BioXcel Therapeutics (BTAI) 10-Q 10 May 21 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2021	May 05, 2021
Document and Entity Information
Document Type	10-Q
Document Period End Date	Mar. 31, 2021
Entity Registrant Name	BioXcel Therapeutics, Inc.
Title of 12(b) Security	Common Stock
Trading Symbol	BTAI
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		24,631,989
Entity Central Index Key	0001720893
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false

BALANCE SHEETS

BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current assets
Cash and cash equivalents	$ 194,015	$ 213,119
Prepaid expenses and other current assets	2,768	3,946
Total current assets	196,783	217,065
Property and equipment, net	1,533	1,273
Operating lease right-of-use asset	1,440	1,511
Other assets	633	87
Total assets	200,389	219,936
Current liabilities
Accounts payable	5,310	3,979
Accrued expenses	6,528	7,469
Due to Parent	211	157
Other current liabilities	275	237
Total current liabilities	12,324	11,842
Long-term portion of operating lease liability	1,328	1,398
Total liabilities	13,652	13,240
Commitments and contingencies (Note 13)
Stockholders' equity
Common stock, $0.001 par value, 50,000 shares authorized; 24,631 and 24,417 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively	25	24
Preferred stock, $0.001 par value, 10,000 shares authorized; no shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively
Additional paid-in-capital	351,945	345,529
Accumulated deficit	(165,233)	(138,857)
Total stockholders' equity	186,737	206,696
Total liabilities and stockholders' equity	$ 200,389	$ 219,936

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Mar. 31, 2021	Dec. 31, 2020
BALANCE SHEETS
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	50,000	50,000
Common stock, shares issued (in shares)	24,631	24,417
Common stock, shares outstanding (in shares)	24,631	24,417
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	10,000	10,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0

STATEMENTS OF OPERATIONS

STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
STATEMENTS OF OPERATIONS
Revenues
Operating expenses
Research and development	14,741	12,371
General and administrative	11,638	2,625
Total operating expenses	26,379	14,996
Loss from operations	(26,379)	(14,996)
Other income (expense)
Interest income	10	91
Interest expense	(7)	(6)
Net loss and comprehensive loss	$ (26,376)	$ (14,911)
Net loss per share - basic and diluted	$ (1.08)	$ (0.79)
Weighted average shares outstanding - basic and diluted	24,524	18,968

STATEMENTS OF CHANGES IN STOCKH

STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common stock	Additional Paid in Capital	Accumulated Deficit	Total
Beginning Balance at Dec. 31, 2019	$ 18	$ 83,565	$ (56,688)	$ 26,895
Beginning Balance (in shares) at Dec. 31, 2019	18,087
Issuance of common stock, net of issuance costs	$ 2	68,809		68,811
Issuance of common stock, net of issuance costs (in shares)	2,300
Purchase and cancellation of shares from BioXcel Corporation		(9,024)		(9,024)
Purchase and cancellation of shares from BioXcel Corporation (in shares)	(300)
Stock-based compensation		776		776
Exercise of stock options		39		39
Exercise of stock options (in shares)	95
Net loss			(14,911)	(14,911)
Ending Balance at Mar. 31, 2020	$ 20	144,165	(71,599)	72,586
Ending Balance (in shares) at Mar. 31, 2020	20,182
Beginning Balance at Dec. 31, 2020	$ 24	345,529	(138,857)	$ 206,696
Beginning Balance (in shares) at Dec. 31, 2020	24,417			24,417
Stock-based compensation		5,565		$ 5,565
Exercise of stock options	$ 1	851		852
Exercise of stock options (in shares)	214
Net loss			(26,376)	(26,376)
Ending Balance at Mar. 31, 2021	$ 25	$ 351,945	$ (165,233)	$ 186,737
Ending Balance (in shares) at Mar. 31, 2021	24,631			24,631

STATEMENTS OF CHANGES IN STOC_2

STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended
	Jul. 31, 2020	Feb. 29, 2020	Mar. 31, 2020
STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
Issuance costs paid	$ 13,026	$ 4,789	$ 4,789

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (26,376)	$ (14,911)
Reconciliation of net loss to net cash used in operating activities
Depreciation and amortization	65	47
Stock-based compensation expense	5,565	776
Changes in operating assets and liabilities:
Prepaid expenses, other assets and right of use assets	703	(1,838)
Accounts payable, accrued expenses, lease liabilities and other liabilities	403	3,769
Net cash used in operating activities	(19,640)	(12,157)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of equipment and leasehold improvements	(316)	(16)
Net cash used in investing activities	(316)	(16)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock, net of issuance costs		68,811
Purchase and cancellation of shares from BioXcel Corporation		(9,024)
Exercise of stock options	852	39
Net cash provided by financing activities	852	59,826
Net increase (decrease) in cash and cash equivalents	(19,104)	47,653
Cash and cash equivalents, beginning of the period	213,119	32,426
Cash and cash equivalents, end of the period	194,015	80,079
Supplemental cash flow information:
Interest paid		$ 3
Purchases of equipment and leasehold improvements in accounts payable and accrued expense	$ 9

