Aprea Therapeutics (APRE) 10-Q 12 Aug 22 2022 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2022	Aug. 10, 2022
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
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		23,401,846
Entity Central Index Key	0001781983
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 39,062,415	$ 53,076,052
Prepaid expenses and other current assets	1,400,837	3,508,358
Total current assets	40,463,252	56,584,410
Property and equipment, net	20,258	23,870
Right of use lease asset	170,967	185,811
Other noncurrent assets	29,359	29,372
Total assets	40,683,836	56,823,463
Current liabilities:
Accounts payable	3,989,794	1,773,032
Accrued expenses	3,505,287	5,352,996
Lease liability-current	189,116	190,471
Total current liabilities	7,684,197	7,316,499
Total liabilities	7,684,197	7,316,499
Commitments and contingencies (Note 8)
Stockholders' equity:
Common stock, $0.001 par value, 400,000,000 shares authorized, 23,401,846 and 21,859,413 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively.	23,401	21,859
Additional paid-in capital	261,795,121	240,978,439
Accumulated other comprehensive loss	(10,266,806)	(10,358,956)
Accumulated deficit	(287,329,545)	(181,134,378)
Total stockholders' equity (deficit)	(35,777,829)	49,506,964
Total liabilities and stockholders' equity (deficit)	40,683,836	$ 56,823,463
Series A Preferred Stock
Convertible preferred stock:
Series A convertible preferred stock, $0.001 par value, 40,000,000 shares authorized; 2,949,630 and 0 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively.	$ 68,777,468

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2022	Dec. 31, 2021
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	23,401,846	21,859,413
Common stock, shares outstanding	23,401,846	21,859,413
Series A Preferred Stock
Convertible preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Convertible preferred stock, shares authorized	40,000,000	40,000,000
Convertible preferred stock, shares issued	2,949,630	0
Convertible preferred stock, shares outstanding	2,949,630	0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Operating expenses:
Research and development	$ 6,811,609	$ 6,654,257	$ 10,901,186	$ 13,418,105
General and administrative	15,633,738	3,343,325	19,619,036	6,769,158
Acquired in-process research and development	76,020,184		76,020,184
Total operating expenses	98,465,531	9,997,582	106,540,406	20,187,263
Other income (expense):
Interest income (expense), net	52,491	(588)	54,462	(1,645)
Foreign currency gain (loss)	154,566	(252,843)	290,777	269,140
Total other income (loss)	207,057	(253,431)	345,239	267,495
Net loss	(98,258,474)	(10,251,013)	(106,195,167)	(19,919,768)
Other comprehensive loss:
Foreign currency translation	157,655	193,020	92,150	(209,830)
Total comprehensive loss	$ (98,100,819)	$ (10,057,993)	$ (106,103,017)	$ (20,129,598)
Net loss per share attributable to common stockholders, basic (in dollars per share)	$ (4.34)	$ (0.48)	$ (4.77)	$ (0.94)
Net loss per share attributable to common stockholders, diluted (in dollars per share)	$ (4.34)	$ (0.48)	$ (4.77)	$ (0.94)
Weighted-average common shares outstanding, basic (in shares)	22,661,835	21,186,827	22,283,783	21,186,827
Weighted-average common shares outstanding, diluted (in shares)	22,661,835	21,186,827	22,283,783	21,186,827

