Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 09, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-39370 | |
Entity Registrant Name | Nkarta, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-4515206 | |
Entity Address, Address Line One | 6000 Shoreline Court | |
Entity Address, Address Line Two | Suite 102 | |
Entity Address, City or Town | South San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94080 | |
City Area Code | 415 | |
Local Phone Number | 582-4923 | |
Title of 12(b) Security | Common Stock, $0.0001 par value per share | |
Trading Symbol | NKTX | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 32,595,397 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001787400 |
CONDENSED BALANCE SHEETS (Unaud
CONDENSED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 188,568 | $ 20,607 |
Short-term investments, available-for-sale | 141,191 | 16,384 |
Prepaid expenses and other current assets | 3,635 | 474 |
Total current assets | 333,394 | 37,465 |
Restricted cash | 413 | 268 |
Property and equipment, net | 9,180 | 3,080 |
Operating lease right-of-use assets | 8,763 | 7,144 |
Other long-term assets | 545 | 455 |
Total assets | 352,295 | 48,412 |
Current liabilities | ||
Accounts payable | 2,262 | 1,882 |
Operating lease liabilities, current portion | 1,476 | 1,516 |
Preferred stock purchase right liability | 1,478 | |
Accrued and other current liabilities | 5,821 | 3,289 |
Total current liabilities | 9,559 | 8,165 |
Operating lease liabilities, net of current portion | 7,659 | 5,780 |
Other long-term liabilities | 96 | 134 |
Total liabilities | 17,314 | 14,079 |
Commitments | ||
Convertible preferred stock | 59,815 | |
Stockholders’ equity (deficit) | ||
Common stock | 3 | 1 |
Additional paid-in capital | 435,098 | 1,179 |
Accumulated other comprehensive loss | 4 | (2) |
Accumulated deficit | (100,124) | (26,660) |
Total stockholders’ equity (deficit) | 334,981 | (25,482) |
Total liabilities and stockholders’ equity (deficit) | $ 352,295 | $ 48,412 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Collaboration revenue | $ 115 | |||
Operating expenses | ||||
Research and development | $ 9,828 | $ 4,620 | $ 24,950 | 10,535 |
General and administrative | 3,918 | 1,289 | 8,560 | 3,281 |
Total operating expenses | 13,746 | 5,909 | 33,510 | 13,816 |
Loss from operations | (13,746) | (5,909) | (33,510) | (13,701) |
Other income (expense), net: | ||||
Change in fair value of preferred stock purchase right liability | 3,383 | (40,163) | 3,383 | |
Change in fair value of derivative liability | 858 | 858 | ||
Loss from extinguishment of debt | (752) | (752) | ||
Interest income | 206 | 358 | 60 | |
Interest expense | (283) | (472) | ||
Other income (expense), net | (153) | 35 | (149) | 35 |
Total other income (expense), net | 53 | 3,241 | (39,954) | 3,112 |
Net loss | (13,693) | (2,668) | (73,464) | (10,589) |
Comprehensive loss: | ||||
Net loss | (13,693) | (2,668) | (73,464) | (10,589) |
Other comprehensive loss | 3 | 6 | ||
Comprehensive loss | $ (13,690) | $ (2,668) | $ (73,458) | $ (10,589) |
Net loss per share, basic and diluted | $ (0.44) | $ (1.75) | $ (6.39) | $ (7.45) |
Weighted average shares used to compute net loss per share, basic and diluted | 30,981,441 | 1,528,510 | 11,499,327 | 1,421,882 |
CONDENSED STATEMENTS OF CONVERT
CONDENSED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Convertible Preferred Stock |
Temporary Equity, Beginning Balance at Dec. 31, 2018 | $ 12,709 | |||||
Temporary Equity, Beginning Balance, Shares at Dec. 31, 2018 | 6,170,349 | |||||
Temporary Equity, Ending Balance at Mar. 31, 2019 | $ 12,709 | |||||
Temporary Equity, Ending Balance, Shares at Mar. 31, 2019 | 6,170,349 | |||||
Beginning Balance at Dec. 31, 2018 | $ (5,396) | $ 1 | $ 187 | $ (5,584) | ||
Beginning Balance, Shares at Dec. 31, 2018 | 1,231,840 | |||||
Vesting of shares of common stock subject to repurchase | 20 | 20 | ||||
Vesting of shares of common stock subject to repurchase, Shares | 134,601 | |||||
Share-based compensation expense | 67 | 67 | ||||
Net loss | (3,083) | (3,083) | ||||
Ending Balance at Mar. 31, 2019 | (8,392) | $ 1 | 274 | (8,667) | ||
Ending Balance, Shares at Mar. 31, 2019 | 1,366,441 | |||||
Temporary Equity, Beginning Balance at Dec. 31, 2018 | $ 12,709 | |||||
Temporary Equity, Beginning Balance, Shares at Dec. 31, 2018 | 6,170,349 | |||||
Temporary Equity, Ending Balance at Sep. 30, 2019 | $ 54,356 | |||||
Temporary Equity, Ending Balance, Shares at Sep. 30, 2019 | 24,987,848 | |||||
Beginning Balance at Dec. 31, 2018 | (5,396) | $ 1 | 187 | (5,584) | ||
Beginning Balance, Shares at Dec. 31, 2018 | 1,231,840 | |||||
Net loss | (10,589) | |||||
Ending Balance at Sep. 30, 2019 | (15,573) | $ 1 | 599 | (16,173) | ||
Ending Balance, Shares at Sep. 30, 2019 | 1,565,859 | |||||
Temporary Equity, Beginning Balance at Mar. 31, 2019 | $ 12,709 | |||||
Temporary Equity, Beginning Balance, Shares at Mar. 31, 2019 | 6,170,349 | |||||
Temporary equity, Beneficial conversion feature upon issuance of convertible promissory notes | $ 261 | |||||
Temporary Equity, Ending Balance at Jun. 30, 2019 | $ 12,970 | |||||
Temporary Equity, Ending Balance, Shares at Jun. 30, 2019 | 6,170,349 | |||||
Beginning Balance at Mar. 31, 2019 | (8,392) | $ 1 | 274 | (8,667) | ||
Beginning Balance, Shares at Mar. 31, 2019 | 1,366,441 | |||||
Vesting of shares of common stock subject to repurchase | 5 | 5 | ||||
Vesting of shares of common stock subject to repurchase, Shares | 96,030 | |||||
Share-based compensation expense | 88 | 88 | ||||
Net loss | (4,838) | (4,838) | ||||
Ending Balance at Jun. 30, 2019 | (13,137) | $ 1 | 367 | (13,505) | ||
Ending Balance, Shares at Jun. 30, 2019 | 1,462,471 | |||||
Temporary equity, reacquisition of beneficial conversion feature upon settlement of promissory notes | $ (145) | |||||
Temporary equity, issuance of Series B second tranche convertible preferred stock, net of issuance cost | $ 44,326 | |||||
Temporary equity, issuance of Series B second tranche convertible preferred stock, net of issuance costs, Shares | 18,817,499 | |||||
Temporary equity, Series B or preferred stock purchase right (liability) reversal upon issuance of convertible preferred stock | $ (2,795) | |||||
Temporary Equity, Ending Balance at Sep. 30, 2019 | $ 54,356 | |||||
Temporary Equity, Ending Balance, Shares at Sep. 30, 2019 | 24,987,848 | |||||
Vesting of shares of common stock subject to repurchase | 5 | 5 | ||||
Vesting of shares of common stock subject to repurchase, Shares | 97,054 | |||||
Issuance of common stock upon exercise of stock option, net of repurchase, Shares | 6,334 | |||||
Share-based compensation expense | 227 | 227 | ||||
Net loss | (2,668) | (2,668) | ||||
Ending Balance at Sep. 30, 2019 | (15,573) | $ 1 | 599 | (16,173) | ||
Ending Balance, Shares at Sep. 30, 2019 | 1,565,859 | |||||
Temporary Equity, Beginning Balance at Dec. 31, 2019 | 59,815 | $ 59,815 | ||||
Temporary Equity, Beginning Balance, Shares at Dec. 31, 2019 | 27,283,973 | |||||
Temporary Equity, Ending Balance at Mar. 31, 2020 | $ 59,815 | |||||
Temporary Equity, Ending Balance, Shares at Mar. 31, 2020 | 27,283,973 | |||||
Beginning Balance at Dec. 31, 2019 | (25,482) | $ 1 | 1,179 | (26,660) | $ (2) | |
Beginning Balance, Shares at Dec. 31, 2019 | 1,600,601 | |||||
Vesting of shares of common stock subject to repurchase | 14 | 14 | ||||
Vesting of shares of common stock subject to repurchase, Shares | 17,494 | |||||
Issuance of common stock upon exercise of stock option, net of repurchase | 1 | 1 | ||||
Issuance of common stock upon exercise of stock option, net of repurchase, Shares | 2,871 | |||||
Share-based compensation expense | 482 | 482 | ||||
Unrealized gain (loss) on short-term investments | (1) | (1) | ||||
Net loss | (8,706) | (8,706) | ||||
Ending Balance at Mar. 31, 2020 | (33,692) | $ 1 | 1,676 | (35,366) | (3) | |
Ending Balance, Shares at Mar. 31, 2020 | 1,620,966 | |||||
Temporary Equity, Beginning Balance at Dec. 31, 2019 | 59,815 | $ 59,815 | ||||
Temporary Equity, Beginning Balance, Shares at Dec. 31, 2019 | 27,283,973 | |||||
Temporary Equity, Ending Balance, Shares at Sep. 30, 2020 | 0 | |||||
Beginning Balance at Dec. 31, 2019 | (25,482) | $ 1 | 1,179 | (26,660) | (2) | |
Beginning Balance, Shares at Dec. 31, 2019 | 1,600,601 | |||||
Net loss | (73,464) | |||||
Ending Balance at Sep. 30, 2020 | 334,981 | $ 3 | 435,098 | (100,124) | 4 | |
Ending Balance, Shares at Sep. 30, 2020 | 32,568,332 | |||||
Temporary Equity, Beginning Balance at Mar. 31, 2020 | $ 59,815 | |||||
Temporary Equity, Beginning Balance, Shares at Mar. 31, 2020 | 27,283,973 | |||||
Temporary Equity, Ending Balance at Jun. 30, 2020 | $ 59,815 | |||||
Temporary Equity, Ending Balance, Shares at Jun. 30, 2020 | 27,283,973 | |||||
Beginning Balance at Mar. 31, 2020 | (33,692) | $ 1 | 1,676 | (35,366) | (3) | |
Beginning Balance, Shares at Mar. 31, 2020 | 1,620,966 | |||||
Vesting of shares of common stock subject to repurchase | 12 | 12 | ||||
Vesting of shares of common stock subject to repurchase, Shares | 19,110 | |||||
Issuance of common stock upon exercise of stock option, net of repurchase | 285 | 285 | ||||
Issuance of common stock upon exercise of stock option, net of repurchase, Shares | 110,425 | |||||
Share-based compensation expense | 566 | 566 | ||||
Unrealized gain (loss) on short-term investments | 4 | 4 | ||||
Net loss | (51,065) | (51,065) | ||||
Ending Balance at Jun. 30, 2020 | (83,890) | $ 1 | 2,539 | (86,431) | 1 | |
Ending Balance, Shares at Jun. 30, 2020 | 1,750,501 | |||||
Temporary equity, issuance of Series B second tranche convertible preferred stock, net of issuance cost | $ 64,321 | |||||
Temporary equity, issuance of Series B second tranche convertible preferred stock, net of issuance costs, Shares | 27,066,206 | |||||
Reclassification of preferred stock purchase right liability to equity upon issuance of convertible preferred stock | $ 41,641 | |||||
Temporary equity, conversion of convertible preferred stock to common stock | $ (165,777) | |||||
Conversion of convertible preferred stock to common stock, Shares | (54,350,179) | |||||
Temporary Equity, Ending Balance, Shares at Sep. 30, 2020 | 0 | |||||
Conversion of convertible preferred stock to common stock | 165,777 | $ 1 | 165,776 | |||
Conversion of convertible preferred stock to common stock, Shares | 14,689,215 | |||||
Issuance of common stock upon initial public offering, net of issuance cost | 265,130 | $ 1 | 265,129 | |||
Issuance of common stock upon initial public offering, net of issuance cost, Shares | 16,100,000 | |||||
Vesting of shares of common stock subject to repurchase | 9 | 9 | ||||
Vesting of shares of common stock subject to repurchase, Shares | 18,246 | |||||
Issuance of common stock upon exercise of stock option, net of repurchase | 36 | 36 | ||||
Issuance of common stock upon exercise of stock option, net of repurchase, Shares | 10,370 | |||||
Share-based compensation expense | 1,609 | 1,609 | ||||
Unrealized gain (loss) on short-term investments | 3 | 3 | ||||
Net loss | (13,693) | (13,693) | ||||
Ending Balance at Sep. 30, 2020 | $ 334,981 | $ 3 | $ 435,098 | $ (100,124) | $ 4 | |
Ending Balance, Shares at Sep. 30, 2020 | 32,568,332 |
CONDENSED STATEMENT OF CASH FLO
CONDENSED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities | |||
