Equillium (EQ) 10-Q 12 Aug 20 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2020	Aug. 11, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Entity Registrant Name	EQUILLIUM, INC.
Entity Central Index Key	0001746466
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		19,263,375
Entity Shell Company	false
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Trading Symbol	EQ
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Security Exchange Name	NASDAQ
Entity File Number	001-38692
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	82-1554746
Entity Address, Address Line One	2223 Avenida de la Playa
Entity Address, Address Line Two	Suite 105
Entity Address, City or Town	La Jolla
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92037
City Area Code	858
Local Phone Number	412-5302
Document Quarterly Report	true
Document Transition Report	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 24,083	$ 13,219
Short-term investments	18,523	39,924
Prepaid expenses and other current assets	1,572	2,288
Total current assets	44,178	55,431
Property and equipment, net	81	93
Other assets		15
Total assets	44,259	55,539
Current liabilities:
Accounts payable	1,761	1,873
Accrued expenses	1,626	2,010
Total current liabilities	3,387	3,883
Long-term notes payable	9,810	9,681
Other non-current liabilities	90	127
Total liabilities	13,287	13,691
Commitments and contingencies
Stockholders' equity:
Common stock, $0.0001 par value; 200,000,000 shares authorized; 17,723,850 and 17,425,654 shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively	1	1
Additional paid-in capital	86,284	82,938
Accumulated other comprehensive income	97	21
Accumulated deficit	(55,410)	(41,112)
Total stockholders' equity	30,972	41,848
Total liabilities and stockholders' equity	$ 44,259	$ 55,539

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2020	Dec. 31, 2019
Statement Of Financial Position [Abstract]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	17,723,850	17,425,654
Common stock, shares outstanding	17,723,850	17,425,654

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Operating expenses:
Research and development	$ 3,893	$ 4,250	$ 8,599	$ 8,009
General and administrative	2,717	2,189	5,463	4,778
Total operating expenses	6,610	6,439	14,062	12,787
Loss from operations	(6,610)	(6,439)	(14,062)	(12,787)
Other income (expense), net:
Interest expense	(274)		(547)
Interest income	122	375	342	773
Other income (expense), net	301	(5)	(31)	(5)
Total other income (expense), net	149	370	(236)	768
Net loss	(6,461)	(6,069)	(14,298)	(12,019)
Other comprehensive (loss) income, net:
Unrealized (loss) gain on available-for-sale securities, net	(69)	39	69	83
Foreign currency translation (loss) gain	(308)	(1)	7	(1)
Total other comprehensive (loss) income, net	(377)	38	76	82
Comprehensive loss	$ (6,838)	$ (6,031)	$ (14,222)	$ (11,937)
Net loss per share, basic and diluted	$ (0.37)	$ (0.35)	$ (0.81)	$ (0.69)
Weighted-average common shares outstanding, basic and diluted	17,692,731	17,376,236	17,627,641	17,376,236

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Total	ATM Facility	Common Stock	Common StockATM Facility	Additional Paid-in Capital	Additional Paid-in CapitalATM Facility	Accumulated Other Comprehensive Income	Accumulated Deficit
Balance at Dec. 31, 2018	$ 64,935		$ 1		$ 80,441		$ 5	$ (15,512)
Balance, Shares at Dec. 31, 2018			17,376,236
Vesting of restricted stock liability	19				19
Stock-based compensation expense	446				446
Other comprehensive income (loss)	44						44
Net loss	(5,950)							(5,950)
Balance at Mar. 31, 2019	59,494		$ 1		80,906		49	(21,462)
Balance, Shares at Mar. 31, 2019			17,376,236
Balance at Dec. 31, 2018	64,935		$ 1		80,441		5	(15,512)
Balance, Shares at Dec. 31, 2018			17,376,236
Other comprehensive income (loss)	82
Net loss	(12,019)
Balance at Jun. 30, 2019	54,063		$ 1		81,506		87	(27,531)
Balance, Shares at Jun. 30, 2019			17,376,236
Balance at Mar. 31, 2019	59,494		$ 1		80,906		49	(21,462)
Balance, Shares at Mar. 31, 2019			17,376,236
Vesting of restricted stock liability	19				19
Stock-based compensation expense	581				581
Other comprehensive income (loss)	38						38
Net loss	(6,069)							(6,069)
Balance at Jun. 30, 2019	54,063		$ 1		81,506		87	(27,531)
Balance, Shares at Jun. 30, 2019			17,376,236
Balance at Dec. 31, 2019	41,848		$ 1		82,938		21	(41,112)
Balance, Shares at Dec. 31, 2019			17,425,654
Issuance of common stock	252	$ 825			252	$ 825
Issuance of common stock, Shares			83,662	174,649
Vesting of restricted stock liability	18				18
Stock-based compensation expense	787				787
Other comprehensive income (loss)	453						453
Net loss	(7,837)							(7,837)
Balance at Mar. 31, 2020	36,346		$ 1		84,820		474	(48,949)
Balance, Shares at Mar. 31, 2020			17,683,965
Balance at Dec. 31, 2019	41,848		$ 1		82,938		21	(41,112)
Balance, Shares at Dec. 31, 2019			17,425,654
Other comprehensive income (loss)	76
Net loss	(14,298)
Balance at Jun. 30, 2020	30,972		$ 1		86,284		97	(55,410)
Balance, Shares at Jun. 30, 2020			17,723,850
Balance at Mar. 31, 2020	36,346		$ 1		84,820		474	(48,949)
Balance, Shares at Mar. 31, 2020			17,683,965
Issuance of common stock pursuant to employeestock purchase plan	96				96
Issuance of common stock pursuant to employee stock purchase plan, Shares			39,885
Vesting of restricted stock liability	18				18
Stock-based compensation expense	1,350				1,350
Other comprehensive income (loss)	(377)						(377)
Net loss	(6,461)							(6,461)
Balance at Jun. 30, 2020	$ 30,972		$ 1		$ 86,284		$ 97	$ (55,410)
Balance, Shares at Jun. 30, 2020			17,723,850

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Operating activities:
Net loss	$ (14,298,000)	$ (12,019,000)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	15,000	11,000
Stock-based compensation	2,137,000	1,027,000
Net unrealized loss on foreign currency transactions	34,000	12,000
Non-cash consulting expense	81,000
Amortization of term loan discount and issuance costs	130,000
Realized gain on investments	(13,000)	0
Accretion of discount on investments, net	8,000	(241,000)
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	890,000	318,000
Accounts payable	(100,000)	890,000
Accrued expenses	(334,000)	782,000
Net cash used in operating activities	(11,450,000)	(9,220,000)
Investing activities:
Purchases of property and equipment	(15,000)	(56,000)
Purchases of short-term investments	(2,225,000)	(25,630,000)
Maturities of short-term investments	23,700,000	29,075,000
Net cash provided by investing activities	21,460,000	3,389,000
Financing activities:
Proceeds from issuance of common stock under ATM facility, net of issuance costs	775,000
Proceeds from ESPP purchase	96,000
Net cash provided by financing activities	871,000
Effect of exchange rate changes on cash and cash equivalents	(17,000)	(16,000)
Net increase (decrease) in cash and cash equivalents	10,864,000	(5,847,000)
Cash and cash equivalents at beginning of period	13,219,000	28,508,000
Cash and cash equivalents at end of period	24,083,000	$ 22,661,000
Lincoln Park Capital Fund, LLC
Supplemental disclosures of non-cash activities:
Issuance of commitment shares to Lincoln Park pursuant to agreement	$ 171,000