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Preferred Stock and Stockholders' Equity (Deficit) - USD ($)	Series A Preferred Stock Atrin Pharmaceuticals, Inc	Series A Preferred Stock	Common Stock Atrin Pharmaceuticals, Inc	Common Stock	Additional Paid-in capital Atrin Pharmaceuticals, Inc	Additional Paid-in capital	Other comprehensive loss	Accumulated deficit	Atrin Pharmaceuticals, Inc	Total
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
Stock based compensation						1,822,562				1,822,562
Foreign currency translation							(402,850)			(402,850)
Net loss								(9,668,755)		(9,668,755)
Equity, ending balance at Mar. 31, 2021				$ 21,187		233,240,918	(10,440,111)	(153,675,830)		69,146,164
Equity, ending balance (in shares) at Mar. 31, 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										(209,830)
Net loss										(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 Mar. 31, 2021				$ 21,187		233,240,918	(10,440,111)	(153,675,830)		69,146,164
Equity, beginning balance (in shares) at Mar. 31, 2021				21,186,827
Increase (Decrease) in Stockholders' Equity
Stock based compensation						1,863,498				1,863,498
Foreign currency translation							193,020			193,020
Net loss								(10,251,013)		(10,251,013)
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
Temporary equity, beginning balance (in shares) at Dec. 31, 2021		0
Equity, beginning balance at Dec. 31, 2021				$ 21,859		240,978,439	(10,358,956)	(181,134,378)		49,506,964
Equity, beginning balance (in shares) at Dec. 31, 2021				21,859,413
Increase (Decrease) in Stockholders' Equity
Vesting of restricted stock units				$ 115		(115)
Vesting of restricted stock units (in shares)				114,889
Stock based compensation						2,084,060				2,084,060
Foreign currency translation							(65,505)			(65,505)
Net loss								(7,936,693)		(7,936,693)
Equity, ending balance at Mar. 31, 2022				$ 21,974		243,062,384	(10,424,461)	(189,071,071)		43,588,826
Equity, ending balance (in shares) at Mar. 31, 2022				21,974,302
Temporary equity, beginning balance (in shares) at Dec. 31, 2021		0
Temporary equity, ending balance (in shares) at Jun. 30, 2022		2,949,630
Temporary equity, ending balance at Jun. 30, 2022		$ 68,777,468
Equity, beginning balance at Dec. 31, 2021				$ 21,859		240,978,439	(10,358,956)	(181,134,378)		49,506,964
Equity, beginning balance (in shares) at Dec. 31, 2021				21,859,413
Increase (Decrease) in Stockholders' Equity
Foreign currency translation										92,150
Net loss										(106,195,167)
Equity, ending balance at Jun. 30, 2022				$ 23,401		261,795,121	(10,266,806)	(287,329,545)		(35,777,829)
Equity, ending balance (in shares) at Jun. 30, 2022				23,401,846
Increase (Decrease) in Temporary Equity
Issuance of preferred stock upon acquisition of Atrin	$ 68,777,468
Issuance of preferred stock upon acquisition of Atrin (in shares)	2,949,630
Temporary equity, ending balance (in shares) at Jun. 30, 2022		2,949,630
Temporary equity, ending balance at Jun. 30, 2022		$ 68,777,468
Equity, beginning balance at Mar. 31, 2022				$ 21,974		243,062,384	(10,424,461)	(189,071,071)		43,588,826
Equity, beginning balance (in shares) at Mar. 31, 2022				21,974,302
Increase (Decrease) in Stockholders' Equity
Issuance of common stock upon acquisition of Atrin			$ 1,117		$ 1,328,582				$ 1,329,699
Issuance of common stock upon acquisition of Atrin (in shares)			1,117,394
Value of assumed stock options						2,602,850				2,602,850
Vesting of restricted stock units				$ 310		(310)
Vesting of restricted stock units (in shares)				310,150
Stock based compensation						14,801,615				14,801,615
Foreign currency translation							157,655			157,655
Net loss								(98,258,474)		(98,258,474)
Equity, ending balance at Jun. 30, 2022				$ 23,401		$ 261,795,121	$ (10,266,806)	$ (287,329,545)		$ (35,777,829)
Equity, ending balance (in shares) at Jun. 30, 2022				23,401,846

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash flows from operating activities:
Net loss	$ (106,195,167)	$ (19,919,768)
Adjustments to reconcile net loss to net cash used in operating activities:
Acquired in-process research and development	72,523,293
Depreciation and amortization	6,666	6,724
Stockbased compensation	16,885,675	3,686,060
Amortization of right of use lease asset	120,795	129,518
Foreign currency (gain) loss	(290,777)	(269,140)
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	2,126,847	1,904,566
Accounts payable	2,288,527	(2,142,301)
Accrued expenses and other liabilities	(1,756,495)	(2,533,713)
Lease liability	(107,306)	(135,934)
Net cash used in operating activities	(14,397,942)	(19,273,988)
Decrease in cash and cash equivalents	(14,397,942)	(19,273,988)
Effect of exchange rate changes on cash	384,305	60,148
Cash and cash equivalents-beginning of year	53,076,052	89,017,686
Cash and cash equivalents-end of period	39,062,415	$ 69,803,846
Non-cash investing and financing activities:
Operating lease liabilities arising from obtaining right-of-use assets	123,786
Issuance of convertible preferred stock and common stock in connection with acquisition	$ 70,107,167

