Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 05, 2021 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-38410 | |
Entity Registrant Name | BioXcel Therapeutics, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 82-1386754 | |
Entity Address, Address Line One | 555 Long Wharf Drive | |
Entity Address, City or Town | New Haven | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06511 | |
City Area Code | 475 | |
Local Phone Number | 238-6837 | |
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 | 27,980,345 | |
Entity Central Index Key | 0001720893 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
BALANCE SHEETS
BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 252,912 | $ 213,119 |
Prepaid expenses and other current assets | 4,017 | 3,946 |
Total current assets | 256,929 | 217,065 |
Property and equipment, net | 1,336 | 1,273 |
Operating lease right-of-use assets | 1,312 | 1,511 |
Other assets | 1,755 | 87 |
Total assets | 261,332 | 219,936 |
Current liabilities | ||
Accounts payable | 3,439 | 3,979 |
Accrued expenses | 10,716 | 7,469 |
Due to related party | 154 | 157 |
Other current liabilities | 287 | 237 |
Total current liabilities | 14,596 | 11,842 |
Long-term portion of operating lease liabilities | 1,180 | 1,398 |
Total liabilities | 15,776 | 13,240 |
Commitments and contingencies (Note 11) | ||
Stockholders' equity | ||
Common stock, $0.001 par value, 100,000 and 50,000 shares authorized as of September 30, 2021 and December 31, 2020, respectively; 27,980 and 24,417 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively | 28 | 24 |
Preferred stock, $0.001 par value, 10,000 shares authorized; no shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively | ||
Additional paid-in-capital | 465,191 | 345,529 |
Accumulated deficit | (219,663) | (138,857) |
Total stockholders' equity | 245,556 | 206,696 |
Total liabilities and stockholders' equity | $ 261,332 | $ 219,936 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
BALANCE SHEETS | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000 | 50,000 |
Common stock, shares issued (in shares) | 27,980 | 24,417 |
Common stock, shares outstanding (in shares) | 27,980 | 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 | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
STATEMENTS OF OPERATIONS | ||||
Revenues | ||||
Operating expenses | ||||
Research and development | 11,933 | 16,317 | 40,183 | 46,595 |
General and administrative | 14,879 | 8,451 | 40,621 | 14,605 |
Total operating expenses | 26,812 | 24,768 | 80,804 | 61,200 |
Loss from operations | (26,812) | (24,768) | (80,804) | (61,200) |
Other income (expense) | ||||
Interest income | 12 | 20 | 32 | 140 |
Interest expense | (11) | (5) | (34) | (23) |
Net loss and comprehensive loss | $ (26,811) | $ (24,753) | $ (80,806) | $ (61,083) |
Basic and diluted net loss per share attributable to common stockholders | $ (0.96) | $ (1.07) | $ (3.13) | $ (2.94) |
Weighted average shares outstanding - basic and diluted | 27,972 | 23,050 | 25,832 | 20,779 |
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, 2019 | $ 18 | 83,565 | (56,688) | 26,895 |
Beginning Balance (in shares) at Dec. 31, 2019 | 18,087 | |||
Net loss | (61,083) | |||
Ending Balance at Sep. 30, 2020 | $ 24 | 338,685 | (117,771) | 220,938 |
Ending Balance (in shares) at Sep. 30, 2020 | 24,355 | |||
Beginning Balance at Mar. 31, 2020 | $ 20 | 144,165 | (71,599) | 72,586 |
Beginning Balance (in shares) at Mar. 31, 2020 | 20,182 | |||
Stock-based compensation | 1,956 | 1,956 | ||
Exercise of stock options | 271 | 271 | ||
Exercise of stock options (in shares) | 171 | |||
Net loss | (21,419) | (21,419) | ||
Ending Balance at Jun. 30, 2020 | $ 20 | 146,392 | (93,018) | 53,394 |
Ending Balance (in shares) at Jun. 30, 2020 | 20,353 | |||
Issuance of common stock, net of issuance costs | $ 4 | 187,004 | 187,008 | |
Issuance of common stock, net of issuance costs (in shares) | 4,000 | |||
Stock-based compensation | 5,268 | 5,268 | ||
Exercise of stock options | 21 | 21 | ||
Exercise of stock options (in shares) | 2 | |||
Net loss | (24,753) | (24,753) | ||
Ending Balance at Sep. 30, 2020 | $ 24 | 338,685 | (117,771) | 220,938 |
Ending Balance (in shares) at Sep. 30, 2020 | 24,355 | |||
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 | |||
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 | ||
Net loss | $ (80,806) | |||
Ending Balance at Sep. 30, 2021 | $ 28 | 465,191 | (219,663) | $ 245,556 |
