Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 08, 2021 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Entity File Number | 001-39069 | |
Entity Registrant Name | Aprea Therapeutics, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 84-2246769 | |
Entity Address, Address Line One | 535 Boylston Street | |
Entity Address, City or Town | Boston | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02116 | |
City Area Code | 617 | |
Local Phone Number | 463-9385 | |
Title of 12(b) Security | Common stock, par value $0.001 per share | |
Trading Symbol | APRE | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 21,465,140 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001781983 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 61,428,404 | $ 89,017,686 |
Prepaid expenses and other current assets | 750,929 | 3,399,019 |
Total current assets | 62,179,333 | 92,416,705 |
Property and equipment, net | 27,318 | 38,515 |
Right of use lease asset | 248,834 | 320,616 |
Other noncurrent assets | 29,375 | 29,383 |
Total assets | 62,484,860 | 92,805,219 |
Current liabilities: | ||
Accounts payable | 2,548,388 | 4,503,619 |
Accrued expenses | 6,267,429 | 10,571,237 |
Lease liability-current | 223,999 | 256,309 |
Total current liabilities | 9,039,816 | 15,331,165 |
Lease liability-noncurrent | 29,773 | 78,847 |
Total liabilities | 9,069,589 | 15,410,012 |
Commitments and contingencies (Note 7) | ||
Stockholders' equity: | ||
Common stock, $0.001 par value, 400,000,000 shares authorized, 21,360,140 and 21,186,827 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively | 21,360 | 21,187 |
Additional paid-in capital | 237,227,804 | 231,418,356 |
Accumulated other comprehensive loss | (10,454,699) | (10,037,261) |
Accumulated deficit | (173,379,194) | (144,007,075) |
Total stockholders' equity | 53,415,271 | 77,395,207 |
Total liabilities and stockholders' equity | $ 62,484,860 | $ 92,805,219 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Condensed Consolidated Balance Sheets | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 21,360,140 | 21,186,827 |
Common stock, shares outstanding | 21,360,140 | 21,186,827 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Operating expenses: | ||||
Research and development | $ 6,015,616 | $ 8,761,095 | $ 19,433,721 | $ 28,551,246 |
General and administrative | 3,414,795 | 3,473,210 | 10,183,953 | 10,036,564 |
Total operating expenses | 9,430,411 | 12,234,305 | 29,617,674 | 38,587,810 |
Other income (expense): | ||||
Interest (expense) income, net | (33) | (9,212) | (1,678) | 217,908 |
Foreign currency (loss) gain | (21,907) | (74,565) | 247,233 | 283,636 |
Total other (expense) income | (21,940) | (83,777) | 245,555 | 501,544 |
Net loss | (9,452,351) | (12,318,082) | (29,372,119) | (38,086,266) |
Other comprehensive loss: | ||||
Foreign currency translation | (207,608) | (168,982) | (417,438) | (836,852) |
Total comprehensive loss | $ (9,659,959) | $ (12,487,064) | $ (29,789,557) | $ (38,923,118) |
Net loss per share attributable to common stockholders, basic (in dollars per share) | $ (0.45) | $ (0.58) | $ (1.39) | $ (1.80) |
Net loss per share attributable to common stockholders, diluted (in dollars per share) | $ (0.45) | $ (0.58) | $ (1.39) | $ (1.80) |
Weighted-average common shares outstanding, basic (in shares) | 21,231,584 | 21,186,827 | 21,201,910 | 21,115,797 |
Weighted-average common shares outstanding, diluted (in shares) | 21,231,584 | 21,186,827 | 21,201,910 | 21,115,797 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) | Common Stock | Additional Paid-in capital | Accumulated other comprehensive loss | Accumulated deficit | Total |
Equity, beginning balance at Dec. 31, 2019 | $ 21,023 | $ 226,284,548 | $ (11,533,778) | $ (90,528,263) | $ 124,243,530 |
Equity, beginning balance (in shares) at Dec. 31, 2019 | 21,022,752 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Exercise of stock options | $ 164 | 150,785 | 150,949 | ||
Exercise of stock options (in shares) | 164,075 | ||||
Stockbased compensation | 2,161,931 | 2,161,931 | |||
Foreign currency translation | (667,870) | (667,870) | |||
Net loss | (25,768,184) | (25,768,184) | |||
Equity, ending balance at Jun. 30, 2020 | $ 21,187 | 228,597,264 | (12,201,648) | (116,296,447) | 100,120,356 |
Equity, ending balance (in shares) at Jun. 30, 2020 | 21,186,827 | ||||
Equity, beginning balance at Dec. 31, 2019 | $ 21,023 | 226,284,548 | (11,533,778) | (90,528,263) | 124,243,530 |
Equity, beginning balance (in shares) at Dec. 31, 2019 | 21,022,752 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Foreign currency translation | (836,852) | ||||
