TScan Therapeutics (TCRX) 10-Q 12 Aug 24 2024 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2024	Aug. 08, 2024
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Trading Symbol	TCRX
Entity Registrant Name	TSCAN THERAPEUTICS, INC.
Entity Central Index Key	0001783328
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Shell Company	false
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-40603
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	82-5282075
Entity Address, Address Line One	830 Winter Street
Entity Address, State or Province	MA
Entity Address, City or Town	Waltham
Entity Address, Postal Zip Code	02451
City Area Code	857
Local Phone Number	399-9500
Title of 12(b) Security	Voting Common Stock, $0.0001 par value per share
Security Exchange Name	NASDAQ
Voting Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		48,697,282
Non-voting Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		4,276,588

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 242,159	$ 133,359
Marketable securities	55,517	58,685
Prepaid expenses and other current assets	1,854	2,193
Total current assets	299,530	194,237
Property and equipment, net	7,615	7,742
Right-of-use assets	60,949	63,492
Restricted cash	5,031	5,031
Long-term deposit and other assets	1,746	1,647
Total assets	374,871	272,149
Current liabilities:
Accounts payable	3,110	2,374
Accrued expenses and other current liabilities	10,808	10,716
Operating lease liability, current portion	3,614	3,246
Deferred revenue, current portion	10,704	10,137
Current portion of long-term debt	10,336	3,347
Total current liabilities	38,572	29,820
Deferred revenue, net of current portion	3,955	5,622
Operating lease liability, net of current portion	57,011	59,140
Long-term debt and accrued interest	20,112	26,700
Total liabilities	119,650	121,282
Commitments and contingencies (Note 7)
Stockholders' equity:
Preferred stock, $0.0001 par value; 10,000,000 shares authorized; no shares issued and outstanding at June 30, 2024 and December 31, 2023	0	0
Additional paid-in capital	564,615	398,459
Accumulated deficit	(309,400)	(247,597)
Total stockholders' equity	255,221	150,867
Total liabilities and stockholders' equity	374,871	272,149
Voting Common Stock
Stockholders' equity:
Common stock	5	4
Non-voting Common Stock
Stockholders' equity:
Common stock	$ 1	$ 1

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Voting Common Stock
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	48,656,158	43,552,941
Common stock, shares outstanding	48,656,158	43,552,941
Non-voting Common Stock
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	4,276,588	4,276,588
Common stock, shares outstanding	4,276,588	4,276,588

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenue
Collaboration and license revenue	$ 536	$ 3,148	$ 1,102	$ 9,951
Revenue from Contract with Customer, Product and Service [Extensible Enumeration]	Collaboration and license revenue	Collaboration and license revenue	Collaboration and license revenue	Collaboration and license revenue
Operating expenses:
Research and development	$ 26,877	$ 21,227	$ 51,734	$ 43,006
General and administrative	7,773	6,531	14,855	14,298
Total operating expenses	34,650	27,758	66,589	57,304
Loss from operations	(34,114)	(24,610)	(65,487)	(47,353)
Other (expense) income:
Interest and other income, net	3,405	1,534	5,595	2,670
Interest expense	(952)	(969)	(1,911)	(1,925)
Total other income	2,453	565	3,684	745
Net loss	$ (31,661)	$ (24,045)	$ (61,803)	$ (46,608)
Net loss per share, basic	$ (0.28)	$ (0.51)	$ (0.59)	$ (1.3)
Net loss per share, diluted	$ (0.28)	$ (0.51)	$ (0.59)	$ (1.3)
Weighted average common shares outstanding- basic	113,425,357	47,208,664	104,150,625	35,717,309
Weighted average common shares outstanding-diluted	113,425,357	47,208,664	104,150,625	35,717,309