Organization and Accounting Pro

Organization and Accounting Pronouncements	6 Months Ended
	Jun. 30, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Organization and Accounting Pronouncements	1. Organization and Accounting Pronouncements Description of Business Equillium, Inc. (the Company) was incorporated in the state of Delaware on March 16, 2017. The Company is engaged in the research and development of products for severe autoimmune and inflammatory disorders with high unmet medical need. From inception through June 30, 2020, the Company has devoted substantially all of its efforts to organizing and staffing the Company, business planning, raising capital, in-licensing rights to itolizumab (EQ001), conducting preclinical research, filing two initial Investigational New Drug applications (INDs), commencing clinical development of the Company’s initial product candidate, itolizumab (EQ001), conducting business development activities, and the general and administrative activities associated with operating as a public company. In addition, the Company has a limited operating history, has not generated revenues from its principal operations, and the sales and income potential of its business is unproven. Liquidity and Business Risks As of June 30, 2020, the Company had $42.6 million in cash, cash equivalents and short-term investments. The Company has incurred significant operating losses and negative cash flows from operations. The Company expects to use its cash, cash equivalents and short-term investments to fund research and development of itolizumab (EQ001) and for working capital and other general corporate purposes. The Company does not expect to generate any revenues from product sales unless and until the Company successfully completes development and obtains regulatory approval of itolizumab (EQ001) or any future product candidate, which will not be for at least the next several years, if ever. Accordingly, until such time as the Company can generate significant revenue from sales of its product candidates, if ever, the Company expects to finance its cash needs through a combination of equity offerings, debt financings, and collaboration and license agreements. However, the Company may not be able to secure additional financing or enter into such other arrangements in a timely manner or on favorable terms, if at all. As a result of the COVID-19 pandemic and actions taken to slow its spread, the global credit and financial markets have experienced extreme volatility, including diminished liquidity and credit availability, declines in consumer confidence, declines in economic growth, increases in unemployment rates and uncertainty about economic stability. There can be no assurance that further deterioration in credit and financial markets and confidence in economic conditions will not occur. If equity and credit markets deteriorate, it may make any necessary debt or equity financing more difficult to obtain, more costly and/or more dilutive. The Company’s failure to raise capital or enter into such other arrangements when needed would have a negative impact on the Company’s financial condition and could force the Company to delay, reduce or terminate its research and development programs or other operations, or grant rights to develop and market product candidates that the Company would otherwise prefer to develop and market itself. Management believes that the Company’s cash, cash equivalents and short-term investments as of June 30, 2020, together with capital raised subsequent to June 30, 2020, will be sufficient to fund operations for at least the next 12 months from the date this Quarterly Report on Form 10-Q is filed with the Securities and Exchange Commission (SEC). In March 2020, as a result of impacts and risks associated with the COVID-19 pandemic, the Company decided to pause enrollment in its Phase 1b clinical trials of itolizumab (EQ001) in uncontrolled asthma and lupus nephritis. This decision was not based on any observed safety issues associated with itolizumab (EQ001) but rather out of an abundance of caution related to the COVID-19 pandemic and the Company’s concern for the well-being of patients and their caregivers. In July 2020, the Company announced that patient enrollment in both of those trials had resumed. The Company is continuing efforts to enroll patients in the Phase 1b/2 clinical trial of itolizumab (EQ001) for the treatment of acute graft-versus-host disease (aGVHD) given the acute life-threatening severity of the disease, as the Company believes itolizumab (EQ001) represents a potentially life-saving treatment for these severely ill patients. However, there remains a risk that enrollment of that trial as well as enrollment in the Company’s Phase 1b trials in uncontrolled asthma and lupus nephritis and the timing of topline data may also be adversely impacted by the COVID-19 pandemic. The COVID-19 outbreak in the United States and the rest of the world has caused disruptions to the Company’s business, which may delay results of the Company’s clinical trials and adversely impact the Company’s business. The Company cannot predict how legal and regulatory responses to concerns about COVID-19 or other major public health issues will impact the Company’s business, nor can it predict potential adverse impacts related to the availability of capital to fund the Company’s operations. Additionally, the Company’s workforce and outside consultants may also be affected, which could result in an adverse impact on the Company’s ability to conduct business. Any of these factors, alone or in combination with others, could harm the Company’s business, results of operations, financial condition or liquidity. However, the magnitude, timing, and duration of any such potential financial impacts cannot be reasonably estimated at this time. Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and the rules and regulations of the SEC related to a quarterly report on Form 10-Q. Any reference in these notes to applicable guidance is meant to refer to GAAP as found in the Accounting Standards Codification (ASC) and Accounting Standards Updates (ASU) promulgated by the Financial Accounting Standards Board (FASB). Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations. The condensed consolidated financial statements reflect all adjustments which, in the opinion of management, are necessary for a fair statement of the results for the periods presented. All such adjustments are of a normal and recurring nature. The operating results presented in these condensed consolidated financial statements are not necessarily indicative of the results that may be expected for any future periods. These condensed consolidated financial statements should be read in conjunction with the audited financial statements and the notes thereto for the year ended December 31, 2019 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 26, 2020. Principles of Consolidation In January 2019, the Company created a new wholly-owned subsidiary in Australia with the Company serving as the sole shareholder through the subscription of shares. The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All intercompany transactions and balances have been eliminated in consolidation. Foreign Currency Translation The Company’s wholly-owned subsidiary in Australia uses their local currency to be their functional currency. Assets and liabilities are translated into U.S. dollars at quarter-end exchange rates and revenues and expenses are translated at average exchange rates during the quarter and year-to-date periods. Foreign currency translation adjustments for the reported periods are included in accumulated other comprehensive income in the Company’s condensed consolidated statements of comprehensive loss, and the cumulative effect is included in the stockholders’ equity section of the Company’s condensed consolidated balance sheets. Realized and unrealized gains and losses denominated in foreign currencies are recorded in operating expenses in the Company’s condensed consolidated statements of operations. For the three months ended June 30, 2020, net realized and unrealized gains totaled $0.3 million. For the six months ended June 30, 2020, net realized and unrealized losses totaled $44,000. There were no material realized and unrealized gains and losses for the three and six months ended June 30, 2019. Recently Issued Accounting Pronouncements In February 2015, the FASB issued ASU 2016-02, Leases (Topic 842) Financial Instruments—Credit Losses (Topic 326) Derivatives and Hedging (Topic 815) Leases (Topic 842 Effective Dates (ASU 2019-10), In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Use of Estimates The preparation of the Company’s condensed consolidated financial statements requires the Company to make estimates and assumptions that impact the reported amounts of assets, liabilities and expenses and the disclosure of contingent assets and liabilities in the condensed consolidated financial statements and accompanying notes. Significant estimates in the Company’s condensed consolidated financial statements relate to clinical trial accruals and the valuation of equity awards. Management evaluates its estimates on an ongoing basis. Although estimates are based on the Company’s historical experience, knowledge of current events, and actions it may undertake in the future, actual results may ultimately materially differ from these estimates and assumptions. Accrued Research and Development Expense The Company is required to estimate its expenses resulting from its obligations under contracts with vendors, consultants and contract research organizations, in connection with conducting research and development activities. The financial terms of these contracts are subject to negotiations, which vary from contract to contract and may result in payment flows that do not match the periods over which materials or services are provided under such contracts. The Company reflects research and development expenses in its condensed consolidated financial statements by matching those expenses with the period in which services and efforts are expended. The Company accounts for these expenses according to the progress of the preclinical or clinical study as measured by the timing of various aspects of the study or related activities. The Company determines accrual estimates through review of the underlying contracts along with preparation of financial models taking into account discussions with research and development personnel and other key personnel as well as considering input from representatives of our contract service providers as to the progress of studies, or other services being conducted. During the course of a study, the Company adjusts its rate of expense recognition if actual results differ from its estimates. The Company classifies its estimates for accrued research and development expenses as accrued expenses on the accompanying condensed consolidated balance sheet. Stock-Based Compensation The Company measures employee and non-employee stock-based awards, including stock options and stock purchase rights, at grant-date fair value and records compensation expense on a straight-line basis over the vesting period of the award. The Company uses the Black-Scholes option pricing model to value its stock option awards. Estimating the fair value of stock option awards requires management to apply judgment and make estimates of certain assumptions, including the volatility of the Company’s common stock, the expected term of the Company’s stock options, the expected dividend yield and the fair value of the Company’s common stock on the measurement date. As a result, if factors change and management uses different assumptions, stock-based compensation expense could be materially different for future awards. Net Loss per Share Basic net loss per share is calculated by dividing the net loss by the weighted-average number of common shares outstanding for the period. Diluted net loss per share is computed by dividing the net loss by the weighted average number of common shares and common share equivalents outstanding for the period. Common stock equivalents are only included when their effect is dilutive. The Company’s potentially dilutive securities include outstanding options under the Company’s equity incentive plan and outstanding warrants to purchase common stock, each of which have been excluded from the computation of diluted net loss per share as they would be anti-dilutive to the net loss per share. For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding due to the Company’s net loss position. Potentially dilutive securities not included in the calculation of diluted net loss per share attributable to common stockholders because to do so would be anti-dilutive are as follows (in common stock equivalent shares): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Common stock options 2,414,461 1,203,483 2,414,461 1,203,483 Common stock warrants 80,428 - 80,428 Total 2,494,889 1,203,483 2,494,889 1,203,483