Net loss | (38,086,266) | ||||
Equity, ending balance at Sep. 30, 2020 | $ 21,187 | 229,986,911 | (12,370,630) | (128,614,529) | 89,022,939 |
Equity, ending balance (in shares) at Sep. 30, 2020 | 21,186,827 | ||||
Equity, beginning balance at Jun. 30, 2020 | $ 21,187 | 228,597,264 | (12,201,648) | (116,296,447) | 100,120,356 |
Equity, beginning balance (in shares) at Jun. 30, 2020 | 21,186,827 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Stockbased compensation | 1,389,647 | 1,389,647 | |||
Foreign currency translation | (168,982) | (168,982) | |||
Net loss | (12,318,082) | (12,318,082) | |||
Equity, ending balance at Sep. 30, 2020 | $ 21,187 | 229,986,911 | (12,370,630) | (128,614,529) | 89,022,939 |
Equity, ending balance (in shares) at Sep. 30, 2020 | 21,186,827 | ||||
Equity, beginning balance at Dec. 31, 2020 | $ 21,187 | 231,418,356 | (10,037,261) | (144,007,075) | 77,395,207 |
Equity, beginning balance (in shares) at Dec. 31, 2020 | 21,186,827 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Stockbased compensation | 3,686,060 | 3,686,060 | |||
Foreign currency translation | (209,830) | (209,830) | |||
Net loss | (19,919,768) | (19,919,768) | |||
Equity, ending balance at Jun. 30, 2021 | $ 21,187 | 235,104,416 | (10,247,091) | (163,926,843) | 60,951,669 |
Equity, ending balance (in shares) at Jun. 30, 2021 | 21,186,827 | ||||
Equity, beginning balance at Dec. 31, 2020 | $ 21,187 | 231,418,356 | (10,037,261) | (144,007,075) | 77,395,207 |
Equity, beginning balance (in shares) at Dec. 31, 2020 | 21,186,827 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Foreign currency translation | (417,438) | ||||
Net loss | (29,372,119) | ||||
Equity, ending balance at Sep. 30, 2021 | $ 21,360 | 237,227,804 | (10,454,699) | (173,379,194) | 53,415,271 |
Equity, ending balance (in shares) at Sep. 30, 2021 | 21,360,140 | ||||
Equity, beginning balance at Jun. 30, 2021 | $ 21,187 | 235,104,416 | (10,247,091) | (163,926,843) | 60,951,669 |
Equity, beginning balance (in shares) at Jun. 30, 2021 | 21,186,827 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Exercise of stock options | $ 94 | 86,876 | 86,970 | ||
Exercise of stock options (in shares) | 93,894 | ||||
Vesting of restricted stock units | $ 79 | (79) | |||
Vesting of restricted stock units (in shars) | 79,419 | ||||
Stockbased compensation | 2,036,591 | 2,036,591 | |||
Foreign currency translation | (207,608) | (207,608) | |||
Net loss | (9,452,351) | (9,452,351) | |||
Equity, ending balance at Sep. 30, 2021 | $ 21,360 | $ 237,227,804 | $ (10,454,699) | $ (173,379,194) | $ 53,415,271 |
Equity, ending balance (in shares) at Sep. 30, 2021 | 21,360,140 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (29,372,119) | $ (38,086,266) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 9,860 | 12,177 |
Stockbased compensation | 5,722,651 | 3,551,578 |
Amortization of right of use lease asset | 195,825 | 160,540 |
Foreign currency (gain) | (247,233) | (283,636) |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | 2,648,090 | 1,698,801 |
Accounts payable | (1,955,231) | 2,173,125 |
Accrued expenses and other liabilities | (4,303,808) | 2,441,836 |
Lease liability | (205,427) | (271,625) |
Net cash used in operating activities | (27,507,392) | (28,603,470) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (9,419) | |
Net cash used in investing activities | (9,419) | |
Cash flows from financing activities: | ||
Proceeds from the exercise of stock options | 86,970 | 150,949 |
Net cash provided by financing activities | 86,970 | 150,949 |
Decrease in cash and cash equivalents | (27,420,422) | (28,461,940) |
Effect of exchange rate changes on cash | (168,860) | (480,296) |
Cash and cash equivalents-beginning of year | 89,017,686 | 130,088,869 |
Cash and cash equivalents-end of period | 61,428,404 | $ 101,146,633 |
Noncash activities: | ||
Operating lease liabilities arising from obtaining right-of-use assets | $ 124,043 |
Nature of business and basis of
Nature of business and basis of presentation | 9 Months Ended |
Sep. 30, 2021 | |
Nature of business and basis of presentation | |