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Non-voting Common Stock	Voting Common Stock	Common Stock Non-voting Common Stock	Common Stock Voting Common Stock	Additional Paid-In Capital	Accumulated Deficit
Balances at Dec. 31, 2022	$ 99,434			$ 1	$ 2	$ 257,810	$ (158,379)
Balances, shares at Dec. 31, 2022				5,143,134	19,082,820
Exercise of stock options	682					682
Exercise of stock options, shares					305,678
Issuance of common stock, net of offering costs	42,414				$ 2	42,412
Issuance of common stock, net of offering costs, shares					23,287,134
Issuance of pre-funded warrants, net of offering costs	92,318					92,318
Conversion of non-voting common stock to voting common stock				(866,546)	866,546
Stock-based compensation expense	2,367					2,367
Net loss	(46,608)						(46,608)
Balances at Jun. 30, 2023	190,607			$ 1	$ 4	395,589	(204,987)
Balances, shares at Jun. 30, 2023				4,276,588	43,542,178
Balances at Mar. 31, 2023	78,018			$ 1	$ 2	258,957	(180,942)
Balances, shares at Mar. 31, 2023				4,745,225	19,480,729
Exercise of stock options	682					682
Exercise of stock options, shares					305,678
Issuance of common stock, net of offering costs	42,414				$ 2	42,412
Issuance of common stock, net of offering costs, shares					23,287,134
Issuance of pre-funded warrants, net of offering costs	92,318					92,318
Conversion of non-voting common stock to voting common stock				(468,637)	468,637
Stock-based compensation expense	1,220					1,220
Net loss	(24,045)						(24,045)
Balances at Jun. 30, 2023	190,607			$ 1	$ 4	395,589	(204,987)
Balances, shares at Jun. 30, 2023				4,276,588	43,542,178
Balances at Dec. 31, 2023	150,867			$ 1	$ 4	398,459	(247,597)
Balances, shares at Dec. 31, 2023		4,276,588	43,552,941	4,276,588	43,552,941
Exercise of stock options	442					442
Exercise of stock options, shares					145,149
Issuance of common stock, net of offering costs	33,131				$ 1	33,130
Issuance of common stock, net of offering costs, shares					4,958,068
Issuance of pre-funded warrants, net of offering costs	128,272					128,272
Stock-based compensation expense	4,312					4,312
Net loss	(61,803)						(61,803)
Balances at Jun. 30, 2024	255,221			$ 1	$ 5	564,615	(309,400)
Balances, shares at Jun. 30, 2024		4,276,588	48,656,158	4,276,588	48,656,158
Balances at Mar. 31, 2024	122,967			$ 1	$ 4	400,701	(277,739)
Balances, shares at Mar. 31, 2024				4,276,588	43,628,149
Exercise of stock options	183					183
Exercise of stock options, shares					69,941
Issuance of common stock, net of offering costs	33,131				$ 1	33,130
Issuance of common stock, net of offering costs, shares					4,958,068
Issuance of pre-funded warrants, net of offering costs	128,272					128,272
Stock-based compensation expense	2,329					2,329
Net loss	(31,661)						(31,661)
Balances at Jun. 30, 2024	$ 255,221			$ 1	$ 5	$ 564,615	$ (309,400)
Balances, shares at Jun. 30, 2024		4,276,588	48,656,158	4,276,588	48,656,158

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities:
Net loss	$ (61,803)	$ (46,608)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense	2,370	2,795
Accretion of marketable securities	(846)
Non-cash interest expense related to note payable	401	432
Stock-based compensation	4,312	2,367
Changes in current assets and liabilities:
Accounts receivable		(31,926)
Prepaid expenses and other assets	240	1,728
Right-of-use assets and lease liabilities, net	605	240
Accounts payable	(14)	862
Accrued expense and other liabilities	343	1,520
Deferred revenue	(1,100)	22,981
Net cash used in operating activities	(55,492)	(45,609)
Cash flows from investing activities:
Purchases of property and equipment	(1,567)	(1,258)
Purchases of marketable securities	(57,133)
Maturities of marketable securities	61,147
Net cash provided by (used in) investing activities	2,447	(1,258)
Cash flows from financing activities:
Proceeds from issuance of common stock, net of offering costs	33,131	42,600
Proceeds from issuance of pre-funded warrants, net of offering costs	128,272	92,394
Proceeds from exercise of stock options	442	682
Net cash provided by financing activities	161,845	135,676
Net increase (decrease) in cash, cash equivalents and restricted cash	108,800	88,809
Cash, cash equivalents, and restricted cash - beginning of period	138,390	125,064
Cash, cash equivalents, and restricted cash - end of period	247,190	213,873
Summary of cash, cash equivalents and restricted cash reported within the consolidated balance sheets:
Cash and cash equivalents	242,159	208,842
Restricted cash	5,031	5,031
Total cash, cash equivalents, and restricted cash	247,190	213,873
Supplemental disclosure of cash flow information:
Cash paid for interest	1,510	1,502
Supplemental disclosure of non-cash investing and financing activities:
Purchase of property and equipment in accounts payable and accrued liabilities	$ 977	87
Issuance costs included in accounts payable and accrued liabilities		$ 262

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (31,661)	$ (24,045)	$ (61,803)	$ (46,608)

Insider Trading Arrangements

Insider Trading Arrangements	6 Months Ended
	Jun. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Rule 10b5-1 Arrangement Modified	false
Non-Rule 10b5-1 Arrangement Modified	false