Ending Balance (in shares) at Sep. 30, 2021 | 27,980 | 27,980 | ||
Beginning Balance at Mar. 31, 2021 | $ 25 | 351,945 | (165,233) | $ 186,737 |
Beginning Balance (in shares) at Mar. 31, 2021 | 24,631 | |||
Issuance of common stock, net of issuance costs | $ 3 | 101,024 | 101,027 | |
Issuance of common stock, net of issuance costs (in shares) | 3,279 | |||
Stock-based compensation | 6,769 | 6,769 | ||
Exercise of stock options | 497 | 497 | ||
Exercise of stock options (in shares) | 59 | |||
Net loss | (27,619) | (27,619) | ||
Ending Balance at Jun. 30, 2021 | $ 28 | 460,235 | (192,852) | 267,411 |
Ending Balance (in shares) at Jun. 30, 2021 | 27,969 | |||
Stock issuance costs | (34) | (34) | ||
Stock-based compensation | 4,885 | 4,885 | ||
Exercise of stock options | 105 | 105 | ||
Exercise of stock options (in shares) | 11 | |||
Net loss | (26,811) | (26,811) | ||
Ending Balance at Sep. 30, 2021 | $ 28 | $ 465,191 | $ (219,663) | $ 245,556 |
Ending Balance (in shares) at Sep. 30, 2021 | 27,980 | 27,980 |
STATEMENTS OF CHANGES IN STOC_2
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Jun. 30, 2021 | Feb. 29, 2020 | Jun. 30, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | |
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | |||||
Issuance costs paid | $ 3,076 | $ 4,789 | $ 3,542 | $ 12,991 | $ 4,789 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (80,806) | $ (61,083) |
Reconciliation of net loss to net cash used in operating activities | ||
Depreciation and amortization | 221 | 143 |
Loss on disposal of equipment | 46 | |
Stock-based compensation expense | 17,219 | 8,000 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other assets | (1,739) | (1,059) |
Operating lease right of use assets | 199 | 213 |
Accounts payable, accrued expenses, and other liabilities | 2,807 | 7,830 |
Operating lease liabilities | (168) | (122) |
Net cash used in operating activities | (62,221) | (46,078) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of equipment and leasehold improvements | (433) | (46) |
Net cash used in investing activities | (433) | (46) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of common stock, net of issuance costs | 100,993 | 255,819 |
Purchase and cancellation of shares from BioXcel LLC | (9,024) | |
Exercise of stock options | 1,454 | 331 |
Net cash provided by financing activities | 102,447 | 247,126 |
Net increase in cash and cash equivalents | 39,793 | 201,002 |
Cash and cash equivalents, beginning of the period | 213,119 | 32,426 |
Cash and cash equivalents, end of the period | 252,912 | 233,428 |
Supplemental cash flow information: | ||
Purchases of equipment and leasehold improvements included in accounts payable and accrued expense as of December 31, 2020, but paid in the current period | $ 103 | |
Operating lease ROU assets obtained in exchange for operating lease liabilities | $ 606 |
Nature of the Business
Nature of the Business | 9 Months Ended |
Sep. 30, 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 a rare form 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 LLC” refers to BioXcel LLC and, its predecessor, BioXcel Corporation. The Company 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 $26,811 and $24,753 for the three months ended September 30, 2021 and 2020, respectively and $80,806 and $61,083 for the nine months ended September 30, 2021 and 2020, respectively. The Company had an accumulated deficit of $219,663 as of September 30, 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 pandemic 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, or the spread of the variants of the disease, may be more difficult to control 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 prevalence of variants of the disease, the efficacy and adoption of vaccines, and 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. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
Basis of Presentation | |