Nature of business and basis of presentation | 1. Nature of business and basis of presentation Nature of business TP53 Corporate reorganization Each share of common stock of Aprea Therapeutics AB ($0.11 par value) was also exchanged on a one for one basis into shares of common stock of the Company ($0.001 par value). Basis of presentation and management plans Since its inception, the Company has devoted substantially all of its efforts to business planning, research and development, recruiting management and technical staff, and raising capital, and has financed its operations through the issuance of convertible preferred stock and common stock. The Company is subject to risks common to companies in the biopharmaceutical industry. There can be no assurance that the Company’s research and development will be successfully completed, that adequate protection for the Company’s intellectual property will be maintained, that any therapeutic products developed will obtain required regulatory approval or that any approved or consumer products will be commercially viable. Even if the Company’s development efforts are successful, it is uncertain when, if ever, the Company will generate significant product sales. The Company believes that the September 30, 2021 cash balance of approximately $61.4 million will be sufficient to fund the Company’s operations into 2023. In the event that additional funds are not available thereafter, management would expect to significantly reduce expenditures to conserve cash, which would involve scaling back or curtailing new development activity. |
Summary of significant accounti
Summary of significant accounting policies | 9 Months Ended |
Sep. 30, 2021 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | 2. Summary of significant accounting policies The Company's complete listing of significant accounting policies are described in Note 2 to the Company's audited consolidated financial statements as of December 31, 2020 included in its annual report on Form 10-K filed with the Securities and Exchange Commission (or the “SEC”). Principles of consolidation Unaudited interim consolidated financial statements footnote disclosure normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited condensed interim financial statements should be read in conjunction with the audited financial statements and related notes included in the Company’s annual report on Form 10-K for the year ended December 31, 2020 filed with the SEC. The unaudited interim consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements, and in management’s opinion, include all adjustments, consisting of only normal recurring adjustments, necessary for the fair presentation of the financial information for the interim periods have been made. The results of operations for the three and nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the full fiscal year or any future period. Use of estimates Foreign currency and currency translation Cash and cash equivalents— Fair value of financial instruments ● Level 1 inputs: Quoted prices in active markets for identical assets or liabilities. ● Level 2 inputs: Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable, such as quoted market prices, interest rates and yield curves. ● Level 3 inputs: Unobservable inputs developed using estimates or assumptions developed by the Company, which reflect those that a market participant would use in pricing the asset or liability. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company’s financial instruments consist of cash and cash equivalents and accounts payable. The carrying amount of accounts payable is considered a reasonable estimate of fair value due to the short-term maturity. Accounting for leases package At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on specific facts and circumstances, the existence of an identified asset(s), if any, and the Company’s control over the use of the identified asset(s), if applicable. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of future lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes the incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. The Company’s incremental borrowing rate ranged from approximately 3.0% to 4.3% based on the remaining lease term of the applicable leases. The Company has elected not to separate lease and non-lease components as a single component. Operating leases are recognized on the balance sheet as ROU lease assets, lease liabilities current and lease liabilities non-current. Fixed rents are included in the calculation of the lease balances while variable costs paid for certain operating and pass-through costs are excluded. Lease expense is recognized over the expected term on a straight-line basis. Stock-based compensation For stock-based awards granted to non-employees, compensation expense is recognized over the period during which services are rendered by such non-employees until completed in accordance with the FASB issued ASU No. 2018-07, Compensation Stock Compensation (Topic 718): Improvements to