Nature of business and basis of

Nature of business and basis of presentation	6 Months Ended
	Jun. 30, 2022
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 stage biopharmaceutical company focused on developing and commercializing novel cancer therapeutics targeting DNA damage response pathways. The Company began principal operations in 2006 and is headquartered in Boston, Massachusetts with research facilities in Doylestown, Pennsylvania. Prior to the acquisition of Atrin Pharmaceuticals Inc. (Atrin), the Company was engaged in the clinical development of cancer therapeutics that reactivate the mutant p53 tumor suppressor protein. In December 2020, the Company announced that its pivotal Phase 3 myelodysplastic syndromes trial failed to meet its predefined primary endpoint of complete remission (CR) rate. Given these results, FDA feedback and the costs of continuing the APR-246 development program, the Company has shifted primary focus of its activities to the assets acquired in the May 16, 2022 acquisition of Atrin (see Note 3). The Company’s lead product candidate, which was acquired in the Atrin acquisition, is ATRN-119, a Phase 1-ready small molecule ATR inhibitor being developed for solid tumor indications. Agreement and plan of merger Series A Preferred Stock ​ ​ ​ ​ ​ Series A Preferred Stock ​ Common Stock Issuable Upon Conversion (1) Outstanding shares issued in merger 2,949,630 29,496,300 ​ (1) Each share of Series A Preferred Stock is convertible into 10 shares of common stock . ​ The Company held a stockholders’ meeting on July 28, 2022 where approval of the conversion of the Series A Preferred Stock into shares of the Company’s common stock in accordance with Nasdaq Listing Rule 5635(a) was received. ​ 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 June 30, 2022 cash balance of approximately $39.1 million will be sufficient to fund the Company’s operations through the end of 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	6 Months Ended
	Jun. 30, 2022
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, 2021 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 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 six months ended June 30, 2022 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 measurement dates. ASC Topic 820, Fair Value Measurement (“ASC 820”), establishes a three-level valuation hierarchy for instruments measured at fair value. The hierarchy is based on the transparency of inputs to the valuation of an asset or liability as of the measurement date. The hierarchy defines three levels of valuation inputs, of which the first two are considered observable and the last is considered unobservable: ● 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 elects to account for forfeitures when they occur. 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 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): ​ ​ ​ ​ ​ ​ ​ Six months ended June 30, ​ 2022 2021 Convertible preferred stock ​ 2,949,630 ​ — Options to purchase common stock 8,955,354 4,821,759 Unvested restricted stock units ​ — ​ 507,050 Total shares of common stock equivalents 11,904,984 5,328,809 ​ Acquired in-process research and development— The Company measures and recognizes asset acquisitions that are not deemed to be business combinations based on the cost to acquire the assets, including transaction costs. In an asset acquisition, the cost allocated to acquire in-process research and development (“IPR&D) with no alternative future use is charged to expense at the acquisition date. Please see Note 3 – “Acquisition of Atrin” for additional information. 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.

