Zentalis Pharmaceuticals (ZNTL) 10-Q 10 May 23 2023 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2023	May 08, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-39263
Entity Registrant Name	Zentalis Pharmaceuticals, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	82-3607803
Entity Address, Address Line One	1359 Broadway
Entity Address, Address Line Two	Suite 801
Entity Address, City or Town	New York,
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10018
City Area Code	212
Local Phone Number	433-3791
Title of 12(b) Security	Common Stock,$0.001 par value per share
Trading Symbol	ZNTL
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		59,477,824
Entity Central Index Key	0001725160
Amendment Flag	false
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 36,280	$ 43,069
Marketable securities, available-for-sale	356,239	394,302
Prepaid expenses and other current assets	17,707	14,562
Total current assets	410,226	451,933
Property and equipment, net	6,880	7,705
Operating lease right-of-use assets	37,475	42,373
Prepaid expenses and other assets	9,495	9,723
Goodwill	3,736	3,736
Investment in Zentera Therapeutics	18,903	21,213
Restricted cash	2,627	2,627
Total assets	489,342	539,310
Current liabilities
Accounts payable	12,818	11,247
Accrued expenses	43,540	45,400
Total current liabilities	56,358	56,647
Deferred tax liability	756	853
Long-term lease liability	44,771	45,166
Other long-term liabilities	1,792	2,620
Total liabilities	103,677	105,286
Commitments and contingencies
EQUITY
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding at March 31, 2023 and December 31, 2022	0	0
Common stock, $0.001 par value; 250,000,000 shares authorized; 59,442,342 and 59,280,247 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively	59	59
Additional paid-in capital	1,045,568	1,031,462
Accumulated other comprehensive loss	(556)	(1,353)
Accumulated deficit	(659,584)	(596,365)
Total stockholders’ equity	385,487	433,803
Noncontrolling interests	178	221
Total equity	385,665	434,024
Total liabilities and stockholders’ equity	$ 489,342	$ 539,310

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	250,000,000	250,000,000
Common stock issued (in shares)	59,442,342	59,280,247
Common stock outstanding (in shares)	59,442,342	59,280,247

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Operating Expenses
Research and development	$ 48,584	$ 46,112
General and administrative	16,369	11,767
Total operating expenses	64,953	57,879
Operating loss	(64,953)	(57,879)
Other Income (Expense)
Investment and other income, net	4,109	426
Net loss before income taxes	(60,844)	(57,453)
Income tax expense	108	33
Loss on equity method investment	2,310	1,751
Net loss	(63,262)	(59,237)
Net loss attributable to noncontrolling interests	(43)	(160)
Net loss attributable to Zentalis	$ (63,219)	$ (59,077)
Net loss per common share outstanding, basic (in dollars per share)	$ (1.07)	$ (1.31)
Net loss per common share outstanding, diluted (in dollars per share)	$ (1.07)	$ (1.31)
Common shares used in computing net loss per share, basic (in shares)	59,277	45,244
Common shares used in computing net loss per share, diluted (in shares)	59,277	45,244

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net loss	$ (63,262)	$ (59,237)
Other comprehensive income (loss):
Unrealized gain (loss) on marketable securities	797	(984)
Total comprehensive loss	(62,465)	(60,221)
Comprehensive loss attributable to noncontrolling interests	(43)	(160)
Comprehensive loss attributable to Zentalis	$ (62,422)	$ (60,061)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Operating Activities:
Consolidated net loss	$ (63,262)	$ (59,237)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	360	344
Operating lease right-of-use asset and fixed asset impairment	4,953	0
Share-based compensation	13,733	10,147
(Accretion of discounts)/amortization of premiums on marketable securities, net	(3,261)	146
Loss on equity method investment	2,310	1,751
Deferred income taxes	(97)	(74)
Changes in operating assets and liabilities:
Prepaid expenses and other assets	(2,917)	(4,154)
Accounts payable and accrued liabilities	(1,411)	(500)
Operating lease right-of-use assets and liabilities, net	309	1,381
Net cash used in operating activities	(49,283)	(50,196)
Investing Activities:
Purchases of marketable securities	(63,879)	(79,254)
Proceeds from maturities of marketable securities	106,000	99,500
Purchases of property and equipment	0	(450)
Net cash provided by investing activities	42,121	19,796
Financing Activities:
Proceeds from issuance of common stock under equity incentive plans	373	1,258
Net cash provided by financing activities	373	1,258
Net decrease in cash, cash equivalents and restricted cash	(6,789)	(29,142)
Cash, cash equivalents and restricted cash at beginning of period	45,696	62,584
Cash, cash equivalents and restricted cash at end of period	38,907	33,442
Supplemental disclosure of non-cash investing and financing activities:
Accrued capital expenditures	209	226
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Cash and cash equivalents	36,280	30,572
Restricted cash	2,627	2,870
Total cash, cash equivalents and restricted cash reported in the Condensed Consolidated Statement of Cash Flows	$ 38,907	$ 33,442

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income	Accumulated Deficit	Noncontrolling Interests
Beginning balance (in shares) at Dec. 31, 2021		45,491,000
Beginning balance at Dec. 31, 2021	$ 364,482	$ 45	$ 723,593	$ (125)	$ (359,559)	$ 528
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation expense	10,147		10,147
Other comprehensive loss	(984)			(984)
Issuance of common stock in connection with restricted stock unit vesting (in shares)		45,000
Issuance of common stock in connection with restricted stock unit vesting	1	$ 1
Issuance of common stock upon exercise of options, net (in shares)		33,000
Issuance of common stock upon exercise of options, net	645		645
Shares issued under employee stock purchase plan (in shares)		16,000
Shares issued under employee stock purchase plan	612		612
Cancellation of restricted stock awards (in shares)		(1,000)
Net loss attributable to non-controlling interest	(160)					(160)
Net loss attributable to Zentalis	(59,077)				(59,077)
Ending balance (in shares) at Mar. 31, 2022		45,584,000
Ending balance at Mar. 31, 2022	315,666	$ 46	734,997	(1,109)	(418,636)	368
Beginning balance (in shares) at Dec. 31, 2021		45,491,000
Beginning balance at Dec. 31, 2021	364,482	$ 45	723,593	(125)	(359,559)	528
Ending balance (in shares) at Dec. 31, 2022		59,280,000
Ending balance at Dec. 31, 2022	434,024	$ 59	1,031,462	(1,353)	(596,365)	221
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation expense	13,733		13,733
Other comprehensive loss	$ 797			797
Issuance of common stock in connection with restricted stock unit vesting (in shares)	41,100	139,000
Issuance of common stock upon exercise of options, net (in shares)	0
Shares issued under employee stock purchase plan (in shares)		25,000
Shares issued under employee stock purchase plan	$ 373		373
Cancellation of restricted stock awards (in shares)		(2,000)
Net loss attributable to non-controlling interest	(43)					(43)
Net loss attributable to Zentalis	(63,219)				(63,219)
Ending balance (in shares) at Mar. 31, 2023		59,442,000
Ending balance at Mar. 31, 2023	$ 385,665	$ 59	$ 1,045,568	$ (556)	$ (659,584)	$ 178