Net loss | $ (73,464) | $ (10,589) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Share-based compensation expense | 2,657 | 382 | |
Depreciation and amortization | 503 | 272 | |
Accretion and amortization of investments, net | 116 | ||
Non-cash lease expense | 220 | 124 | |
Change in fair value of preferred stock purchase right liability | $ (3,383) | 40,163 | (3,383) |
Change in fair value of derivative liability | (858) | ||
Non-cash loss from extinguishment of debt | 752 | 752 | |
Non-cash interest expense on convertible notes | 283 | 472 | |
Others | (15) | ||
Changes in operating assets and liabilities: | |||
Prepaid expenses and other assets | (3,355) | 28 | |
Accounts payable and accrued and other liabilities | 2,523 | 1,069 | |
Net cash used in operating activities | (30,652) | (11,731) | |
Cash flows from investing activities | |||
Purchases of property and equipment | (6,442) | (1,306) | |
Purchases of short-term investments | (144,916) | ||
Maturities of short-term investments | 20,000 | ||
Net cash used in investing activities | (131,358) | (1,306) | |
Cash flows from financing activities | |||
Proceeds from issuance of convertible preferred stock, net of issuance costs | 64,321 | 38,417 | |
Proceeds from initial public offering, net of issuance costs | 265,461 | ||
Proceeds from stock option exercises | 322 | ||
Proceeds from early exercise of stock options | 12 | 42 | |
Proceeds from issuance of convertible notes, net of issuance costs | 5,986 | ||
Net cash provided by financing activities | 330,116 | 44,445 | |
Net increase in cash and cash equivalents | 168,106 | 31,408 | |
Cash, cash equivalents, and restricted cash beginning of period | 20,875 | 7,956 | |
Cash, cash equivalents, and restricted cash end of period | 39,364 | 188,981 | 39,364 |
Reconciliation of cash, cash equivalents and restricted cash to the balance sheet: | |||
Cash and cash equivalents | 39,095 | 188,568 | 39,095 |
Restricted cash | 269 | 413 | 269 |
Total cash, cash equivalents and restricted cash | $ 39,364 | 188,981 | 39,364 |
Non-cash investing activities: | |||
Property and equipment included in accounts payable and accrued liabilities | 825 | $ 329 | |
Non-cash financing activities: | |||
Deferred offering costs included in accounts payable and accrued liabilities | $ 331 |
Organization and Description of
Organization and Description of Business | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Description of Business | 1. Organization and Description of Business Description of the Business Nkarta, Inc. (“Nkarta” or the “Company”) was incorporated in the State of Delaware in July 2015. The Company is a biopharmaceutical company developing engineered natural killer (“NK”) cells to fight cancer. The Company is focused on leveraging the natural potent power of NK cells to identify and kill abnormal cells and recruit adaptive immune effectors to generate responses that are specific and durable. Nkarta is combining its NK expansion platform technology with proprietary cell engineering technologies to generate an abundant supply of NK cells, engineer enhanced NK cell recognition of tumor targets, and improve persistence for sustained activity in the body for the treatment of cancer. Nkarta’s goal is to develop off-the-shelf NK cell therapy product candidates to improve outcomes for patients. The Company’s operations are based in South San Francisco, California and it operates in one segment. Initial Public On July 14, 2020, the Company completed its initial public offering (“IPO”). The Company’s Registration Statement on Form S-1 (File No. 333-239301) relating to the IPO was declared effective by the Securities and Exchange Commission (“SEC”) on July 9, 2020. The shares began trading on the Nasdaq Global Select Market on July 10, 2020. The Company issued 16,100,000 shares of its common stock, including 2,100,000 shares associated with the full exercise of the underwriters’ option to purchase additional shares, at an offering price of $18.00 per share. Immediately prior to the closing of the Company’s IPO on July 14, 2020, all outstanding shares of the Company’s convertible preferred stock were converted into 14,689,215 shares of the Company’s common stock. In aggregate, the shares issued in the IPO generated approximately $265.1 million in net proceeds after deducting underwriting discounts and commissions and other offering costs. Liquidity and Management Plans The accompanying unaudited condensed financial statements have been prepared assuming that the Company will continue as a going concern. However, since inception, he Company has devoted substantially all of its efforts to organizing and staffing, business planning, raising capital, conducting preclinical studies and initiating clinical studies, and has not realized substantial revenues from its planned principal operations. In addition, the Company has a limited operating history, has incurred operating losses since inception and expects that it will continue to incur net losses into the foreseeable future as it continues its research and development activities. As of September 30, 2020, the Company had an accumulated deficit of $100.1 million and cash, cash equivalents, restricted cash and short-term investments of $330.2 million. Management plans to continue to incur substantial costs in order to conduct research and development activities and additional capital will be needed The Company intends to raise such capital through d ebt or equity financings or other arrangements to fund operations |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | 2. Basis of Presentation and Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed financial statements as of September 30, 2020 and for the three and nine months ended September The results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results expected for the full year or any subsequent interim period. The condensed balance sheet at December 31, 2019 has been derived from the audited financial statements at that date but does not include all disclosures required by U.S. GAAP for complete financial statements. Because all of the disclosures required by U.S. GAAP for complete financial statements are not included herein, these unaudited condensed financial statements and the notes accompanying them should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2019 included in the Registration Statement on Form S-1 and related Prospectus dated July 9, 2020 filed with the SEC pursuant to Rule 424(b)(4) of the Securities Act of 1933, as amended (“Prospectus”). Certain prior period amounts reported in the Company’s financial statements and notes thereto have been reclassified to conform to the current period presentation, with no impact on previously reported operating results or financial position. Reverse Stock Split On July 1, 2020, the Company effected a 1-for-3.7 reverse stock split (the “Reverse Stock Split”) of its issued and outstanding common stock. Accordingly, the conversion ratio for the Company’s outstanding convertible preferred stock was proportionately adjusted such that the common stock issuable upon conversion of such preferred stock was decreased in proportion to the Reverse Stock Split. The par value of the common stock was not adjusted as a result of the Reverse Stock Split. All references to common stock, options to purchase common stock, early exercised options, share data, per share data, convertible preferred stock (to the extent presented on an as-converted to common stock basis) and related information contained in these financial statements have been retrospectively adjusted to reflect the effect of the Reverse Stock Split for all periods presented. COVID-19 Pandemic On March 11, 2020, the World Health Organization declared the outbreak of a novel strain of coronavirus, COVID-19, as a global pandemic, which continued to spread throughout the United States and around the world in the third quarter of 2020. The COVID-19 pandemic is contributing to a general slowdown in the global economy and may affect the Company’s business, results of operations, financial condition, and future strategic plans. The extent of the impact of the COVID-19 pandemic on the Company’s operational and financial performance will depend on certain developments, including the duration and spread of the outbreak, and its impact on the Company’s planned preclinical studies and clinical trials, employees and vendors, all of which are uncertain and cannot be predicted. The Company has taken certain precautionary measures to minimize exposure of our employees to the virus and to comply with directives from public health officials. This includes work from home policies for our employees as well as enhanced safety measures for scientists who are in our labs and manufacturing facility. Some of the third-party vendors that the Company uses have experienced disruptions during this pandemic. At this time, the extent to which the COVID-19 pandemic may impact the Company’s financial condition or results of operations is uncertain and these precautionary measures may negatively impact our productivity, and cause disruptions or delays to our activities and timelines. In response to the pandemic, the Coronavirus Aid, Relief and Economic Security Act (the CARES Act) was signed into law on March 27, 2020. The CARES Act, among other things, includes tax provisions relating to refundable payroll tax credits, deferment of employer’s social security payments, net operating loss utilization and carryback periods, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. The CARES Act had no impact on the Company’s income tax provision for the three and nine months ended September 30, 2020. The Company continues to evaluate the impact of the CARES Act on its financial position, results of operations and cash flows. The Company currently does not expect to apply for loans or grants under the CARES Act. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company’s financial statements and accompanying notes. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition, preclinical studies, fair value of assets and liabilities, convertible preferred stock, share-based compensation and income taxes. Management bases its estimates on historical experience, knowledge of current events and actions it may undertake in the future that management believes to be reasonable under the circumstances. Actual results may differ from these estimates and assumptions. Deferred Offering Costs Deferred offering costs consisting of legal, accounting, printing and other fees and costs directly attributable to the IPO are capitalized. total deferred offering costs of $4.4 million were offset against the proceeds from the IPO and reclassified to additional paid in capital Net Loss Per Share Basic net loss per share is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding for the period, without consideration of potential dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the sum of the weighted average number of common shares plus the potential dilutive effects of potential dilutive securities outstanding during the period. Potential dilutive securities are excluded from diluted earnings or loss per share if the effect of such inclusion is antidilutive. The Company’s potentially dilutive securities, which include convertible preferred stock prior to the conversion of such shares to common stock, unvested common stock, and outstanding stock options under the Company’s equity incentive plan, have been excluded from the computation of diluted net loss per share as they would be anti-dilutive to the net loss per share. For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding due to the Company’s net loss position. Recent Accounting Pronouncements Financial Instruments. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): , which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including available-for-sale debt securities. The Company adopted this standard in the first quarter of 2020. The adoption of this standard did not have a material impact on the Company’s financial statements. Fair Value Measurements. In August 2018, the FASB issued ASU 2018-13—Fair Value Measurement (Topic 820): , which eliminates, adds and modifies certain disclosure requirements for fair value measurement. The amendments in ASU 2018-13 that relate to changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments in ASU 2018-13 should be applied retrospectively to all periods presented upon their effective date. The Company adopted this standard in the first quarter of 2020. The adoption of this standard did not have a material impact on the Company’s disclosures. Income Taxes. In December 2019, the FASB issued ASU 2019-12—Income Taxes (Topic 740): which simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in Topic 740 related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates. This standard is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company will adopt this standard in the first quarter of 2021 and the adoption is not expected to have a material impact on the Company’s financial statements. There were no other significant updates to the recently issued accounting standards other than as disclosed herewith for the nine months ended September 30, 2020. Although there are several other new accounting pronouncements issued or proposed by the FASB, the Company does not believe any of those accounting pronouncements have had or will have a material impact on its financial position or operating results. |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 3. Net Loss Per Share The following tables summarize the computation of the basic and diluted net loss per share (in thousands except share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Numerator: Net loss $ (13,693 ) $ (2,668 ) $ (73,464 ) $ (10,589 ) Denominator: Weighted average common shares outstanding 31,095,610 1,718,510 11,620,515 1,706,784 Less: weighted average unvested common stock issued upon early exercise of common stock options (114,169 ) (160,618 ) (121,188 ) (171,873 ) Less: weighted average unvested founder shares of common stock — (29,382 ) — (113,029 ) Weighted average shares used to compute net loss per share, basic and diluted 30,981,441 1,528,510 11,499,327 1,421,882 Net loss per share, basic and diluted $ (0.44 ) $ (1.75 ) $ (6.39 ) $ (7.45 ) The following table summarizes the outstanding potentially dilutive securities that have been excluded in the calculation of diluted net loss per share because their inclusion would be anti-dilutive: As of September 30, 2020 2019 Common stock options 3,564,980 2,153,688 Unvested common stock upon early exercise of common stock options 107,847 153,528 Convertible preferred stock — 7,374,034 3,672,827 9,681,250 Immediately prior to the closing of the Company’s IPO on July 14, 2020, all outstanding shares of the Company’s convertible preferred stock converted into 14,689,215 shares of the Company’s common stock. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 4. Fair Value of Financial Instruments The following tables summarize the fair value of the Company’s financial instruments (in thousands): Fair Value Measurements Using September 30, 2020 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents: Money market funds $ 186,308 $ 186,308 $ — $ — Short-term investments: Corporate debt securities $ 41,957 — $ 41,957 — Commercial paper 53,922 — 53,922 — U.S. treasury bills 45,312 — 45,312 — Total short-term investments 141,191 — 141,191 — Total $ 327,499 $ 186,308 $ 141,191 $ — Fair Value Measurements Using December 31, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents: Commercial paper $ 2,395 $ — $ 2,395 $ — Short-term investments: Corporate debt securities $ 6,027 — $ 6,027 — Commercial paper 10,357 — 10,357 — Total short-term investments 16,384 — 16,384 — Total $ 18,779 $ — $ 18,779 $ — Liabilities: Preferred stock purchase right liability $ 1,478 $ — $ — $ 1,478 There were no transfers in or out of Level 1 or Level 2 during the three and nine months ended September 30, 2020. Cash Equivalents and Short-Term Investments Financial assets measured at fair value on a recurring basis consist of the Company’s cash equivalents and short-term investments. Cash equivalents consisted of money market funds and short-term investments consisted of commercial paper and corporate bonds. The Company obtains pricing information from its investment manager and generally determines the fair value of investment securities using standard observable inputs, including reported trades, broker/dealer quotes, and bids and/or offers. Investments are classified as Level 1 within the fair value hierarchy if their quoted prices are available in active markets for identical securities. Investments in money market funds of $186.3 million as of September 30, 2020 were classified as Level 1 instruments and were included in cash and cash equivalents. Investments in marketable securities are valued using Level 2 inputs. Level 2 securities are initially valued at the transaction price and subsequently valued and reported upon utilizing inputs other than quoted prices that are observable either directly or indirectly, such as quotes from third-party pricing vendors. Fair values determined by Level 2 inputs, which utilize data points that are observable such as quoted prices, interest rates and yield curves, require the exercise of judgment and use of estimates, that if changed, could significantly affect the Company’s financial position and results of operations. The marketable securities of $141.2 million as of September 30, 2020 were classified as Level 2 instruments and were included in short-term investments. Accrued interest receivable related to short-term investments were $0.3 million and nil as of September 30, 2020 and 2019, respectively, and included as part of prepaid expenses and other current assets in the balance sheets. The following tables summarize the Company’s short-term investments accounted for as available-for-sale securities as of September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 Maturity (in years) Amortized Cost Unrealized Losses Unrealized Gains Estimated Fair Value Corporate debt securities 1 year or less $ 41,959 $ (6 ) $ 4 $ 41,957 Commercial paper 1 year or less 53,922 — — 53,922 U.S. treasury bills 1 year or less 45,307 (1 ) 6 45,312 Total $ 141,188 $ (7 ) $ 10 $ 141,191 December 31, 2019 Maturity (in years) Amortized Cost Unrealized Losses Unrealized Gains Estimated Fair Value Corporate debt securities 1 year or less $ 6,029 $ (2 ) $ — $ 6,027 Commercial paper 1 year or less 10,357 — — 10,357 Total $ 16,386 $ (2 ) $ — $ 16,384 The Company has classified all of its available-for-sale investment securities as current assets on the balance sheet based on the highly liquid nature of these investment securities and because these investment securities are considered available for use in current operations. Prior to 2020, the Company followed the guidance in ASC 320 Investments—Debt and Equity Securities in determining whether unrealized losses were other than temporary. The Company adopted Topic 326 on January 1, 2020, and now considers whether unrealized losses have resulted from a credit loss or other factors. The unrealized losses on our available-for-sale securities as of September 30, 2020 and December 31, 2019 were caused by fluctuations in market value and interest rates as a result of the economic environment. The Company concluded that an allowance for credit losses was unnecessary as of September 30, 2020 and that there were no impairments as of December 31, 2019 considered other-than-temporary because the decline in the market value was attributable to changes in market conditions and not credit quality, and that it is neither management’s intention to sell nor is it more likely than not that the Company will be required to sell these investments prior to recovery of their cost basis or recovery of fair value. Unrealized gains and losses are included in accumulated other comprehensive loss. There was no realized gain or loss on available-for-sale securities in the periods presented. The Company uses the specific identification method to determine the cost basis of investments sold. Preferred Stock Purchase Right Liability On July 1, 2020, the Company completed the Series B Milestone Closing and issued 27,066,206 shares of its Series B convertible preferred stock for aggregate gross proceeds of $64.4 million. Accordingly, the preferred stock purchase right liability was revalued at an estimated fair value of $41.6 million and was reclassified to additional paid-in capital The estimated fair value of the preferred stock purchase right liability at July 1, 2020 and December 31, 2019 was determined using a valuation model that incorporated the probability of the occurrence of the Series B Milestone Closing in addition to the factors considered at issuance. To determine the fair value of preferred stock purchase right as of July 1, 2020, an intrinsic value model was used. The assumptions used to determine the fair value of the preferred stock purchase right liability as of December 31, 2019 and upon its issuance in August 2019 included an estimated probability of occurrence of the Series B Milestone Closing of 90%, an assumed discount rates of 1.6% and 1.8%, respectively, and an estimated time period the preferred stock purchase right liability would be outstanding of 0.8 years and 1.1 years, respectively. As certain of these inputs are not observable in the market, the preferred stock purchase right liability is classified as a Level 3 instrument. The following table provides the change in preferred stock purchase right liability for the nine months ended September 30, 2020 (in thousands): Preferred Stock Purchase Right Liability Balance, December 31, 2019 $ 1,478 Change in fair value of preferred stock purchase right 40,163 Reclassification of preferred stock purchase right liability to equity upon issuance of convertible preferred stock (41,641 ) Balance, September 30, 2020 $ — |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Sep. 30, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | 5. Balance Sheet Components Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets are comprised of the following (in thousands): September 30, 2020 December 31, 2019 Prepaid expenses $ 389 $ 407 Prepaid licenses 376 — Prepaid insurance 2,278 — Other current assets 592 67 Total prepaid expenses and other current assets $ 3,635 $ 474 Property and Equipment, Net Property and equipment, net is comprised of the following (in thousands): September 30, 2020 December 31, 2019 Leasehold improvements $ 3,992 $ 287 Furniture and fixtures 322 265 Research equipment 3,839 2,929 Computers and software 95 61 Construction