Nature of Business and Basis of

Nature of Business and Basis of Presentation	6 Months Ended
	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business and Basis of Presentation	1. Nature of Business and Basis of Presentation Nature of Business TScan Therapeutics, Inc. and its wholly-owned subsidiary, TScan Securities Corporation (the Company), is a biotechnology company that was incorporated in Delaware on April 17, 2018 and has a principal place of business in Waltham, Massachusetts. The Company is focused on developing a pipeline of TCR-T therapy candidates for the treatment of patients with cancer. Basis of Presentation The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) and applicable rules and regulations of the Securities and Exchange Commission (the SEC) regarding interim financial reporting, and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Management believes that the interim financial statements reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the Company’s financial position, results of its operations and cash flows. The condensed consolidated financial statements include the accounts of TScan Therapeutics, Inc. and its subsidiary, TScan Securities Corporation. All intercompany balances and transactions have been eliminated in consolidation. The results for the three and six months ended June 30, 2024, are not necessarily indicative of results to be expected for the year ending December 31, 2024, any other interim periods, or any future year or period. The accompanying condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on March 6, 2024. In the opinion of the Company’s management, all adjustments (consisting of normal and recurring adjustments) considered necessary for a fair statement of the results for the interim periods presented have been included. Risks, Uncertainties and Going Concern The Company is subject to risks common to companies in the biotechnology industry, including, but not limited to, successful development of technology, obtaining additional funding, protection of proprietary technology, compliance with government regulations, risks of failure of preclinical studies and clinical trials, the need to obtain marketing approval for its product candidates and the ability to successfully market any products that receive approval, fluctuations in operating results, economic pressure impacting therapeutic pricing, dependence on key personnel, risks associated with changes in technologies, development by competitors of technological innovations and the ability to scale manufacturing to large scale production. Product candidates currently under development will require significant additional research and development efforts, including preclinical and clinical testing and regulatory approval prior to commercialization. These efforts require significant amounts of additional capital, adequate personnel and infrastructure and extensive compliance capabilities. Even if the Company’s development efforts are successful, it is uncertain when, if ever, the Company will realize significant revenue from sales. The accompanying unaudited condensed consolidated financial statements have been prepared on the basis of continuity of operations, realization of assets and the satisfaction of liabilities and commitments in the ordinary course of business. The Company has primarily funded its operations with proceeds from sales of capital stock, payments received under its license and collaboration agreements and issuance of a debt facility to K2 HealthVentures LLC (K2HV). Since its inception, the Company has incurred recurring losses, including net losses of $ 61.8 million and $ 46.6 million for the six months ended June 30, 2024 and 2023, respectively. As of June 30, 2024, the Company had an accumulated deficit of $ 309.4 million. The Company expects to continue to generate operating losses in the foreseeable future. The Company expects that its cash, cash equivalents and marketable securities as of June 30, 2024, will be sufficient to fund the Company’s operations for at least the next 12 months from the date of the issuance of these financial statements. Emerging Growth Company Status The Company qualifies as “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012 (JOBS Act) and has elected to “opt in” to the extended transition related to complying with new or revised accounting standards, which means that when a standard is issued or revised and it has different application dates for public and nonpublic companies, the Company will adopt the new or revised standard at the time nonpublic companies adopt the new or revised standard and will do so until such time that the Company either (i) irrevocably elects to “opt out” of such extended transition period or (ii) no longer qualifies as an emerging growth company. The Company may choose to early adopt any new or revised accounting standards whenever such early adoption is permitted for nonpublic companies.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies The accounting policies of the Company are set forth in Note 2 to the consolidated financial statements contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, the accounting policies followed by the Company for interim financial reporting are consistent with the accounting policies therein. Recent Issued Accounting Pronouncements Not Yet Effective In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, “Segment Reporting - Improvements to Reportable Segment Disclosures.” The ASU requires disclosure of incremental segment information on an annual and interim basis and also requires companies with a single reportable segment to provide all disclosures required by this ASU and all existing segment disclosures in Accounting Standard Codification (“ASC”) 280, “Segment Reporting.” The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods beginning after December 15, 2024. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures. In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This ASU updates income tax disclosure requirements primarily by requiring specific categories and greater disaggregation within the rate reconciliation and disaggregation of income taxes paid by jurisdiction. This ASU is effective for annual periods beginning after December 15, 2024, and is applicable to the Company’s fiscal year beginning January 1, 2025, with early application permitted. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2024
Fair Value Disclosures [Abstract]
Fair Value Measurements	3. Fair Value M easurements The following tables set forth by level, within the fair value hierarchy, the assets carried at fair value (in thousands): Fair value measurements at June 30, 2024 using Active Observable Unobservable Total Cash Equivalents: Money market funds $ 73,543 $ - $ - $ 73,543 Government securities 161,061 - - 161,061 Marketable Securities: Government securities 55,517 - - 55,517 Total $ 290,121 $ - $ - $ 290,121 Fair value measurements at December 31, 2023 using Active Observable Unobservable Total Cash Equivalents: Money market funds $ 52,299 $ - $ - $ 52,299 Government securities 76,483 - - 76,483 Marketable Securities: Government securities 58,685 - - 58,685 Total $ 187,467 $ - $ - $ 187,467 Money market funds and government securities are valued by the Company based on quoted market prices, which represent a Level 1 measurement within the fair value hierarchy. There were no transfers among Level 1, Level 2, or Level 3 categories in the periods presented. Assets and Liabilities Not Carried at Fair Value The Company's long-term debt is carried at amortized cost. The fair value of the long-term debt was estimated to be $ 38.5 million and $ 38.4 million at June 30, 2024 and December 31, 2023, respectively. Fair value was determined using a convertible bond model using a binomial lattice approach. We classified the long-term debt within Level 3 of the fair value hierarchy because the fair value is derived using significant unobservable inputs, which include discount rates and volatility. The carrying value of cash, accounts payable and accrued expenses that are reported on the condensed consolidated balance sheets approximate their fair value due to the short-term nature of these assets and liabilities.