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2020
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	3. Fair Value of Financial Instruments The following tables summarize the Company’s assets that require fair value measurements on a recurring basis and their respective input levels based on the fair value hierarchy (in thousands): Fair Value Measurements Using Quoted Prices in Significant Significant Active Markets Other Unobservable June 30, for Identical Observable Inputs 2020 Assets (Level 1) Inputs (Level 2) (Level 3) Short-term investments: U.S. treasury securities $ 13,601 $ 13,601 $ - $ - Certificates of deposit 4,922 4,922 - - Total $ 18,523 $ 18,523 $ - $ - Fair Value Measurements Using Quoted Prices in Significant Significant Active Markets Other Unobservable December 31, for Identical Observable Inputs 2019 Assets (Level 1) Inputs (Level 2) (Level 3) Short-term investments: U.S. treasury securities $ 28,549 $ 28,549 $ - $ - Agency securities 5,994 - 5,994 - Certificates of deposit 5,381 5,381 - - Total $ 39,924 $ 33,930 $ 5,994 $ - U.S. treasury securities and certificates of deposit are valued using Level 1 inputs. Level 1 securities are valued at unadjusted quoted prices in active markets that are observable at the measurement date for identical, unrestricted assets or liabilities. Fair values determined by Level 2 inputs, which utilize data points that are observable such as quoted prices, interest rates and yield curves, require the exercise of judgment and use of estimates, that if changed, could significantly affect the Company’s financial position and results of operations. Investments in agency securities are valued using Level 2 inputs. Level 2 securities are initially valued at the transaction price and subsequently valued and reported utilizing inputs other than quoted prices that are observable either directly or indirectly, such as quotes from third-party pricing vendors. The carrying amounts of the Company’s financial instruments, including cash, prepaid and other current assets, accounts payable, and accrued liabilities, approximate fair value due to their short maturities. The carrying amount of the Company’s notes payable of $9.8 million at June 30, 2020 approximated their fair value as the terms of the notes are consistent with the market terms of transactions with similar profiles (Level 2 inputs). None of the Company’s non-financial assets or liabilities are recorded at fair value on a non-recurring basis. At June 30, 2020 and December 31, 2019, the Company had investments in money market funds of $21.1 million and $10.3 million, respectively, that were measured at fair value using the net asset value per share (or its equivalent) that have not been classified in the fair value hierarchy. The funds invest primarily in U.S. government securities. The Company did not hold any Level 1, 2 or 3 financial liabilities that are recorded at fair value on a recurring basis as of June 30, 2020 and December 31, 2019.

Certain Financial Statement Cap

Certain Financial Statement Caption Information	6 Months Ended
	Jun. 30, 2020
Certain Financial Statement Caption Information [Abstract]
Certain Financial Statement Caption Information	4. Certain Financial Statement Caption Information Short-Term Investments The following table summarizes the Company’s short-term investments (in thousands): Maturity Amortized Unrealized Unrealized Estimated (in years) Cost Gains Losses Fair Value June 30, 2020 U.S. treasury securities 1 or less $ 13,529 $ 72 $ - $ 13,601 Certificates of deposit 1 or less 4,876 46 - 4,922 Total $ 18,405 $ 118 $ - $ 18,523 December 31, 2019 U.S. treasury securities 1 or less $ 23,513 $ 6 $ (4 ) $ 23,515 U.S. treasury securities >1 and <5 5,035 - (1 ) 5,034 Agency securities 1 or less 5,976 19 (1 ) 5,994 Certificates of deposit 1 or less 4,131 22 - 4,153 Certificates of deposit >1 and <5 1,220 8 - 1,228 Total $ 39,875 $ 55 $ (6 ) $ 39,924 All of the Company’s available-for-sale securities are available to the Company for use in its current operations. As a result, the Company categorizes all of these securities as current assets even though the stated maturity of some individual securities may be one year or more beyond the balance sheet date. All of the Company’s securities have a maturity within two years of the balance sheet date. There were no impairments considered other-than-temporary during the periods presented, as it is management’s intention and ability to hold the securities until a recovery of the cost basis or recovery of fair value. For the three and six months ended June 30, 2020, there were net gross realized gains on short-term investments totaling $0 and $13,000, respectively. There were no gross realized gains and losses on sales of short-term investments for the three and six months ended June 30, 2019. Unrealized gains and losses are included in accumulated other comprehensive income. Accrued Expenses Accrued expenses consisted of the following (in thousands): June 30, December 31, 2020 2019 Accrued payroll and other employee benefits $ 994 $ 1,215 Clinical studies 404 442 Other accruals 111 267 Accrued interest 69 71 Preclinical research 48 15 Total accrued expenses $ 1,626 $ 2,010