Basis of Presentation | Note 2. Basis of Presentation The accompanying unaudited financial statements do not include all of the information and footnotes required by Generally Accepted Accounting Principles in the United States of America (“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 September 30, 2021, the results of its operations for the three and nine months ended September 30, 2021 and 2020 and its cash flows for the nine months ended September 30, 2021 and 2020, respectively. The results for the three and nine months ended September 30, 2021 are not necessarily indicative of results to be expected for the year ending December 31, 2021, any other interim periods or any future year or period. 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 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 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 September 30, 2021 and December 31, 2020, cash equivalents were comprised primarily of U.S. government 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 included in 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 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 the long-term portion of 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, 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 awards, granted prior to the Company’s IPO in March 2018. 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 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 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 September 30, 2021 and December 31, 2020, the Company had $252,912 and $213,119, respectively, in U.S. government 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 nine months ended September 30, 2021 and the year ended December 31, 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 Recently adopted accounting pronouncements In December 2019, the FASB issued ASU No. 2019-12 , Income Taxes (Topic 740) 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 Accounting Pronouncements effective in future periods 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 No. 2018-19, ASU No. 2019-04 and No. 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 No. 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. |
Financing Activities
Financing Activities | 9 Months Ended |
Sep. 30, 2021 | |
Financing Activities | |
Financing Activities | Note 4. Financing Activities In June 2021, the Company sold in a registered offering 3,155 shares of its common stock at a public offering price of $31.70 per share. The Company received proceeds of $96,937, net of issuance costs of $3,076. In May 2021, the Company entered into an Open Market Sale Agreement (the “Sale Agreement”) with Jefferies LLC (“Jeffries”) pursuant to which the Company could offer and sell shares of its common stock, par value $0.001 per share (the “Common Stock”), having an aggregate offering price of up to $100,000 (the “Shares”), from time to time, through an “at the market offering” program under which Jefferies will act as sale agent. The Company sold 124 shares under the Sale Agreement in June 2021. As of September 30, 2021, the Company received proceeds of $4,056, net of issuance costs of $500. 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 (with $34 recorded as a true up in the fourth quarter of 2020). 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. 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 LLC. |
Transactions with BioXcel LLC
Transactions with BioXcel LLC | 9 Months Ended |
Sep. 30, 2021 | |
Transactions with BioXcel LLC | |
Transactions with BioXcel LLC | Note 5. Transactions with BioXcel LLC The Company entered into a Separation and Shared Services Agreement with BioXcel LLC that took effect on June 30, 2017, as amended and restated, (the “Services Agreement”), pursuant to which services provided by BioXcel LLC 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 for the three and nine months ended September 30, 2021 and 2020 were comprised as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Research and development $ 269 $ 270 $ 899 $ 926 General and administrative 72 44 166 44 Total $ 341 $ 314 $ 1,065 $ 970 As of September 30, 2021, $154 related to these service charges is included in due to related parties in the Company’s balance sheet. Under the Services Agreement, the Company has an option, exercisable until March 12, 2023, to enter into a collaborative services agreement with BioXcel LLC pursuant to which BioXcel LLC shall perform product identification and related services for us utilizing EvolverAI. As of September 30, 2021, this option has not been exercised. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Sep. 30, 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 Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Net loss (numerator) $ (26,811) $ (24,753) $ (80,806) $ (61,083) Weighted average share, in thousands (denominator) 27,972 23,050 25,832 20,779 Basic and diluted net loss per share $ (0.96) $ (1.07) $ (3.13) $ (2.94) Potentially dilutive securities outstanding consists solely of stock options. The Company had options outstanding to purchase 4,152 and 3,834 shares of common stock as of September 30, 2021 and 2020, respectively. |