Nature of the Business

Nature of the Business	3 Months Ended
	Mar. 31, 2021
Nature of the Business
Nature of the Business	Note 1. Nature of the Business BioXcel Therapeutics, Inc. is a clinical stage biopharmaceutical company focused on drug development that utilizes artificial intelligence to identify improved therapies in neuroscience and immuno-oncology. BTI's drug re-innovation approach leverages existing approved drugs and/or clinically validated product candidates together with big data and proprietary machine learning algorithms to identify new therapeutic indices. BTI's two most advanced clinical development programs are BXCL501, a proprietary, orally dissolving, thin film formulation of the adrenergic receptor agonist dexmedetomidine (“Dex”), for the treatment of agitation and opioid withdrawal symptoms, and BXCL701, an orally administered, systemic innate immune activator for the treatment of aggressive forms of prostate cancer and advanced solid tumors that are refractory or treatment naïve to checkpoint inhibitors. As used in these financial statements, unless otherwise specified or the context otherwise requires, the terms the “Company” or “BTI” refer to BioXcel Therapeutics, Inc., and “BioXcel” or “Parent” refer to BioXcel LLC and, its predecessor, BioXcel Corporation. The Company is a minority-owned subsidiary of BioXcel and was incorporated under the laws of the State of Delaware on March 29, 2017. The Company’s principal office is in New Haven, Connecticut. The Company incurred losses of $26,376 and $14,911 for the quarters ended March 31, 2021 and 2020, respectively. The Company had an accumulated deficit of $165,233 as of March 31, 2021. The Company has funded its operations primarily through the sale of equity securities. Impact of COVID-19 Pandemic In March 2020, the World Health Organization declared the outbreak of COVID-19, a novel strain of coronavirus, a global pandemic. This outbreak has caused and is continuing to cause major disruptions to businesses and financial markets worldwide. This may affect the Company’s operations and those of third parties on which the Company relies, including causing disruptions in the supply of the Company’s product candidates and the conduct of current and planned preclinical and clinical studies. The Company may need to limit its operations and may experience limitations in employee resources. There are risks that the COVID-19 pandemic may be more difficult to contain than currently anticipated in which case the risks described herein could increase significantly. The extent to which the COVID-19 pandemic impacts the Company’s results will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of the coronavirus and the actions to contain the coronavirus or treat its impact, among others. Additionally, while the potential economic impact brought by, and the duration of, the COVID-19 pandemic is difficult to assess or predict, the impact of the coronavirus on the global financial markets may reduce the Company’s ability to access capital, which could negatively impact the Company’s short-term and long-term liquidity, and the Company’s ability to complete its preclinical and clinical studies on a timely basis, or at all. The ultimate impact of COVID-19 is highly uncertain and subject to change. The Company does not yet know the full extent of potential delays or impacts on its business, financing, preclinical and clinical trial activities or the global economy as a whole. However, these effects could have a material, adverse impact on the Company’s liquidity, capital resources, operations and business and those of the third parties on which the Company relies.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2021
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 3. Summary of Significant Accounting Policies Use of Estimates The preparation of our financial statements requires us to make estimates, judgments and assumptions that may affect the reported amounts of assets, liabilities, equity and expenses. We base our estimates on historical experience and on various other assumptions that we believe are reasonable, the results of which form the basis for making judgments about the carrying values of assets, liabilities and equity and the amount of expenses. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. As of March 31, 2021, cash equivalents were comprised primarily of money market funds. Cash and cash equivalents held at financial institutions may at times exceed federally insured amounts. We believe we mitigate such risk by investing in or through major financial institutions. Property and Equipment Property and equipment are recorded at cost and depreciated and amortized over the shorter of their remaining lease term or their estimated useful life on a straight-line basis as follows: Equipment Furniture Leasehold improvements Lesser of life of improvement or lease term Expenditures for maintenance and repairs which do not improve or extend the useful lives of respective assets are expensed as incurred. When assets are sold or retired, the related cost and accumulated depreciation are removed from their respective accounts and any resulting gain or loss is include income (loss) from operations. The Company follows the guidance provided by the Financial Accounting Standards Board (“ FASB”) ASC Topic 360‑10, Property, Plant, and Equipment . Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to undiscounted future net cash flows expected to be generated. Impairment charges are recognized at the amount by which the carrying amount of an asset exceeds the fair value of the asset. Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell. Leases We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities, and operating lease liabilities in our balance sheet. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As our lease did not provide an implicit rate, we used an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. The operating lease ROU asset also includes any prepaid lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Renewal options were not included in our calculation of the related asset and liability. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC 718, “ Compensation—Stock Compensation, ” which requires the measurement and recognition of compensation expense based on estimated fair market values for all share-based awards made to employees, directors, and non-employees, including stock options. The Company’s 2017 Equity Incentive Plan (the “2017 Plan”) became effective in August 2017. The Company’s 2020 Incentive Award Plan (the “2020 Plan”) became effective in May 2020. Following the effective date of the Company's 2020 Plan, the Company ceased granting awards under the 2017 Plan, however the terms and conditions of the 2017 Plan continue to govern any outstanding awards granted thereunder. The Company’s stock option awards are valued at fair value on the date of grant and that fair value is recognized over the requisite service period. The estimated fair value of stock option awards was determined using the Black-Scholes option pricing model on the date of grant. Significant judgment and estimates were used to estimate the fair value of these awards, as they were not publicly traded. Stock awards granted by the Company subsequent to the IPO are valued using market prices at the date of grant. ASC 718 requires companies to estimate the fair value of share-based awards on the date of grant using an option-pricing model. The Black-Scholes option-pricing model was used as its method of determining fair value. This model is affected by the Company’s stock price as well as assumptions regarding a number of subjective variables. These subjective variables include, but are not limited to, the expected stock price volatility over the term of the awards, and projected employee stock option exercise behaviors. The value of the award is recognized as an expense in the statement of operations over the requisite service period. The periodic expense is then determined based on the valuation of the options. The Company has elected to account for forfeitures as they occur, by reversing compensation cost when the award is forfeited. Research and Development Costs Research and development expenses include wages, benefits, facilities, supplies, external services, clinical study and manufacturing costs and other expenses that are directly related to the Company’s research and development activities. At the end of the reporting period, the Company compares payments made to third party service providers to the estimated progress toward completion of the research or development objectives. Depending on the timing of payments to the service providers and the progress that the Company estimates has been made as a result of the service provided, the Company may record net prepaid or accrued expense relating to these costs. Such estimates are subject to change as additional information becomes available. The Company expenses research and development costs as incurred. Expenses Accrued Under Contractual Arrangements As part of the process of preparing our financial statements, we are required to estimate our accrued expenses. This process involves reviewing open contracts and purchase orders, communicating with our applicable personnel to identify services that have been performed on our behalf and estimating the level of service performed and the associated cost incurred for the service when we have not yet been invoiced or otherwise notified of actual cost. The majority of our service providers invoice us monthly in arrears for services performed. We make estimates of our accrued expenses as of each balance sheet date in our financial statements based on facts and circumstances known to us at that time. We periodically confirm the accuracy of our estimates with the service providers and make adjustments if necessary. We base our expenses related to clinical trials on our estimates of the services received and efforts expended pursuant to contracts with multiple research institutions and contract research organizations that conduct and manage clinical trials on our behalf. The financial terms of these agreements are subject to negotiation, vary from contract to contract and may result in uneven payment flows. Payments under some of these contracts depend on factors such as the successful enrollment of patients and the completion of clinical trial milestones. In accruing expenses, we estimate the time period over which services will be performed and the level of effort to be expended in each period, which is based on an established protocol specific to each clinical trial. If the actual timing of the performance of services or the level of effort varies from our estimate, we adjust the accrual accordingly. Although we do not expect our estimates to be materially different from amounts actually incurred, our understanding of the status and timing of services performed relative to the actual status and timing of services performed may vary and may result in us reporting amounts that are too high or too low in any particular period. Patent Costs Costs related to filing and pursuing patent applications are recorded as general and administrative expense and expensed as incurred since recoverability of such expenditures is uncertain. Fair Value of Financial Instruments The Company applies the provisions of ASC 820, “ Fair Value Measurements and Disclosures ” for financial assets and liabilities measured on a recurring basis which requires disclosure that establishes a framework for measuring fair value. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources, or observable inputs, and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances, or unobservable inputs. The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). ASC 820 requires that fair value measurements be classified and disclosed in one of three categories: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Directly or indirectly observable inputs as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument. Level 3: Unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considering counterparty credit risk in its assessment of fair value. The carrying amounts of cash and accounts payable approximate fair value due to the short-term nature of these instruments. As of March 31, 2021 and December 31, 2020, the Company had $189,572 and $212,562, respectively, in money market accounts (included in cash and cash equivalents) which was valued based on Level 1 inputs. There were no transfers between levels within the hierarchy during the three months ended March 31, 2021 and 2020. Earnings (Loss) per Share Basic earnings (loss) per share (“EPS”) is calculated in accordance with ASC 260, “ Earnings Per Share ,” by dividing net income or loss attributable to common stockholders by the weighted average common stock outstanding. Diluted EPS is calculated by adjusting weighted average common shares outstanding for the dilutive effect of common stock options and warrants. In periods in which a net loss is recorded, no effect is given to potentially dilutive securities, since the effect would be antidilutive. Securities that could potentially dilute basic EPS in the future were not included in the computation of diluted EPS because to do so would have been antidilutive. Segment Information The Company operates in a single segment. Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker in making decisions regarding resource allocation and assessing performance. To date, our chief operating decision maker has made such decisions and assessed performance at the company level as one segment. Recent Accounting Pronouncements In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic: 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”). ASU No. 2020-06 simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. Key provisions include (i) the removal of separation models in ASC 470-20 for convertible instruments; (ii) expanded disclosures about the terms and features of convertible instruments; (iii) removed certain conditions for equity classification; and (iv) updated earnings per share calculation with respects to convertible instruments, share settlement presumption, down round features and the earnings per share denominator. ASU No. 2020-06 is effective for annual and interim reporting periods beginning after December 15, 2021, and the guidance is to be applied using the full or modified retrospective approach. Earlier adoption is permitted for annual and interim reporting periods beginning after December 15, 2020. The Company does not expect that the adoption of ASU No. 2020-06 will have a material impact on its financial statements. In December 2019, the FASB issued ASU No. 2019-12 , Income Taxes (Topic 740) which amends the existing guidance relating to the accounting for income taxes. ASU No. 2019-12 is intended to simplify the accounting for income taxes by removing certain exceptions to the general principles of accounting for income taxes and to improve the consistent application of GAAP for other areas of accounting for income taxes by clarifying and amending existing guidance. ASU No. 2019-12 is effective for interim and annual periods beginning after December 15, 2020. The Company adopted ASU No. 2019-12 effective January 1, 2021. The adoption of ASU No. 2019-12 did not have a material impact on the Company’s financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . We adopted this standard effective January 1, 2020. ASU No. 2018-15 requires that certain implementation costs for cloud computing arrangements are capitalized and amortized over the term of associated hosted cloud computing arrangement service and that capitalized implementation costs are classified in prepaid expenses and other assets. ASO No. 2018-15 also provides classification guidance on these implementation costs as well as additional quantitative and qualitative disclosures. The adoption of ASU No. 2018-15 did not have an effect on the Company’s financial statements. In June 2016, the FASB issued ASU No. 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, ASU 2019-04 and ASU 2019-05 (collectively, “Topic 326”). Topic 326 requires measurement and recognition of expected credit losses for financial assets held. Topic 326 was to be effective for reporting periods beginning after December 15, 2019, with early adoption permitted. In November 2019, the FASB issued ASU 2019-10, Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) Effective Dates , which deferred the effective dates for the Company, until fiscal year 2023. The Company does not expect that the adoption of ASU No. 2016-13 will have a material impact on its financial statements.