Organization and Business

Organization and Business	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Business	Organization and Business Organization Zentalis Pharmaceuticals, Inc. (“Zentalis”, “We” or the “Company”) is a clinical-stage biopharmaceutical company focused on discovering and developing small molecule therapeutics targeting fundamental biological pathways of cancer. The Company is developing a focused pipeline of potentially best-in-class oncology candidates. The Company manages its operations as a single segment for the purposes of assessing performance and making operating decisions. All of the Company’s tangible assets are held in the United States. Liquidity

Interim Unaudited Financial Sta

Interim Unaudited Financial Statements	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Interim Unaudited Financial Statements	Interim Unaudited Financial Statements Basis of Presentation The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) related to a quarterly report on Form 10-Q. The year-end condensed consolidated balance sheet data was derived from the Company’s audited financial statements but do not include all disclosures required by U.S. GAAP. These interim unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 1, 2023. The unaudited financial information for the interim periods presented herein reflects all adjustments which, in the opinion of management, are necessary for a fair presentation of the financial condition and results of operation for the periods presented, with such adjustments consisting only of normal recurring adjustments. Certain reclassifications have been made to the prior period condensed consolidated balance sheet to conform to the current period presentation. The accompanying interim unaudited condensed consolidated financial statements include our wholly-owned subsidiaries and variable interest entity (“VIE”), for which we are the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. We evaluate our ownership, contractual and other interests in entities that are not wholly-owned to determine if these entities are VIEs, and, if so, whether we are the primary beneficiary of the VIE. In determining whether we are the primary beneficiary of a VIE and therefore required to consolidate the VIE, we apply a qualitative approach that determines whether we have both (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses of, or the rights to receive benefits from, the VIE that could potentially be significant to that VIE. We will continuously assess whether we are the primary beneficiary of a VIE, as changes to existing relationships or future transactions may result in the consolidation or deconsolidation of such VIE. During the periods presented, we have not provided any other material financial or other support to our VIEs that we were not contractually required to provide. The equity method is used to account for investments in which we have the ability to exercise significant influence, but not control, over the investee. Such investments are recorded on the balance sheet, and the share of net income or losses of equity investments is recognized on a one quarter lag in investment and other income (expense), net. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. On an ongoing basis, we evaluate our estimates and judgments, which are based on historical and anticipated results and trends and on various other assumptions that management believes to be reasonable under the circumstances. By their nature, estimates are subject to an inherent degree of uncertainty and, as such, actual results may differ from management’s estimates. Though the impact of the COVID-19 pandemic to our business and operating results presents additional uncertainty, we continue to use the best information available to inform our critical accounting estimates. Significant Accounting Policies During the three months ended March 31, 2023, there have been no changes to the Company’s significant accounting policies as described in its Annual Report on Form 10-K for the fiscal year ended December 31, 2022.

Significant Transactions

Significant Transactions	3 Months Ended
	Mar. 31, 2023
Equity Method Investments and Joint Ventures [Abstract]
Significant Transactions	Significant Transactions Zentera Therapeutics In May 2020, we became a majority common shareholder of Zentera Therapeutics, a Shanghai-based clinical-stage biopharmaceutical company focused on developing cancer therapeutics (“Zentera”), concurrent with its Series A convertible preferred stock offering. The financial position and results of operations of Zentera were included in our consolidated financial statements from the date of the initial investment as a result of our control of the entity and our determination that we were the primary beneficiary of Zentera. In July 2021, Zentera completed a Series B convertible preferred stock offering which diluted our investment to a position of less than majority owned. Upon review of the facts and circumstances, together with the authoritative accounting literature, we determined that while Zentera is a VIE, consolidation of Zentera is no longer appropriate. After the July 2021 Series B convertible preferred offering in which we did not participate, our review concluded that we ceased to be the primary beneficiary of Zentera as our equity ownership was reduced and changes were made to the corporate governance of Zentera. As a result, we no longer individually have the ability to direct the activities that most significantly impact Zentera's economic performance. Beginning in July 2021, the financial position and results of operations of Zentera were no longer included in our consolidated financial statements. During the period of deconsolidation we measured the fair value of our retained investment in Zentera using the backsolve method with consideration for a lack of marketability. An equity method investment of $18.9 million is recorded on our balance sheet at March 31, 2023. This amount represents our maximum exposure to loss as a result of our involvement with Zentera. A deferred tax liability of $4.0 million representing the tax impact of the unrealized gain on deconsolidation is recorded on our balance sheet at March 31, 2023. A gain of $51.6 million, measured as the difference between the fair value of our retained noncontrolling interest together with the carrying amount of the Zentera noncontrolling interest, and the carrying amount of Zentera’s assets and liabilities was recognized during the year ended December 31, 2021. The difference between the carrying amount of our investment in Zentera and our portion of the Zentera net assets was $5.5 million as of March 31, 2023. This difference is accounted for in our equity method investment analogous to in-process research and development. In May 2020, each of our subsidiaries Zeno Alpha, Inc., K-Group Alpha, Inc., and K-Group Beta, Inc. entered into a collaboration and royalty-bearing license agreement with Zentera, which we refer to as the “Zentera Sublicenses,” pursuant to which we collaborate with Zentera on the development and commercialization of ZN-c5, ZN-d5 and azenosertib, respectively, collectively referred to as the “Collaboration Products,” respectively, in the People’s Republic of China, Macau, Hong Kong and Taiwan, which is referred to as the “Zentera Collaboration Territory.” Under each Zentera Sublicense, Zentera will lead development, and upon regulatory approval, the commercialization, of the Collaboration Products in the Zentera Collaboration Territory. Under the terms of the Zentera Sublicenses, Zentera is generally responsible for the costs of developing the Collaboration Products in the Zentera Collaboration Territory, and we are generally responsible for the costs of developing the Collaboration Products outside the Zentera Collaboration Territory, provided that Zentera will reimburse us for a portion of the costs for global data management, pharmacovigilance, safety database management, and chemistry, manufacturing and controls activities with respect to each Collaboration Product. Prior to the deconsolidation of Zentera in July 2021, these costs were eliminated in consolidation. For the three months ended March 31, 2023 and 2022 the amounts incurred under this arrangement totaled $2.2 million and $2.1 million, respectively, and are presented as contra-research and development expense in the unaudited condensed consolidated statement of operations. A corresponding receivable is recorded within prepaid expenses and other current assets on the unaudited condensed consolidated balance sheet. We have not provided material financial or other support to Zentera during the periods ended March 31, 2023 and 2022 that was not contractually required.