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	6 Months Ended
	Jun. 30, 2024
Payables and Accruals [Abstract]
Accrued Expenses and Other Current Liabilities	4. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): June 30, December 31, 2024 2023 Accrued research and development $ 5,465 $ 3,537 Accrued employee compensation and benefits 3,525 5,478 Accrued consulting and professional services 719 1,026 Accrued legal services and license fee 852 250 Other 247 425 Total accrued expenses and other current liabilities $ 10,808 $ 10,716

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2024
Stockholders' Equity Note [Abstract]
Stockholders' Equity	5. Stockholders' Equity ATM Program On May 16, 2023, the Company entered into a sales agreement (the Sales Agreement) with Wedbush Securities, Inc. (Wedbush), as sales agent, pursuant to which the Company could offer, issue and sell up to an aggregate amount of $ 75.0 million of shares of the Company's voting common stock, par value $ 0.0001 per share (Voting Common Stock), from time to time in “at-the-market” (ATM) offerings during the term of the Sales Agreement under a registration statement on Form S-3 (File No. 333-268260) filed with the SEC, which was declared effective on May 16, 2023. No Voting Common Stock has been sold under this Sales Agreement to date. Equity Offerings On June 1, 2023, the Company completed an underwritten public offering resulting in the issuance and sale of (a) 23,287,134 shares of Voting Common Stock, at a price of $ 2.00 per share, and (b) pre-funded warrants (Pre-Funded Warrants) to purchase up to 47,010,526 shares of the Voting Common Stock, at a price of $ 1.9999 per warrant with an exercise price of $ 0.0001 per share. The Company received aggregate net proceeds of $ 134.7 million after deducting underwriting discounts, commissions and other offering expenses, with $ 42.4 million allocated to the Voting Common Stock and $ 92.3 million allocated to Pre-Funded Warrants. On April 24, 2024, the Company completed an underwritten public offering resulting in the issuance and sale of (a) 4,958,068 shares of Voting Common Stock, including the partial exercise of the underwriters’ option to purchase 2,485,487 additional shares of Voting Common Stock, at the closing market price on April 16, 2024, of $ 7.13 per share, and (b) Pre-Funded Warrants to purchase up to 18,577,419 shares of the Voting Common Stock, at a price of $ 7.1299 per warrant with an exercise price of $ 0.0001 per share. The Company received aggregate net proceeds of approximately $ 161.4 million after deducting underwriting discounts, commissions and other offering expenses , with $ 33.1 million allocated to the Voting Common Stock and $ 128.3 million allocated to Pre-Funded Warrants. The Pre-Funded Warrants are immediately exercisable subject to certain ownership limitations, have an exercise price of $ 0.0001 per share, may be exercised at any time and do not expire. The Pre-Funded Warrants were determined to be equity classified because they are freestanding financial instruments that are legally detachable and separately exercisable from the equity instruments, are immediately exercisable, do not embody an obligation for the Company to repurchase its shares, permit the holders to receive a fixed number of common shares upon exercise, are indexed to the Company’s common stock and meet the equity classification criteria. In addition, the Pre-Funded Warrants do not provide any guarantee of value or return. As such, proceeds received from the issuance from the Pre-Funded Warrants were recorded as a component of stockholders’ equity within additional paid-in capital. As of June 30, 2024 , no Pre-Funded Warrants have been exercised.