Notes Payable

Notes Payable	6 Months Ended
	Jun. 30, 2020
Debt Disclosure [Abstract]
Notes Payable	5. Notes Payable On September 30, 2019 (the Effective Date), the Company Under the terms of the Loan Agreement, the Company may, at its sole discretion, borrow from the Lenders (i) up to an additional $5.0 million (Term B Loan) upon the Company’s achievement of positive topline data in either the Company’s (a) Phase 1b aGVHD trial of itolizumab (EQ001) or (b) Phase 1b asthma trial of itolizumab (EQ001), supporting a formal decision to advance into Phase 2 development, and as confirmed by the Company’s Board of Directors (the Term B Milestone) and (ii) up to an additional $5.0 million (Term C Loan and together with Term A Loan and Term B Loan, the Term Loans) upon the Company’s achievement of positive topline data in both the Company’s Phase 1b aGVHD trial of itolizumab (EQ001) and the Company’s Phase 1b asthma trial of itolizumab (EQ001), supporting a formal decision to advance into Phase 2 development, and as confirmed by the Company’s Board of Directors (the Term C Milestone). The Company may draw the Term B Loan during the period commencing on the date of the occurrence of the Term B Milestone and ending on the earliest of (i) December 31, 2020, (ii) 60 days after achieving the Term B Milestone, and (iii) the occurrence of an event of default and may draw the Term C Loan during the period commencing on the date of the occurrence of the Term C Milestone and ending on the earliest of (i) December 31, 2020, (ii) 60 days after achieving the Term C Milestone, and (iii) the occurrence of an event of default. All of the Term Loans mature on June 1, 2024 (the Maturity Date) and will be interest-only payments through June 30, 2021, followed by 36 equal monthly payments of principal and interest; provided that if the Company draws the Term B Loan, the Term Loans will be interest-only payments through December 31, 2021, followed by 30 equal monthly payments of principal and interest. The Term Loans bear interest at a floating per annum rate equal to the greater of (i) 8.25% and (ii) the sum of (a) the prime rate reported in The Wall Street Journal on the last business day of the month that immediately precedes the month in which the interest will accrue, plus (b) 3.00%. The Company will be required to make a final payment of 4.50% of the original principal amount of the Term Loans drawn payable on the earlier of (i) the Maturity Date, (ii) the acceleration of any Term Loans, or (iii) the prepayment of the Term Loans (the Final Payment). The Company may prepay all, but not less than all, of the Term Loans upon 30 days’ advance written notice to the Lenders, provided that the Company will be obligated to pay a prepayment fee equal to (i) 3.00% of the principal amount of the applicable Term Loan prepaid on or before the first anniversary of the applicable funding date, (ii) 2.00% of the principal amount of the applicable Term Loan prepaid between the first and second anniversary of the applicable funding date, and (iii) 1.00% of the principal amount of the applicable Term Loan prepaid thereafter, and prior to the Maturity Date (each, a Prepayment Fee). In connection with entering into the Loan Agreement, the Company issued to the Lenders warrants exercisable for 80,428 shares of the Company’s common stock (the Warrants). The Warrants are exercisable in whole or in part, immediately, and have a per share exercise price of $3.73, which was the closing price of the Company’s common stock reported on the Nasdaq Global Market on the day prior to the Effective Date. The Warrants will terminate on the earlier of September 30, 2029 or the closing of certain merger or consolidation transactions. If the Company borrows under Term B Loan and/or Term C Loan, upon the funding of Term B Loan and/or Term C Loan, as applicable, the Company will issue to the Lenders additional warrants to purchase shares of the Company’s common stock equal to 3.00% of each Term Loan amount divided by the lower of (i) the ten day average closing price of the Company’s common stock reported on the Nasdaq Global Market prior to funding or (ii) the closing price of the Company’s common stock reported on the Nasdaq Global Market on the day prior to funding. Such lower amount of (i) and (ii) above shall also be the exercise price per share for such warrants. The terms of such warrants would be substantially the same as those contained in the Warrants. The Company recorded the Warrants as a debt discount, which is classified as a contra-liability against long-term notes payable on the condensed consolidated balance sheet, and is amortizing the balance over the life of the underlying debt. The offset to the contra-liability is recorded in additional paid-in capital in the Company’s condensed consolidated balance sheet as the Warrants were determined to be an equity instrument. The Company determined the fair value of the Warrants at the date of issuance was $0.3 million using the Black-Scholes option pricing model based on significant unobservable inputs (Level 3) with an expected term of 10 years, volatility of 92.78%, risk free rate of 1.68% and expected dividend of 0%. The costs incurred to issue the Term Loans of $0.1 million were deferred and are included in the discount to the carrying value of the Term Loans in the accompanying condensed consolidated balance sheet. The deferred costs and the Final Payment fee are amortized to interest expense over the expected term of the Term Loans using the effective interest method with an effective interest rate of 10.97%. The aggregate carrying amounts of the Term Loans are comprised of the following (in thousands): June 30, December 31, 2020 2019 Principal $ 10,000 $ 10,000 Add: accreted liability for Final Payment fee 105 35 Less: unamortized discount (295 ) (354 ) Total $ 9,810 $ 9,681 Upon the occurrence of certain events, including but not limited to the Company’s failure to satisfy its payment obligations under the Loan Agreement, the breach of certain of its other covenants under the Loan Agreement, or the occurrence of a material adverse change, cross defaults to other indebtedness or material agreements, judgment defaults and defaults related to failure to maintain governmental approvals failure of which to maintain could result in a material adverse effect, the Lenders will have the right, among other remedies, to declare all principal and interest immediately due and payable, to exercise secured party remedies, to receive the Final Payment and, if the payment of principal and interest is due prior to the Maturity Date, to receive the applicable Prepayment Fee. At June 30, 2020, the Company was in compliance with the covenants contained in the Loan Agreement. Future maturities of the Term Loans, including the Final Payment fee, as of June 30, 2020 are as follows (in thousands): June 30, 2020 Remainder of 2020 $ - Year ending December 31, 2021 1,667 Year ending December 31, 2022 3,333 Year ending December 31, 2023 3,333 Year ending December 31, 2024 2,117 10,450 Unaccreted balance for Final Payment fee on Term Loans (345 ) Unamortized discounts (295 ) 9,810 Less current portion - Noncurrent portion $ 9,810