in progress 2,080 183 Total property and equipment 10,328 3,725 Less accumulated depreciation and amortization (1,148 ) (645 ) Total property and equipment, net $ 9,180 $ 3,080 Depreciation and amortization expense were $0.2 million and $0.5 million for the three and nine months ended September 30, 2020, respectively, and $0.1 million and $0.3 million for the three and nine months ended September 30, 2019, respectively. Accrued and Other Current Liabilities Accrued other current liabilities are comprised of the following (in thousands): September 30, 2020 December 31, 2019 Compensation $ 2,544 $ 1,678 Research and development 1,419 702 Property and equipment 488 214 Other 1,370 695 Total accrued and other liabilities $ 5,821 $ 3,289 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | 6. Leases The Company has operating leases for its corporate office and laboratory space and dedicated space in a vivarium in South San Francisco, California. Rent expense, which is recognized on a straight-line basis over the term of each lease, were $0.5 million and $1.4 million for the three and nine months ended September 30, 2020, respectively, and $0.4 million and $0.8 million for the three and nine months ended September 30, 2019, respectively. The total cash paid for operating leases included in the operating cash flows were $0.4 million and $1.3 million for the three and nine months ended September 30, 2020, respectively, and $0.4 million and $0.8 million for the three and nine months ended September 30, 2019, respectively. The weighted-average remaining lease term was 8.3 years for the corporate office and laboratory space leases, and 0.5 years for the vivarium lease as of September 30, 2020. The weighted-average discount rate was 10% as of September 30, 2020. In May 2020, the Company signed an amendment to its office and laboratory facilities lease. The amended lease provides for an eight-year non-cancelable lease of additional office and laboratory space in the same building. The lease for additional office and laboratory space provides for abatement of rent during the first three months of the lease and contains rent escalations during the term of the lease. The lease for this additional space is expected to commence in the first quarter of 2021 and expires in 2029. The lease amendment also includes an extension of the lease term for the existing office and laboratory space beginning on May 1, 2020 through the first quarter of 2029. The lease agreement includes an option to extend the lease for an additional seven-year term. Maturities of operating lease liabilities under existing operating leases as of September 30, 2020 were as follows (in thousands): Year ending December 31, Amount 2020 (remaining 3 months) $ 430 2021 1,461 2022 1,452 2023 1,503 2024 1,556 2025 and thereafter 6,981 Total future minimum lease payments 13,383 Less imputed interest (4,248 ) Present value of net minimum lease payments $ 9,135 Operating lease liabilities: Current 1,476 Non-current 7,659 Total lease liability $ 9,135 Total minimum lease payments of $4.5 million related to the lease of additional space under the amendment were excluded from the table above as the lease agreement had not yet commenced as of September 30, 2020. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. Commitments & Contingencies Guarantee Agreement The Company has agreements whereby it indemnifies its officers and directors for certain events or occurrences while the officer or director is, or was, serving at the Company’s request in such capacity. The term of the indemnification period is for the officer’s or director’s lifetime. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company has a director and officer insurance policy that limits its exposure and enables the Company to recover a portion of any future amounts under certain circumstances and subject to deductibles and exclusions. The Company had no liabilities recorded for these agreements as of September 30, 2020 and December 31, 2019. Letters of Credit The Company has a $0.4 million letter of credit agreement with a financial institution that is used as collateral for the Company’s corporate headquarters’ operating lease. The letter of credit automatically renews annually without amendment unless cancelled by the financial institutions within 30 days of the annual expiration date. |
GSK Collaboration and License A
GSK Collaboration and License Agreement | 9 Months Ended |
Sep. 30, 2020 | |
Collaboration And License Agreement [Abstract] | |
GSK Collaboration and License Agreement | 8. GSK Collaboration and License Agreement In April 2017, the Company entered into the Collaboration and License Agreement (the “Collaboration Agreement”) with GlaxoSmithKline Intellectual Property Development Limited and Glaxo Group Limited (together, “GSK”) to research and develop therapeutics using Engineered NK Cells as carriers for target programs. On December 10, 2018, the Collaboration Agreement with GSK was terminated. For the nine months ended September 30, 2019, a nominal revenue of approximately $0.1 million was recognized in connection with the wind-down activities. There was no revenue recorded for the nine months ended September 30, 2020. |
Stockholders' Deficit
Stockholders' Deficit | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Deficit | 9. Stockholders’ Deficit Under the Amended and Restated Certificate of Incorporation dated August 26, 2019, the Company had a total of 126,270,161 shares of capital stock authorized for issuance, consisting of 71,919,982 shares of common stock, par value of $0.0001 per share, and 54,350,179 shares of preferred stock, par value of $0.0001 per share. Of the 54,350,179 shares of preferred stock, 6,170,349 were designated Series A convertible preferred stock and 48,179,830 were designated Series B convertible preferred stock. In connection with the Reverse Stock Split on July 1, 2020, the Company filed a certificate of amendment to its certificate of incorporation, which provided 100,000,000 authorized shares of common stock with a par value of $0.0001 per share and 54,350,179 authorized shares of preferred stock with a par value of $0.0001 per share. Series B Convertible Preferred Stock On August 27, 2019, the Company entered into a Series B Preferred Stock Purchase Agreement (“Stock Purchase Agreement”). The Stock Purchase Agreement contained provisions that obligated the Company to sell, outside of its control, an additional 27,066,206 shares of Series B convertible preferred stock at the Series B Original Issue Price per share, for expected gross proceeds of $64.4 million, upon the achievement of a milestone, or by election of the holders of at least one-third of the Company’s Series B convertible preferred stock at any time prior to the completion of the Company’s initial public offering if the milestone was not achieved (the “Series B Milestone Closing”). If the shares were not purchased prior to the completion of the Company’s initial public offering, then the right to purchase these shares would have automatically expired. In the event that an Initial Series B Closing purchaser, or its affiliates or transferees, failed to purchase their required shares in the Series B Milestone Closing, then all the Series B convertible preferred stock held by such initial Series B purchaser would have been automatically converted into one share of common stock for each ten shares of Series B convertible preferred stock. On July 1, 2020, the Company completed the Series B Milestone Closing pursuant to a milestone waiver by the holders of the Series B convertible preferred stock, and issued 27,066,206 shares of Series B convertible preferred stock for gross proceeds of $64.4 million. On July 14, 2020, upon the closing of the Company’s IPO, all outstanding shares of the Company’s convertible preferred stock converted into 14,689,215 shares of the Company’s common stock. There were no outstanding shares of the Company’s convertible preferred stock as of September 30, 2020. The Company determined its obligation to issue additional shares of the Company’s Series B convertible preferred stock in the Series B Milestone Closing represented a freestanding financial instrument that required liability accounting. This freestanding preferred stock purchase right liability was initially recorded at fair value, with fair value changes recognized in the statements of operations and comprehensive loss. At the time the Stock Purchase Agreement was entered into in August 2019, the initial estimated fair value of the preferred stock purchase right liability was $2.8 million, and was revalued at $1.5 million as of December 31, 2019. On July 1, 2020 the preferred stock purchase right liability was revalued at an estimated fair value of $41.6 million and was reclassified to additional paid-in capital upon the exercise of the preferred stock purchase right. The Company recorded the change in the fair value of the Series B convertible preferred stock purchase right liability of $40.2 million as other expense and $3.4 million as other income in the statements of operations and comprehensive loss for the nine months ended September 30, 2020 and 2019, respectively. Common Stock In conjunction with the Company’s July 2020 IPO closing, the Company issued and sold 16,100,000 shares of its common stock, including 2,100,000 shares pursuant to the full exercise of the underwriters' option to purchase additional shares, at a public offering price of $18.00 per share, for aggregate net proceeds of $265.1 million after deducting underwriting discounts and commissions and other offering costs. In connection with this offering, all outstanding shares of the Company’s convertible preferred stock converted into 14,689,215 shares of common stock. As of September 30, 2020 and December 31, 2019, 32,568,332 shares and 1,600,601 shares of common stock were issued and outstanding, respectively. The following is a summary of the rights and privileges of the holders of common stock as of September 30, 2020: Liquidation Preference : In the event of liquidation, dissolution or winding up, holders of common stock will be entitled to share ratably in the net assets legally available for distribution to stockholders after the payment of all debts and other liabilities and the satisfaction of any liquidation preference granted to the holders of any then-outstanding shares of preferred stock. Dividends : Subject to preferences that may be applicable to any then-outstanding preferred stock, holders of common stock are entitled to receive ratably those dividends, if any, as may be declared from time to time by the Board out of legally available funds. As of September 30, 2020, no cash dividends have been declared or paid. Voting Rights : Each holder of common stock is entitled to one vote for each share on all matters submitted to a vote of the stockholders, including the election of directors. Under the Company’s amended and restated certificate of incorporation and amended and restated bylaws, stockholders will not have cumulative voting rights. Because of this, the holders of a majority of the shares of common stock entitled to vote in any election of directors can elect all of the directors standing for election, if they should so choose. : Holders of common stock have no preemptive, conversion or subscription rights and there are no redemption or sinking fund provisions applicable to the common stock. The rights, preferences and privileges of the holders of common stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of preferred stock that the Company may designate in the future. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | 10. Share-Based Compensation Equity Incentive Plan The Company’s 2020 Performance Incentive Plan (the “2020 Plan”) became effective upon the consummation of the IPO. Upon the effectiveness of the 2020 Plan, no further grants may be made under the Company’s 2015 Equity Incentive Plan (the “2015 Plan”). The Company’s 2020 Plan allows for the grant of incentive stock options, non-qualified stock options, stock appreciation rights, stock bonuses, restricted stock, stock units and other forms of awards including cash awards to its officers, directors, employees, consultants and advisors. As of September 30, 2020, there were an aggregate of 2,364,268 shares of common stock issuable upon the exercise of outstanding options under the 2015 Plan. Any options or awards outstanding under the 2015 Plan remain outstanding and effective. A total of 2,660,371 shares of the Company’s common stock is authorized for issuance with respect to awards granted under the 2020 Plan. The share limit will automatically increase on the first trading day in January of each year (commencing in 2021) by an amount equal to the lesser of (1) 5% of the total number of outstanding shares of the Company’s common stock on the last trading day in December in the prior year, or (2) such lesser number as determined by the Company’s board of directors. Any shares subject to awards granted under the 2020 Plan or the 2015 Plan that are not paid, delivered or exercised before they expire or are canceled or terminated, or otherwise fail to vest, as well as shares used to pay the purchase or exercise price of such awards or related tax withholding obligations, will become available for new award grants under the 2020 Plan. A total of 1,239,532 options had been granted under the 2020 Plan for the three months ended September 30, 2020, and 1,495,314 shares was available for issuance under the 2020 Plan as of September 30, 2020. The following table summarizes the option activity under the 2020 Plan and 2015 Plan during the nine months ended September 30, 2020: Options Weighted- average exercise price Weighted- average remaining contractual term (in years) Outstanding at December 31, 2019 2,329,510 $ 3.59 9.6 Granted 1,479,794 16.50 Exercised (154,114 ) 2.17 Forfeited (90,210 ) 9.84 Outstanding at September 30, 2020 3,564,980 $ 8.85 9.2 Exercisable at September 30, 2020 419,878 $ 4.15 8.6 Vested and expected to vest at September 30, 2020 3,564,980 $ 8.85 9.2 The weighted-average grant date fair value of stock option grants was $10.34 per share for the nine months ended September 30, 2020. Employee Stock Purchase Plan The Company’s 2020 Employee Stock Purchase Plan (the “ESPP”), became effective upon the consummation of the IPO. A total of 295,599 shares of the Company’s common stock is initially available for issuance under the ESPP. The ESPP allows eligible employees to purchase shares of the Company’s common stock at a discount through payroll deductions of up to 15% of their eligible compensation, subject to any plan limitations. The ESPP provides for six-month offering periods, and at the end of each offering period, employees are able to purchase shares at 85% of the lower of the fair market value of the Company’s common stock on the first trading day of the offering period or on the last trading day of the offering period. As of September 30, 2020, no shares had been issued under the ESPP, and the full number of shares authorized under the ESPP Plan was available for issuance purposes upon the effectiveness of the ESPP. Liability for Early Exercise of Restricted Stock Options Shares subject to repurchase by the Company were 107,847 shares and 132,249 shares, with the related liability of $0.1 million and $0.1 million recorded under other long-term liabilities in the balance sheets as of September 30, 2020 and December 31, 2019, respectively. Share-Based Compensation Expense Share-based compensation expense for the three and nine months ended September 30, 2020 and 2019 were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Research and development $ 672 $ 93 $ 1,096 $ 156 General and administrative 937 134 1,561 226 Total share-based compensation $ 1,609 $ 227 $ 2,657 $ 382 The total unrecognized compensation cost related to unvested share-based awards was $18.3 million, which is expected to be recognized over a weighted-average remaining service period of 3.4 years as of September 30, 2020. Subsequently, in October 2020, the Company recorded an estimated shared-based compensation expense of $2.2 million related to the modification of certain stock option granted to its former Chief Financial Officer, Matthew Plunkett, under a Separation and Release Agreement that was executed on October 2, 2020. In addition, the Company recorded severance benefits expense of $0.3 million which is payable in the next 6 months after the termination date. The fair value of stock options was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Common stock fair value $ 18.86 $ 3.89 $ 16.50 $ 3.92 Risk-free interest rate 0.38 % 1.47 % 0.40 % 1.50 % Expected volatility 75.17 % 81.10 % 76.08 % 81.12 % Expected term (in years) 6.0 6.1 6.0 6.1 Expected dividend yield — % — % — % — % Common Stock Reserved for Future Issuance As of September 30, 2020, the Company had reserved the following shares of common stock for future issuance: September 30, 2020 Common stock options granted and outstanding 3,564,980 Reserved for future equity award grants 1,495,314 Reserved for future ESPP issuances 295,599 5,355,893 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes There was no provision for income taxes recorded during the three and nine months ended September 30, 2020 and 2019. The Company’s deferred tax assets continue to be fully offset by a valuation allowance . |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed financial statements as of September 30, 2020 and for the three and nine months ended September The results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results expected for the full year or any subsequent interim period. The condensed balance sheet at December 31, 2019 has been derived from the audited financial statements at that date but does not include all disclosures required by U.S. GAAP for complete financial statements. Because all of the disclosures required by U.S. GAAP for complete financial statements are not included herein, these unaudited condensed financial statements and the notes accompanying them should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2019 included in the Registration Statement on Form S-1 and related Prospectus dated July 9, 2020 filed with the SEC pursuant to Rule 424(b)(4) of the Securities Act of 1933, as amended (“Prospectus”). Certain prior period amounts reported in the Company’s financial statements and notes thereto have been reclassified to conform to the current period presentation, with no impact on previously reported operating results or financial position. |
Reverse Stock Split | Reverse Stock Split On July 1, 2020, the Company effected a 1-for-3.7 reverse stock split (the “Reverse Stock Split”) of its issued and outstanding common stock. Accordingly, the conversion ratio for the Company’s outstanding convertible preferred stock was proportionately adjusted such that the common stock issuable upon conversion of such preferred stock was decreased in proportion to the Reverse Stock Split. The par value of the common stock was not adjusted as a result of the Reverse Stock Split. All references to common stock, options to purchase common stock, early exercised options, share data, per share data, convertible preferred stock (to the extent presented on an as-converted to common stock basis) and related information contained in these financial statements have been retrospectively adjusted to reflect the effect of the Reverse Stock Split for all periods presented. |
COVID-19 Pandemic | COVID-19 Pandemic On March 11, 2020, the World Health Organization declared the outbreak of a novel strain of coronavirus, COVID-19, as a global pandemic, which continued to spread throughout the United States and around the world in the third quarter of 2020. The COVID-19 pandemic is contributing to a general slowdown in the global economy and may affect the Company’s business, results of operations, financial condition, and future strategic plans. The extent of the impact of the COVID-19 pandemic on the Company’s operational and financial performance will depend on certain developments, including the duration and spread of the outbreak, and its impact on the Company’s planned preclinical studies and clinical trials, employees and vendors, all of which are uncertain and cannot be predicted. The Company has taken certain precautionary measures to minimize exposure of our employees to the virus and to comply with directives from public health officials. This includes work from home policies for our employees as well as enhanced safety measures for scientists who are in our labs and manufacturing facility. Some of the third-party vendors that the Company uses have experienced disruptions during this pandemic. At this time, the extent to which the COVID-19 pandemic may impact the Company’s financial condition or results of operations is uncertain and these precautionary measures may negatively impact our productivity, and cause disruptions or delays to our activities and timelines. In response to the pandemic, the Coronavirus Aid, Relief and Economic Security Act (the CARES Act) was signed into law on March 27, 2020. The CARES Act, among other things, includes tax provisions relating to refundable payroll tax credits, deferment of employer’s social security payments, net operating loss utilization and carryback periods, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. The CARES Act had no impact on the Company’s income tax provision for the three and nine months ended September 30, 2020. The Company continues to evaluate the impact of the CARES Act on its financial position, results of operations and cash flows. The Company currently does not expect to apply for loans or grants under the CARES Act. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company’s financial statements and accompanying notes. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition, preclinical studies, fair value of assets and liabilities, convertible preferred stock, share-based compensation and income taxes. Management bases its estimates on historical experience, knowledge of current events and actions it may undertake in the future that management believes to be reasonable under the circumstances. Actual results may differ from these estimates and assumptions. |
Deferred Offering Costs | Deferred Offering Costs Deferred offering costs consisting of legal, accounting, printing and other fees and costs directly attributable to the IPO are capitalized. total deferred offering costs of $4.4 million were offset against the proceeds from the IPO and reclassified to additional paid in capital |