Financing Activities

Financing Activities	3 Months Ended
	Mar. 31, 2021
Financing Activities
Financing Activities	Note 4. Financing Activities In February 2020, the Company sold in a registered offering 2,300 shares of its common stock at a public offering price of $32.00 per share. The Company received proceeds of $68,811, net of issuance costs of $4,789. The Company used $9,024 of the proceeds to purchase and cancel 300 shares of common stock from BioXcel. In July 2020, the Company sold in a registered offering 4,000 shares of its common stock at a public offering price of $50.00. The Company received proceeds of approximately $186,974, net of issuance costs of $13,026. Under the terms of the Underwriting Agreement entered into by the Company in connection with the July 2020 offering, certain stockholders of the Company granted the underwriters an option exercisable for thirty days to purchase up to an additional 600 shares of common stock at the public offering price less underwriting discounts and commissions, which was not exercised. The Company intends to use the net proceeds of the offering to fund ongoing clinical trials, commercialization preparation and for general corporate purposes.

Transactions with BioXcel

Transactions with BioXcel	3 Months Ended
	Mar. 31, 2021
Transactions with BioXcel
Transactions with BioXcel	Note 5. Transactions with BioXcel The Company has entered into the Amended and Restated Asset Contribution Agreement, pursuant to which BioXcel agreed to contribute BioXcel’s rights, title and interest in BXCL501, BXCL701, BXCL502 and BXCL702, and all of the assets and liabilities associated in consideration for (i) 9,480 shares of our common stock, (ii) $1,000 upon completion of an initial public offering, (iii) $500 upon the later of the 12 month anniversary of an initial public offering and the first dosing of a patient in the bridging bioavailability/ bioequivalence study for the BXCL501 program, (iv) $500 upon the later of the 12 month anniversary of an initial public offering and the first dosing of a patient in the Phase 2 proof of concept open label monotherapy or combination trial with Keytruda for the BXCL701 program and (v) a one-time payment of $5,000 within 60 days after the achievement of $50,000 in cumulative net sales of any product or combination of products resulting from the development and commercialization of any one of the Candidates or a product derived therefrom. Upon the completion of the Company’s IPO in March 2018, $1,000 was charged to Research and Development costs in connection with (ii) above and was paid on April 5, 2018. The Company paid $500 to BioXcel in connection with (iii) above in April 2019. In July 2019, the Company completed the first dosing of a patient in the combination trial of BXCL701 with Keytruda, and as a result the Company paid $500 to BioXcel in connection with (iv) above in July 2019. The Company entered into a Separation and Shared Services Agreement with BioXcel that took effect on June 30, 2017, as amended and restated, (the “Services Agreement”), pursuant to which services provided by BioXcel through its subsidiaries in India and the United States will continue indefinitely, as agreed upon by the parties. These services are primarily for drug discovery, chemical, manufacturing and controls cost, and administrative support. Service charges recorded under this agreement were $369 and $397 for the three months ended March 31, 2021 and 2020, respectively. Under the Services Agreement, the Company has an option, exercisable until March 12, 2023, to enter into a collaborative services agreement with BioXcel pursuant to which BioXcel shall perform product identification and related services for us utilizing EvolverAI. As of March 31, 2021, this option has not been exercised. The parties are obligated to negotiate the collaborative services agreement in good faith and to incorporate reasonable market-based terms, including consideration for BioXcel reflecting a low, single-digit royalty on net sales and reasonable development and commercialization milestone payments, provided that (i) development milestones shall not exceed $10 million in the aggregate and not be payable prior to proof of concept in humans and (ii) commercialization milestones shall be based on reaching annual net sales levels, be limited to 3% of the applicable net sales level, and not exceed $30 million in the aggregate. BioXcel shall continue to make such product identification and related services available to us at least September 30, 2024.