Collaboration and License Agree

Collaboration and License Agreements	6 Months Ended
	Jun. 30, 2024
Collaboration And License Agreements [Abstract]
Collaboration and License Agreements	6. Collaboration and License Agreements Novartis In March 2020 , the Company entered into a Collaboration and License Agreement (the Novartis Agreement) with Novartis Institutes For Biomedical Research, Inc. (Novartis) to collaborate on their research efforts to discover and develop novel TCR-T therapies. The Novartis Agreement concluded during the quarter ended March 31, 2023 during which, the Company recognized $ 5.8 million of revenue . Amgen On May 8, 2023 , the Company entered into a Collaboration Agreement with Amgen Inc. (the Amgen Agreement) to identify antigens recognized by T cells in patients with Crohn’s disease in accordance with a research plan. Under the terms of the Agreement, Amgen will retain all global development and commercialization rights, as well as an option to expand the collaboration to include target discovery for ulcerative colitis, under certain pre-specified terms. The proceeds from the Amgen Agreement include an upfront payment of $ 30 million, which was collected in July 2023. In addition, the Company is eligible to earn success-based milestone payments of over $ 500 million, based upon the achievement of certain clinical development and commercial milestones, as well as tiered single-digit royalty payments on net sales of products developed from the collaboration, subject to reductions set forth in the Amgen Agreement. The Company concluded that Amgen meets the definition of a customer, as the Company is delivering research and development activities and a license of intellectual property. The Company identified performance obligations for research and development activities, the license, data reporting and participation in joint steering and research committees, which were determined to be a single combined performance obligation due to the services and licenses being highly interrelated. For a certain time period during the term of the Amgen Agreement, Amgen has an option to add targets to the collaboration for payments specified in the agreement. Pursuant to the Amgen Agreement, the option for Amgen to select additional targets and to license, develop, and commercialize targets is not a performance obligation at the outset as these are customer options that do not represent material rights. The Company looked to the promises in the arrangement to determine the method of recognition that best depicted the transfer of the services and the satisfaction of the combined performance obligations. The Company concluded that the performance of the research services over the expected research term was the predominant promise within the performance obligation. The Company will recognize the revenue associated with the performance obligation using an input method. The method of measuring progress towards delivery of the services incorporates actual internal and external costs incurred, relative to total internal and external costs expected to be incurred to satisfy the performance obligation. Changes in estimates of total internal and external costs expected to be incurred are recognized in the period of change as a cumulative catch-up adjustment. As costs are incurred, the Company will recognize revenue over time. At this time, it is estimated that the research term will be approximately three years . The Company determined the $ 30.0 million upfront payment to be the entirety of the consideration to be included in the transaction price as of the onset of the arrangement. The option to add additional targets was not included in the transaction price as they were assessed to be improbable at this time. The potential milestone and royalty payments that the Company is eligible to receive were also excluded from the transaction price, as all milestone and royalty amounts were fully constrained based on the assessed probability of achievement. The Company will continue to assess the probability of the option to add additional targets and the probability of milestone achievement throughout the research term and will adjust the consideration in the contract accordingly. The $ 30.0 million up-front payment was invoiced in June 2023 and was fully collected in July 2023. During the three and six months ended June 30, 2024 and 2023, the Company recognized $ 0.5 million, $ 1.1 million, $ 3.1 million, and $ 3.1 million, respectively, of revenue associated with the Amgen Agreement. As of June 30, 2024, the Company recorded $ 14.7 million of deferred revenue, of which $ 4.0 million is classified as long-term.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	7. Commitments and Contingencies Leases The Company leases office space under non-cancelable operating lease agreements. There have been no material changes to the Company's leases during the period ended June 30, 2024. Brigham and Women’s License Agreement The Company obtained the worldwide exclusive license to its foundational technology from the Brigham and Women’s Hospital, Inc. (BWH). The license, as amended, grants worldwide exclusive use to the patent underlying the TargetScan technology in exchange for fees including development milestones and various royalties on product sales should they occur in the future. Royalty Agreement In June 2018, the Company amended and restated an existing royalty agreement with one of its founders. Under the amended and restated royalty agreement, the Company agreed to pay the founder an aggregate royalty of 1 % of net sales of any product sold by the Company or by any of its direct or indirect licensees for use in the treatment of any disease or disorder covered by a pending patent application or issued patent held or controlled by the Company as of the last date that the founder was providing services to the Company as a director or consultant under a written agreement in perpetuity. Royalties are payable with respect to each applicable product for a defined period of time set forth in the royalty agreement. The founder assigned his rights and obligations under the royalty agreement to one of his affiliated entities in January 2021.

Loan and Security Agreement

Loan and Security Agreement	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
Loan and Security Agreement	8. Loan and Security Agreement On September 9, 2022 (the Closing Date), the Company entered into a Loan and Security Agreement (the Loan Agreement) with K2HV, pursuant to which convertible term loans in an aggregate principal amount of up to $ 60 million is available to the Company in three tranches, subject to certain terms and conditions. The Company drew the first tranche of $ 30 million from K2HV on the Closing Date. The Company had the option to draw the second tranche of $ 10 million upon the achievement of certain financial and clinical milestones and an uncommitted third tranche of $ 20 million may be funded by joint agreement of the Company and K2HV. The Company's option to draw on the second tranche was not exercised and expired on June 1, 2024. On the Closing Date, the Company paid a facility fee of $ 0.4 million to K2HV and is subject to an additional 1 % of the principal amount of any amount drawn on the third tranche. The term loans mature on September 1, 2026 (the Maturity Date) and will be subject to interest-only payments for 24 months, which can be extended to 36 months upon achievement of certain financial and clinical milestones, following which the term loans will amortize in equal monthly installments until maturity. The Company has the ability to repay the loan at any time either in cash or in shares, subject to applicable premiums as specified in the Loan Agreement. The term loans will accrue interest at a per annum rate equal to the greater of (i) 8.75 % and (ii) the sum of (A) the prime rate (as last quoted in The Wall Street Journal) and (B) 4.75 %, subject to a cap of 9.90 %. At June 30, 2024, the applicable interest rate is 9.90 %. The lenders may elect at any time following the closing prior to the payment in full of the term loans to convert any portion of the principal amount of the term loans then outstanding into shares of the Company's common stock. The first tranche of the loan is convertible at the option of K2HV at a conversion price of $ 4.785 per share and future tranches will be convertible as specified in the agreement, provided that, such price shall be subject to the applicable conversion price floor and other adjustments in accordance with the Loan Agreement. The embedded conversion option meets the derivative accounting scope exception since the embedded conversion option is indexed to the Company’s own common stock and qualifies for classification within stockholders’ equity. The Company has the option to prepay all, but not less than all, of the outstanding principal balance of the term loans under the Loan Agreement subject to a prepayment fee ranging from 4 % to 1 % depending upon when the prepayment occurs. The Company is obligated to pay a final fee equal to 6.00 % of the aggregate amount of the term loans funded (the Exit Fee), to occur upon the earliest of (i) the maturity date, (ii) the acceleration of the term loans, and (iii) the prepayment of the term loans. If, upon equity conversion, K2HV receives gross proceeds in an amount equal to at least 1.5 multiplied by the principal amount converted from the sale or other disposition of such Conversion Shares (as defined in the Loan Agreement), then as to such principal amount, the Exit Fee will be reduced to zero. The Company’s obligations under the Loan Agreement are secured by a first priority security interest in substantially all of its assets (other than intellectual property), subject to certain exceptions. The Loan Agreement contains customary representations and warranties, and also includes customary events of default, including payment default, breach of covenants, change of control, and material adverse effects. The Loan Agreement restricts certain activities, such as disposing of the Company’s business or certain assets, incurring additional debt or liens or making payments on other debt, making certain investments and declaring dividends, acquiring or merging with another entity, engaging in transactions with affiliates or encumbering intellectual property, among others. During the term of the Loan Agreement, the Company must maintain minimum unrestricted cash and cash equivalents equal to 5.0 times the average monthly cash burn measured over the trailing three-month period. Upon the occurrence of an event of default, a default interest rate of an additional 5 % per annum may be applied to the outstanding loan balances, and K2HV may declare all outstanding obligations immediately due and payable and exercise all of its rights and remedies as set forth in the Loan Agreement and under applicable law. The Company recorded $ 1.0 million, $ 1.9 million, $ 1.0 million, and $ 1.9 million in interest expense for the three and six months ended June 30, 2024 and 2023 , respectively. The effective interest rate on the Loan Agreement, including the amortization of the debt discount and issuance costs, and accretion of the Exit Fee, was 12.82 % at June 30, 2024. Future principal debt payments of the convertible term loans funded as of June 30, 2024 are as follows (in thousands): 2024 $ 3,427 2025 14,588 2026 11,985 Total principal payments 30,000 Plus: Final payment fee 1,800 Less: unamortized debt discount and final fee ( 1,352 ) Total debt 30,448 Less: current portion of long-term debt ( 10,336 ) Long-term debt, net $ 20,112