Property and Equipment, net
Property and Equipment, net | 9 Months Ended |
Sep. 30, 2021 | |
Property and Equipment, net | |
Property and Equipment, net | Note 7. Property and Equipment, net Property and Equipment, net consisted of the following September 30, December 31, 2021 2020 Computers and related equipment $ 167 $ 260 Furniture 572 369 Leasehold improvements 1,123 650 Work in process — 356 1,862 1,635 Accumulated depreciation (526) (362) $ 1,336 $ 1,273 Depreciation expense was $76 and $47 for the three months ended September 30, 2021 and 2020, respectively, and $221 and $143 for the nine months ended September 30, 2021 and 2020, respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 9 Months Ended |
Sep. 30, 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: September 30, 2021 December 31, 2020 Research and development expenses $ 4,694 $ 3,264 Accrued compensation and benefits 3,495 2,066 Accrued professional expenses 2,188 1,288 Accrued taxes 199 697 Other accrued expenses 140 154 $ 10,716 $ 7,469 Other current liabilities as of September 30, 2021 and December 31, 2020 consists of $287 and $237, respectively, for the current portion of operating lease liabilities. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 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 stockholders 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 stockholders. 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 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 September 30, 2021, there were 496 shares available to be granted under the 2020 Plan. A summary of the status of the Company’s stock option activity for the nine months ended September 30, 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 800 $ 37.82 Forfeited (159) $ 42.26 Cancelled (3) $ 45.98 Exercised (284) $ 5.12 Outstanding as of September 30, 2021 4,152 $ 20.07 Options vested and exercisable as of September 30, 2021 2,609 $ 9.13 As of September 30, 2021, the intrinsic value of options outstanding was $66,583. 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 nine months ended September 30, 2021 and 2020 was $11,942 and $8,743, respectively. The weighted average grant date fair value of options granted during the nine months ended September 30, 2021 and 2020 was $29.25 and $32.53, respectively. The weighted average grant date fair value of options vested at September 30, 2021 was $6.74. The weighted average remaining contractual life is 6.5 years for options exercisable as of September 30, 2021. Stock-Based Compensation The fair value of options granted during the nine months ended September 30, 2021 and 2020 was estimated using the Black-Scholes option-pricing model with the following assumptions. For the For the Nine Months Ended Nine Months Ended September 30, 2021 September 30, 2020 Expected Term 5.50 years - 6.25 years 5.50 years - 6.25 years Expected stock price volatility 95.00 % - 98.00 % 79.02 % - 86.71 % Risk-free rate of interest 0.96 % - 1.22 % 0.33 % - 2.34 % Expected dividend 0.0 % - 0.0 % 0.0 % - 0.0 % 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 September 30, 2021 was $25,894 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 1.7 years. Total stock-based compensation charges for the three and nine months ended September 30, 2021 and 2020 were comprised as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Research and development $ 951 $ 2,203 $ 5,155 $ 3,587 General and administrative 3,935 3,065 12,064 4,413 Total $ 4,886 $ 5,268 $ 17,219 $ 8,000 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 stockholders 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 |
Leases
Leases | 9 Months Ended |
Sep. 30, 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 th th Floor Lease expires in February 2026. In August 2020, the Company entered into an amendment to the 12 th th th th The future minimum annual lease payments under these operating leases as of September 30, 2021 are as follows: Year ending December 31, Amount Remainder of 2021 89 2022 363 2023 372 2024 381 2025 391 Thereafter 64 Total lease payments 1,660 Less imputed interest (193) Total lease liability 1,467 Less current portion of lease liability (287) Long-term portion operating lease liability $ 1,180 The current The Company recorded lease expense of $85 and $130 related to its operating lease right-of-use asset for the three months ended September 30, 2021 and 2020, respectively. The Company recorded lease expense of $280 and $237 related to its operating lease right-of-use asset for the nine months ended September 30, 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 | 9 Months Ended |