Collaboration and License Agree

Collaboration and License Agreement	6 Months Ended
	Jun. 30, 2020
Collaboration And License Agreement [Abstract]
Collaboration and License Agreement	6. Collaboration and License Agreement In May 2017, the Company entered into a collaboration and license agreement (which was amended in September 2018, April 2019 and December 2019), clinical supply agreement, investor rights agreement, and common stock purchase agreement (collectively License Agreements) with Biocon SA (together with Biocon Limited, Biocon). Pursuant to the License Agreements, Biocon granted the Company an exclusive license to develop, make, have made, use, sell, have sold, offer for sale, import and otherwise exploit itolizumab and any pharmaceutical composition or preparation containing or comprising itolizumab that uses Biocon technology or Biocon know-how (collectively a Biocon Product) in the United States, Canada, Australia and New Zealand (collectively Company Territory). However, unless the Company achieves certain regulatory and development milestones within a specific time period, the licensed rights, other than development rights, are limited to the fields of orphan indications and the treatment of conditions related to asthma and lupus. The Company also has the right to sublicense through multiple tiers to third parties, provided such sublicenses comply with the terms of the License Agreements and the Company provides Biocon a copy of each sublicense agreement within 30 days of execution. If the Company grants a third party a sublicense of its rights to develop and commercialize Biocon Products in Australia or New Zealand, the Company will be required to pay Biocon a high double-digit percentage of any upfront payment the Company receives from such sublicensee for such sublicense, as well as a high double-digit percentage of any additional payments the Company receives from such sublicensee for such sublicense, including but not limited to royalty payments on net sales of Biocon Products by such sublicensee. Under the License Agreements, the Company granted back to Biocon a license to use its technology and know-how related to itolizumab and Biocon Products in certain countries outside of the Company’s Territory. Pursuant to the License Agreements, Biocon agreed to be the Company’s exclusive supplier of itolizumab clinical drug product. Biocon will provide clinical drug product at no cost for up to three concurrent orphan indications until the Company’s first U.S. regulatory approval and all other clinical drug product at Biocon’s cost. In consideration of the rights granted to the Company by Biocon, the Company issued Biocon a total of 2,316,134 shares of common stock. In addition, the Company is obligated to pay Biocon up to an aggregate of $30 million in regulatory milestone payments upon the achievement of certain regulatory approvals and up to an aggregate of $565 million in sales milestone payments upon the achievement of first commercial sale of product and specified levels of product sales. The Company is also required to pay royalties on tiers of aggregate annual net sales of Biocon Products by the Company, the Company’s affiliates and the Company’s sublicensees in the United States and Canada at percentages from the mid-single digits to sub-teen double-digits and on tiers of aggregate annual net sales of Biocon Products by the Company and the Company’s affiliates (but not the Company’s sublicensees) in Australia and New Zealand, in each case, subject to adjustments in certain circumstances. Biocon is also required to pay the Company royalties at comparable percentages for sales of itolizumab (EQ001) outside of the Company Territory if the approvals in such geographies included or referenced the Company’s data including data from certain of the Company’s clinical trials, subject to adjustments in certain circumstances. Under the License Agreements, net sales are calculated on a country-by-country basis and are subject to adjustments, including whether the Biocon Product is sold in the form of a combination product. As of June 30, 2020, the Company has not made or received payments in connection with the milestones or royalties within the agreement.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2020
Equity [Abstract]
Stockholders’ Equity	7. Stockholders’ Equity As of June 30, 2020, the Company’s authorized capital stock consisted of 200,000,000 shares of common stock, par value $0.0001 per share, and 10,000,000 shares of preferred stock, par value $0.0001 per share. The Company had 17,723,850 and 17,425,654 shares of common stock outstanding as of June 30, 2020 and December 31, 2019, respectively. At-the-Market Offering Program In November 2019, the Company entered into an Open Market Sales Agreement SM The maximum aggregate offering price of common stock that could be sold under the 2019 ATM Facility was $8.45 million. During the six months ended June 30, 2020, the Company sold 174,649 shares of its common stock and received net proceeds of $0.8 million under the 2019 ATM Facility. There were no sales of shares in the three months ended June 30, 2020. On July 14, 2020, the Company entered into another Open Market Sales Agreement SM Subsequent Events Purchase Agreement In March 2020, the Company entered into a purchase agreement (Purchase Agreement), with Lincoln Park Capital Fund, LLC (Lincoln Park), which provides that, upon the terms and subject to the conditions and limitations set forth therein, the Company may sell to Lincoln Park up to $15.0 million of shares of its common stock from time to time over the 36‑month term of the Purchase Agreement. Upon execution of the Purchase Agreement, the Company issued 65,374 shares of its common stock to Lincoln Park as commitment shares in accordance with the closing conditions contained within the Purchase Agreement. The commitment shares were valued using the closing price of the Company’s common stock on the effective date of the Purchase Agreement resulting in a fair market value of approximately $0.2 million. The fair market value of the commitment shares as well as other issuance costs associated with the Purchase Agreement totaled $0.4 million. These issuance costs are classified as prepaid expenses and other current assets in the accompanying condensed consolidated balance sheet. As shares of common stock are sold to Lincoln Park in accordance with the Purchase Agreement, the issuance costs, including the fair value of the commitment shares, will be reclassified to additional paid-in capital on the Company’s condensed consolidated balance sheet . During the three and six months ended June 30, 2020, there were no sales of the Company’s stock under this Purchase Agreement. There have been no sales of the Company’s stock under this Purchase Agreement as of June 30, 2020 and through the date of the filing of this Quarterly Report on Form 10-Q. Repricing of Outstanding Options On April 22, 2020, the Board of Directors of the Company (the Board) approved a repricing of outstanding options to purchase 1,475,093 shares of the Company’s common stock held by employees of the Company, including executive officers (but excluding any employees who serve on the Board) that had exercise prices in excess of the closing stock price on April 22, 2020 and were granted under the Company’s 2017 Equity Incentive Plan or 2018 Equity Incentive Plan. As a result of the repricing, the exercise price of such options was lowered to $2.45 per share, the closing price of the Company’s common stock on April 22, 2020. The vesting schedule and term of these options remained unchanged. The Board effectuated the repricing to realign the value of such options with their intended purpose, which is to retain and motivate the holders of such options to continue to work in the best interests of the Company and its stockholders. Prior to the repricing, many of the options had exercise prices well above the recent market prices of the Company’s common stock, including prior to the recent market volatility that has generally been associated with the COVID-19 pandemic. The effect of the repricing generated a total incremental cost of approximately $0.4 million, of which approximately $0.1 million was recognized as stock-based compensation expense in the three months ended June 30, 2020, with the remainder to be expensed over the remaining vesting periods. Stock Options The following table summarizes the stock option activity during the six months ended June 30, 2020: Shares Subject to Options Weighted- Average Exercise Price Per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Options outstanding at December 31, 2019 1,821,093 $ 5.64 Granted 593,368 $ 3.71 Exercised - $ - Forfeitures and cancellations - $ - Options outstanding at June 30, 2020 2,414,461 $ 3.40 8.91 $ 770 Options exercisable at June 30, 2020 805,185 $ 3.45 8.54 $ 302 (a) Aggregate intrinsic value in this table was calculated as the positive difference, if any, between the closing price per share of the Company’s common stock on June 30, 2020 of $2.95 and the price of the underlying options. (b) The weighted-average exercise price per share of the options outstanding and exercisable as of June 30, 2020 includes the impact of the repricing of 1,475,093 options on April 22, 2020 at $2.45 per share. At June 30, 2020, unamortized stock compensation for stock options was $8.5 million, with a weighted-average recognition period of 2.8 years. On May 28, 2020, the Compensation Committee of the Company’s Board of Directors issued to its Executive Chairman, Chief Executive Officer and two non-management directors retention stock options to purchase an aggregate of 169,368 shares of the Company’s common stock. These stock option grants immediately vested at the date of grant. The non-cash stock-based compensation expense recognized in the three and six months ended June 30, 2020 associated with these stock option grants totaled $0.4 million. . Stock-Based Compensation Expense The non-cash stock-based compensation expense for all stock awards, net of forfeitures recognized as they occur, that was recognized in the condensed consolidated statements of operations is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Research and development $ 488 $ 310 $ 902 $ 565 General and administrative 862 271 1,235 462 Total $ 1,350 $ 581 $ 2,137 $ 1,027 Common Stock Reserved for Future Issuance Common stock reserved for future issuance at June 30, 2020 is as follows: June 30, December 31, 2020 2019 Stock options issued and outstanding 2,414,461 1,821,093 Warrants for common stock 80,428 80,428 Awards available under the 2018 Equity Incentive Plan 1,091,387 813,473 Employee stock purchase plan 638,087 503,716 Total 4,224,363 3,218,710