Nonemployee Share Based Payment Accounting. The new standard largely aligns the accounting for share based payment awards issued to employees and nonemployees by expanding the scope of ASC 718 to apply to nonemployee share based transactions, as long as the transaction is not effectively a form of financing. The Company estimates the fair value of each stock option grant on the date of grant using the Black Scholes option pricing model, which uses as inputs the fair value of the Company’s common stock and assumptions the Company makes for the volatility of its common stock, the expected term of its stock options, the risk-free interest rate for a period that approximates the expected term of its stock options and its expected dividend yield. The Company also awards restricted stock units (“RSUs”) to employees and directors. RSUs are generally subject to forfeiture if employment terminates prior to the completion of the vesting restrictions. The Company expenses the cost of the RSUs, which is determined to be the fair market value of the shares of common stock underlying the RSUs at the date of grant, ratably over the period during which the vesting restrictions lapse. Net loss per share Company computes diluted net loss per common share after giving consideration to all potentially dilutive common shares, including options to purchase common stock, outstanding during the period determined using the treasury-stock and if-converted methods, except where the effect of including such securities would be antidilutive. Because the Company has reported net losses since inception, these potential common shares have been anti-dilutive and basic and diluted loss per share have been the same. The following table sets forth the potentially dilutive securities that have been excluded from the calculation of diluted net loss per share because to include them would be anti-dilutive (in common stock equivalent shares): Nine months ended September 30, 2021 2020 Options to purchase common stock 4,719,115 3,771,459 Unvested restricted stock units 399,719 — Total shares of common stock equivalents 5,118,834 3,771,459 Recently issued accounting pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies that the Company adopts as of the specified effective date. Management does not believe that any recently issued, but not yet effective accounting pronouncements, if adopted, would have a material impact on the accompanying financial statements. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases | |
Leases | 3. Leases The Company is party to two operating leases for office and laboratory space. The Company’s finance leases are immaterial both individually and in the aggregate. The Company has elected to apply the short-term lease exception to all leases of one year or less. Rent expense for three and nine months ended September 30, 2021 was $81,657 and $257,744, respectively. Rent expense for the three and nine months ended September 30, 2020 was $84,482 and $241,807, respectively. The Company has an operating lease in Boston, Massachusetts for office space which was amended effective July 1, 2021. The lease will now expire on December 31, 2022 and does not have any renewal options. The Company also has an operating lease for office and laboratory space in Solna, Sweden that expires in June 2022. Quantitative information regarding the Company’s leases for the three and nine months ended September 30, 2021 and 2020 is as follows: Three months ended September 30, Nine months ended September 30, Lease Cost 2021 2020 2021 2020 Operating lease cost $ 59,700 $ 56,834 $ 176,104 $ 168,900 Other Information Operating cash flows paid for amounts included in the measurement of lease liabilities $ 64,056 $ 62,909 $ 191,022 $ 188,727 Operating lease liabilities arising from obtaining right‑of‑use assets $ 124,043 $ — $ 124,043 $ — Weighted average remaining lease term (years) 0.75 - 1.25 1.25 - 1.75 0.75 - 1.25 1.25 - 1.75 Weighted average discount rate 3.0 - 4.3% 3.0 - 4.3% 3.0 - 4.3% 3.0 - 4.3% Future lease payments under noncancelable leases are as follows at September 30, 2021: Operating Future Lease Payments Leases 2021 $ 65,800 2022 195,861 Total Lease Payments $ 261,661 Less: Imputed Interest (7,889) Total Lease Liabilities $ 253,772 As most of the Company’s leases do not provide an implicit rate, the Company used its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company uses the incremental borrowing rate on January 1, 2019 for operating leases that commenced prior to that date. |
Accrued expenses
Accrued expenses | 9 Months Ended |
Sep. 30, 2021 | |