Earnings (Loss) Per Share

Earnings (Loss) Per Share	3 Months Ended
	Mar. 31, 2021
Earnings (Loss) Per Share
Earnings (Loss) Per Share	Note 6. Earnings (Loss) Per Share Basic earnings (loss) per share (“EPS”) is calculated in accordance with ASC 260, “Earnings Per Share,” by dividing net income or loss attributable to common stockholders by the weighted average common stock outstanding. Diluted EPS is calculated by adjusting weighted average common shares outstanding for the dilutive effect of common stock options and warrants. In periods in which a net loss is recorded, no effect is given to potentially dilutive securities, since the effect would be antidilutive. Securities that could potentially dilute basic EPS in the future were not included in the computation of diluted EPS because to do so would have been antidilutive. The calculations of basic and diluted net loss per share are as follows (in thousands, except per share amounts): Three Months Ended March 31, 2021 2020 Net loss (numerator) $ (26,376) $ (14,911) Weighted-average share, in thousands (denominator) 24,524 18,968 Basic and diluted net loss per share $ (1.08) $ (0.79) Potentially dilutive securities outstanding consists solely of stock options. The Company had options outstanding to purchase 4,072 and 3,063 shares of common stock as of March 31, 2021 and 2020, respectively.

Property and Equipment, net

Property and Equipment, net	3 Months Ended
	Mar. 31, 2021
Property and Equipment, net
Property and Equipment, net	Note 7. Property and Equipment, net Property and Equipment, net consisted of the following March 31, December 31, 2021 2020 Computers and related equipment $ 273 $ 260 Furniture 568 369 Leasehold improvements 1,119 650 Work in Process — 356 1,960 1,635 Accumulated depreciation (427) (362) $ 1,533 $ 1,273 Depreciation expense was $65 and $47 for the three months ended March 31, 2021 and 2020, respectively.

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	3 Months Ended
	Mar. 31, 2021
Accrued Expenses and Other Current Liabilities
Accrued Expenses and Other Current Liabilities	Note 8. Accrued Expenses and Other Current Liabilities Accrued expenses consist of the following: March 31, 2021 December 31, 2020 Research and development expenses $ 2,652 $ 3,264 Accrued compensation and benefits 1,304 2,066 Accrued professional expenses 1,640 1,288 Accrued taxes 743 697 Other accrued expenses 189 154 $ 6,528 $ 7,469 Other current liabilities as of March 31, 2021 consists of $275 for the current portion of operating lease liabilities .