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2020
Subsequent Events [Abstract]
Subsequent Events	8. Subsequent Events On July 14, 2020, the Company entered into the 2020 ATM Facility with Jefferies to sell shares of the Company’s common stock having aggregate sales proceeds of up to $150 million, from time to time, through an ATM equity offering program under which Jefferies acts as sales agent. Subsequent to June 30, 2020 and through the date of the filing of this Quarterly Report on Form 10-Q, the Company has sold an aggregate of 1,539,525 shares of common stock under both of the 2019 ATM Facility and the 2020 ATM Facility, which includes shares sold pursuant to the 2020 ATM Facility, but not yet delivered to Jefferies, for gross proceeds of approximately $17.9 million. The Company paid cash commissions on the gross proceeds, plus reimbursement expenses to Jefferies and legal fees in the aggregate amount of approximately $0.6 million, resulting in net proceeds of $17.3 million.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In February 2015, the FASB issued ASU 2016-02, Leases (Topic 842) Financial Instruments—Credit Losses (Topic 326) Derivatives and Hedging (Topic 815) Leases (Topic 842 Effective Dates (ASU 2019-10), In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement
Use of Estimates	Use of Estimates The preparation of the Company’s condensed consolidated financial statements requires the Company to make estimates and assumptions that impact the reported amounts of assets, liabilities and expenses and the disclosure of contingent assets and liabilities in the condensed consolidated financial statements and accompanying notes. Significant estimates in the Company’s condensed consolidated financial statements relate to clinical trial accruals and the valuation of equity awards. Management evaluates its estimates on an ongoing basis. Although estimates are based on the Company’s historical experience, knowledge of current events, and actions it may undertake in the future, actual results may ultimately materially differ from these estimates and assumptions.
Accrued Research and Development Expense	Accrued Research and Development Expense The Company is required to estimate its expenses resulting from its obligations under contracts with vendors, consultants and contract research organizations, in connection with conducting research and development activities. The financial terms of these contracts are subject to negotiations, which vary from contract to contract and may result in payment flows that do not match the periods over which materials or services are provided under such contracts. The Company reflects research and development expenses in its condensed consolidated financial statements by matching those expenses with the period in which services and efforts are expended. The Company accounts for these expenses according to the progress of the preclinical or clinical study as measured by the timing of various aspects of the study or related activities. The Company determines accrual estimates through review of the underlying contracts along with preparation of financial models taking into account discussions with research and development personnel and other key personnel as well as considering input from representatives of our contract service providers as to the progress of studies, or other services being conducted. During the course of a study, the Company adjusts its rate of expense recognition if actual results differ from its estimates. The Company classifies its estimates for accrued research and development expenses as accrued expenses on the accompanying condensed consolidated balance sheet.
Stock-Based Compensation	Stock-Based Compensation The Company measures employee and non-employee stock-based awards, including stock options and stock purchase rights, at grant-date fair value and records compensation expense on a straight-line basis over the vesting period of the award. The Company uses the Black-Scholes option pricing model to value its stock option awards. Estimating the fair value of stock option awards requires management to apply judgment and make estimates of certain assumptions, including the volatility of the Company’s common stock, the expected term of the Company’s stock options, the expected dividend yield and the fair value of the Company’s common stock on the measurement date. As a result, if factors change and management uses different assumptions, stock-based compensation expense could be materially different for future awards.
Net Loss per Share	Net Loss per Share Basic net loss per share is calculated by dividing the net loss by the weighted-average number of common shares outstanding for the period. Diluted net loss per share is computed by dividing the net loss by the weighted average number of common shares and common share equivalents outstanding for the period. Common stock equivalents are only included when their effect is dilutive. The Company’s potentially dilutive securities include outstanding options under the Company’s equity incentive plan and outstanding warrants to purchase common stock, each of which have been excluded from the computation of diluted net loss per share as they would be anti-dilutive to the net loss per share. For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding due to the Company’s net loss position. Potentially dilutive securities not included in the calculation of diluted net loss per share attributable to common stockholders because to do so would be anti-dilutive are as follows (in common stock equivalent shares): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Common stock options 2,414,461 1,203,483 2,414,461 1,203,483 Common stock warrants 80,428 - 80,428 Total 2,494,889 1,203,483 2,494,889 1,203,483

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Summary of Potentially Dilutive Securities Not Included in Calculation of Diluted Net Loss Per Share	Potentially dilutive securities not included in the calculation of diluted net loss per share attributable to common stockholders because to do so would be anti-dilutive are as follows (in common stock equivalent shares): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Common stock options 2,414,461 1,203,483 2,414,461 1,203,483 Common stock warrants 80,428 - 80,428 Total 2,494,889 1,203,483 2,494,889 1,203,483

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2020
Fair Value Disclosures [Abstract]
Summary of Assets that Require Fair Value Measurements on Recurring Basis and Their Respective Input Levels Based on Fair Value Hierarchy	The following tables summarize the Company’s assets that require fair value measurements on a recurring basis and their respective input levels based on the fair value hierarchy (in thousands): Fair Value Measurements Using Quoted Prices in Significant Significant Active Markets Other Unobservable June 30, for Identical Observable Inputs 2020 Assets (Level 1) Inputs (Level 2) (Level 3) Short-term investments: U.S. treasury securities $ 13,601 $ 13,601 $ - $ - Certificates of deposit 4,922 4,922 - - Total $ 18,523 $ 18,523 $ - $ - Fair Value Measurements Using Quoted Prices in Significant Significant Active Markets Other Unobservable December 31, for Identical Observable Inputs 2019 Assets (Level 1) Inputs (Level 2) (Level 3) Short-term investments: U.S. treasury securities $ 28,549 $ 28,549 $ - $ - Agency securities 5,994 - 5,994 - Certificates of deposit 5,381 5,381 - - Total $ 39,924 $ 33,930 $ 5,994 $ -

Certain Financial Statement C_2

Certain Financial Statement Caption Information (Tables)	6 Months Ended
	Jun. 30, 2020
Certain Financial Statement Caption Information [Abstract]
Schedule of Company's Short-Term Investments	The following table summarizes the Company’s short-term investments (in thousands): Maturity Amortized Unrealized Unrealized Estimated (in years) Cost Gains Losses Fair Value June 30, 2020 U.S. treasury securities 1 or less $ 13,529 $ 72 $ - $ 13,601 Certificates of deposit 1 or less 4,876 46 - 4,922 Total $ 18,405 $ 118 $ - $ 18,523 December 31, 2019 U.S. treasury securities 1 or less $ 23,513 $ 6 $ (4 ) $ 23,515 U.S. treasury securities >1 and <5 5,035 - (1 ) 5,034 Agency securities 1 or less 5,976 19 (1 ) 5,994 Certificates of deposit 1 or less 4,131 22 - 4,153 Certificates of deposit >1 and <5 1,220 8 - 1,228 Total $ 39,875 $ 55 $ (6 ) $ 39,924
Schedule of Accrued Expenses	Accrued expenses consisted of the following (in thousands): June 30, December 31, 2020 2019 Accrued payroll and other employee benefits $ 994 $ 1,215 Clinical studies 404 442 Other accruals 111 267 Accrued interest 69 71 Preclinical research 48 15 Total accrued expenses $ 1,626 $ 2,010

Notes Payable (Tables)

Notes Payable (Tables)	6 Months Ended
	Jun. 30, 2020
Debt Disclosure [Abstract]
Schedule of Aggregate Carrying Amounts of Term Loans	The aggregate carrying amounts of the Term Loans are comprised of the following (in thousands): June 30, December 31, 2020 2019 Principal $ 10,000 $ 10,000 Add: accreted liability for Final Payment fee 105 35 Less: unamortized discount (295 ) (354 ) Total $ 9,810 $ 9,681
Schedule Future Maturities of Term Loans, Including Final Payment Fee	Future maturities of the Term Loans, including the Final Payment fee, as of June 30, 2020 are as follows (in thousands): June 30, 2020 Remainder of 2020 $ - Year ending December 31, 2021 1,667 Year ending December 31, 2022 3,333 Year ending December 31, 2023 3,333 Year ending December 31, 2024 2,117 10,450 Unaccreted balance for Final Payment fee on Term Loans (345 ) Unamortized discounts (295 ) 9,810 Less current portion - Noncurrent portion $ 9,810

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2020
Equity [Abstract]
Summary of Stock Option Activity	The following table summarizes the stock option activity during the six months ended June 30, 2020: Shares Subject to Options Weighted- Average Exercise Price Per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Options outstanding at December 31, 2019 1,821,093 $ 5.64 Granted 593,368 $ 3.71 Exercised - $ - Forfeitures and cancellations - $ - Options outstanding at June 30, 2020 2,414,461 $ 3.40 8.91 $ 770 Options exercisable at June 30, 2020 805,185 $ 3.45 8.54 $ 302 (a) Aggregate intrinsic value in this table was calculated as the positive difference, if any, between the closing price per share of the Company’s common stock on June 30, 2020 of $2.95 and the price of the underlying options. (b) The weighted-average exercise price per share of the options outstanding and exercisable as of June 30, 2020 includes the impact of the repricing of 1,475,093 options on April 22, 2020 at $2.45 per share.
Summary of Non-cash Stock-based Compensation Expense	The non-cash stock-based compensation expense for all stock awards, net of forfeitures recognized as they occur, that was recognized in the condensed consolidated statements of operations is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Research and development $ 488 $ 310 $ 902 $ 565 General and administrative 862 271 1,235 462 Total $ 1,350 $ 581 $ 2,137 $ 1,027
Summary of Reserved Shares of Common Stock for Future Issuance	Common stock reserved for future issuance at June 30, 2020 is as follows: June 30, December 31, 2020 2019 Stock options issued and outstanding 2,414,461 1,821,093 Warrants for common stock 80,428 80,428 Awards available under the 2018 Equity Incentive Plan 1,091,387 813,473 Employee stock purchase plan 638,087 503,716 Total 4,224,363 3,218,710