Net Loss Per Share | Net Loss Per Share Basic net loss per share is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding for the period, without consideration of potential dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the sum of the weighted average number of common shares plus the potential dilutive effects of potential dilutive securities outstanding during the period. Potential dilutive securities are excluded from diluted earnings or loss per share if the effect of such inclusion is antidilutive. The Company’s potentially dilutive securities, which include convertible preferred stock prior to the conversion of such shares to common stock, unvested common stock, and outstanding stock options under the Company’s equity incentive plan, have been excluded from the computation of diluted net loss per share as they would be anti-dilutive to the net loss per share. For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding due to the Company’s net loss position. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Financial Instruments. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): , which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including available-for-sale debt securities. The Company adopted this standard in the first quarter of 2020. The adoption of this standard did not have a material impact on the Company’s financial statements. Fair Value Measurements. In August 2018, the FASB issued ASU 2018-13—Fair Value Measurement (Topic 820): , which eliminates, adds and modifies certain disclosure requirements for fair value measurement. The amendments in ASU 2018-13 that relate to changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments in ASU 2018-13 should be applied retrospectively to all periods presented upon their effective date. The Company adopted this standard in the first quarter of 2020. The adoption of this standard did not have a material impact on the Company’s disclosures. Income Taxes. In December 2019, the FASB issued ASU 2019-12—Income Taxes (Topic 740): which simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in Topic 740 related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates. This standard is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company will adopt this standard in the first quarter of 2021 and the adoption is not expected to have a material impact on the Company’s financial statements. There were no other significant updates to the recently issued accounting standards other than as disclosed herewith for the nine months ended September 30, 2020. Although there are several other new accounting pronouncements issued or proposed by the FASB, the Company does not believe any of those accounting pronouncements have had or will have a material impact on its financial position or operating results. |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Loss Per Share | The following tables summarize the computation of the basic and diluted net loss per share (in thousands except share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Numerator: Net loss $ (13,693 ) $ (2,668 ) $ (73,464 ) $ (10,589 ) Denominator: Weighted average common shares outstanding 31,095,610 1,718,510 11,620,515 1,706,784 Less: weighted average unvested common stock issued upon early exercise of common stock options (114,169 ) (160,618 ) (121,188 ) (171,873 ) Less: weighted average unvested founder shares of common stock — (29,382 ) — (113,029 ) Weighted average shares used to compute net loss per share, basic and diluted 30,981,441 1,528,510 11,499,327 1,421,882 Net loss per share, basic and diluted $ (0.44 ) $ (1.75 ) $ (6.39 ) $ (7.45 ) |
Summarizes the Outstanding Potentially Dilutive Securities Excluded in Calculation of Diluted Net Loss Per Share | The following table summarizes the outstanding potentially dilutive securities that have been excluded in the calculation of diluted net loss per share because their inclusion would be anti-dilutive: As of September 30, 2020 2019 Common stock options 3,564,980 2,153,688 Unvested common stock upon early exercise of common stock options 107,847 153,528 Convertible preferred stock — 7,374,034 3,672,827 9,681,250 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Summary of Fair Value of Financial Instrument | The following tables summarize the fair value of the Company’s financial instruments (in thousands): Fair Value Measurements Using September 30, 2020 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents: Money market funds $ 186,308 $ 186,308 $ — $ — Short-term investments: Corporate debt securities $ 41,957 — $ 41,957 — Commercial paper 53,922 — 53,922 — U.S. treasury bills 45,312 — 45,312 — Total short-term investments 141,191 — 141,191 — Total $ 327,499 $ 186,308 $ 141,191 $ — Fair Value Measurements Using December 31, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents: Commercial paper $ 2,395 $ — $ 2,395 $ — Short-term investments: Corporate debt securities $ 6,027 — $ 6,027 — Commercial paper 10,357 — 10,357 — Total short-term investments 16,384 — 16,384 — Total $ 18,779 $ — $ 18,779 $ — Liabilities: Preferred stock purchase right liability $ 1,478 $ — $ — $ 1,478 |
Schedule of Change in Preferred Stock Purchase Right Liability | The following table provides the change in preferred stock purchase right liability for the nine months ended September 30, 2020 (in thousands): Preferred Stock Purchase Right Liability Balance, December 31, 2019 $ 1,478 Change in fair value of preferred stock purchase right 40,163 Reclassification of preferred stock purchase right liability to equity upon issuance of convertible preferred stock (41,641 ) Balance, September 30, 2020 $ — |
Short-term investments | |
Schedule of Short-term Investments Accounted as Available-for-sale Securities | The following tables summarize the Company’s short-term investments accounted for as available-for-sale securities as of September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 Maturity (in years) Amortized Cost Unrealized Losses Unrealized Gains Estimated Fair Value Corporate debt securities 1 year or less $ 41,959 $ (6 ) $ 4 $ 41,957 Commercial paper 1 year or less 53,922 — — 53,922 U.S. treasury bills 1 year or less 45,307 (1 ) 6 45,312 Total $ 141,188 $ (7 ) $ 10 $ 141,191 December 31, 2019 Maturity (in years) Amortized Cost Unrealized Losses Unrealized Gains Estimated Fair Value Corporate debt securities 1 year or less $ 6,029 $ (2 ) $ — $ 6,027 Commercial paper 1 year or less 10,357 — — 10,357 Total $ 16,386 $ (2 ) $ — $ 16,384 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets are comprised of the following (in thousands): September 30, 2020 December 31, 2019 Prepaid expenses $ 389 $ 407 Prepaid licenses 376 — Prepaid insurance 2,278 — Other current assets 592 67 Total prepaid expenses and other current assets $ 3,635 $ 474 |
Schedule of Property and Equipment, Net | Property and equipment, net is comprised of the following (in thousands): September 30, 2020 December 31, 2019 Leasehold improvements $ 3,992 $ 287 Furniture and fixtures 322 265 Research equipment 3,839 2,929 Computers and software 95 61 Construction in progress 2,080 183 Total property and equipment 10,328 3,725 Less accumulated depreciation and amortization (1,148 ) (645 ) Total property and equipment, net $ 9,180 $ 3,080 |
Schedule of Accrued Other Current Liabilities | Accrued other current liabilities are comprised of the following (in thousands): September 30, 2020 December 31, 2019 Compensation $ 2,544 $ 1,678 Research and development 1,419 702 Property and equipment 488 214 Other 1,370 695 Total accrued and other liabilities $ 5,821 $ 3,289 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities under existing operating leases as of September 30, 2020 were as follows (in thousands): Year ending December 31, Amount 2020 (remaining 3 months) $ 430 2021 1,461 2022 1,452 2023 1,503 2024 1,556 2025 and thereafter 6,981 Total future minimum lease payments 13,383 Less imputed interest (4,248 ) Present value of net minimum lease payments $ 9,135 Operating lease liabilities: Current 1,476 Non-current 7,659 Total lease liability $ 9,135 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity | The following table summarizes the option activity under the 2020 Plan and 2015 Plan during the nine months ended September 30, 2020: Options Weighted- average exercise price Weighted- average remaining contractual term (in years) Outstanding at December 31, 2019 2,329,510 $ 3.59 9.6 Granted 1,479,794 16.50 Exercised (154,114 ) 2.17 Forfeited (90,210 ) 9.84 Outstanding at September 30, 2020 3,564,980 $ 8.85 9.2 Exercisable at September 30, 2020 419,878 $ 4.15 8.6 Vested and expected to vest at September 30, 2020 3,564,980 $ 8.85 9.2 |
Summary of Share-based Compensation Expense | Share-based compensation expense for the three and nine months ended September 30, 2020 and 2019 were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Research and development $ 672 $ 93 $ 1,096 $ 156 General and administrative 937 134 1,561 226 Total share-based compensation $ 1,609 $ 227 $ 2,657 $ 382 |
Schedule of Fair Value of Stock Options Estimated on Date of Grant Using Black-Scholes Option Pricing Model | The fair value of stock options was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Common stock fair value $ 18.86 $ 3.89 $ 16.50 $ 3.92 Risk-free interest rate 0.38 % 1.47 % 0.40 % 1.50 % Expected volatility 75.17 % 81.10 % 76.08 % 81.12 % Expected term (in years) 6.0 6.1 6.0 6.1 Expected dividend yield — % — % — % — % |
Summary of Common Stock Reserved for Future Issuance | As of September 30, 2020, the Company had reserved the following shares of common stock for future issuance: September 30, 2020 Common stock options granted and outstanding 3,564,980 Reserved for future equity award grants 1,495,314 Reserved for future ESPP issuances 295,599 5,355,893 |
Organization and Description _2
Organization and Description of Business - Additional Information (Details) $ / shares in Units, $ in Thousands | Jul. 14, 2020USD ($)$ / sharesshares | Jul. 01, 2020USD ($)shares | Sep. 30, 2020USD ($)shares | Sep. 30, 2020USD ($)Segmentshares | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($)shares |
Class Of Stock [Line Items] | ||||||
Number of operating segments | Segment | 1 | |||||
Shares issued during period | shares | 32,568,332 | 32,568,332 | 1,600,601 | |||
Proceeds from initial public offering, net of issuance costs | $ 265,461 | |||||
Accumulated deficit | $ 100,124 | 100,124 | $ 26,660 | |||
Cash, cash equivalents restricted cash and short-term investments | $ 330,200 | $ 330,200 | ||||
Proceeds from issuance of convertible notes, net of issuance costs | $ 5,986 | |||||
Series B Convertible Preferred Stock | ||||||
Class Of Stock [Line Items] | ||||||
Proceeds from issuance of convertible notes, net of issuance costs | $ 64,400 | |||||
Temporary equity, shares issued | shares | 27,066,206 | |||||
IPO | ||||||
Class Of Stock [Line Items] | ||||||
Shares issued during period | shares | 16,100,000 | |||||
Shares issued, price per share | $ / shares | $ 18 | |||||
Proceeds from initial public offering, net of issuance costs | $ 265,100 | $ 265,100 | ||||
Underwriters Option to Purchase Additional Shares | ||||||
Class Of Stock [Line Items] | ||||||
Shares issued during period | shares | 2,100,000 | |||||
Common Stock | ||||||
Class Of Stock [Line Items] | ||||||