Acquisition of Atrin

Acquisition of Atrin	6 Months Ended
	Jun. 30, 2022
Acquisition of Atrin
Acquisition of Atrin	3. Acquisition of Atrin ​ On May 16, 2022, the Company completed its acquisition of Atrin in accordance with the terms of the Merger Agreement as described in Note 1 – “Nature of business and basis of presentation”. Under the terms of the Merger Agreement, the Company issued 1,117,394 shares of common stock and 2,949,630 shares of Series A Preferred Stock. Each share of Series A Preferred Stock is convertible into 10 shares of Common Stock. ​ The Company concluded the Atrin acquisition was not the acquisition of a business, as substantially all of the fair value of the non-monetary assets acquired was concentrated in a single identifiable asset, ATRN-119. ​ The Company determined that the cost to acquire the Atrin assets was $76.2 million, based on the fair value of the equity consideration issued [and including direct costs of the acquisition of $3.5 million. The net assets acquired in connection with the Atrin acquisition were recorded at their estimated fair values as of May 16, 2022, which is the date the Atrin acquisition was completed. The following table summarizes the net assets acquired based on their estimated fair values as of May 16, 2022: ​ ​ ​ ​ ​ Acquired IPR&D ​ $ 76,020,184 Cash and cash equivalents ​ ​ 2,489,745 Prepaid expenses and other assets ​ ​ 34,579 Accounts payable and accrued liabilities ​ ​ (2,336,462) Total Acquisition Value ​ $ 76,208,046 ​ The Atrin acquisition was accounted for as an asset acquisition as Atrin was not considered to be a business under ASC 805 or SEC Rule 11-01(d). In the estimation of fair value of the asset purchase consideration, the Company used the carrying value of the cash and cash equivalents, prepaid expenses, accounts payable, and accrued liabilities as the most reliable indicator of fair value based on the associated short-term nature of the balances. The remaining fair value was attributable to the acquired IPR&D. Since Atrin was in preclinical development and no clinical trials had commenced at the time of the acquisition, the cost attributable to the IPR&D was expensed in the Company’s consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2022 as the acquired IPR&D had no alternative future use, as determined by the Company in accordance with U.S. GAAP. ​ As a result of the Atrin acquisition, the Company announced in May 2022 it was closing its research facility in Sweden and reducing its related workforce in Sweden. The closure of the Swedish research facility and the reduction in workforce resulted in total expenses for employee severance and employee benefits of approximately $1.1 million, of which was recorded in the three months ended June 30, 2022. As of June 30, 2022, the remaining liability is approximately ​ In connection with the Atrin acquisition, a non-transferable contingent value right (a “CVR”) was distributed to the Aprea stockholders of record as of the close of business on May 13, 2022. Holders of the CVR will be entitled to receive certain stock and/or cash payments from proceeds received by the Company, if any, related to the disposition of its legacy assets in the 2 year period following the closing of the transaction. The CVR had a deminimus value as of May 16, 2022 and June 30, 2022.

Leases

Leases	6 Months Ended
	Jun. 30, 2022
Leases
Leases	4. Leases The Company is party to 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 six months ended June 30, 2022 was $84,900 and $159,716, respectively. Rent expense for the three and six months ended June 30, 2021 was $84,401 and $176,087, respectively. The Company has an operating lease in Boston, Massachusetts for office space which was amended effective July 1, 2021. The lease will expire on December 31, 2022 and does not have any renewal options. The Company has an operating lease for office and laboratory space in Doylestown, Pennsylvania which expires on December 31, 2022. The Company also has an operating lease for office and laboratory space in Solna, Sweden which was extended effective January 1, 2022 and now expires on June 30, 2023. Quantitative information regarding the Company’s leases for the three months ended June 30, 2022 and 2021 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, ​ Six months ended June 30, Lease Cost 2022 2021 ​ 2022 2021 ​ Operating lease cost ​ $ 60,679 ​ $ 58,481 ​ $ 120,795 ​ $ 116,404 ​ Other Information ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating cash flows paid for amounts included in the measurement of lease liabilities ​ $ 64,057 ​ $ 63,482 ​ $ 128,113 ​ $ 126,966 ​ Operating lease liabilities arising from obtaining right‑of‑use assets ​ $ — ​ $ — ​ $ 123,786 ​ $ — ​ Weighted average remaining lease term (years) ​ ​ 0.50-1.00 ​ ​ 0.50-1.00 ​ 0.50-1.00 ​ 0.50-1.00 ​ 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 June 30, 2022: ​ ​ ​ ​ ​ ​ Operating Future Lease Payments ​ Leases 2022 ​ $ 128,163 2023 ​ 63,903 Total Lease Payments ​ $ 192,066 Less: Imputed Interest ​ (2,950) Total Lease Liabilities ​ $ 189,116 ​ 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.

Accrued expenses

Accrued expenses	6 Months Ended
	Jun. 30, 2022
Accrued expenses
Accrued expenses	5. Accrued expenses Accrued expenses consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ ​ 2022 ​ 2021 Professional fees ​ $ 196,674 ​ $ 247,123 Compensation and benefits ​ 1,679,863 ​ 1,418,309 Research and development ​ 1,365,298 ​ 3,504,375 Other ​ 263,452 ​ 183,189 Total accrued expenses ​ $ 3,505,287 ​ $ 5,352,996 ​