Organization and Accounting P_2

Organization and Accounting Pronouncements - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Date of incorporation			Mar. 16, 2017
State of incorporation			DE
Cash, Cash equivalents and short-term investments	$ 42,600,000		$ 42,600,000
Foreign currency transaction net realized and unrealized gains (losses)	$ 300,000	$ 0	$ (44,000)	$ 0

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Summary of Potentially Dilutive Securities Not Included in Calculation of Diluted Net Loss Per Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities not included in calculation of diluted net loss per share	2,494,889	1,203,483	2,494,889	1,203,483
Common Stock Options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities not included in calculation of diluted net loss per share	2,414,461	1,203,483	2,414,461	1,203,483
Common Stock Warrants
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities not included in calculation of diluted net loss per share	80,428		80,428

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Summary of Assets that Require Fair Value Measurements on Recurring Basis and Their Respective Input Levels Based on Fair Value Hierarchy (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total short-term investments	$ 18,523	$ 39,924
U.S. Treasury Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total short-term investments	13,601	28,549
Certificates of Deposit
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total short-term investments	4,922	5,381
Agency Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total short-term investments		5,994
Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total short-term investments	18,523	33,930
Level 1 | U.S. Treasury Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total short-term investments	13,601	28,549
Level 1 | Certificates of Deposit
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total short-term investments	$ 4,922	5,381
Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total short-term investments		5,994
Level 2 | Agency Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total short-term investments		$ 5,994

Fair Value of Financial Instr_4

Fair Value of Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Carrying amount of notes payable	$ 9,810	$ 9,681
Fair Value Measured Using Net Asset Value | Money Market Funds
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Investments in money market funds	$ 21,100	$ 10,300

Certain Financial Statement C_3

Certain Financial Statement Caption Information - Schedule of Company's Short-Term Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	$ 18,405	$ 39,875
Unrealized Gains	118	55
Unrealized losses		(6)
Short-term investments	18,523	39,924
U.S. Treasury Securities Maturing in One Year or Less
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	13,529	23,513
Unrealized Gains	72	6
Unrealized losses		(4)
Short-term investments	$ 13,601	$ 23,515
U.S. Treasury Securities Maturing in One Year or Less | Maximum
Schedule Of Available For Sale Securities [Line Items]
Maturity (in years)	1 year	1 year
Agency Securities Maturing in One Year or Less
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost		$ 5,976
Unrealized Gains		19
Unrealized losses		(1)
Short-term investments		$ 5,994
Agency Securities Maturing in One Year or Less | Maximum
Schedule Of Available For Sale Securities [Line Items]
Maturity (in years)		1 year
Certificates of Deposit Maturing in One Year or Less
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	$ 4,876	$ 4,131
Unrealized Gains	46	22
Short-term investments	$ 4,922	$ 4,153
Certificates of Deposit Maturing in One Year or Less | Maximum
Schedule Of Available For Sale Securities [Line Items]
Maturity (in years)	1 year	1 year
U.S. Treasury Securities Maturing between One and Five years
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost		$ 5,035
Unrealized losses		(1)
Short-term investments		$ 5,034
U.S. Treasury Securities Maturing between One and Five years | Minimum
Schedule Of Available For Sale Securities [Line Items]
Maturity (in years)		1 year
U.S. Treasury Securities Maturing between One and Five years | Maximum
Schedule Of Available For Sale Securities [Line Items]
Maturity (in years)		5 years
Certificates of Deposit Maturing between One and Five Years
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost		$ 1,220
Unrealized Gains		8
Short-term investments		$ 1,228
Certificates of Deposit Maturing between One and Five Years | Minimum
Schedule Of Available For Sale Securities [Line Items]
Maturity (in years)		1 year
Certificates of Deposit Maturing between One and Five Years | Maximum
Schedule Of Available For Sale Securities [Line Items]
Maturity (in years)		5 years

Certain Financial Statement C_4

Certain Financial Statement Caption Information - Additional information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Schedule Of Available For Sale Securities [Line Items]
Other than temporary impairment loss investments available for sale securities	$ 0	$ 0	$ 0	$ 0
Realized gain on investments	$ 0	0	$ 13,000	0
Realized loss on investments		$ 0		$ 0
Minimum
Schedule Of Available For Sale Securities [Line Items]
Available for sale Securities debt maturities period			1 year
Maximum
Schedule Of Available For Sale Securities [Line Items]
Available for sale Securities debt maturities period			2 years

Certain Financial Statement C_5

Certain Financial Statement Caption Information - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Accrued Liabilities Current [Abstract]
Accrued payroll and other employee benefits	$ 994	$ 1,215
Clinical studies	404	442
Other accruals	111	267
Accrued interest	69	71
Preclinical research	48	15
Total accrued expenses	$ 1,626	$ 2,010

Notes Payable - Additional Info

Notes Payable - Additional Information (Details) $ / shares in Units, $ in Millions	1 Months Ended
	Sep. 30, 2019USD ($)YearInstallment$ / sharesshares
Short Term Debt [Line Items]
Term Loan maturity date	Jun. 1, 2024
Fair value of the warrants at the date of issuance	$ 0.3
Expected Term
Short Term Debt [Line Items]
Warrants and rights outstanding, measurement input | Year	10
Volatility
Short Term Debt [Line Items]
Warrants and rights outstanding, measurement input	92.78
Risk Free Rate
Short Term Debt [Line Items]
Warrants and rights outstanding, measurement input	1.68
Expected Dividend
Short Term Debt [Line Items]
Warrants and rights outstanding, measurement input	0
Line of Credit
Short Term Debt [Line Items]
Debt instrument, frequency of periodic payment	monthly
Debt instrument, interest rate, basis for effective rate	prime rate
Percentage of final principal payment	4.50%
Required notice period for debt prepayment	30 days
Debt prepayment fee as percent on year one	3.00%
Debt prepayment fee as percent on year two	2.00%
Debt prepayment fee as percent from year three	1.00%
Debt issuance costs	$ 0.1
Debt instrument, interest rate, effective percentage	10.97%
Line of Credit | Prime Rate
Short Term Debt [Line Items]
Debt instrument, basis spread on variable rate	3.00%
Line of Credit | Minimum
Short Term Debt [Line Items]
Debt instrument, interest rate, stated percentage	8.25%
Loan Agreement
Short Term Debt [Line Items]
Borrowing capacity under loan agreement	$ 20
Term A Loan
Short Term Debt [Line Items]
Borrowings under loan agreement	$ 10
Line of credit facility frequency of payments principal and interest | Installment	36
Lenders warrants exercisable for shares | shares	80,428
Warrants exercisable, per share exercise price | $ / shares	$ 3.73
Term B Loan
Short Term Debt [Line Items]
Borrowing capacity under loan agreement	$ 5
Percentage of lenders additional warrants to purchase shares of company’s common stock	3.00%
Term C Loan
Short Term Debt [Line Items]
Borrowing capacity under loan agreement	$ 5
Percentage of lenders additional warrants to purchase shares of company’s common stock	3.00%
Term A Loan & Term B Loan
Short Term Debt [Line Items]
Line of credit facility frequency of payments principal and interest | Installment	30