Net Loss Per Share

Net Loss Per Share	6 Months Ended
	Jun. 30, 2024
Earnings Per Share [Abstract]
Net Loss Per Share	9. Net Loss Per Share Net Loss Per Share Basic and diluted net loss per share was calculated as follows (in thousands, except share and per share data): Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Numerator: Net loss $ ( 31,661 ) $ ( 24,045 ) $ ( 61,803 ) $ ( 46,608 ) Denominator: Weighted-average common shares outstanding, basic and diluted 113,425,357 47,208,664 104,150,625 35,717,309 Net loss per share, basic and diluted $ ( 0.28 ) $ ( 0.51 ) $ ( 0.59 ) $ ( 1.30 ) The 65,587,945 shares of the Company's common stock issuable upon exercise of the Pre-Funded Warrants described in Note 5 are included as outstanding common stock in the calculation of basic and diluted net loss per share. The Company has two classes of common stock, each with identical participation rights to earnings and liquidation preferences, and therefore the calculation of net loss per share as described above is identical to the calculation under the two-class method. The Company excluded the following potential common shares from the computation of diluted net loss per share for the periods indicated because including them would have had an anti-dilutive effect: June 30, 2024 2023 Options to purchase common stock 12,804,957 11,718,296 Common stock issuable upon conversion of Loan Agreement 6,269,592 4,829,957 Potential shares issuable under the ESPP 69,617 - Total 19,144,166 16,548,253

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Recent Issued Accounting Pronouncements Not Yet Effective	Recent Issued Accounting Pronouncements Not Yet Effective In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, “Segment Reporting - Improvements to Reportable Segment Disclosures.” The ASU requires disclosure of incremental segment information on an annual and interim basis and also requires companies with a single reportable segment to provide all disclosures required by this ASU and all existing segment disclosures in Accounting Standard Codification (“ASC”) 280, “Segment Reporting.” The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods beginning after December 15, 2024. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures. In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This ASU updates income tax disclosure requirements primarily by requiring specific categories and greater disaggregation within the rate reconciliation and disaggregation of income taxes paid by jurisdiction. This ASU is effective for annual periods beginning after December 15, 2024, and is applicable to the Company’s fiscal year beginning January 1, 2025, with early application permitted. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2024
Fair Value Disclosures [Abstract]
Schedule of Assets Carried at Fair Value on a Hierarchy Basis	The following tables set forth by level, within the fair value hierarchy, the assets carried at fair value (in thousands): Fair value measurements at June 30, 2024 using Active Observable Unobservable Total Cash Equivalents: Money market funds $ 73,543 $ - $ - $ 73,543 Government securities 161,061 - - 161,061 Marketable Securities: Government securities 55,517 - - 55,517 Total $ 290,121 $ - $ - $ 290,121 Fair value measurements at December 31, 2023 using Active Observable Unobservable Total Cash Equivalents: Money market funds $ 52,299 $ - $ - $ 52,299 Government securities 76,483 - - 76,483 Marketable Securities: Government securities 58,685 - - 58,685 Total $ 187,467 $ - $ - $ 187,467

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	6 Months Ended
	Jun. 30, 2024
Payables and Accruals [Abstract]
Schedule of Accrued Expenses and Other Current Liabilities	Accrued expenses and other current liabilities consisted of the following (in thousands): June 30, December 31, 2024 2023 Accrued research and development $ 5,465 $ 3,537 Accrued employee compensation and benefits 3,525 5,478 Accrued consulting and professional services 719 1,026 Accrued legal services and license fee 852 250 Other 247 425 Total accrued expenses and other current liabilities $ 10,808 $ 10,716