Stockholders' equity

Stockholders' equity	6 Months Ended
	Jun. 30, 2022
Stockholders' equity
Stockholders' equity	6. 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. The Company agreed to pay a commission of 3% of the gross proceeds of any common stock sold in connection with the ATM offering program. The Company did not sell any common stock under the ATM program during the three and six months ended June 30, 2022 or 2021. Stock-Based Compensation Expense The Company recorded stock-based compensation expense of $14,801,615, and $16,885,675 for the three and six months ended June 30, 2022, respectively. The company recorded compensation expense of $1,863,498 and $3,686,060 for the three and six months ended June 30, 2021, respectively. ​

Income taxes

Income taxes	6 Months Ended
	Jun. 30, 2022
Income taxes
Income Taxes	7. Income Taxes ​ The Company has no income tax expense due to operating losses incurred for the three and six months ended June 30, 2022 and 2021. 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. Income tax returns prior to 2018 in the United States and Massachusetts are no longer subject to examination and income tax returns prior to 2015 are no longer subject to examination in Sweden. 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. Substantially all of these unrecognized tax benefits, if recognized, would benefit the Company’s effective income tax rate. As of June 30, 2022 and December 31, 2021, the Company had approximately $0.1 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 2022 and 2021.

Commitments and contingencies

Commitments and contingencies	6 Months Ended
	Jun. 30, 2022
Commitments and contingencies.
Commitments and contingencies	8. 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 June 30, 2022, the Company has not recorded a provision for any contingent losses.

Summary of significant accoun_2

Summary of significant accounting policies (Policies)	6 Months Ended
	Jun. 30, 2022
Summary of significant accounting policies
Principles of consolidation	Principles of consolidation
Unaudited interim consolidated financial statements	Unaudited interim consolidated financial statements 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 six months ended June 30, 2022 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 measurement dates. ASC Topic 820, Fair Value Measurement (“ASC 820”), establishes a three-level valuation hierarchy for instruments measured at fair value. The hierarchy is based on the transparency of inputs to the valuation of an asset or liability as of the measurement date. The hierarchy defines three levels of valuation inputs, of which the first two are considered observable and the last is considered unobservable: ● 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 elects to account for forfeitures when they occur. 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 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): ​ ​ ​ ​ ​ ​ ​ Six months ended June 30, ​ 2022 2021 Convertible preferred stock ​ 2,949,630 ​ — Options to purchase common stock 8,955,354 4,821,759 Unvested restricted stock units ​ — ​ 507,050 Total shares of common stock equivalents 11,904,984 5,328,809
Acquired in-process research and development	Acquired in-process research and development— The Company measures and recognizes asset acquisitions that are not deemed to be business combinations based on the cost to acquire the assets, including transaction costs. In an asset acquisition, the cost allocated to acquire in-process research and development (“IPR&D) with no alternative future use is charged to expense at the acquisition date. Please see Note 3 – “Acquisition of Atrin” for additional information.
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.

Nature of business and basis _2

Nature of business and basis of presentation (Tables)	6 Months Ended
	Jun. 30, 2022
Nature of business and basis of presentation
Schedule of issuance of Series A Preferred Stock	​ ​ ​ ​ Series A Preferred Stock ​ Common Stock Issuable Upon Conversion (1) Outstanding shares issued in merger 2,949,630 29,496,300 ​ (1) Each share of Series A Preferred Stock is convertible into 10 shares of common stock .

Summary of significant accoun_3

Summary of significant accounting policies (Tables)	6 Months Ended
	Jun. 30, 2022
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): ​ ​ ​ ​ ​ ​ ​ Six months ended June 30, ​ 2022 2021 Convertible preferred stock ​ 2,949,630 ​ — Options to purchase common stock 8,955,354 4,821,759 Unvested restricted stock units ​ — ​ 507,050 Total shares of common stock equivalents 11,904,984 5,328,809

Acquisition of Atrin (Tables)

Acquisition of Atrin (Tables)	6 Months Ended
	Jun. 30, 2022
Acquisition of Atrin
Schedule of net assets acquired based on the estimated fair values	​ ​ ​ ​ ​ Acquired IPR&D ​ $ 76,020,184 Cash and cash equivalents ​ ​ 2,489,745 Prepaid expenses and other assets ​ ​ 34,579 Accounts payable and accrued liabilities ​ ​ (2,336,462) Total Acquisition Value ​ $ 76,208,046