Conversion of convertible preferred stock to common stock, Shares | shares | 14,689,215 | |||||
Common Stock | IPO | ||||||
Class Of Stock [Line Items] | ||||||
Conversion of convertible preferred stock to common stock, Shares | shares | 14,689,215 | |||||
Proceeds from initial public offering, net of issuance costs | $ 265,100 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Polices - Additional Information (Details) $ in Millions | Jul. 01, 2020 | Sep. 30, 2020 | Jul. 31, 2020USD ($) |
Accounting Policies [Line Items] | |||
Reverse stock split, conversion ratio | 3.7 | ||
Description of the reverse stock split | On July 1, 2020, the Company effected a 1-for-3.7 reverse stock split (the “Reverse Stock Split”) of its issued and outstanding common stock. Accordingly, the conversion ratio for the Company’s outstanding convertible preferred stock was proportionately adjusted such that the common stock issuable upon conversion of such preferred stock was decreased in proportion to the Reverse Stock Split. The par value of the common stock was not adjusted as a result of the Reverse Stock Split. All references to common stock, options to purchase common stock, early exercised options, share data, per share data, convertible preferred stock (to the extent presented on an as-converted to common stock basis) and related information contained in these financial statements have been retrospectively adjusted to reflect the effect of the Reverse Stock Split for all periods presented | ||
Deferred offering costs | $ 4.4 | ||
ASU 2016-13 | |||
Accounting Policies [Line Items] | |||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Mar. 31, 2020 | ||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | ||
ASU 2018-13 | |||
Accounting Policies [Line Items] | |||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Mar. 31, 2020 | ||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | ||
ASU 2019-12 | |||
Accounting Policies [Line Items] | |||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Mar. 31, 2021 | ||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true |
Net Loss Per Share - Computatio
Net Loss Per Share - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Numerator: | ||||||||
Net loss | $ (13,693) | $ (51,065) | $ (8,706) | $ (2,668) | $ (4,838) | $ (3,083) | $ (73,464) | $ (10,589) |
Denominator: | ||||||||
Weighted average common shares outstanding | 31,095,610 | 1,718,510 | 11,620,515 | 1,706,784 | ||||
Less: weighted average unvested common stock issued upon early exercise of common stock options | (114,169) | (160,618) | (121,188) | (171,873) | ||||
Less: weighted average unvested founder shares of common stock | (29,382) | (113,029) | ||||||
Weighted average shares used to compute net loss per share, basic and diluted | 30,981,441 | 1,528,510 | 11,499,327 | 1,421,882 | ||||
Net loss per share, basic and diluted | $ (0.44) | $ (1.75) | $ (6.39) | $ (7.45) |
Net Loss Per Share - Summarizes
Net Loss Per Share - Summarizes the Outstanding Potentially Dilutive Securities Excluded in Calculation of Diluted Net Loss Per Share (Details) - shares | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 3,672,827 | 9,681,250 |
Convertible Preferred Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 7,374,034 | |
Common Stock Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 3,564,980 | 2,153,688 |
Unvested Common Stock Upon Early Exercise of Common Stock Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 107,847 | 153,528 |
Net Loss Per Share - Additional
Net Loss Per Share - Additional Information (Details) - Common Stock - shares | Jul. 14, 2020 | Sep. 30, 2020 |
Earnings Per Share Basic [Line Items] | ||
Conversion of convertible preferred stock to common stock, Shares | 14,689,215 | |
IPO | ||
Earnings Per Share Basic [Line Items] | ||
Conversion of convertible preferred stock to common stock, Shares | 14,689,215 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary of Fair Value of Financial Instrument (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets: | ||
Money market funds | $ 186,308 | |
Total short-term investments | 141,191 | $ 16,384 |
Total | 327,499 | 18,779 |
Commercial paper | 2,395 | |
Liabilities: | ||
Preferred stock purchase right liability | 41,600 | 1,478 |
Commercial Paper | ||
Assets: | ||
Total short-term investments | 53,922 | 10,357 |
U.S. Treasury Bills | ||
Assets: | ||
Total short-term investments | 45,312 | |
Corporate Debt Securities | ||
Assets: | ||
Total short-term investments | 41,957 | 6,027 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Money market funds | 186,308 | |
Total | 186,308 | |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Total short-term investments | 141,191 | 16,384 |
Total | 141,191 | 18,779 |
Commercial paper | 2,395 | |
Significant Other Observable Inputs (Level 2) | Commercial Paper | ||
Assets: | ||
Total short-term investments | 53,922 | 10,357 |
Significant Other Observable Inputs (Level 2) | U.S. Treasury Bills | ||
Assets: | ||
Total short-term investments | 45,312 | |
Significant Other Observable Inputs (Level 2) | Corporate Debt Securities | ||
Assets: | ||
Total short-term investments | $ 41,957 | 6,027 |
Significant Unobservable Inputs (Level 3) | ||
Liabilities: | ||
Preferred stock purchase right liability | $ 1,478 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Additional Information (Details) - USD ($) | Jul. 01, 2020 | Dec. 31, 2019 | Aug. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Fair value assets transfers from level 1 to level 2 | $ 0 | |||||
Fair value assets transfers from level 2 to level 1 | 0 | |||||
Fair value liabilities transfers from level 1 to level 2 | 0 | |||||
Fair value liabilities transfers from level 2 to level 1 | 0 | |||||
Impairments | $ 0 | |||||
Realized gain or loss on available-for-sale securities | 0 | |||||
Proceeds from issuance of convertible preferred stock | $ 5,986,000 | |||||
Preferred stock purchase right liability | $ 1,478,000 | 41,600,000 | $ 1,478,000 | |||
Fair value of preferred stock purchase right liability percentage | 90.00% | 90.00% | ||||
Fair value of preferred stock purchase right liability discount rate | 1.60% | 1.80% | ||||
Fair value of preferred stock purchase right liability outstanding term | 9 months 18 days | 1 year 1 month 6 days | ||||
Series B Convertible Preferred Stock | ||||||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Temporary equity, shares issued | 27,066,206 | |||||
Proceeds from issuance of convertible preferred stock | $ 64,400,000 | |||||
Short-term Investments | ||||||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Accrued interest receivable | 300,000 | |||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money Market Funds | ||||||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Investments | 186,300,000 | |||||
Significant Other Observable Inputs (Level 2) | Short-term Investments | ||||||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Marketable securities | $ 141,200,000 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Schedule of Short-term Investments Accounted as Available-for-sale Securities (Details) - Short-term Investments - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available for sale securities, Amortized Cost | $ 141,188 | $ 16,386 |
Available for sale securities, Unrealized Losses | (7) | (2) |
Available for sale securities, Unrealized Gains | 10 | |
Available for sale securities,Estimated Fair Value | 141,191 | 16,384 |
Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available for sale securities, Amortized Cost | 53,922 | 10,357 |
Available for sale securities,Estimated Fair Value | $ 53,922 | $ 10,357 |
Commercial Paper | Maximum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Maturity (in years) | 1 year | 1 year |
U.S. Treasury Bills | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available for sale securities, Amortized Cost | $ 45,307 | |
Available for sale securities, Unrealized Losses | (1) | |
Available for sale securities, Unrealized Gains | 6 | |
Available for sale securities,Estimated Fair Value | $ 45,312 | |
U.S. Treasury Bills | Maximum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Maturity (in years) | 1 year | |
Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available for sale securities, Amortized Cost | $ 41,959 | $ 6,029 |
Available for sale securities, Unrealized Losses | (6) | (2) |
Available for sale securities, Unrealized Gains | 4 | |
Available for sale securities,Estimated Fair Value | $ 41,957 | $ 6,027 |
Corporate Debt Securities | Maximum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Maturity (in years) | 1 year | 1 year |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Schedule of Change in Preferred Stock Purchase Right Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Abstract] | |||
Balance, December 31, 2019 | $ 1,478 | ||
Change in fair value of preferred stock purchase right liability | $ (3,383) | 40,163 | $ (3,383) |
Reclassification of preferred stock purchase right liability to equity upon issuance of convertible preferred stock | $ (41,641) |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Balance Sheet Related Disclosures [Abstract] | ||
Prepaid expenses | $ 389 | $ 407 |
Prepaid licenses | 376 | |
Prepaid insurance | 2,278 | |
Other current assets | 592 | 67 |
Total prepaid expenses and other current assets | $ 3,635 | $ 474 |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 10,328 | $ 3,725 |
Less accumulated depreciation and amortization | (1,148) | (645) |
Total property and equipment, net | 9,180 | 3,080 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 3,992 | 287 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 322 | 265 |
Research Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 3,839 | 2,929 |
Computers and Software | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 95 | 61 |
Construction in Progress | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 2,080 | $ 183 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Balance Sheet Related Disclosures [Abstract] | ||||
Depreciation and amortization expense | $ 0.2 | $ 0.1 | $ 0.5 | $ 0.3 |
Balance Sheet Components - Sc_3
Balance Sheet Components - Schedule of Accrued Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Balance Sheet Related Disclosures [Abstract] | ||
Compensation | $ 2,544 | $ 1,678 |
Research and development | 1,419 | 702 |
Property and equipment | 488 | 214 |
Other | 1,370 | 695 |
Total accrued and other liabilities | $ 5,821 | $ 3,289 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
May 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Lessee Lease Description [Line Items] | |||||
Rent expense | $ 0.5 | $ 0.4 | $ 1.4 | $ 0.8 | |
Cash paid for operating leases | $ 0.4 | $ 0.4 | $ 1.3 | $ 0.8 | |
Weighted-average discount rate | 10.00% | 10.00% | |||
Operating lease not yet commenced minimum lease payments | $ 4.5 | $ 4.5 | |||
Corporate Office and Laboratory Space | |||||
Lessee Lease Description [Line Items] | |||||
Weighted-average remaining lease term | 8 years 3 months 18 days | 8 years 3 months 18 days | |||
Vivarium | |||||
Lessee Lease Description [Line Items] | |||||
Weighted-average remaining lease term | 6 months | 6 months | |||
Office And Laboratory Facilities | |||||
Lessee Lease Description [Line Items] | |||||
Lease term | 8 years | ||||
Lease expiration year | 2029 | ||||
Operating lease, existence of option to extend | true | ||||