Business Combinations

Business Combinations	3 Months Ended
	Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]
Business Combinations	Business Combinations Kalyra Pharmaceuticals, Inc. On December 21, 2017, we acquired $4.5 million of Kalyra Pharmaceuticals, Inc.’s (“Kalyra”) Series B Preferred Stock representing a 25% equity interest in Kalyra for purposes of entering the analgesics therapeutic research space. The acquisition price was paid entirely in cash. In accordance with the authoritative guidance, we concluded that Kalyra is a business consisting of inputs, employees, intellectual property and processes capable of producing outputs. Additionally, we have concluded that Kalyra is a VIE, we are the primary beneficiary and have the power to direct the activities that most significantly affect Kalyra’s economic performance through common management and our board representation. Prior to December 21, 2017, the Company and Kalyra transacted for the delivery of research and development services and support. The financial position and results of operations of Kalyra have been included in our consolidated financial statements from the date of the initial investment. Pursuant with authoritative guidance, we have recorded the identifiable assets, liabilities and noncontrolling interests in the VIE at their fair value upon initial consolidation. The identified goodwill is comprised of the workforce and expected synergies from combining the entities . T otal assets and liabilities of Kalyra as of March 31, 2023 and December 31, 2022 are immaterial. The liabilities recognized as a result of consolidating Kalyra do not represent additional claims on our general assets. Pursuant to the authoritative guidance, the equity interest in Kalyra not owned by Zentalis is reported as a noncontrolling interest on our condensed consolidated balance sheets. The following is a reconciliation of equity (net assets) attributable to the noncontrolling interest (in thousands): March 31, December 31, 2023 2022 Noncontrolling interest at beginning of period $ 221 $ 528 Net loss attributable to noncontrolling interest (43) (307) Noncontrolling interest at end of period $ 178 $ 221

Fair Value Measurement

Fair Value Measurement	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurement	Fair Value Measurement Available-for-sale marketable securities consisted of the following (in thousands): March 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Commercial paper $ 281,405 $ 23 $ (286) $ 281,142 Corporate Debt Securities 2,486 — (6) 2,480 US Government Agencies 21,982 — (98) 21,884 US Treasury 50,956 — (223) 50,733 $ 356,829 $ 23 $ (613) $ 356,239 December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Commercial paper $ 296,309 $ 71 $ (587) $ 295,793 Corporate Debt securities 7,472 — (26) 7,446 US Government Agencies 23,970 — (182) 23,788 US Treasury securities 67,904 — (629) 67,275 $ 395,655 $ 71 $ (1,424) $ 394,302 As of March 31, 2023, fifty of our available-for-sale debt securities with a fair market value of $268.0 million were in a gross unrealized loss position of $0.6 million. Of those, forty-seven have been in a gross unrealized loss position of $0.5 million for less than one year and three have been in a gross unrealized loss position of $0.1 million for more than one year. When evaluating an investment for impairment, we review factors such as the severity of the impairment, changes in underlying credit ratings, forecasted recovery, our intent to sell or the likelihood that we would be required to sell the investment before its anticipated recovery in market value and the probability that the scheduled cash payments will continue to be made. Based on our review of these marketable securities, we believe none of the unrealized loss is as a result of a credit loss as of March 31, 2023, because we do not intend to sell these securities, and it is not more-likely-than-not that we will be required to sell these securities before the recovery of their amortized cost basis. Contractual maturities of available-for-sale debt securities are as follows (in thousands): March 31, 2023 December 31, 2022 Estimated Fair Value Due within one year $ 356,239 $ 394,302 $ 356,239 $ 394,302 The following table summarizes, by major security type, our cash equivalents and available-for-sale marketable securities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands): March 31, 2023 December 31, 2022 Level 1 Level 2 Total estimated fair value Level 1 Level 2 Total estimated fair value Cash equivalents: Money market funds $ 33,329 $ — $ 33,329 $ 26,811 $ — $ 26,811 Commercial paper — — — 1,998 — 1,998 Total cash equivalents: 33,329 — 33,329 28,809 — 28,809 Available-for-sale marketable securities: Commercial paper — 281,142 281,142 — 295,793 295,793 Corporate Debt Securities — 2,480 2,480 — 7,446 7,446 US Government Agencies — 21,884 21,884 — 23,788 23,788 US Treasury securities 50,733 — 50,733 67,275 — 67,275 Total available-for-sale marketable securities: 50,733 305,506 356,239 67,275 327,027 394,302 Total assets measured at fair value $ 84,062 $ 305,506 $ 389,568 $ 96,084 $ 327,027 $ 423,111 There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the three months ended March 31, 2023. We had no instruments that were classified within Level 3 as of March 31, 2023 or December 31, 2022.