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2022
Leases
Summary of quantitative information regarding the Company's leases	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, ​ Six months ended June 30, Lease Cost 2022 2021 ​ 2022 2021 ​ Operating lease cost ​ $ 60,679 ​ $ 58,481 ​ $ 120,795 ​ $ 116,404 ​ Other Information ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating cash flows paid for amounts included in the measurement of lease liabilities ​ $ 64,057 ​ $ 63,482 ​ $ 128,113 ​ $ 126,966 ​ Operating lease liabilities arising from obtaining right‑of‑use assets ​ $ — ​ $ — ​ $ 123,786 ​ $ — ​ Weighted average remaining lease term (years) ​ ​ 0.50-1.00 ​ ​ 0.50-1.00 ​ 0.50-1.00 ​ 0.50-1.00 ​ 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	​ ​ ​ ​ ​ ​ Operating Future Lease Payments ​ Leases 2022 ​ $ 128,163 2023 ​ 63,903 Total Lease Payments ​ $ 192,066 Less: Imputed Interest ​ (2,950) Total Lease Liabilities ​ $ 189,116

Accrued expenses (Tables)

Accrued expenses (Tables)	6 Months Ended
	Jun. 30, 2022
Accrued expenses
Schedule of accrued expenses	​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ ​ 2022 ​ 2021 Professional fees ​ $ 196,674 ​ $ 247,123 Compensation and benefits ​ 1,679,863 ​ 1,418,309 Research and development ​ 1,365,298 ​ 3,504,375 Other ​ 263,452 ​ 183,189 Total accrued expenses ​ $ 3,505,287 ​ $ 5,352,996

Nature of business and basis _3

Nature of business and basis of presentation (Details) - USD ($)		3 Months Ended
	May 16, 2022	Jun. 30, 2022	Dec. 31, 2021
Common stock, par value (in dollars per share)		$ 0.001	$ 0.001
Cash		$ 39,100,000
Atrin Pharmaceuticals, Inc
Number of shares to purchase under option	$ 3,275,149
Common Stock | Atrin Pharmaceuticals, Inc
Issuance of common stock upon acquisition of Atrin (in shares)	1,117,394
Common stock, par value (in dollars per share)	$ 0.001
Series A Preferred Stock | Atrin Pharmaceuticals, Inc
Issuance of preferred stock upon acquisition of Atrin (in shares)	2,949,630	2,949,630
Conversion value of temporary equity	$ 68,800,000

Nature of business and basis _4

Nature of business and basis of presentation - Atrin Acquisition (Details) - Atrin Pharmaceuticals, Inc		3 Months Ended
	May 16, 2022 shares	Jun. 30, 2022 shares
Common stock issuable upon conversion outstanding shares issued in merger	29,496,300
Preferred stock conversion ratio	10
Series A Preferred Stock
Series A preferred stock outstanding shares issued in merger	2,949,630	2,949,630
Preferred stock conversion ratio	10

Summary of significant accoun_4

Summary of significant accounting policies - Leases and Property and equipment (Details)	6 Months Ended
	Jun. 30, 2022	Jan. 01, 2019
Leases
Leases, election of practical expedients package	true
Minimum
Leases
Incremental borrowing rate (as a percent)		3%
Maximum
Leases
Incremental borrowing rate (as a percent)		4.30%

Summary of significant accoun_5

Summary of significant accounting policies - Net loss per share (Details) - shares	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Potentially dilutive securities
Total shares of common stock equivalents	11,904,984	5,328,809
Convertible preferred stock
Potentially dilutive securities
Total shares of common stock equivalents	2,949,630
Options to purchase common stock
Potentially dilutive securities
Total shares of common stock equivalents	8,955,354	4,821,759
Restricted stock units
Potentially dilutive securities
Total shares of common stock equivalents		507,050

Acquisition of Atrin (Details)

Acquisition of Atrin (Details) - Atrin Pharmaceuticals, Inc $ in Millions		3 Months Ended
	May 16, 2022 USD ($) shares	Jun. 30, 2022 shares
Acquisition of Atrin
Preferred stock conversion ratio	10
Cost to acquire Atrin assets | $	$ 76.2
Direct costs of acquisition of Atrin assets | $	$ 3.5
Term of contingent value right	2 years
Common Stock
Acquisition of Atrin
Issuance of common stock upon acquisition of Atrin (in shares) | shares	1,117,394
Series A Preferred Stock
Acquisition of Atrin
Issuance of preferred stock upon acquisition of Atrin (in shares) | shares	2,949,630	2,949,630
Preferred stock conversion ratio	10