Accrued expenses | |
Accrued expenses | 4. Accrued expenses Accrued expenses consist of the following: September 30, December 31, 2021 2020 Professional fees $ 168,485 $ 224,424 Compensation and benefits 1,115,320 1,515,312 Research and development 4,424,556 8,158,302 Other 559,068 673,199 Total accrued expenses $ 6,267,429 $ 10,571,237 |
Stockholders' equity
Stockholders' equity | 9 Months Ended |
Sep. 30, 2021 | |
Stockholders' equity | |
Stockholders' equity | 5. Stockholders’ equity The total number of shares of all classes of capital stock that the Company is authorized to issue is 440,000,000 shares, consisting of 400,000,000 shares of common stock, par value $0.001 per share and 40,000,000 shares of preferred stock, par value $0.001 per share. Common Stock The holders of common stock are entitled to one vote for each share of common stock. In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company, after the payment or provision for payment of all debts and liabilities of the Company, the holders of common stock shall be entitled to share in the remaining assets of the Company available for distribution, if any. Shelf Registration Statement On November 12, 2020, the Company filed a universal shelf registration statement with the SEC for the issuance of common stock, preferred stock, warrants, rights, debt securities and units up to an aggregate of $350.0 million. On November 30, 2020, the Shelf Registration Statement was declared effective by the SEC. The universal shelf registration statement includes an at-the-market (“ATM”) offering program for the sale of up to $50.0 million of shares of the Company’s common stock. As of September 30, 2021, no sales of any of the Company’s common stock occurred under the ATM program. Stock-Based Compensation Expense The Company recorded stock-based compensation expense of $2,036,591, and $5,722,651 for the three and nine months ended September 30, 2021, respectively. The Company recorded stock-based compensation expense of for the three and nine months ended September 30, 2020, respectively. . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Taxes | |
Income Taxes | 6. Income Taxes The Company has no income tax expense due to operating losses incurred for the three and nine months ended September 30, 2021 and 2020. The Company has provided a valuation allowance for the full amount of the net deferred tax assets as, based on all available evidence, it is considered more likely than not that all the recorded deferred tax assets will not be realized in a future period. Realization of the future tax benefits is dependent on may factors, including the Company’s ability to generate taxable income within the net operating loss carryforward period. Under the provisions of the U.S. Internal Revenue Code and Sweden tax law, certain substantial changes in the Company’s ownership, including a sale of the Company or significant changes in ownership due to sales of equity, may have limited, or may limit in the future, the amount of net operating loss carryforwards that could be used annually to offset future taxable income. For U.S. and Swedish income tax purposes, the Company has not completed a study to assess whether a change of control has occurred or whether there have been changes of control since the Company’s formation due to the complexity and cost associated with such study and because there could be additional changes of control in the future. As a result, the Company is not able to estimate the effect of the change in control, if any, on the Company’s ability to utilize U.S. or Swedish net operating losses or other tax attribute carryforwards in the future. For Swedish income tax purposes, the Company’s net operating losses may be subject to limitations in accordance with the country’s group contribution restriction laws. The Company files tax returns in Sweden, the United States and Massachusetts, and all tax years since inception remain open to examination by the major taxing jurisdictions to which the Company is subject, as carryforward attributes generated in years past may still be adjusted upon examination by the Internal Revenue Service (IRS) or other authorities if they have or will be used in a future period. The Company is not currently under examination by the IRS or any other jurisdictions for any tax years. As tax law is complex and often subject to varied interpretations, it is uncertain whether some of the Company’s tax positions will be sustained upon examination. Tax liabilities associated with uncertain tax positions represent unrecognized tax benefits, which arise when the estimated benefit recorded in the Company’s financial statements differs from the amounts taken or expected to be taken in a tax return because of the uncertainties described above. If recognized, the Company’s uncertain tax positions would all be absorbed by net operating losses. As of September 30, 2021 and December 31, 2020, the Company had approximately $0.8 million of liabilities related to uncertain tax positions. As the Company’s uncertain tax positions can be offset by available net operating losses, the Company did not recognize interest and penalties for 2021 and 2020. |