Lessee option to extend description | The lease amendment also includes an extension of the lease term for the existing office and laboratory space beginning on May 1, 2020 through the first quarter of 2029. The lease agreement includes an option to extend the lease for an additional seven-year term. |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2020 (remaining 3 months) | $ 430 | |
2021 | 1,461 | |
2022 | 1,452 | |
2023 | 1,503 | |
2024 | 1,556 | |
2025 and thereafter | 6,981 | |
Total future minimum lease payments | 13,383 | |
Less imputed interest | (4,248) | |
Present value of net minimum lease payments | 9,135 | |
Operating lease liabilities: | ||
Current | 1,476 | $ 1,516 |
Non-current | 7,659 | $ 5,780 |
Total lease liability | $ 9,135 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Loss Contingencies [Line Items] | ||
Liabilities recorded for agreements | $ 0 | $ 0 |
Agreement with Financial Institution [Member] | ||
Loss Contingencies [Line Items] | ||
Letters of credit outstanding amount | $ 400,000 | |
Letter of credit notice period by financial institution before annual expiration date | 30 days |
GSK Collaboration and License_2
GSK Collaboration and License Agreement - Additional Information (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Collaboration And License Agreement [Line Items] | ||
Collaboration revenue | $ 115,000 | |
Collaboration and License Agreement | GSK | ||
Collaboration And License Agreement [Line Items] | ||
Collaboration revenue | $ 0 | $ 100,000 |
Collaboration and License Agreement | Research and Development | GSK | ||
Collaboration And License Agreement [Line Items] | ||
Collaboration and license agreement entered month and year | 2017-04 | |
Collaboration agreement termination date | Dec. 10, 2018 |
Stockholders' Deficit - Additio
Stockholders' Deficit - Additional Information (Details) | Jul. 14, 2020USD ($)$ / sharesshares | Jul. 01, 2020USD ($)$ / sharesshares | Sep. 30, 2020Vote$ / sharesshares | Sep. 30, 2019USD ($)shares | Sep. 30, 2020USD ($)Vote$ / sharesshares | Sep. 30, 2019USD ($)shares | Jun. 30, 2020shares | Mar. 31, 2020shares | Dec. 31, 2019USD ($)shares | Aug. 31, 2019USD ($) | Aug. 26, 2019$ / sharesshares | Jun. 30, 2019shares | Mar. 31, 2019shares | Dec. 31, 2018shares |
Class Of Stock [Line Items] | ||||||||||||||
Capital stock, shares authorized | 126,270,161 | |||||||||||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | 71,919,982 | ||||||||||
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||||
Preferred stock, shares authorized | 54,350,179 | 54,350,179 | ||||||||||||
Preferred stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | ||||||||||||
Proceeds from issuance of convertible preferred stock | $ | $ 5,986,000 | |||||||||||||
Estimated fair value of preferred stock purchase right liability | $ | $ 41,600,000 | $ 1,478,000 | $ 2,800,000 | |||||||||||
Change in fair value of Series B convertible preferred stock purchase right liability | $ | $ 3,383,000 | $ (40,163,000) | $ 3,383,000 | |||||||||||
Proceeds from initial public offering, net of issuance costs | $ | $ 265,461,000 | |||||||||||||
Shares issued during period | 32,568,332 | 32,568,332 | 1,600,601 | |||||||||||
Common stock, shares outstanding | 32,568,332 | 32,568,332 | 1,600,601 | |||||||||||
Cash dividends declared or paid | $ | $ 0 | |||||||||||||
Common stock, voting rights | Each holder of common stock is entitled to one vote for each share on all matters submitted to a vote of the stockholders, including the election of directors. | |||||||||||||
Common stock entitled, number of vote for each share | Vote | 1 | 1 | ||||||||||||
IPO | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Proceeds from initial public offering, net of issuance costs | $ | $ 265,100,000 | $ 265,100,000 | ||||||||||||
Shares issued during period | 16,100,000 | |||||||||||||
Underwriters Option to Purchase Additional Shares | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Shares issued during period | 2,100,000 | |||||||||||||
Common Stock | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Conversion of convertible preferred stock into common stock | 14,689,215 | |||||||||||||
Issuance of common stock upon initial public offering, net of issuance cost, Shares | 16,100,000 | |||||||||||||
Common Stock | IPO | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Conversion of convertible preferred stock into common stock | 14,689,215 | |||||||||||||
Issuance of common stock upon initial public offering, net of issuance cost, Shares | 16,100,000 | |||||||||||||
Stock public offering price | $ / shares | $ 18 | |||||||||||||
Proceeds from initial public offering, net of issuance costs | $ | $ 265,100,000 | |||||||||||||
Common Stock | Underwriters Option to Purchase Additional Shares | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Issuance of common stock upon initial public offering, net of issuance cost, Shares | 2,100,000 | |||||||||||||
Series A Convertible Preferred Stock | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Preferred stock, shares authorized | 6,170,349 | |||||||||||||
Series B Convertible Preferred Stock | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Preferred stock, shares authorized | 48,179,830 | |||||||||||||
Number of shares converted into shares | 10 | |||||||||||||
Number of shares converted into shares | 1 | |||||||||||||
Temporary equity, issuance of Series B second tranche convertible preferred stock, net of issuance costs, Shares | 27,066,206 | |||||||||||||
Proceeds from issuance of convertible preferred stock | $ | $ 64,400,000 | |||||||||||||
Series B Convertible Preferred Stock | Stock Purchase Agreement | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Number of convertible preferred stock sold and issued during the period | 27,066,206 | |||||||||||||
Gross proceed from convertible preferred stock | $ | $ 64,400,000 | |||||||||||||
Convertible Preferred Stock | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Temporary equity, issuance of Series B second tranche convertible preferred stock, net of issuance costs, Shares | 27,066,206 | 18,817,499 | ||||||||||||
Convertible preferred stock, outstanding | 0 | 24,987,848 | 0 | 24,987,848 | 27,283,973 | 27,283,973 | 27,283,973 | 6,170,349 | 6,170,349 | 6,170,349 | ||||
Convertible Preferred Stock | Common Stock | IPO | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Conversion of convertible preferred stock into common stock | 14,689,215 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 9 Months Ended | |
Oct. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of common stock available for issuance | 5,355,893 | ||
Other long-term liabilities | $ 96 | $ 134 | |
Unrecognized compensation cost | $ 18,300 | ||
Unrecognized compensation cost, expected to be recognized over weighted average remaining service period | 3 years 4 months 24 days | ||
Subsequent Event | Separation and Release Agreement | Matthew Plunkett | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Estimated share-based compensation expense | $ 2,200 | ||
Severance benefits expense | $ 300 | ||
Agreement execution date | Oct. 2, 2020 | ||
Period in which severance benefits payable after termination date | 6 months | ||
Restricted Stock Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares subject to repurchase | 107,847 | 132,249 | |
Other long-term liabilities | $ 100 | $ 100 | |
2020 Employee Stock Purchase Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares issued | 0 | ||
Number of common stock available for issuance | 295,599 | ||
Maximum percentage of employee compensation eligible for plan | 15.00% | ||
Offering period | 6 months | ||
Commons stock purchase price as percentage of fair value | 85.00% | ||
2015 Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares issued | 2,364,268 | ||
2020 Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of common stock authorized for issuance | 2,660,371 | ||
Increase in share limit as percentage of outstanding shares of common stock on last trading day in prior year | 5.00% | ||
Number of awards granted | 1,239,532 | ||
Number of common stock available for issuance | 1,495,314 | ||
2020 Plan and 2015 Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted-average grant date fair value | $ 10.34 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Stock Option Activity (Details) - 2020 Plan and 2015 Plan | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020$ / sharesshares | Dec. 31, 2019$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Options, outstanding beginning balance | shares | 2,329,510 | |
Options, granted | shares | 1,479,794 | |
Options, exercised | shares | (154,114) | |
Options, forfeited | shares | (90,210) | |
Options, outstanding ending balance | shares | 3,564,980 | 2,329,510 |
Options, exercisable | shares | 419,878 | |
Options, vested and expected to vest | shares | 3,564,980 | |
Weighted-average exercise price, outstanding beginning balance | $ / shares | $ 3.59 | |
Weighted-average exercise price, granted | $ / shares | 16.50 | |
Weighted-average exercise price, exercised | $ / shares | 2.17 | |
Weighted-average exercise price, forfeited | $ / shares | 9.84 | |
Weighted-average exercise price, outstanding ending balance | $ / shares | 8.85 | $ 3.59 |
Weighted-average exercise price, exercisable | $ / shares | 4.15 | |
Weighted-average exercise price, vested and expected to vest | $ / shares | $ 8.85 | |
Weighted-average remaining contractual term (in years), outstanding balance | 9 years 2 months 12 days | 9 years 7 months 6 days |
Weighted-average remaining contractual term (in years), exercisable | 8 years 7 months 6 days | |
Weighted-average remaining contractual term (in years), vested and expected to vest | 9 years 2 months 12 days |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation | $ 1,609 | $ 227 | $ 2,657 | $ 382 |
Research and Development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation | 672 | 93 | 1,096 | 156 |
General and Administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation | $ 937 | $ 134 | $ 1,561 | $ 226 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Fair Value of Stock Options Estimated on Date of Grant Using Black-Scholes Option Pricing Model (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Common stock fair value | $ 18.86 | $ 3.89 | $ 16.50 | $ 3.92 |
Risk-free interest rate | 0.38% | 1.47% | 0.40% | 1.50% |
Expected volatility | 75.17% | 81.10% | 76.08% | 81.12% |
Expected term (in years) | 6 years | 6 years 1 month 6 days | 6 years | 6 years 1 month 6 days |
Share-Based Compensation - Su_3
Share-Based Compensation - Summary of Common Stock Reserved for Future Issuance (Details) | Sep. 30, 2020shares |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Common stock reserved for future issuance | 5,355,893 |
Common Stock Options Granted and Outstanding | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Common stock reserved for future issuance | 3,564,980 |
Reserved for Future Equity Award Grants | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Common stock reserved for future issuance | 1,495,314 |
Reserved for Future ESPP Issuances | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Common stock reserved for future issuance | 295,599 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 0 | $ 0 | $ 0 | $ 0 |