Sep. 30, 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. The Company received a demand letter pursuant to Section 220 of the Delaware General Corporation Law (“DGCL”) from a stockholder seeking disclosure of certain of the Company's records. The Company responded to those demands, stating its belief that the demand letter failed to fully comply with the requirements of Section 220 of the DGCL. On June 15, 2021, the stockholder filed a complaint in Delaware Chancery Court seeking to compel inspection of books and records pursuant to Section 220 of the DGCL. Pursuant to a negotiated settlement agreement, the matter was dismissed with prejudice on August 10, 2021. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Summary of Significant Accounting Policies | |
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 September 30, 2021 and December 31, 2020, cash equivalents were comprised primarily of U.S. government 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 included in 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 |
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 the long-term portion of 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, 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 awards, granted prior to the Company’s IPO in March 2018. 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 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 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 September 30, 2021 and December 31, 2020, the Company had $252,912 and $213,119, respectively, in U.S. government 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 nine months ended September 30, 2021 and the year ended December 31, 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 Recently adopted accounting pronouncements In December 2019, the FASB issued ASU No. 2019-12 , Income Taxes (Topic 740) 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 Accounting Pronouncements effective in future periods 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 No. 2018-19, ASU No. 2019-04 and No. 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 No. 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. |
Transactions with BioXcel LLC (
Transactions with BioXcel LLC (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Transactions with BioXcel LLC | |
Schedule of service charges | Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Research and development $ 269 $ 270 $ 899 $ 926 General and administrative 72 44 166 44 Total $ 341 $ 314 $ 1,065 $ 970 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings (Loss) Per Share | |
Schedule of earnings (loss) per share | Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Net loss (numerator) $ (26,811) $ (24,753) $ (80,806) $ (61,083) Weighted average share, in thousands (denominator) 27,972 23,050 25,832 20,779 Basic and diluted net loss per share $ (0.96) $ (1.07) $ (3.13) $ (2.94) |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property and Equipment, net | |
Schedule of Property and Equipment, net | September 30, December 31, 2021 2020 Computers and related equipment $ 167 $ 260 Furniture 572 369 Leasehold improvements 1,123 650 Work in process — 356 1,862 1,635 Accumulated depreciation (526) (362) $ 1,336 $ 1,273 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accrued Expenses and Other Current Liabilities | |
Schedule of accrued expenses | September 30, 2021 December 31, 2020 Research and development expenses $ 4,694 $ 3,264 Accrued compensation and benefits 3,495 2,066 Accrued professional expenses 2,188 1,288 Accrued taxes 199 697 Other accrued expenses 140 154 $ 10,716 $ 7,469 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Stock-Based Compensation | |
Schedule of Stock Option Activity | A summary of the status of the Company’s stock option activity for the nine months ended September 30, 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 800 $ 37.82 Forfeited (159) $ 42.26 Cancelled (3) $ 45.98 Exercised (284) $ 5.12 Outstanding as of September 30, 2021 4,152 $ 20.07 Options vested and exercisable as of September 30, 2021 2,609 $ 9.13 |