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2021
Stock-Based Compensation
Stock-Based Compensation	Note 9. Stock-Based Compensation 2017 Equity Incentive Plan The Company’s 2017 Plan became effective in August 2017. Following the effective date of the Company's 2020 Plan (as defined below), the Company ceased granting awards under the 2017 Plan, however the terms and conditions of the 2017 Plan continue to govern any outstanding awards granted thereunder. 2020 Incentive Award Plan The Company’s 2020 Plan was approved and became effective at the Company’s 2020 annual meeting of Shareholders on May 20, 2020 and unless, earlier terminated by the Board of Directors, will remain in effect until March 26, 2030. The 2020 Plan originally authorized for issuance the sum of (i) 911 shares of the Company’s common stock authorized for issuance and (ii) 233 shares of the Company’s common stock, which represents the number of shares that remained available for issuance under the 2017 Plan immediately prior to the approval of the 2020 Plan by the Company’s shareholders. Any shares of Common Stock under the 2017 Plan immediately prior to the approval of the 2020 Plan by the Company’s stockholders, that were subject to awards granted under the 2017 Plan that are forfeited or lapse unexercised and are not issued under the 2017 Plan will increase the number of shares of common stock available for grant under the 2020 Plan. In addition, the number of shares available for issuance under the 2020 Plan will increase on the first day of each calendar year beginning January 1, 2021 and ending on and including January 1, 2030 by a number of shares equal to the lesser of (A) 4% of the aggregate number of shares of the Company’s common stock outstanding on the final day of the immediately preceding calendar year and (B) such smaller number of shares of common stock as is determined by the Board of Directors. On January 1, 2021, the shares available for issuance under the 2020 Plan increased by 977 shares. Options granted under the 2020 Plan have a term of ten years with the vesting schedule determined by the Board of Directors, which is generally four years. As of March 31, 2021, there were 646 shares available to be granted under the 2020 Plan. A summary of the status of the Company’s stock option activity for the three months ended March 31, 2021 is presented below (in thousands, except per share amounts): Number Weighted Average of Exercise Shares Price per Share Outstanding as of January 1, 2021 3,798 $ 16.15 Granted 505 $ 43.01 Forfeited (17) $ 59.37 Exercised (214) $ 3.97 Outstanding as of March 31, 2021 4,072 $ 19.95 Options vested and exercisable as of March 31, 2021 2,192 $ 2.81 As of March 31, 2021, the intrinsic value of options outstanding was $101,167. The intrinsic value for stock options is calculated based on the difference between the exercise prices of the underlying awards and the quoted stock price of the Company’s common stock as of the reporting date. The total intrinsic value of stock options exercised for the three months ended March 31, 2021 and 2020 was $10,232 and $3,152, respectively. The weighted average grant date fair value of options granted during the three months ended March 31, 2021 and 2020 was $33.24 and $11.97, respectively. The weighted average grant date fair value of options vested at March 31, 2021 was $2.34. The weighted average remaining contractual life is 6.7 years for options exercisable. Stock-Based Compensation The fair value of options granted during the three months ended March 31, 2021 and 2020 was estimated using the Black-Scholes option-pricing model with the following assumptions. For the For the Three Months Ended Three Months Ended March 31, 2021 March 31, 2020 Expected Term years - years years - years Expected stock price volatility % - % % - % Risk-free rate of interest % - % % - % Expected dividend % - % - Prior to the Company’s IPO, it did not have a history of market prices of its common stock and, as such, volatility was estimated using historical volatilities of similar public companies. In 2021, the Company began using a combination of the historical volatility of similar public companies and the limited historical information related to the Company’s common stock. The expected term of the employee awards is estimated based on the simplified method, which calculates the expected term based upon the midpoint of the term of the award and the vesting period. The Company uses the simplified method because it does not have sufficient option exercise data to provide a reasonable basis upon which to estimate the expected term. The expected dividend yield is 0% as the Company has no history of paying dividends nor does management expect to pay dividends over the contractual terms of these options. The risk-free interest rates are based on the United States Treasury yield curve in effect at the time of grant, with maturities approximating the expected term of the stock options. Unrecognized compensation expense related to unvested awards as of March 31, 2021 was $35,099 and will be recognized over the remaining vesting periods of the underlying awards. The weighted-average period over which such compensation is expected to be recognized is 1.9 years. Total stock-based compensation charges were approximately $5,565 and $776 for the three months ended March 31, 2021 and 2020, respectively. The Company charged $2,032 and $3,533 to research and development and general and administrative expense for the three months ended March 31, 2021, respectively. The Company charged $466 and $310 to research and development and general and administrative expense for the three months ended March 31, 2020, respectively. 2020 Employee Stock Purchase Plan The Company’s 2020 Employee Stock Purchase Plan (the “ESPP”) was also approved and became effective at the Company’s 2020 annual meeting of Shareholders on May 20, 2020. The ESPP is designed to assist eligible employees of the Company with the opportunity to purchase the Company’s common stock at a discount through accumulated payroll deductions during successive offering periods. The aggregate number of Shares that may be issued pursuant to rights granted under the ESPP is 100 shares of common stock. In addition, the number of shares available for issuance under the ESPP will increase on the first day of each calendar year beginning on January 1, 2021 and ending on and including January 1, 2030 by a number of shares of common stock equal to the lesser of (a) 1% of the shares outstanding on the final day of the immediately preceding calendar year and (b) such smaller number of shares as determined by the Board. The number of shares that may be issued or transferred pursuant to rights granted under the component of the ESPP that is intended to qualify for favorable U.S. federal tax treatment under Section 423 of the Internal Revenue Code (the “Section 423 Component”) shall not exceed 500 shares. The purchase price will be determined by the administrator of the ESPP and, for purposes of the Section 423 Component, shall not be less than 85% of the fair market value of a share on the first trading day or on the last trading day of the applicable offering period, whichever is lower. On January 1, 2021, the shares available for issuance under the 2020 ESPP increased by 244 shares. To date, no shares have been sold under the ESPP.