Commitments and contingencies
Commitments and contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and contingencies | |
Commitments and contingencies | 7. Commitments and contingencies The Company records a provision for contingent losses when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. As of September 30, 2021, the Company has not recorded a provision for any contingent losses. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Summary of significant accounting policies | |
Principles of consolidation | Principles of consolidation |
Unaudited interim condensed consolidated financial statements | Unaudited interim consolidated financial statements footnote disclosure normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited condensed interim financial statements should be read in conjunction with the audited financial statements and related notes included in the Company’s annual report on Form 10-K for the year ended December 31, 2020 filed with the SEC. The unaudited interim consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements, and in management’s opinion, include all adjustments, consisting of only normal recurring adjustments, necessary for the fair presentation of the financial information for the interim periods have been made. The results of operations for the three and nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the full fiscal year or any future period. |
Use of estimates | Use of estimates |
Foreign currency and currency translation | Foreign currency and currency translation |
Cash and cash equivalents | Cash and cash equivalents— |
Fair value of financial instruments | Fair value of financial instruments ● Level 1 inputs: Quoted prices in active markets for identical assets or liabilities. ● Level 2 inputs: Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable, such as quoted market prices, interest rates and yield curves. ● Level 3 inputs: Unobservable inputs developed using estimates or assumptions developed by the Company, which reflect those that a market participant would use in pricing the asset or liability. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company’s financial instruments consist of cash and cash equivalents and accounts payable. The carrying amount of accounts payable is considered a reasonable estimate of fair value due to the short-term maturity. |
Accounting for leases | Accounting for leases package At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on specific facts and circumstances, the existence of an identified asset(s), if any, and the Company’s control over the use of the identified asset(s), if applicable. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of future lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes the incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. The Company’s incremental borrowing rate ranged from approximately 3.0% to 4.3% based on the remaining lease term of the applicable leases. The Company has elected not to separate lease and non-lease components as a single component. Operating leases are recognized on the balance sheet as ROU lease assets, lease liabilities current and lease liabilities non-current. Fixed rents are included in the calculation of the lease balances while variable costs paid for certain operating and pass-through costs are excluded. Lease expense is recognized over the expected term on a straight-line basis. |