Prepaid Expenses and Other Asse

Prepaid Expenses and Other Assets	3 Months Ended
	Mar. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid Expenses and Other Assets	Prepaid Expenses and Other Assets Prepaid expenses and other assets consisted of the following (in thousands): March 31, December 31, 2023 2022 Prepaid insurance $ 523 $ 1,018 Prepaid software licenses and maintenance 870 958 Foreign R&D credit refund 940 659 Prepaid research and development expenses 16,154 15,002 Interest receivable 385 508 Zentera receivable 7,908 5,874 Other prepaid expenses 422 266 Total prepaid expenses and other assets 27,202 24,285 Less long-term portion 9,495 9,723 Total prepaid expenses and other assets, current $ 17,707 $ 14,562

Property and Equipment, net

Property and Equipment, net	3 Months Ended
	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
Property and Equipment, net	Property and Equipment, net Property and equipment, net consisted of the following (in thousands): March 31, December 31, 2023 2022 Lab equipment $ 2,659 $ 2,622 Leasehold improvements 4,890 4,891 Office equipment and furniture 2,065 2,065 Computer equipment 150 150 Construction in progress 209 37 Subtotal 9,973 9,765 Accumulated depreciation and amortization (3,093) (2,060) Property and equipment, net $ 6,880 $ 7,705 Depreciation and amortization expense for the three months ended March 31, 2023 and 2022

Accrued Expenses

Accrued Expenses	3 Months Ended
	Mar. 31, 2023
Payables and Accruals [Abstract]
Accrued Expenses	Accrued Expenses Accrued expenses consist of the following (in thousands): March 31, December 31, 2023 2022 Accrued research and development expenses $ 34,227 $ 32,310 Accrued employee expenses 6,879 11,246 Accrued legal expenses 828 1,256 Accrued general and administrative expenses 726 662 Lease liability 2,247 2,162 Taxes payable 425 384 Total accrued expenses 45,332 48,020 Less long-term portion 1,792 2,620 Total accrued expenses $ 43,540 $ 45,400

Stockholders_ Equity

Stockholders’ Equity	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Stockholders’ Equity	Stockholders’ Equity Share-based Compensation In April 2020, the Company’s Board of Directors adopted, and the Company’s stockholders approved, the 2020 Incentive Award Plan (the “2020 Plan”), which allows for grants to selected employees, consultants and non-employee members of the Board of Directors. We currently grant stock options and restricted stock units (“RSUs”), under the 2020 Plan. Awards may be made under the 2020 Plan covering up to the sum of (1) 5,600,000 shares of common stock; plus (2) any shares forfeited from the unvested restricted shares of our common stock issued upon conversion of unvested Class B common units (up to 1,250,000 shares); plus (3) an annual increase on the first day of each fiscal year beginning with the fiscal year ending December 31, 2021 and continuing to, and including, the fiscal year ending December 31, 2030, equal to the lesser of (a) 5% of the shares of common stock outstanding on the final day of the immediately preceding calendar year and (b) such smaller number of shares as determined by our Board of Directors. At March 31, 2023, 9,975,086 shares were subject to outstanding awards under the 2020 Plan and 1,350,490 shares were available for future grants of share-based awards under the 2020 Plan. In July 2022, the Company’s Board of Directors approved the Zentalis Pharmaceuticals, Inc. 2022 Employment Inducement Incentive Award Plan (the “2022 Inducement Plan”), which is used exclusively for the grant of equity awards to new employees as an inducement material to the employees’ entering into employment with the Company. The Board of Directors has initially reserved 1,500,000 shares of the Company’s common stock for issuance pursuant to awards granted under the 2022 Inducement Plan. At March 31, 2023, 1,485,975 shares were subject to outstanding awards under the 2022 Inducement Plan and 14,025 shares were available for future grants of share-based awards under the 2022 Inducement Plan. Total share-based compensation expense related to share based awards was comprised of the following (in thousands): Three Months Ended 2023 2022 Research and development expense $ 5,873 $ 5,042 General and administrative expense 7,860 5,105 Total share-based compensation expense $ 13,733 $ 10,147 Share-based compensation expense by type of share-based award (in thousands): Three Months Ended 2023 2022 Stock Options $ 10,609 $ 7,778 Employee Stock Purchase Plan 105 102 RSAs and RSUs 3,019 2,267 $ 13,733 $ 10,147 Stock Options and Restricted Stock Units The exercise price of stock options granted is equal to the closing price of the Company’s common stock on the date of grant. The fair value of each option award is estimated on the date of grant using the Black-Scholes model. Due to the Company’s limited operating history and a lack of company specific historical and implied volatility data, the Company estimates expected volatility based on the historical volatility of a group of similar companies that are publicly traded. The historical volatility data was computed using the daily closing prices for the selected companies’ shares during the equivalent period of the calculated expected term of the stock-based awards. The Company uses the “simplified method” for estimating the expected term of employee options, whereby the expected term equals the arithmetic average of the vesting term and the original contractual term of the option (generally 10 years). The risk-free interest rate is based on the U.S. Treasury yield for a period consistent with the expected term of the option in effect at the time of the grant. The Company has not issued any dividends and does not expect to issue dividends over the life of the options. As a result, the Company has estimated the dividend yield to be zero. The fair value of the stock options granted during the three months ended March 31, 2023 and March 31, 2022 was determined with the following assumptions: March 31, 2023 March 31, 2022 Expected volatility 79.0% - 80.8% 73.6% - 74.3% Average expected term (in years) 5.5 - 6.1 6.0 - 6.1 Risk-free interest rate 3.4% - 4.2% 1.5% - 2.3% Expected dividend yield — % — % Employee Stock Purchase Plan In April 2020, the Company’s Board of Directors adopted, and the Company’s stockholders approved the Zentalis Pharmaceuticals, Inc. 2020 Employee Stock Purchase Plan (the “ESPP”), which was subsequently amended and restated effective March 15, 2021. The maximum aggregate number of shares of the Company’s common stock available for issuance under the ESPP at March 31, 2023 was 1,929,891. Under the terms of the ESPP, the Company’s employees may elect to have up to 20% of their compensation, up to a maximum value of $25,000 per calendar year, withheld to purchase shares of the Company’s common stock for a purchase price equal to 85% of the lower of the fair market value per share (at closing) of the Company’s common stock on (i) the first trading day of a six-month offering period, or (ii) the applicable purchase date, defined as the last trading day of the six-month offering period. The weighted average assumptions used to estimate the fair value of stock purchase rights under the ESPP during the period ended March 31, 2023 are as follows: Ended March 31, 2023 ESPP Volatility 101.0 % Expected term (years) 0.5 Risk free rate 4.0 % Expected dividend yield — Compensation Expense Summary Total unrecognized estimated compensation cost by type of award and the weighted average requisite service period over which such expense is expected to be recognized (in thousands, unless otherwise noted): March 31, 2023 Unrecognized Remaining Stock options $ 119,878 3.15 RSAs 218 0.50 RSUs 34,006 3.16 ESPP $ — 0 During the three months ended March 31, 2023, we issued zero shares of common stock in connection with the exercises of stock options. For the three months ended March 31, 2023, 41.1 thousand shares of common stock