Schedule of Valuation Assumptions | For the For the Nine Months Ended Nine Months Ended September 30, 2021 September 30, 2020 Expected Term 5.50 years - 6.25 years 5.50 years - 6.25 years Expected stock price volatility 95.00 % - 98.00 % 79.02 % - 86.71 % Risk-free rate of interest 0.96 % - 1.22 % 0.33 % - 2.34 % Expected dividend 0.0 % - 0.0 % 0.0 % - 0.0 % |
Schedule of stock-based compensation charges | Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Research and development $ 951 $ 2,203 $ 5,155 $ 3,587 General and administrative 3,935 3,065 12,064 4,413 Total $ 4,886 $ 5,268 $ 17,219 $ 8,000 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases | |
Summary of maturities of the operating lease liability | Year ending December 31, Amount Remainder of 2021 89 2022 363 2023 372 2024 381 2025 391 Thereafter 64 Total lease payments 1,660 Less imputed interest (193) Total lease liability 1,467 Less current portion of lease liability (287) Long-term portion operating lease liability $ 1,180 |
Nature of the Business (Details
Nature of the Business (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Nature of the Business | |||||||||
Net loss | $ (26,811) | $ (27,619) | $ (26,376) | $ (24,753) | $ (21,419) | $ (14,911) | $ (80,806) | $ (61,083) | |
Accumulated deficit | $ (219,663) | $ (219,663) | $ (138,857) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021USD ($)segment | Dec. 31, 2020USD ($) | |
Summary of Significant Accounting Policies | ||
Number of segments | segment | 1 | |
Level 1 | ||
Summary of Significant Accounting Policies | ||
Fair value money market accounts | $ | $ 252,912 | $ 213,119 |
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 | 9 Months Ended | |||||||
Jun. 30, 2021 | May 31, 2021 | Jul. 31, 2020 | Feb. 29, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Number of shares issued | 3,155 | 4,000 | 2,300 | |||||||
Purchase price (in dollar per share) | $ 31.70 | $ 50 | $ 32 | $ 31.70 | ||||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | |||||||
Proceeds from issuance of common stock, net of issuance costs | $ 96,937 | $ 186,974 | $ 68,811 | $ 100,993 | $ 255,819 | |||||
Issuance costs paid | $ 3,076 | 4,789 | $ 3,542 | $ 12,991 | $ 4,789 | |||||
Issuance costs paid and true-up | $ 13,026 | |||||||||
Recorded true up issuance costs | $ 34 | |||||||||
Proceeds used to purchase shares cancelled | $ 9,024 | $ 9,024 | ||||||||
Shares repurchased (in shares) | 300 | |||||||||
Jefferies Sale Agreement | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Number of shares issued | 124 | |||||||||
Proceeds from issuance of common stock, net of issuance costs | 4,056 | |||||||||
Issuance costs paid | $ 500 | |||||||||
Jefferies Sale Agreement | Maximum | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Proceeds from issuance of common stock, net of issuance costs | $ 100,000 | |||||||||
Underwriting option | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Underwriters option exercisable period | 30 days | |||||||||
Underwriter's shares available to purchase | 600 |
Transactions with BioXcel LLC_2
Transactions with BioXcel LLC (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Transactions with BioXcel | |||||
Due to related party | $ 154 | $ 154 | $ 157 | ||
BioXcel LLC | |||||
Transactions with BioXcel | |||||
Service charges | 341 | $ 314 | 1,065 | $ 970 | |
Due to related party | 154 | 154 | |||
BioXcel LLC | Research and development expense | |||||
Transactions with BioXcel | |||||
Service charges | 269 | 270 | 899 | 926 | |
BioXcel LLC | General and administrative expense | |||||
Transactions with BioXcel | |||||
Service charges | $ 72 | $ 44 | $ 166 | $ 44 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings (Loss) Per Share | ||||||||
Net loss (numerator) | $ (26,811) | $ (27,619) | $ (26,376) | $ (24,753) | $ (21,419) | $ (14,911) | $ (80,806) | $ (61,083) |
Weighted-average share (denominator) | 27,972 | 23,050 | 25,832 | 20,779 | ||||
Basic and diluted net loss per share | $ (0.96) | $ (1.07) | $ (3.13) | $ (2.94) | ||||
Potentially dilutive securities (in shares) | 4,152 | 3,834 |
Property and Equipment, net (De
Property and Equipment, net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Equipment | |||||
Property and equipment, gross | $ 1,862 | $ 1,862 | $ 1,635 | ||
Accumulated depreciation | (526) | (526) | (362) | ||
Property and equipment, net | 1,336 | 1,336 | 1,273 | ||
Depreciation and amortization | 76 | $ 47 | 221 | $ 143 | |
Computers and related equipment | |||||
Equipment | |||||
Property and equipment, gross | 167 | 167 | 260 | ||
Furniture | |||||
Equipment | |||||