Acquisition of Atrin - Summary

Acquisition of Atrin - Summary of net assets acquired (Details) - USD ($)	Jun. 30, 2022	May 16, 2022	Dec. 31, 2021
Acquisition of Atrin
Cash and cash equivalents	$ 39,062,415		$ 53,076,052
Prepaid expenses and other assets	$ 1,400,837		$ 3,508,358
Atrin Pharmaceuticals, Inc
Acquisition of Atrin
Acquired IPR&D		$ 76,020,184
Cash and cash equivalents		2,489,745
Prepaid expenses and other assets		34,579
Accounts payable and accrued liabilities		(2,336,462)
Total Acquisition Value		$ 76,208,046

Acquisition of Atrin - Addition

Acquisition of Atrin - Additional information (Details) - Atrin Pharmaceuticals, Inc - USD ($) $ in Millions		3 Months Ended
	May 16, 2022	Jun. 30, 2022
Acquisition of Atrin
Employee severance		$ 1.1
Employee severance liability		$ 0.8
Asset Acquisition Contingent Value Right Term	2 years

Leases - Summary (Details)

Leases - Summary (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Leases
Rent expense	$ 84,900	$ 84,401	$ 159,716	$ 176,087

Leases - Quantitative Informati

Leases - Quantitative Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Quantitative information regarding the Company's leases
Operating lease cost	$ 60,679	$ 58,481	$ 120,795	$ 116,404
Other Information
Operating cash flows paid for amounts included in the measurement of lease liabilities	$ 64,057	$ 63,482	128,113	$ 126,966
Operating lease liabilities arising from obtaining right-of-use assets			$ 123,786
Minimum
Other Information
Weighted average remaining lease term (years)	6 months	6 months	6 months	6 months
Weighted average discount rate	3%	3%	3%	3%
Maximum
Other Information
Weighted average remaining lease term (years)	1 year	1 year	1 year	1 year
Weighted average discount rate	4.30%	4.30%	4.30%	4.30%

Leases - Future lease payments

Leases - Future lease payments (Details)	Jun. 30, 2022 USD ($)
Future Lease Payments
2022	$ 128,163
2023	63,903
Total Lease Payments	192,066
Less: Imputed Interest	(2,950)
Total Lease Liabilities	$ 189,116

Accrued expenses (Details)

Accrued expenses (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Accrued expenses
Professional fees	$ 196,674	$ 247,123
Compensation and benefits	1,679,863	1,418,309
Research and development	1,365,298	3,504,375
Other	263,452	183,189
Total accrued expenses	$ 3,505,287	$ 5,352,996

Stockholders' equity (Details)

Stockholders' equity (Details)		3 Months Ended		6 Months Ended
	Nov. 12, 2020 USD ($)	Jun. 30, 2022 USD ($) $ / shares shares	Jun. 30, 2021 USD ($) shares	Jun. 30, 2022 USD ($) Vote $ / shares shares	Jun. 30, 2021 USD ($) shares	Dec. 31, 2021 $ / shares shares
Stockholders' equity
Stock, shares authorized		440,000,000		440,000,000
Common stock, shares authorized		400,000,000		400,000,000		400,000,000
Common stock, par value (in dollars per share) | $ / shares		$ 0.001		$ 0.001		$ 0.001
Preferred stock, shares authorized		40,000,000		40,000,000
Preferred stock, par value (in dollars per share) | $ / shares		$ 0.001		$ 0.001
Number of shares issued		0	0	0	0
Commission payable as a percentage of gross proceeds from sale of common stock under ATM offering	3%
Number of voting rights per common share | Vote				1
Stock based compensation expense | $		$ 14,801,615	$ 1,863,498	$ 16,885,675	$ 3,686,060
Shelf Registration Statement
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

Income taxes - Narrative (Detai

Income taxes - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Income taxes
Income tax expense	$ 0	$ 0	$ 0	$ 0
Uncertain tax positions	$ 100,000		$ 100,000		$ 100,000

Commitments and contingencies (

Commitments and contingencies (Details)	6 Months Ended
	Jun. 30, 2022 USD ($)
Commitments and contingencies.
Provision for contingent losses	$ 0