Commitment and Contingencies

Commitment and Contingencies	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Contingencies From time to time, we may be involved in various disputes, including lawsuits and claims arising in the ordinary course of business, including actions with respect to intellectual property, employment, and contractual matters. Any of these claims could subject us to costly legal expenses. The Company records a liability in its consolidated financial statements for these matters when a loss is known or considered probable and the amount can be reasonably estimated. The Company reviews these estimates each accounting period as additional information is known and adjusts the loss provision when appropriate. If a matter is both probable to result in a liability and the amounts of loss can be reasonably estimated, the Company estimates and discloses the possible loss or range of loss to the extent necessary to make the consolidated financial statements not misleading. If the loss is not probable or cannot be reasonably estimated, a liability is not recorded in our consolidated financial statements. While we do generally believe that we have adequate insurance to cover many different types of liabilities, our insurance carriers may deny coverage, or our policy limits may be inadequate to fully satisfy any damage awards or settlement. If this were to happen, the payment of any such awards could have a material adverse effect on our consolidated results of operations and financial position. Additionally, any such claims, whether or not successful, could damage our reputation and business. We are currently not a party to any legal proceedings that require a loss liability to be recorded. Leases Our commitments include payments related to operating leases. Approximate annual future minimum operating lease payments as of March 31, 2023 are as follows (in thousands): Year Operating Leases 2023 (remaining) $ 4,966 2024 6,486 2025 6,799 2026 7,278 2027 7,451 Thereafter 38,778 Total minimum lease payments: 71,758 Less: imputed interest (24,740) Total operating lease liabilities 47,018 Less: current portion (2,247) Lease liability, net of current portion $ 44,771 The weighted-average remaining lease term of our operating leases is approximately 9.5 years. On March 6, 2023, we entered into a sublease agreement pursuant to which we will sublease the office space located at 1359 Broadway, Suites 1710 and 1800 in New York, New York to a subtenant. As a result of certain triggering events, we performed an interim impairment test by comparing the carrying value of the long-lived asset group to its estimated fair value, which was determined based on the income approach using a discounted cash flow model. Estimates and assumptions used in the model included projected cash flows and a discount rate. As a result,

Net Loss Per Common Share

Net Loss Per Common Share	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Net Loss Per Common Share	Net Loss Per Common Share Basic and diluted net loss per common share were calculated as follows (in thousands except per share amounts): Three Months Ended 2023 2022 Numerator: Net loss attributable to Zentalis $ (63,219) $ (59,077) Denominator: Weighted average number of common shares outstanding, basic and diluted 59,277 45,244 Net loss per common share $ (1.07) $ (1.31) Our potential and dilutive securities, which include outstanding stock options, unvested RSAs and unvested RSUs have been excluded from the computation of diluted net loss per common share as the effect would be anti-dilutive. The following common stock equivalents have been excluded from the calculations of diluted net loss per common share because their inclusion would be antidilutive (in thousands). March 31, 2023 2022 Outstanding stock options 9,895 5,372 Unvested RSAs 82 287 Unvested RSUs 1,566 433 11,543 6,092

Related Party Disclosures

Related Party Disclosures	3 Months Ended
	Mar. 31, 2023
Related Party Transactions [Abstract]
Related Party Disclosures	Related Party Disclosures Tempus Kimberly Blackwell, M.D., our Chief Executive Officer and a member of our Board of Directors, was previously employed by Tempus Labs, Inc. ("Tempus") and now serves as an advisor of Tempus. The Company entered into a Master Services Agreement with Tempus in December 2020 to provide data licensing and research services. There were $0.4 million and immaterial fees incurred for services performed by Tempus for the three months ended March 31, 2023 and 2022, respectively. Zentera Kevin D. Bunker, Ph.D., our Chief Scientific Officer, serves as a member of the Board of Directors of Zentera. Accordingly, the Company identifies Zentera as a related party.

Interim Unaudited Financial S_2

Interim Unaudited Financial Statements (Policies)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) related to a quarterly report on Form 10-Q. The year-end condensed consolidated balance sheet data was derived from the Company’s audited financial statements but do not include all disclosures required by U.S. GAAP. These interim unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 1, 2023. The unaudited financial information for the interim periods presented herein reflects all adjustments which, in the opinion of management, are necessary for a fair presentation of the financial condition and results of operation for the periods presented, with such adjustments consisting only of normal recurring adjustments. Certain reclassifications have been made to the prior period condensed consolidated balance sheet to conform to the current period presentation.
Consolidation	The accompanying interim unaudited condensed consolidated financial statements include our wholly-owned subsidiaries and variable interest entity (“VIE”), for which we are the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. We evaluate our ownership, contractual and other interests in entities that are not wholly-owned to determine if these entities are VIEs, and, if so, whether we are the primary beneficiary of the VIE. In determining whether we are the primary beneficiary of a VIE and therefore required to consolidate the VIE, we apply a qualitative approach that determines whether we have both (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses of, or the rights to receive benefits from, the VIE that could potentially be significant to that VIE. We will continuously assess whether we are the primary beneficiary of a VIE, as changes to existing relationships or future transactions may result in the consolidation or deconsolidation of such VIE. During the periods presented, we have not provided any other material financial or other support to our VIEs that we were not contractually required to provide. The equity method is used to account for investments in which we have the ability to exercise significant influence, but not control, over the investee. Such investments are recorded on the balance sheet, and the share of net income or losses of equity investments is recognized on a one quarter lag in investment and other income (expense), net.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. On an ongoing basis, we evaluate our estimates and judgments, which are based on historical and anticipated results and trends and on various other assumptions that management believes to be reasonable under the circumstances. By their nature, estimates are subject to an inherent degree of uncertainty and, as such, actual results may differ from management’s estimates. Though the impact of the COVID-19 pandemic to our business and operating results presents additional uncertainty, we continue to use the best information available to inform our critical accounting estimates.