Leases

Leases	3 Months Ended
	Mar. 31, 2021
Leases
Leases	Note 10. Leases In August 2018, the Company entered into an agreement to lease approximately 11,040 square feet of space on the 12 th floor of the building located at 555 Long Wharf Drive, New Haven, Connecticut (the “12 th Floor Lease) which was effective February 22, 2019. The 12 th Floor Lease expires in February 2026. In August 2020, the Company entered into an amendment to the 12 th Floor Lease wherein the Company leased an additional 7,245 square feet of space on the 12 th floor of the building located at 555 Long Wharf Drive, New Haven, Connecticut (the “12 th Floor Lease Amendment”). The 12 th Floor Lease Amendment expires in February 2026. The future minimum annual lease payments under these operating leases as of March 31, 2021 are as follows: Year ending December 31, Amount Remainder of 2021 267 2022 363 2023 372 2024 381 2025 391 Thereafter 64 Total lease payments 1,838 Less imputed interest (235) Total lease liability 1,603 Less current portion of lease liability (275) Long-term portion operating lease liability $ 1,328 The current portion of the Company’s operating lease liability of $275 as of March 31, 2021 is included in other current liabilities on the balance sheet. The Company recorded lease expense of $109 and $54 related to its operating lease right-of-use asset for the three months ended March 31, 2021 and 2020, respectively. The Company has an option to renew the leases for one additional five-year term at 95% of the then-prevailing market rates but not less than the rental rate at the end of the initial lease term.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2021
Commitments and Contingencies
Commitments and Contingencies	Note 11. Commitments and Contingencies From time to time, in the ordinary course of business, the Company may be subject to litigation and regulatory examinations as well as information gathering requests, inquiries and/or investigations. The Company is not currently subject to any matters where it believes there is a reasonable possibility that a material loss may be incurred. As of March 31, 2021, there were no matters which would have a material impact on the Company’s financial results.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2021
Summary of Significant Accounting Policies
Basis of Presentation	The accompanying unaudited financial statements do not include all of the information and footnotes required by GAAP. The accompanying year-end balance sheet was derived from audited financial statements but does not include all disclosures required by GAAP. The unaudited interim financial statements have been prepared on the same basis as the audited annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of March 31, 2021, the results of its operations for the three months ended March 31, 2021 and 2020 and its cash flows for the three months ended March 31, 2021 and 2020, respectively. The results for the three months ended March 31, 2021 are not necessarily indicative of results to be expected for the year ending December 31, 2021, any other interim periods or any future year or period. The accompanying unaudited financial statements of the Company should be read in conjunction with the audited financial statements and notes as of and for the year ended December 31, 2020 included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 filed with the Securities and Exchange Commission (the “SEC”) on March 12, 2021. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements and notes thereto. The Company believes that its existing cash and cash equivalents will be sufficient to cover its cash flow requirements for at least the next twelve months from the issuance of these financial statements. However the Company’s future requirements may change and will depend on numerous factors.
Use of Estimates	Use of Estimates The preparation of our financial statements requires us to make estimates, judgments and assumptions that may affect the reported amounts of assets, liabilities, equity and expenses. We base our estimates on historical experience and on various other assumptions that we believe are reasonable, the results of which form the basis for making judgments about the carrying values of assets, liabilities and equity and the amount of expenses.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. As of March 31, 2021, cash equivalents were comprised primarily of money market funds. Cash and cash equivalents held at financial institutions may at times exceed federally insured amounts. We believe we mitigate such risk by investing in or through major financial institutions.
Property and Equipment	Property and Equipment Property and equipment are recorded at cost and depreciated and amortized over the shorter of their remaining lease term or their estimated useful life on a straight-line basis as follows: Equipment Furniture Leasehold improvements Lesser of life of improvement or lease term Expenditures for maintenance and repairs which do not improve or extend the useful lives of respective assets are expensed as incurred. When assets are sold or retired, the related cost and accumulated depreciation are removed from their respective accounts and any resulting gain or loss is include income (loss) from operations. The Company follows the guidance provided by the Financial Accounting Standards Board (“ FASB”) ASC Topic 360‑10, Property, Plant, and Equipment . Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to undiscounted future net cash flows expected to be generated. Impairment charges are recognized at the amount by which the carrying amount of an asset exceeds the fair value of the asset. Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell.
Leases	Leases We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities, and operating lease liabilities in our balance sheet. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As our lease did not provide an implicit rate, we used an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. The operating lease ROU asset also includes any prepaid lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Renewal options were not included in our calculation of the related asset and liability. Lease expense for lease payments is recognized on a straight-line basis over the lease term.
Stock-Based Compensation	Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC 718, “ Compensation—Stock Compensation, ” which requires the measurement and recognition of compensation expense based on estimated fair market values for all share-based awards made to employees, directors, and non-employees, including stock options. The Company’s 2017 Equity Incentive Plan (the “2017 Plan”) became effective in August 2017. The Company’s 2020 Incentive Award Plan (the “2020 Plan”) became effective in May 2020. Following the effective date of the Company's 2020 Plan, the Company ceased granting awards under the 2017 Plan, however the terms and conditions of the 2017 Plan continue to govern any outstanding awards granted thereunder. The Company’s stock option awards are valued at fair value on the date of grant and that fair value is recognized over the requisite service period. The estimated fair value of stock option awards was determined using the Black-Scholes option pricing model on the date of grant. Significant judgment and estimates were used to estimate the fair value of these awards, as they were not publicly traded. Stock awards granted by the Company subsequent to the IPO are valued using market prices at the date of grant. ASC 718 requires companies to estimate the fair value of share-based awards on the date of grant using an option-pricing model. The Black-Scholes option-pricing model was used as its method of determining fair value. This model is affected by the Company’s stock price as well as assumptions regarding a number of subjective variables. These subjective variables include, but are not limited to, the expected stock price volatility over the term of the awards, and projected employee stock option exercise behaviors. The value of the award is recognized as an expense in the statement of operations over the requisite service period. The periodic expense is then determined based on the valuation of the options. The Company has elected to account for forfeitures as they occur, by reversing compensation cost when the award is forfeited.
Research and Development Costs	Research and Development Costs Research and development expenses include wages, benefits, facilities, supplies, external services, clinical study and manufacturing costs and other expenses that are directly related to the Company’s research and development activities. At the end of the reporting period, the Company compares payments made to third party service providers to the estimated progress toward completion of the research or development objectives. Depending on the timing of payments to the service providers and the progress that the Company estimates has been made as a result of the service provided, the Company may record net prepaid or accrued expense relating to these costs. Such estimates are subject to change as additional information becomes available. The Company expenses research and development costs as incurred.
Expenses Accrued Under Contractual Arrangements	Expenses Accrued Under Contractual Arrangements As part of the process of preparing our financial statements, we are required to estimate our accrued expenses. This process involves reviewing open contracts and purchase orders, communicating with our applicable personnel to identify services that have been performed on our behalf and estimating the level of service performed and the associated cost incurred for the service when we have not yet been invoiced or otherwise notified of actual cost. The majority of our service providers invoice us monthly in arrears for services performed. We make estimates of our accrued expenses as of each balance sheet date in our financial statements based on facts and circumstances known to us at that time. We periodically confirm the accuracy of our estimates with the service providers and make adjustments if necessary. We base our expenses related to clinical trials on our estimates of the services received and efforts expended pursuant to contracts with multiple research institutions and contract research organizations that conduct and manage clinical trials on our behalf. The financial terms of these agreements are subject to negotiation, vary from contract to contract and may result in uneven payment flows. Payments under some of these contracts depend on factors such as the successful enrollment of patients and the completion of clinical trial milestones. In accruing expenses, we estimate the time period over which services will be performed and the level of effort to be expended in each period, which is based on an established protocol specific to each clinical trial. If the actual timing of the performance of services or the level of effort varies from our estimate, we adjust the accrual accordingly. Although we do not expect our estimates to be materially different from amounts actually incurred, our understanding of the status and timing of services performed relative to the actual status and timing of services performed may vary and may result in us reporting amounts that are too high or too low in any particular period.
Patent Costs	Patent Costs Costs related to filing and pursuing patent applications are recorded as general and administrative expense and expensed as incurred since recoverability of such expenditures is uncertain.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company applies the provisions of ASC 820, “ Fair Value Measurements and Disclosures ” for financial assets and liabilities measured on a recurring basis which requires disclosure that establishes a framework for measuring fair value. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources, or observable inputs, and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances, or unobservable inputs. The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). ASC 820 requires that fair value measurements be classified and disclosed in one of three categories: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Directly or indirectly observable inputs as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument. Level 3: Unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considering counterparty credit risk in its assessment of fair value. The carrying amounts of cash and accounts payable approximate fair value due to the short-term nature of these instruments. As of March 31, 2021 and December 31, 2020, the Company had $189,572 and $212,562, respectively, in money market accounts (included in cash and cash equivalents) which was valued based on Level 1 inputs. There were no transfers between levels within the hierarchy during the three months ended March 31, 2021 and 2020.
Earnings (Loss) per Share	Earnings (Loss) per Share Basic earnings (loss) per share (“EPS”) is calculated in accordance with ASC 260, “ Earnings Per Share ,” by dividing net income or loss attributable to common stockholders by the weighted average common stock outstanding. Diluted EPS is calculated by adjusting weighted average common shares outstanding for the dilutive effect of common stock options and warrants. In periods in which a net loss is recorded, no effect is given to potentially dilutive securities, since the effect would be antidilutive. Securities that could potentially dilute basic EPS in the future were not included in the computation of diluted EPS because to do so would have been antidilutive.
Segment Information	Segment Information The Company operates in a single segment. Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker in making decisions regarding resource allocation and assessing performance. To date, our chief operating decision maker has made such decisions and assessed performance at the company level as one segment.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic: 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”). ASU No. 2020-06 simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. Key provisions include (i) the removal of separation models in ASC 470-20 for convertible instruments; (ii) expanded disclosures about the terms and features of convertible instruments; (iii) removed certain conditions for equity classification; and (iv) updated earnings per share calculation with respects to convertible instruments, share settlement presumption, down round features and the earnings per share denominator. ASU No. 2020-06 is effective for annual and interim reporting periods beginning after December 15, 2021, and the guidance is to be applied using the full or modified retrospective approach. Earlier adoption is permitted for annual and interim reporting periods beginning after December 15, 2020. The Company does not expect that the adoption of ASU No. 2020-06 will have a material impact on its financial statements. In December 2019, the FASB issued ASU No. 2019-12 , Income Taxes (Topic 740) which amends the existing guidance relating to the accounting for income taxes. ASU No. 2019-12 is intended to simplify the accounting for income taxes by removing certain exceptions to the general principles of accounting for income taxes and to improve the consistent application of GAAP for other areas of accounting for income taxes by clarifying and amending existing guidance. ASU No. 2019-12 is effective for interim and annual periods beginning after December 15, 2020. The Company adopted ASU No. 2019-12 effective January 1, 2021. The adoption of ASU No. 2019-12 did not have a material impact on the Company’s financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . We adopted this standard effective January 1, 2020. ASU No. 2018-15 requires that certain implementation costs for cloud computing arrangements are capitalized and amortized over the term of associated hosted cloud computing arrangement service and that capitalized implementation costs are classified in prepaid expenses and other assets. ASO No. 2018-15 also provides classification guidance on these implementation costs as well as additional quantitative and qualitative disclosures. The adoption of ASU No. 2018-15 did not have an effect on the Company’s financial statements.