Loan and Security Agreement (Ta

Loan and Security Agreement (Tables)	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
Schedule of Future Principal Debt Payment	Future principal debt payments of the convertible term loans funded as of June 30, 2024 are as follows (in thousands): 2024 $ 3,427 2025 14,588 2026 11,985 Total principal payments 30,000 Plus: Final payment fee 1,800 Less: unamortized debt discount and final fee ( 1,352 ) Total debt 30,448 Less: current portion of long-term debt ( 10,336 ) Long-term debt, net $ 20,112

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	6 Months Ended
	Jun. 30, 2024
Earnings Per Share [Abstract]
Summary of Basic and Diluted Net Loss Per Share	Basic and diluted net loss per share was calculated as follows (in thousands, except share and per share data): Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Numerator: Net loss $ ( 31,661 ) $ ( 24,045 ) $ ( 61,803 ) $ ( 46,608 ) Denominator: Weighted-average common shares outstanding, basic and diluted 113,425,357 47,208,664 104,150,625 35,717,309 Net loss per share, basic and diluted $ ( 0.28 ) $ ( 0.51 ) $ ( 0.59 ) $ ( 1.30 )
Summary of Potential Common Shares Excluded from Computation of Diluted Net Loss per Share	The Company excluded the following potential common shares from the computation of diluted net loss per share for the periods indicated because including them would have had an anti-dilutive effect: June 30, 2024 2023 Options to purchase common stock 12,804,957 11,718,296 Common stock issuable upon conversion of Loan Agreement 6,269,592 4,829,957 Potential shares issuable under the ESPP 69,617 - Total 19,144,166 16,548,253

Nature of Business and Basis _2

Nature of Business and Basis of Presentation - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Date of incorporation			Apr. 17, 2018
Net losses	$ 31,661	$ 24,045	$ 61,803	$ 46,608
Accumulated deficit	$ 309,400		$ 309,400		$ 247,597

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Assets Carried at Fair Value on a Hierarchy Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Assets, Fair Value Disclosure [Abstract]
Total	$ 290,121	$ 187,467
Government Securities
Assets, Fair Value Disclosure [Abstract]
Cash and cash equivalents fair value disclosure	161,061	76,483
Marketable Securities, fair value disclosure	55,517	58,685
Cash Equivalents - Money Market Funds
Assets, Fair Value Disclosure [Abstract]
Cash and cash equivalents fair value disclosure	73,543	52,299
Active Markets (Level 1)
Assets, Fair Value Disclosure [Abstract]
Total	290,121	187,467
Active Markets (Level 1) | Government Securities
Assets, Fair Value Disclosure [Abstract]
Cash and cash equivalents fair value disclosure	161,061	76,483
Marketable Securities, fair value disclosure	55,517	58,685
Active Markets (Level 1) | Cash Equivalents - Money Market Funds
Assets, Fair Value Disclosure [Abstract]
Cash and cash equivalents fair value disclosure	$ 73,543	$ 52,299

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value, assets, level 1 to level 2 transfers	$ 0	$ 0
Fair value, assets, level 2 to level 1 transfers	0	0
Fair value, assets, transfers into level 3	0	0
Fair value, assets, transfers out of level 3	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of long-term debt	$ 38,500	$ 38,400

Accrued Expenses and Other Cu_3

Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Accrued research and development	$ 5,465	$ 3,537
Accrued employee compensation and benefits	3,525	5,478
Accrued consulting and professional services	719	1,026
Accrued legal services and license fee	852	250
Other	247	425
Total accrued expenses and other current liabilities	$ 10,808	$ 10,716

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands				3 Months Ended		6 Months Ended		14 Months Ended
	Apr. 24, 2024	Jun. 01, 2023	May 16, 2023	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Dec. 31, 2023
Class of Stock [Line Items]
Issuance of common stock, net of offering costs				$ 33,131	$ 42,414	$ 33,131	$ 42,414
Net proceeds from common stock and warrants after deducting underwriting discounts, commissions and other offering expenses	$ 161,400	$ 134,700
Proceeds from issuance of pre-funded warrants, net of offering costs	128,300	92,300				128,272	92,394
Proceeds from issuance of common stock, net of offering costs	$ 33,100	$ 42,400				$ 33,131	$ 42,600
Voting Common Stock
Class of Stock [Line Items]
Common stock, par value				$ 0.0001		$ 0.0001		$ 0.0001	$ 0.0001
Voting Common Stock | Public Offering
Class of Stock [Line Items]
Sale of stock price per share		$ 2
Voting Common Stock | Follow On Offering
Class of Stock [Line Items]
Number of shares issued	4,958,068	23,287,134
Underwriter option to purchase number of additional shares	2,485,487
Sale of stock price per share	$ 7.13
Voting Common Stock | ATM Program | Wedbush Securities, Inc.
Class of Stock [Line Items]
Number of shares issued								0
Issuance of common stock, net of offering costs			$ 75,000
Common stock, par value			$ 0.0001
Pre-Funded Warrants [Member]
Class of Stock [Line Items]
Common stock issuable upon exercise warrants				65,587,945		65,587,945		65,587,945
Warrants exercised				0		0		0
Warrant exercise price		$ 0.0001
Pre-Funded Warrants [Member] | Voting Common Stock
Class of Stock [Line Items]
Common stock issuable upon exercise warrants	18,577,419	47,010,526
Common stock price per warrant	$ 7.1299	$ 1.9999
Warrant exercise price	$ 0.0001	$ 0.0001