Business Combinations (Tables)

Business Combinations (Tables)	3 Months Ended
	Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]
Reconciliation of Equity Attributable to Noncontrolling Interest	The following is a reconciliation of equity (net assets) attributable to the noncontrolling interest (in thousands): March 31, December 31, 2023 2022 Noncontrolling interest at beginning of period $ 221 $ 528 Net loss attributable to noncontrolling interest (43) (307) Noncontrolling interest at end of period $ 178 $ 221

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Components of Available-for-sale Marketable Securities	Available-for-sale marketable securities consisted of the following (in thousands): March 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Commercial paper $ 281,405 $ 23 $ (286) $ 281,142 Corporate Debt Securities 2,486 — (6) 2,480 US Government Agencies 21,982 — (98) 21,884 US Treasury 50,956 — (223) 50,733 $ 356,829 $ 23 $ (613) $ 356,239 December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Commercial paper $ 296,309 $ 71 $ (587) $ 295,793 Corporate Debt securities 7,472 — (26) 7,446 US Government Agencies 23,970 — (182) 23,788 US Treasury securities 67,904 — (629) 67,275 $ 395,655 $ 71 $ (1,424) $ 394,302
Contractual Maturities of Available-for-sale Debt Securities	Contractual maturities of available-for-sale debt securities are as follows (in thousands): March 31, 2023 December 31, 2022 Estimated Fair Value Due within one year $ 356,239 $ 394,302 $ 356,239 $ 394,302
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The following table summarizes, by major security type, our cash equivalents and available-for-sale marketable securities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands): March 31, 2023 December 31, 2022 Level 1 Level 2 Total estimated fair value Level 1 Level 2 Total estimated fair value Cash equivalents: Money market funds $ 33,329 $ — $ 33,329 $ 26,811 $ — $ 26,811 Commercial paper — — — 1,998 — 1,998 Total cash equivalents: 33,329 — 33,329 28,809 — 28,809 Available-for-sale marketable securities: Commercial paper — 281,142 281,142 — 295,793 295,793 Corporate Debt Securities — 2,480 2,480 — 7,446 7,446 US Government Agencies — 21,884 21,884 — 23,788 23,788 US Treasury securities 50,733 — 50,733 67,275 — 67,275 Total available-for-sale marketable securities: 50,733 305,506 356,239 67,275 327,027 394,302 Total assets measured at fair value $ 84,062 $ 305,506 $ 389,568 $ 96,084 $ 327,027 $ 423,111

Prepaid Expenses and Other As_2

Prepaid Expenses and Other Assets (Tables)	3 Months Ended
	Mar. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Summary of Prepaid Expenses and Other Assets	Prepaid expenses and other assets consisted of the following (in thousands): March 31, December 31, 2023 2022 Prepaid insurance $ 523 $ 1,018 Prepaid software licenses and maintenance 870 958 Foreign R&D credit refund 940 659 Prepaid research and development expenses 16,154 15,002 Interest receivable 385 508 Zentera receivable 7,908 5,874 Other prepaid expenses 422 266 Total prepaid expenses and other assets 27,202 24,285 Less long-term portion 9,495 9,723 Total prepaid expenses and other assets, current $ 17,707 $ 14,562

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	3 Months Ended
	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
Summary of Property and Equipment, net	Property and equipment, net consisted of the following (in thousands): March 31, December 31, 2023 2022 Lab equipment $ 2,659 $ 2,622 Leasehold improvements 4,890 4,891 Office equipment and furniture 2,065 2,065 Computer equipment 150 150 Construction in progress 209 37 Subtotal 9,973 9,765 Accumulated depreciation and amortization (3,093) (2,060) Property and equipment, net $ 6,880 $ 7,705

Accrued Expenses (Tables)

Accrued Expenses (Tables)	3 Months Ended
	Mar. 31, 2023
Payables and Accruals [Abstract]
Schedule of Accrued Expenses	Accrued expenses consist of the following (in thousands): March 31, December 31, 2023 2022 Accrued research and development expenses $ 34,227 $ 32,310 Accrued employee expenses 6,879 11,246 Accrued legal expenses 828 1,256 Accrued general and administrative expenses 726 662 Lease liability 2,247 2,162 Taxes payable 425 384 Total accrued expenses 45,332 48,020 Less long-term portion 1,792 2,620 Total accrued expenses $ 43,540 $ 45,400

Stockholders_ Equity (Tables)

Stockholders’ Equity (Tables)	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Schedule of Share-based Compensation Expense	Total share-based compensation expense related to share based awards was comprised of the following (in thousands): Three Months Ended 2023 2022 Research and development expense $ 5,873 $ 5,042 General and administrative expense 7,860 5,105 Total share-based compensation expense $ 13,733 $ 10,147 Share-based compensation expense by type of share-based award (in thousands): Three Months Ended 2023 2022 Stock Options $ 10,609 $ 7,778 Employee Stock Purchase Plan 105 102 RSAs and RSUs 3,019 2,267 $ 13,733 $ 10,147
Schedule of Valuation Assumptions	The fair value of the stock options granted during the three months ended March 31, 2023 and March 31, 2022 was determined with the following assumptions: March 31, 2023 March 31, 2022 Expected volatility 79.0% - 80.8% 73.6% - 74.3% Average expected term (in years) 5.5 - 6.1 6.0 - 6.1 Risk-free interest rate 3.4% - 4.2% 1.5% - 2.3% Expected dividend yield — % — %
Schedule of Valuation Assumptions, ESPP	The weighted average assumptions used to estimate the fair value of stock purchase rights under the ESPP during the period ended March 31, 2023 are as follows: Ended March 31, 2023 ESPP Volatility 101.0 % Expected term (years) 0.5 Risk free rate 4.0 % Expected dividend yield —
Share-based Compensation Expense by Type of Share-based Award	Total unrecognized estimated compensation cost by type of award and the weighted average requisite service period over which such expense is expected to be recognized (in thousands, unless otherwise noted): March 31, 2023 Unrecognized Remaining Stock options $ 119,878 3.15 RSAs 218 0.50 RSUs 34,006 3.16 ESPP $ — 0

Commitment and Contingencies (T

Commitment and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Operating Lease Payments	Approximate annual future minimum operating lease payments as of March 31, 2023 are as follows (in thousands): Year Operating Leases 2023 (remaining) $ 4,966 2024 6,486 2025 6,799 2026 7,278 2027 7,451 Thereafter 38,778 Total minimum lease payments: 71,758 Less: imputed interest (24,740) Total operating lease liabilities 47,018 Less: current portion (2,247) Lease liability, net of current portion $ 44,771