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)	3 Months Ended
	Mar. 31, 2021
Earnings (Loss) Per Share
Schedule of earnings (loss) per share	Three Months Ended March 31, 2021 2020 Net loss (numerator) $ (26,376) $ (14,911) Weighted-average share, in thousands (denominator) 24,524 18,968 Basic and diluted net loss per share $ (1.08) $ (0.79)

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	3 Months Ended
	Mar. 31, 2021
Property and Equipment, net
Schedule of Property and Equipment, net	March 31, December 31, 2021 2020 Computers and related equipment $ 273 $ 260 Furniture 568 369 Leasehold improvements 1,119 650 Work in Process — 356 1,960 1,635 Accumulated depreciation (427) (362) $ 1,533 $ 1,273

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	3 Months Ended
	Mar. 31, 2021
Accrued Expenses and Other Current Liabilities
Schedule of accrued expenses	March 31, 2021 December 31, 2020 Research and development expenses $ 2,652 $ 3,264 Accrued compensation and benefits 1,304 2,066 Accrued professional expenses 1,640 1,288 Accrued taxes 743 697 Other accrued expenses 189 154 $ 6,528 $ 7,469

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2021
Stock-Based Compensation
Schedule of Stock Option Activity	below (in thousands, except per share amounts): Number Weighted Average of Exercise Shares Price per Share Outstanding as of January 1, 2021 3,798 $ 16.15 Granted 505 $ 43.01 Forfeited (17) $ 59.37 Exercised (214) $ 3.97 Outstanding as of March 31, 2021 4,072 $ 19.95
Schedule of Valuation Assumptions	For the For the Three Months Ended Three Months Ended March 31, 2021 March 31, 2020 Expected Term years - years years - years Expected stock price volatility % - % % - % Risk-free rate of interest % - % % - % Expected dividend % - % -

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2021
Leases
Summary of maturities of the operating lease liability	Year ending December 31, Amount Remainder of 2021 267 2022 363 2023 372 2024 381 2025 391 Thereafter 64 Total lease payments 1,838 Less imputed interest (235) Total lease liability 1,603 Less current portion of lease liability (275) Long-term portion operating lease liability $ 1,328

Nature of the Business (Details

Nature of the Business (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021USD ($)item	Mar. 31, 2020USD ($)	Dec. 31, 2020USD ($)
Nature of the Business
Number of advanced program | item	2
Net loss	$ (26,376)	$ (14,911)
Accumulated deficit	$ (165,233)		$ (138,857)

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Level 1
Summary of Significant Accounting Policies
Fair value money market accounts	$ 189,572	$ 212,562
Equipment | Minimum
Summary of Significant Accounting Policies
Useful life	3 years
Equipment | Maximum
Summary of Significant Accounting Policies
Useful life	5 years
Furniture
Summary of Significant Accounting Policies
Useful life	7 years

Financing Activities (Details)

Financing Activities (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	1 Months Ended		3 Months Ended
	Jul. 31, 2020	Feb. 29, 2020	Mar. 31, 2020	Mar. 31, 2021	Dec. 31, 2020
Subsidiary, Sale of Stock [Line Items]
Number of shares issued	4,000	2,300
Purchase price (in dollar per share)	$ 50	$ 32
Common stock, par value (in dollars per share)				$ 0.001	$ 0.001
Proceeds from issuance of common stock, net of issuance costs	$ 186,974	$ 68,811	$ 68,811
Issuance costs paid	$ 13,026	4,789	4,789
Proceeds used to purchase shares cancelled		$ 9,024	$ 9,024
Shares repurchased (in shares)		300
Underwriting option
Subsidiary, Sale of Stock [Line Items]
Underwriters option exercisable period	30 days
Underwriter's shares available to purchase	600

