (in dollars per share) | 27.61 | |
Restricted units forfeited, weighted average grant date fair value (in dollars per share) | 18.77 | |
Ending outstanding balance (in dollars per share) | 20.02 | $ 23.83 |
Unvested and expected to vest (in dollars per share) | $ 20.02 | |
Weighted Average Remaining Contractual Term (Years) | ||
Weighted average remaining contractual term, restricted stock units (in years) | 7 years 1 month 6 days | 1 year 4 months 24 days |
Vested and expected to vest, weighted average remaining contractual term (in years) | 7 years 1 month 6 days | |
Shave-Based Compensation Arrangement By share-Based Payment Award, Equity Instruments Other Than Options, Aggregate Intrinsic Value [Roll Forward] | ||
Restricted stock units outstanding, aggregate intrinsic value, beginning of period | $ 1,152 | |
Restricted stock units granted, aggregate intrinsic value | 1,783 | |
Restricted stock units vested, aggregate intrinsic value | 328 | |
Restricted stock units outstanding, aggregate intrinsic value, end of period | 8 | |
Restricted stock units outstanding, aggregate intrinsic value, end of period | 2,570 | $ 1,152 |
Vested and expected to vest, aggregate intrinsic value | $ 2,570 |
Stockholders' Equity - Stock Ba
Stockholders' Equity - Stock Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | $ 2,680 | $ 1,180 |
Research and development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | 366 | 217 |
Selling, general and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | $ 2,314 | $ 963 |
Net Loss Per Share (Details)
Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Numerator: | ||
Net loss | $ (18,909) | $ (16,519) |
Denominator: | ||
Weighted average shares outstanding, basic and diluted (in shares) | 25,924,096 | 21,367,532 |
Weighted average shares outstanding, basic and diluted (in shares) | 25,924,096 | 21,367,532 |
Net loss per share, basic and diluted (in dollars per share) | $ (0.73) | $ (0.77) |
Net loss per share, basic and diluted (in dollars per share) | $ (0.73) | $ (0.77) |
Net Loss Per Share - Antidiluti
Net Loss Per Share - Antidilutive Securities (Details) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities excluded from the computation of diluted net loss per share (in shares) | 4,173,639 | 3,284,624 |
Options to purchase common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities excluded from the computation of diluted net loss per share (in shares) | 4,033,044 | 3,261,499 |
Restricted Stock Units (RSUs) | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities excluded from the computation of diluted net loss per share (in shares) | 140,595 | 23,125 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Feb. 28, 2021 |
Leases [Abstract] | ||
Term of lease contract | 3 years | |
Future minimum lease payments | $ 888 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating lease right-of-use asset | $ 882 | $ 644 |
Finance lease right-of-use asset | 30 | 34 |
Total right-of-use asset | 912 | 678 |
Operating lease liabilities | 515 | 400 |
Finance lease liabilities | 18 | 18 |
Total lease liabilities | 533 | 418 |
Operating lease liabilities, non-current | 373 | 250 |
Finance lease liabilities, non-current | 15 | 19 |
Total lease liabilities, non-current | $ 388 | $ 269 |
Leases - Lease Maturity Schedul
Leases - Lease Maturity Schedules (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Finance Leases | ||
2021 (remainder) | $ 14 | |
2022 | 16 | |
2023 | 4 | |
2024 | 0 | |
Total undiscounted cash flows | 34 | |
Less: imputed interest | (1) | |
Total lease liability | 33 | |
Less: current portion | (18) | $ (18) |
Lease liability | 15 | 19 |
Operating Leases | ||
2021 (remainder) | 414 | |
2022 | 376 | |
2023 | 126 | |
2024 | 21 | |
Total undiscounted cash flows | 937 | |
Less: imputed interest | (49) | |
Total lease liability | 888 | |
Less: current portion | (515) | (400) |
Lease liabilities, non-current | 373 | 250 |
Total | ||
2021 (remainder) | 428 | |
2022 | 392 | |
2022 | 130 | |
2023 | 21 | |
Total undiscounted cash flows | 971 | |
Less: imputed interest | (50) | |
Total lease liability | 921 | |
Less: current portion | (533) | (418) |
Total lease liabilities, non-current | $ 388 | $ 269 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Licensing Agreements | |
Lessee, Lease, Description [Line Items] | |
Upfront payment for non-exclusive license agreement | $ 5 |