Net Loss Per Common Share (Tabl

Net Loss Per Common Share (Tables)	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Net Loss Per Unit	Basic and diluted net loss per common share were calculated as follows (in thousands except per share amounts): Three Months Ended 2023 2022 Numerator: Net loss attributable to Zentalis $ (63,219) $ (59,077) Denominator: Weighted average number of common shares outstanding, basic and diluted 59,277 45,244 Net loss per common share $ (1.07) $ (1.31)
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Unit	The following common stock equivalents have been excluded from the calculations of diluted net loss per common share because their inclusion would be antidilutive (in thousands). March 31, 2023 2022 Outstanding stock options 9,895 5,372 Unvested RSAs 82 287 Unvested RSUs 1,566 433 11,543 6,092

Significant Transactions (Detai

Significant Transactions (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2021	Dec. 31, 2022
Schedule of Equity Method Investments [Line Items]
Investment in Zentera Therapeutics	$ 18,903			$ 21,213
Zentera
Schedule of Equity Method Investments [Line Items]
Deferred tax liability, deconsolidation of Zentera	4,000
Gain on deconsolidation of Zentera, net of tax			$ 51,600
In-process research and development	5,500
Contra-research and development expense	$ 2,200	$ 2,100

Business Combinations - Narrati

Business Combinations - Narrative (Details) - Kalyra Pharmaceuticals, Inc. $ in Millions	Dec. 21, 2017 USD ($)
Variable Interest Entity [Line Items]
Cash payments to acquire interest	$ 4.5
Ownership percentage	25%

Business Combinations - Reconci

Business Combinations - Reconciliation of Equity (Net Assets) Attributable to Noncontrolling Interest (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Noncontrolling interest at beginning of period	$ 221
Net loss attributable to noncontrolling interests	(43)	$ (160)
Noncontrolling interest at end of period	178		$ 221
VIE, Primary Beneficiary
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Noncontrolling interest at beginning of period	221	$ 528	528
Net loss attributable to noncontrolling interests	(43)		(307)
Noncontrolling interest at end of period	$ 178		$ 221

Fair Value Measurement - Compon

Fair Value Measurement - Components of Available-for-sale Marketable Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 356,829	$ 395,655
Gross Unrealized Gains	23	71
Gross Unrealized Losses	(613)	(1,424)
Estimated Fair Value	356,239	394,302
Commercial paper
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	281,405	296,309
Gross Unrealized Gains	23	71
Gross Unrealized Losses	(286)	(587)
Estimated Fair Value	281,142	295,793
Corporate Debt Securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	2,486	7,472
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(6)	(26)
Estimated Fair Value	2,480	7,446
US Government Agencies
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	21,982	23,970
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(98)	(182)
Estimated Fair Value	21,884	23,788
US Treasury
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	50,956	67,904
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(223)	(629)
Estimated Fair Value	$ 50,733	$ 67,275

Fair Value Measurement - Narrat

Fair Value Measurement - Narrative (Details) $ in Millions	Mar. 31, 2023 USD ($) security
Fair Value Disclosures [Abstract]
Number of available-for-sale securities in unrealized loss position | security	50
Debt securities fair market value	$ 268
Fair market value of available-for-sale securities in unrealized loss position	$ 0.6
Number of available-for-sale securities in unrealized loss position for less than one year | security	47
Gross unrealized loss position for less than one year	$ 0.5
Number of available-for-sale securities in unrealized loss position for more than one year | security	3
Gross unrealized loss position for more than one year	$ 0.1

Fair Value Measurement - Contra

Fair Value Measurement - Contractual Maturities of Available-for-sale Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Due within one year	$ 356,239	$ 394,302
Total	$ 356,239	$ 394,302

Fair Value Measurement - Fair V

Fair Value Measurement - Fair Value of Assets Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Cash equivalents	$ 33,329	$ 28,809
Marketable securities, available-for-sale	356,239	394,302
Total fair value of assets	389,568	423,111
Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Cash equivalents	33,329	28,809
Marketable securities, available-for-sale	50,733	67,275
Total fair value of assets	84,062	96,084
Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Cash equivalents	0	0
Marketable securities, available-for-sale	305,506	327,027
Total fair value of assets	305,506	327,027
Commercial paper
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Marketable securities, available-for-sale	281,142	295,793
Commercial paper | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Marketable securities, available-for-sale	0	0
Commercial paper | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Marketable securities, available-for-sale	281,142	295,793
Corporate Debt Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Marketable securities, available-for-sale	2,480	7,446
Corporate Debt Securities | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Marketable securities, available-for-sale	0	0
Corporate Debt Securities | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Marketable securities, available-for-sale	2,480	7,446
US Government Agencies
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Marketable securities, available-for-sale	21,884	23,788
US Government Agencies | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Marketable securities, available-for-sale	0	0
US Government Agencies | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Marketable securities, available-for-sale	21,884	23,788
US Treasury securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Marketable securities, available-for-sale	50,733	67,275
US Treasury securities | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Marketable securities, available-for-sale	50,733	67,275
US Treasury securities | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Marketable securities, available-for-sale	0	0
Money market funds
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Cash equivalents	33,329	26,811
Money market funds | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Cash equivalents	33,329	26,811
Money market funds | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Cash equivalents	0	0
Commercial paper
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Cash equivalents	0	1,998
Commercial paper | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Cash equivalents	0	1,998
Commercial paper | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Cash equivalents	$ 0	$ 0

Prepaid Expenses and Other As_3

Prepaid Expenses and Other Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid insurance	$ 523	$ 1,018
Prepaid software licenses and maintenance	870	958
Foreign R&D credit refund	940	659
Prepaid research and development expenses	16,154	15,002
Interest receivable	385	508
Zentera receivable	7,908	5,874
Other prepaid expenses	422	266
Total prepaid expenses and other assets	27,202	24,285
Less long-term portion	9,495	9,723
Total prepaid expenses and other assets, current	$ 17,707	$ 14,562

Property and Equipment, net - S

Property and Equipment, net - Summary (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Subtotal	$ 9,973	$ 9,765
Accumulated depreciation and amortization	(3,093)	(2,060)
Property and equipment, net	6,880	7,705
Lab equipment
Property, Plant and Equipment [Line Items]
Subtotal	2,659	2,622
Leasehold improvements
Property, Plant and Equipment [Line Items]
Subtotal	4,890	4,891
Office equipment and furniture
Property, Plant and Equipment [Line Items]
Subtotal	2,065	2,065
Computer equipment
Property, Plant and Equipment [Line Items]
Subtotal	150	150
Construction in progress
Property, Plant and Equipment [Line Items]
Subtotal	$ 209	$ 37