Property and equipment, gross | 572 | 572 | 369 | ||
Leasehold improvements | |||||
Equipment | |||||
Property and equipment, gross | $ 1,123 | $ 1,123 | 650 | ||
Work in process | |||||
Equipment | |||||
Property and equipment, gross | $ 356 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Accrued Expenses and Other Current Liabilities | ||
Research and development expenses | $ 4,694 | $ 3,264 |
Accrued compensation and benefits | 3,495 | 2,066 |
Accrued professional expenses | 2,188 | 1,288 |
Accrued taxes | 199 | 697 |
Other accrued expenses | 140 | 154 |
Accrued expenses | 10,716 | 7,469 |
Current portion of operating lease liabilities | $ 287 | $ 237 |
Stock-Based Compensation - Desc
Stock-Based Compensation - Description (Details) - shares shares in Thousands | Jan. 01, 2021 | May 20, 2020 | Sep. 30, 2021 |
2020 Incentive Award Plan | |||
Stock-Based Compensation | |||
Authorized shares | 911 | ||
Available for grant (in shares) | 496 | ||
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 $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | |
Sep. 30, 2021USD ($)$ / sharesshares | Sep. 30, 2020USD ($)$ / shares | |
Number of Shares | ||
Outstanding, beginning balance (in shares) | shares | 3,798 | |
Options granted (in shares) | shares | 800 | |
Options forfeited (in shares) | shares | (159) | |
Options Cancelled (in shares) | shares | (3) | |
Options exercised (in shares) | shares | (284) | |
Outstanding, ending balance (in shares) | shares | 4,152 | |
Options vested and exercisable (in shares) | shares | 2,609 | |
Weighted Average Exercise Price per Share | ||
Outstanding, beginning balance (in dollars per shares) | $ 16.15 | |
Options granted (in dollars per share) | 37.82 | |
Options forfeited (in dollars per shares) | 42.26 | |
Options Cancelled (in dollars per shares) | 45.98 | |
Options exercised (in dollars per shares) | 5.12 | |
Outstanding, end balance (in dollars per shares) | 20.07 | |
Options vested and exercisable (in dollars per shares) | $ 9.13 | |
Options | ||
Intrinsic value, outstanding | $ | $ 66,583 | |
Intrinsic value, exercised | $ | $ 11,942 | $ 8,743 |
Weighted-average grant-date fair value of options granted (in dollars per share) | $ 29.25 | $ 32.53 |
Weighted-average grant-date fair value of options vested (in dollars per share) | $ 6.74 | |
Weighted average remaining contractual life, exercisable | 6 years 6 months |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions (Details) - Options | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 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% | 86.71% |
Risk-free rate of interest, minimum (as a percent) | 0.96% | 0.33% |
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 | 5 years 6 months |
Maximum | ||
Stock-Based Compensation | ||
Expected Term (years) | 6 years 3 months | 6 years 3 months |
Stock-Based Compensation - Expe
Stock-Based Compensation - Expense and ESPP (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Stock-Based Compensation | ||||
Share-based compensation costs recognized | $ 4,886 | $ 5,268 | $ 17,219 | $ 8,000 |
Research and development expense | ||||
Stock-Based Compensation | ||||
Share-based compensation costs recognized | 951 | 2,203 | 5,155 | 3,587 |
General and administrative expense | ||||
Stock-Based Compensation | ||||
Share-based compensation costs recognized | 3,935 | $ 3,065 | 12,064 | $ 4,413 |
Options | ||||
Stock-Based Compensation | ||||
Remaining unamortized expense | $ 25,894 | $ 25,894 | ||
Remaining unamortized expense period | 1 year 8 months 12 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 | Sep. 30, 2021 | Dec. 31, 2020 |
Maturities of the operating lease liability | ||
Remainder of 2021 | $ 89 | |
2022 | 363 | |
2023 | 372 | |
2024 | 381 | |
2025 | 391 | |
Thereafter | 64 | |
Total lease payments | 1,660 | |
Less imputed interest | (193) | |
Total lease liability | 1,467 | |
Less current portion of lease liability | (287) | $ (237) |
Long-term portion operating lease liability | $ 1,180 | $ 1,398 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Aug. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Leases | ||||||
Current portion of operating lease liabilities | $ 287 | $ 287 | $ 237 | |||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other Liabilities, Current | Other Liabilities, Current | ||||
Lease expense | $ 85 | $ 130 | $ 280 | $ 237 | ||
Option to renew the lease | true | |||||
Renewal term | 5 years | |||||
Lease renewed at percentage of market rates | 95.00% |