Transactions with BioXcel (Deta

Transactions with BioXcel (Details) shares in Thousands, $ in Thousands	Apr. 05, 2018USD ($)	Nov. 07, 2017USD ($)shares	Feb. 29, 2020USD ($)shares	Jul. 31, 2019USD ($)	Apr. 30, 2019USD ($)	Mar. 31, 2021USD ($)shares	Mar. 31, 2020USD ($)	Dec. 31, 2020shares	Mar. 06, 2020USD ($)
Transactions with BioXcel
Common shares, issued | shares						24,631		24,417
Proceeds used to purchase shares cancelled			$ 9,024				$ 9,024
Shares repurchased (in shares) | shares			300
BioXcel Corporation | Asset contribution agreement
Transactions with BioXcel
Common shares, issued | shares		9,480
Payment to (received from) related party	$ 1,000
BioXcel Corporation | Development milestones
Transactions with BioXcel
Potential milestone payments									$ 10,000
BioXcel Corporation | Sales milestones
Transactions with BioXcel
Potential milestone payments									$ 30,000
Maximum milestone (as as percent)									3
BioXcel Corporation | Separation and Shared Services Agreement
Transactions with BioXcel
Service charges						$ 369	$ 397
BioXcel Corporation | Payment within thirty days after IPO | Asset contribution agreement
Transactions with BioXcel
Lump sum payment to parent		$ 1,000
BioXcel Corporation | Payable upon later 12 months IPO and first dosing for BXCL501 | Asset contribution agreement
Transactions with BioXcel
Lump sum payment to parent		$ 500
Period specified for payment		12 months
Payment to (received from) related party					$ (500)
BioXcel Corporation | Payable upon later 12 months IPO and first dosing for BXCL701 | Asset contribution agreement
Transactions with BioXcel
Lump sum payment to parent		$ 500
Period specified for payment		12 months
Payment to (received from) related party				$ (500)
BioXcel Corporation | Payment due within 60 days after specified cumulative net sales | Asset contribution agreement
Transactions with BioXcel
Lump sum payment to parent		$ 5,000
Period specified for payment		60 days
Cumulative net sales		$ 50,000

Earnings (Loss) Per Share (Deta

Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Earnings (Loss) Per Share
Net loss (numerator)	$ (26,376)	$ (14,911)
Weighted-average share (denominator)	24,524	18,968
Basic and diluted net loss per share	$ (1.08)	$ (0.79)
Potentially dilutive securities (in shares)	4,072	3,063

Property and Equipment, net (De

Property and Equipment, net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Equipment
Property and equipment, gross	$ 1,960		$ 1,635
Accumulated depreciation	(427)		(362)
Property and equipment, net	1,533		1,273
Depreciation and amortization	65	$ 47
Computers and related equipment
Equipment
Property and equipment, gross	273		260
Furniture
Equipment
Property and equipment, gross	568		369
Leasehold improvements
Equipment
Property and equipment, gross	$ 1,119		650
Work in Process
Equipment
Property and equipment, gross			$ 356

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Accrued Expenses and Other Current Liabilities
Research and development expenses	$ 2,652	$ 3,264
Accrued compensation and benefits	1,304	2,066
Accrued professional expenses	1,640	1,288
Accrued taxes	743	697
Other accrued expenses	189	154
Accrued expenses	6,528	$ 7,469
Operating lease liabilities current portion	$ 275

Stock-Based Compensation - Desc

Stock-Based Compensation - Description (Details) - shares shares in Thousands	Jan. 01, 2021	May 20, 2020	Mar. 31, 2021
2020 Incentive Award Plan
Stock-Based Compensation
Authorized shares		911
Available for grant (in shares)			646
Percentage of increase in common stock available for grant		4.00%
Increase in shares available for issuance	977
2020 Incentive Award Plan | Options
Stock-Based Compensation
Terms of award		10 years
Vesting period		4 years
2017 Equity Incentive Plan
Stock-Based Compensation
Available for grant (in shares)		233
2020 Employee Stock Purchase Plan
Stock-Based Compensation
Authorized shares		100
Percentage of increase in common stock available for grant		1.00%
Increase in shares available for issuance	244
Maximum number of shares issued or transferred under ESPP		500
Purchase price, as a percent of fair market value		85.00%
Shares issued under ESPP			0

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Option Activity (Details) - Options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Number of Shares
Outstanding, beginning balance (in shares)	3,798
Options granted (in shares)	505
Options forfeited (in shares)	(17)
Options exercised (in shares)	(214)
Outstanding, ending balance (in shares)	4,072
Options vested and exercisable (in shares)	2,192
Weighted Average Exercise Price per Share
Outstanding, beginning balance (in dollars per shares)	$ 16.15
Options granted (in dollars per share)	43.01
Options forfeited (in dollars per shares)	59.37
Options exercised (in dollars per shares)	3.97
Outstanding, end balance (in dollars per shares)	19.95
Options vested and exercisable (in dollars per shares)	$ 2.81
Options
Intrinsic value, outstanding	$ 101,167
Intrinsic value, exercised	$ 10,232	$ 3,152
Weighted-average grant-date fair value of options granted (in dollars per share)	$ 33.24	$ 11.97
Weighted-average grant-date fair value of options vested (in dollars per share)	$ 2.34
Weighted average remaining contractual life, exercisable	6 years 8 months 12 days

Stock-Based Compensation - Assu

Stock-Based Compensation - Assumptions (Details) - Options	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Stock-Based Compensation
Expected stock price volatility, minimum (as a percent)	95.00%	79.02%
Expected stock price volatility, maximum (as a percent)	98.00%	80.54%
Risk-free rate of interest, minimum (as a percent)	1.04%	1.21%
Risk-free rate of interest, maximum (as a percent)	1.22%	2.34%
Expected dividend yield (as a percent)	0.00%	0.00%
Minimum
Stock-Based Compensation
Expected Term (years)	5 years 6 months	6 years 3 months
Maximum
Stock-Based Compensation
Expected Term (years)	6 years 3 months	6 years 3 months

Stock-Based Compensation - Info

Stock-Based Compensation - Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Stock-Based Compensation
Share-based compensation costs recognized	$ 5,565	$ 776
Research and development expense
Stock-Based Compensation
Share-based compensation costs recognized	2,032	466
General and administrative expense
Stock-Based Compensation
Share-based compensation costs recognized	3,533	$ 310
Options
Stock-Based Compensation
Remaining unamortized expense	$ 35,099
Remaining unamortized expense period	1 year 10 months 24 days

Leases (Details)

Leases (Details) - ft²	1 Months Ended
	Aug. 31, 2020	Feb. 22, 2019
Leases
Area of lease		11,040
Additional space leased	7,245

Leases - Maturities (Details)

Leases - Maturities (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Maturities of the operating lease liability
Remainder of 2021	$ 267
2022	363
2023	372
2024	381
2025	391
Thereafter	64
Total lease payments	1,838
Less imputed interest	(235)
Total lease liability	1,603
Less current portion of lease liability	(275)
Long-term portion operating lease liability	$ 1,328	$ 1,398

Leases - Additional Information

Leases - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Aug. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Leases
Operating lease liabilities current portion		$ 275
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]		Other Liabilities, Current
Lease expense		$ 109	$ 54
Option to renew the lease	true
Renewal term	5 years
Lease renewed at percentage of market rates	95.00%