Notes Payable - Schedule of Agg

Notes Payable - Schedule of Aggregate Carrying Amounts of Term Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Less: unamortized discount	$ (295)
Total	9,810
Line of Credit
Debt Instrument [Line Items]
Principal	10,000	$ 10,000
Add: accreted liability for Final Payment fee	105	35
Less: unamortized discount	(295)	(354)
Total	$ 9,810	$ 9,681

Notes Payable - Schedule Future

Notes Payable - Schedule Future Maturities of Term Loans, Including Final Payment Fee (Details) $ in Thousands	Jun. 30, 2020USD ($)
Debt Disclosure [Abstract]
Year ending December 31, 2021	$ 1,667
Year ending December 31, 2022	3,333
Year ending December 31, 2023	3,333
Year ending December 31, 2024	2,117
Debt instrument carrying amount including unaccreted liability for final payment fee	10,450
Unaccreted balance for Final Payment fee on Term Loans	(345)
Less: unamortized discount	(295)
Total	9,810
Noncurrent portion	$ 9,810

Collaboration And License Agr_2

Collaboration And License Agreements - Additional Information (Details) - Biocon - USD ($)	1 Months Ended	31 Months Ended
	May 31, 2017	Nov. 30, 2019
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Common Stock Shares Issued		2,316,134
Collaboration and License Agreement | Maximum
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Regulatory milestone payments	$ 30,000,000
Sales milestone payments	$ 565,000,000

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details)	May 28, 2020Directorshares	Apr. 22, 2020USD ($)$ / sharesshares	Aug. 12, 2020shares	Mar. 31, 2020USD ($)shares	Nov. 30, 2019USD ($)	Jun. 30, 2020USD ($)$ / sharesshares	Mar. 31, 2020shares	Jun. 30, 2019USD ($)	Jun. 30, 2020USD ($)$ / sharesshares	Jun. 30, 2019USD ($)	Dec. 31, 2019$ / sharesshares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock, shares authorized | shares						200,000,000			200,000,000		200,000,000
Common stock, par value | $ / shares						$ 0.0001			$ 0.0001		$ 0.0001
Preferred stock, shares authorized | shares						10,000,000			10,000,000
Preferred stock, par value | $ / shares						$ 0.0001			$ 0.0001
Common stock, shares outstanding | shares						17,723,850			17,723,850		17,425,654
Proceeds from issuance of common stock | $									$ 775,000
Repricing of outstanding options | shares		1,475,093
Stock-based compensation expense | $						$ 1,350,000		$ 581,000	2,137,000	$ 1,027,000
Unamortized stock compensation for stock options | $						8,500,000			$ 8,500,000
Weighted-average recognition period of stock option unamortized									2 years 9 months 18 days
Number of non-management directors | Director	2
Executive Chairman, Chief Executive Officer and Non-management Directors
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Retention stock options issued to purchase common shares | shares	169,368
Executive Chairman
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Reduction in cash remuneration expressed as a percentage	65.00%
Chief Executive Officer
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Reduction in cash remuneration expressed as a percentage	85.00%
Non-Management Directors
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Reduction in cash remuneration expressed as a percentage	100.00%
Repricing of Outstanding Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unamortized stock-based compensation incremental expense on the repriced options | $		$ 400,000
Stock-based compensation expense | $						$ 100,000
Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Exercise price of options per share | $ / shares		$ 2.45
Common Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Issuance of common stock, Shares | shares							83,662
Common Stock | Purchase Agreement | Lincoln Park Capital Fund, LLC
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Issuance of common stock, Shares | shares				65,374		0			0
Estimated maximum amount of common stock issuable | $				$ 15,000,000
Term of purchase agreement				36 months
Fair market value of commitment shares | $				$ 200,000
Stock issuance costs | $				$ 400,000
Common Stock | Purchase Agreement | Subsequent Event | Lincoln Park Capital Fund, LLC
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Issuance of common stock, Shares | shares			0
Open Market Sales Agreement | 2019 ATM Facility
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Commission rate					3.00%
Open Market Sales Agreement | 2019 ATM Facility | Common Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock shares maximum aggregate offering price | $					$ 8,450,000
Issuance of common stock, Shares | shares						0			174,649
Proceeds from issuance of common stock | $									$ 800,000
Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Repricing of outstanding options | shares		1,475,093				2,414,461			2,414,461		1,821,093
Exercise price of options per share | $ / shares		$ 2.45
Stock-based compensation expense | $						$ 400,000			$ 400,000
Retention stock options issued to purchase common shares | shares									593,368

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	Apr. 22, 2020	Jun. 30, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Shares Subject to Options, Ending Balance	1,475,093
Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Shares Subject to Options, Beginning Balance		1,821,093
Number of Shares Subject to Options, Granted		593,368
Number of Shares Subject to Options, Ending Balance	1,475,093	2,414,461
Number of Shares Subject to Options, Exercisable		805,185
Weighted- Average Exercise Price Per Share, Beginning Balance		$ 5.64
Weighted- Average Exercise Price Per Share, Granted		3.71
Weighted- Average Exercise Price Per Share, Exercised	$ (2.45)
Weighted- Average Exercise Price Per Share, Ending Balance		3.40
Weighted- Average Exercise Price Per Share, Exercisable		$ 3.45
Weighted Average Remaining Contractual Term, Options Outstanding		8 years 10 months 28 days
Weighted Average Remaining Contractual Term, Options Exercisable		8 years 6 months 14 days
Aggregate Intrinsic Value, Options Outstanding		$ 770
Aggregate Intrinsic Value, Options Exercisable		$ 302

Stockholders' Equity - Summar_2

Stockholders' Equity - Summary of Stock Option Activity (Parenthetical) (Details) - $ / shares	Apr. 22, 2020	Jun. 30, 2020	Dec. 31, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Repricing of outstanding options	1,475,093
Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Closing stock price per share		$ 2.95
Repricing of outstanding options	1,475,093	2,414,461	1,821,093
Exercise price of repriced options per share	$ 2.45

Stockholders' Equity - Summar_3

Stockholders' Equity - Summary of Non-cash Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-cash stock-based compensation expense	$ 1,350	$ 581	$ 2,137	$ 1,027
Research and Development Expense
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-cash stock-based compensation expense	488	310	902	565
General and Administrative Expense
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-cash stock-based compensation expense	$ 862	$ 271	$ 1,235	$ 462

Stockholders' Equity - Summar_4

Stockholders' Equity - Summary of Common Stock Reserved for Future Issuance (Details) - shares	Jun. 30, 2020	Dec. 31, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total common stock reserved for future issuance	4,224,363	3,218,710
Stock Options Issued and Outstanding
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total common stock reserved for future issuance	2,414,461	1,821,093
Warrants for Common Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total common stock reserved for future issuance	80,428	80,428
Awards Available Under 2018 Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total common stock reserved for future issuance	1,091,387	813,473
Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total common stock reserved for future issuance	638,087	503,716

Subsequent Events - Additional

Subsequent Events - Additional Information (Details) - USD ($) $ in Thousands	Jul. 14, 2020	Aug. 12, 2020	Mar. 31, 2020	Jun. 30, 2020
Subsequent Event [Line Items]
Aggregate offering price			$ 252
Proceeds from issuance of common stock				$ 775
Common Stock
Subsequent Event [Line Items]
Sale of stock			83,662
Common Stock | Subsequent Event | 2019 ATM Facility and 2020 ATM Facility
Subsequent Event [Line Items]
Sale of stock		1,539,525
Gross proceeds from issuance of common stock		$ 17,900
Equity issuance costs		600
Proceeds from issuance of common stock		$ 17,300
Common Stock | Subsequent Event | 2020 ATM Facility | Maximum
Subsequent Event [Line Items]
Aggregate offering price	$ 150,000