Stock based compensation | Stock-based compensation For stock-based awards granted to non-employees, compensation expense is recognized over the period during which services are rendered by such non-employees until completed in accordance with the FASB issued ASU No. 2018-07, Compensation Stock Compensation (Topic 718): Improvements to Nonemployee Share Based Payment Accounting. The new standard largely aligns the accounting for share based payment awards issued to employees and nonemployees by expanding the scope of ASC 718 to apply to nonemployee share based transactions, as long as the transaction is not effectively a form of financing. The Company estimates the fair value of each stock option grant on the date of grant using the Black Scholes option pricing model, which uses as inputs the fair value of the Company’s common stock and assumptions the Company makes for the volatility of its common stock, the expected term of its stock options, the risk-free interest rate for a period that approximates the expected term of its stock options and its expected dividend yield. The Company also awards restricted stock units (“RSUs”) to employees and directors. RSUs are generally subject to forfeiture if employment terminates prior to the completion of the vesting restrictions. The Company expenses the cost of the RSUs, which is determined to be the fair market value of the shares of common stock underlying the RSUs at the date of grant, ratably over the period during which the vesting restrictions lapse. |
Net loss per share | Net loss per share Company computes diluted net loss per common share after giving consideration to all potentially dilutive common shares, including options to purchase common stock, outstanding during the period determined using the treasury-stock and if-converted methods, except where the effect of including such securities would be antidilutive. Because the Company has reported net losses since inception, these potential common shares have been anti-dilutive and basic and diluted loss per share have been the same. The following table sets forth the potentially dilutive securities that have been excluded from the calculation of diluted net loss per share because to include them would be anti-dilutive (in common stock equivalent shares): Nine months ended September 30, 2021 2020 Options to purchase common stock 4,719,115 3,771,459 Unvested restricted stock units 399,719 — Total shares of common stock equivalents 5,118,834 3,771,459 |
Recently issued accounting pronouncements | Recently issued accounting pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies that the Company adopts as of the specified effective date. Management does not believe that any recently issued, but not yet effective accounting pronouncements, if adopted, would have a material impact on the accompanying financial statements. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Summary of significant accounting policies | |
Schedule of potentially dilutive securities excluded from calculation of diluted net loss per share | The following table sets forth the potentially dilutive securities that have been excluded from the calculation of diluted net loss per share because to include them would be anti-dilutive (in common stock equivalent shares): Nine months ended September 30, 2021 2020 Options to purchase common stock 4,719,115 3,771,459 Unvested restricted stock units 399,719 — Total shares of common stock equivalents 5,118,834 3,771,459 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases | |
Summary of quantitative information regarding the Company's leases | Three months ended September 30, Nine months ended September 30, Lease Cost 2021 2020 2021 2020 Operating lease cost $ 59,700 $ 56,834 $ 176,104 $ 168,900 Other Information Operating cash flows paid for amounts included in the measurement of lease liabilities $ 64,056 $ 62,909 $ 191,022 $ 188,727 Operating lease liabilities arising from obtaining right‑of‑use assets $ 124,043 $ — $ 124,043 $ — Weighted average remaining lease term (years) 0.75 - 1.25 1.25 - 1.75 0.75 - 1.25 1.25 - 1.75 Weighted average discount rate 3.0 - 4.3% 3.0 - 4.3% 3.0 - 4.3% 3.0 - 4.3% |
Schedule of future lease payments under noncancellable leases | Future lease payments under noncancelable leases are as follows at September 30, 2021: Operating Future Lease Payments Leases 2021 $ 65,800 2022 195,861 Total Lease Payments $ 261,661 Less: Imputed Interest (7,889) Total Lease Liabilities $ 253,772 |
Accrued expenses (Tables)
Accrued expenses (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accrued expenses | |
Schedule of accrued expenses | September 30, December 31, 2021 2020 Professional fees $ 168,485 $ 224,424 Compensation and benefits 1,115,320 1,515,312 Research and development 4,424,556 8,158,302 Other 559,068 673,199 Total accrued expenses $ 6,267,429 $ 10,571,237 |
Nature of business and basis _2
Nature of business and basis of presentation (Details) | 1 Months Ended | ||
Sep. 30, 2019$ / shares | Sep. 30, 2021USD ($)$ / shares | Dec. 31, 2020USD ($)$ / shares | |
Cash balance | $ | $ 61,428,404 | $ 89,017,686 | |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Aprea Therapeutics AB | |||