Collaboration and License Agr_2

Collaboration and License Agreements - Additional Information (Details) - USD ($) $ in Thousands		1 Months Ended		3 Months Ended			6 Months Ended
	May 08, 2023	Jul. 31, 2023	Mar. 31, 2020	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Collaboration And License Agreements [Line Items]
Collaboration and license revenue				$ 536	$ 3,148		$ 1,102	$ 9,951
Long-term deferred revenue				3,955			3,955		$ 5,622
Novartis
Collaboration And License Agreements [Line Items]
License agreement date			Mar. 31, 2020
Collaboration and license revenue						$ 5,800
Amgen Inc. | Amgen Agreement
Collaboration And License Agreements [Line Items]
License agreement date	May 08, 2023
Upfront payment receivable	$ 30,000
Upfront payment received		$ 30,000
Potential milestone payment	$ 500,000
Expects research term	3 years
Collaboration and license revenue				500	$ 3,100		1,100	$ 3,100
Deferred revenue				14,700			14,700
Long-term deferred revenue				$ 4,000			$ 4,000

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details)	Jun. 30, 2018
Royalty Agreement
Commitments And Contingencies Disclosure [Line Items]
Percentage of aggregate royalty of net sales of any product sold	1%

Loan and Security Agreement - A

Loan and Security Agreement - Additional Information (Details) - USD ($)		3 Months Ended		6 Months Ended
	Sep. 09, 2022	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Debt Instrument [Line Items]
Debt instrument drew		$ 30,000,000		$ 30,000,000
Interest rate				12.82%
Default interest rate	5%
Interest expense		1,000,000	$ 1,000,000	$ 1,900,000	$ 1,900,000
K2HV [Member]
Debt Instrument [Line Items]
Principal amount	$ 60,000,000
Facility fee	$ 400,000
Additional principal amount percentage	1%
Term loan maturity date	Sep. 01, 2026
Interest only payment term	24 months
Interest only payment extended term	36 months
Contractual interest rate	8.75%
Interest rate	9.90%			9.90%
Conversion price	$ 4.785
Final fee	6%
Covenant terms				During the term of the Loan Agreement, the Company must maintain minimum unrestricted cash and cash equivalents equal to 5.0 times the average monthly cash burn measured over the trailing three-month period.
K2HV [Member] | Prime Rate [Member]
Debt Instrument [Line Items]
Prime rate	4.75%
Tranche One [Member] | K2HV [Member]
Debt Instrument [Line Items]
Debt instrument drew	$ 30,000,000
Tranche Two [Member] | K2HV [Member]
Debt Instrument [Line Items]
Debt instrument remaining borrowing capacity	10,000,000
Tranche Three [Member] | K2HV [Member]
Debt Instrument [Line Items]
Debt instrument remaining borrowing capacity	$ 20,000,000
Maximum [Member] | K2HV [Member]
Debt Instrument [Line Items]
Prepayment fee range	4%
Minimum [Member] | K2HV [Member]
Debt Instrument [Line Items]
Prepayment fee range	1%
Covenant Terms, Unrestricted Cash and Cash Equivalents		$ 5,000,000		$ 5,000,000

Loan and Security Agreement - S

Loan and Security Agreement - Schedule of Future Principal Debt Payment (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Debt Disclosure [Abstract]
2024	$ 3,427
2025	14,588
2026	11,985
Total principal payments	30,000
Plus: Final payment fee	1,800
Less: unamortized debt discount and final fee	(1,352)
Total debt	30,448
Less: current portion of long-term debt	(10,336)	$ (3,347)
Long-term debt, net	$ 20,112	$ 26,700

Net Loss Per Share - Summary of

Net Loss Per Share - Summary of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Earnings Per Share [Abstract]
Net loss	$ (31,661)	$ (24,045)	$ (61,803)	$ (46,608)
Weighted-average common shares outstanding, basic	113,425,357	47,208,664	104,150,625	35,717,309
Weighted-average common shares outstanding, diluted	113,425,357	47,208,664	104,150,625	35,717,309
Net loss per share, basic	$ (0.28)	$ (0.51)	$ (0.59)	$ (1.3)
Net loss per share, diluted	$ (0.28)	$ (0.51)	$ (0.59)	$ (1.3)

Net Loss Per Share - Additional

Net Loss Per Share - Additional Information (Details)	Jun. 30, 2024 shares
Pre-Funded Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common stock issuable upon exercise warrants	65,587,945

Net Loss Per Share - Summary _2

Net Loss Per Share - Summary of Potential Common Shares Excluded from Computation of Diluted Net Loss per Share (Details) - shares	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total	19,144,166	16,548,253
Options to Purchase Common Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total	12,804,957	11,718,296
Common stock issuable upon conversion of Loan Agreement
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total	6,269,592	4,829,957
Potential shares issuable under the ESPP
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total	69,617