Property and Equipment, net - N

Property and Equipment, net - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Depreciation and amortization	$ 360	$ 344

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Accrued research and development expenses	$ 34,227	$ 32,310
Accrued employee expenses	6,879	11,246
Accrued legal expenses	828	1,256
Accrued general and administrative expenses	726	662
Lease liability	2,247	2,162
Taxes payable	425	384
Total accrued expenses	45,332	48,020
Less long-term portion	1,792	2,620
Total accrued expenses	$ 43,540	$ 45,400

Stockholders_ Equity - Narrativ

Stockholders’ Equity - Narrative (Details) - USD ($)	1 Months Ended	3 Months Ended
	Apr. 30, 2020	Mar. 31, 2023	Mar. 31, 2022	Jul. 31, 2022
Class of Stock [Line Items]
Issuance of common stock upon exercise of options, net (in shares)		0
Shares issued upon vesting of certain RSAs (in shares)		41,100
Stock Options
Class of Stock [Line Items]
Generally expected vesting term of the option contract (in years)		10 years
Expected dividend yield		0%	0%
Options outstanding (in shares)		9,900,000
Employee Stock Purchase Plan
Class of Stock [Line Items]
Number of shares reserved for future issuance (in shares)		1,929,891
Expected dividend yield		0%
ESPP maximum percent of compensation to contribute		20%
Maximum contribution amount		$ 25,000
ESPP purchase price of common stock, percent of market price		85%
Offering period (in months)		6 months
RSAs
Class of Stock [Line Items]
Non-option equity instruments, outstanding (in shares)		100,000
RSUs
Class of Stock [Line Items]
Non-option equity instruments, outstanding (in shares)		1,600,000
The 2020 Plan
Class of Stock [Line Items]
Non-option equity instruments, outstanding (in shares)		9,975,086
Number of shares available for future grants (in shares)		1,350,490
2022 Inducement Plan
Class of Stock [Line Items]
Non-option equity instruments, outstanding (in shares)		1,485,975
Number of shares available for future grants (in shares)		14,025
Number of shares reserved for future issuance (in shares)				1,500,000
Common Stock | The 2020 Plan
Class of Stock [Line Items]
Shares authorized to be issued under plan (in shares)	5,600,000
Percent of common stock outstanding used as threshold to calculate shares available for issuance	5%
Common Class B | The 2020 Plan | Maximum
Class of Stock [Line Items]
Shares authorized to be issued under plan (in shares)	1,250,000

Stockholders_ Equity - Share-ba

Stockholders’ Equity - Share-based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 13,733	$ 10,147
Research and development expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	5,873	5,042
General and administrative expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 7,860	$ 5,105

Stockholders_ Equity - Share-_2

Stockholders’ Equity - Share-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 13,733	$ 10,147
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	10,609	7,778
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	105	102
RSAs and RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 3,019	$ 2,267

Stockholders_ Equity - Fair Val

Stockholders’ Equity - Fair Value Assumptions for Stock Options (Details) - Stock Options	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Expected volatility, minimum	79%	73.60%
Expected volatility, maximum	80.80%	74.30%
Risk-free interest rate, minimum	3.40%	1.50%
Risk-free interest rate, maximum	4.20%	2.30%
Expected dividend yield	0%	0%
Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Average expected term (in years)	5 years 6 months	6 years
Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Average expected term (in years)	6 years 1 month 6 days	6 years 1 month 6 days

Stockholders_ Equity - Fair V_2

Stockholders’ Equity - Fair Value Assumptions for ESPP (Details) - Employee Stock Purchase Plan	3 Months Ended
	Mar. 31, 2023
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Volatility	101%
Expected term (years)	6 months
Risk free rate	4%
Expected dividend yield	0%

Stockholders_ Equity - Unrecogn

Stockholders’ Equity - Unrecognized Compensation Cost (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized expense, stock options	$ 119,878
Remaining Weighted-Average Recognition Period (years)	3 years 1 month 24 days
RSAs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized expense, other than options	$ 218
Remaining Weighted-Average Recognition Period (years)	6 months
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized expense, other than options	$ 34,006
Remaining Weighted-Average Recognition Period (years)	3 years 1 month 28 days
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized expense, other than options	$ 0
Remaining Weighted-Average Recognition Period (years)	0 years

Commitment and Contingencies -

Commitment and Contingencies - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
2023 (remaining)	$ 4,966
2024	6,486
2025	6,799
2026	7,278
2027	7,451
Thereafter	38,778
Total minimum lease payments:	71,758
Less: imputed interest	(24,740)
Total operating lease liabilities	47,018
Less: current portion	(2,247)	$ (2,162)
Lease liability, net of current portion	$ 44,771	$ 45,166

Commitment and Contingencies _2

Commitment and Contingencies - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Operating lease, weighted-average remaining lease term (in years)	9 years 6 months
Operating lease right-of-use asset and fixed asset impairment	$ 4,953	$ 0

Net Loss Per Common Share - Cal

Net Loss Per Common Share - Calculation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Numerator:
Net loss attributable to Zentalis	$ (63,219)	$ (59,077)
Denominator:
Weighted average number of common shares outstanding, basic (in shares)	59,277	45,244
Weighted average number of common shares outstanding, diluted (in shares)	59,277	45,244
Net loss per common share, basic (in dollars per share)	$ (1.07)	$ (1.31)
Net loss per common share, diluted (in dollars per share)	$ (1.07)	$ (1.31)

Net Loss Per Common Share - Ant

Net Loss Per Common Share - Antidilutive Securities (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per unit (in shares)	11,543	6,092
Outstanding stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per unit (in shares)	9,895	5,372
Unvested RSAs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per unit (in shares)	82	287
Unvested RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per unit (in shares)	1,566	433

Related Party Disclosures (Deta

Related Party Disclosures (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Zentera
Related Party Transaction [Line Items]
Contra-research and development expense	$ 2.2	$ 2.1
Affiliated Entity | Master Services Agreement
Related Party Transaction [Line Items]
Due to related parties	$ 0.4	$ 0