Common stock, par value (in dollars per share) | $ 0.11 | ||
Convertible preferred stock | Aprea Therapeutics AB | |||
Conversion ratio | 1 | ||
Common Stock | Aprea Therapeutics AB | |||
Conversion ratio | 1 |
Summary of significant accoun_4
Summary of significant accounting policies - Leases (Details) | 9 Months Ended |
Sep. 30, 2021 | |
Leases | |
Leases, election of practical expedients package | true |
Minimum | |
Leases | |
Incremental borrowing rate (as a percent) | 3.00% |
Maximum | |
Leases | |
Incremental borrowing rate (as a percent) | 4.30% |
Summary of significant accoun_5
Summary of significant accounting policies - Potentially dilutive securities (Details) - shares | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Potentially dilutive securities | ||
Total shares of common stock equivalents | 5,118,834 | 3,771,459 |
Options to purchase common stock | ||
Potentially dilutive securities | ||
Total shares of common stock equivalents | 4,719,115 | 3,771,459 |
Restricted stock units | ||
Potentially dilutive securities | ||
Total shares of common stock equivalents | 399,719 |
Leases - Summary (Details)
Leases - Summary (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)lease | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)lease | Sep. 30, 2020USD ($) | |
Leases | ||||
Number of operating leases | lease | 2 | 2 | ||
Rent expense | $ | $ 81,657 | $ 84,482 | $ 257,744 | $ 241,807 |
Leases - Quantitative Informati
Leases - Quantitative Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Quantitative information regarding the Company's leases | ||||
Operating lease cost | $ 59,700 | $ 56,834 | $ 176,104 | $ 168,900 |
Other Information | ||||
Operating cash flows paid for amounts included in the measurement of lease liabilities | 64,056 | $ 62,909 | 191,022 | $ 188,727 |
Operating lease liabilities arising from obtaining right-of-use assets | $ 124,043 | $ 124,043 | ||
Minimum | ||||
Other Information | ||||
Weighted average remaining lease term (years) | 9 months | 1 year 3 months | 9 months | 1 year 3 months |
Weighted average discount rate | 3.00% | 3.00% | 3.00% | 3.00% |
Maximum | ||||
Other Information | ||||
Weighted average remaining lease term (years) | 1 year 3 months | 1 year 9 months | 1 year 3 months | 1 year 9 months |
Weighted average discount rate | 4.30% | 4.30% | 4.30% | 4.30% |
Leases - Future lease payments
Leases - Future lease payments (Details) | Sep. 30, 2021USD ($) |
Future Lease Payments | |
2021 | $ 65,800 |
2022 | 195,861 |
Total Lease Payments | 261,661 |
Less: Imputed Interest | (7,889) |
Total Lease Liabilities | $ 253,772 |
Accrued expenses (Details)
Accrued expenses (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Accrued expenses | ||
Professional fees | $ 168,485 | $ 224,424 |
Compensation and benefits | 1,115,320 | 1,515,312 |
Research and development | 4,424,556 | 8,158,302 |
Other | 559,068 | 673,199 |
Total accrued expenses | $ 6,267,429 | $ 10,571,237 |
Stockholders' equity (Details)
Stockholders' equity (Details) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021USD ($)$ / sharesshares | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)Vote$ / sharesshares | Sep. 30, 2020USD ($) | Dec. 31, 2020$ / sharesshares | Nov. 30, 2020USD ($) | Nov. 12, 2020USD ($) | Sep. 30, 2019$ / shares | |
Stockholders' equity | ||||||||
Aggregate number of authorized shares for all classes of equity | shares | 440,000,000 | 440,000,000 | ||||||
Common stock, shares authorized | shares | 400,000,000 | 400,000,000 | 400,000,000 | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Preferred stock, shares authorized | shares | 40,000,000 | 40,000,000 | ||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||||||
Number of voting rights per common share | Vote | 1 | |||||||
Maximum amount to be issued under universal shelf registration statement | $ 350,000,000 | |||||||
Maximum amount to be issued under at-the-market offering program | $ 50,000,000 | |||||||
Amount of equity or debt securities sold under at-the-market offering program | $ 0 | $ 0 | ||||||
Stock based compensation expense | $ 2,036,591 | $ 1,389,647 | $ 5,722,651 | $ 3,551,578 |
Income taxes - Narrative (Detai
Income taxes - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Income Taxes | |||||
Income tax expense | $ 0 | $ 0 | $ 0 | $ 0 | |
Uncertain tax positions | $ 800,000 | $ 800,000 | $ 800,000 |
Commitments and contingencies (
Commitments and contingencies (Details) | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Commitments and contingencies | |
Provision for contingent losses | $ 0 |