Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 11, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-40544 | |
Entity Registrant Name | AEROVATE THERAPEUTICS, INC. | |
Entity Central Index Key | 0001798749 | |
Entity Tax Identification Number | 83-1377888 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 930 Winter Street | |
Entity Address, Address Line Two | Suite M-500 | |
Entity Address, City or Town | Waltham | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02451 | |
City Area Code | (617) | |
Local Phone Number | 443-2400 | |
Title of 12(b) Security | Common stock, par value $0.0001 per share | |
Trading Symbol | AVTE | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 24,448,144 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 27,457 | $ 54,197 |
Short-term investments | 124,531 | 113,178 |
Prepaid expenses and other current assets | 1,461 | 6,958 |
Total current assets | 153,449 | 174,333 |
Property and equipment, net | 316 | 186 |
Operating lease right-of-use asset | 1,188 | 542 |
Other long-term assets | 731 | 302 |
Total assets | 155,684 | 175,363 |
Current liabilities: | ||
Accounts payable | 2,068 | 1,208 |
Accrued and other current liabilities | 1,341 | 1,150 |
Operating lease liability | 347 | 192 |
Total current liabilities | 3,756 | 2,550 |
Operating lease liabilities, net of current portion | 862 | 382 |
Other liabilities | 13 | 13 |
Total liabilities | 4,631 | 2,945 |
Commitments and contingencies (Note 5) | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value; 10,000,000 shares authorized as of June 30, 2022 and December 31, 2021, respectively; no shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively | ||
Common stock, $0.0001 par value; 150,000,000 shares authorized at June 30, 2022 and December 31, 2021, respectively; 24,418,434 and 24,410,393 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively | 2 | 2 |
Additional paid-in capital | 211,129 | 208,867 |
Accumulated other comprehensive loss | (785) | (59) |
Accumulated deficit | (59,293) | (36,392) |
Total stockholders’ equity | 151,053 | 172,418 |
Total liabilities and stockholders’ equity | $ 155,684 | $ 175,363 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 24,418,434 | 24,410,393 |
Common stock, shares outstanding | 24,418,434 | 24,410,393 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Operating expenses: | ||||
Research and development | $ 8,363 | $ 4,327 | $ 15,618 | $ 6,523 |
General and administrative | 3,852 | 1,447 | 7,615 | 2,031 |
Total operating expenses | 12,215 | 5,774 | 23,233 | 8,554 |
Loss from operations | (12,215) | (5,774) | (23,233) | (8,554) |
Other income (expense): | ||||
Interest income | 230 | 2 | 338 | 2 |
Other expense | (6) | (3) | (6) | (4) |
Total other income (expense) | 224 | (1) | 332 | (2) |
Net loss | (11,991) | (5,775) | (22,901) | (8,556) |
Comprehensive loss: | ||||
Net loss | (11,991) | (5,775) | (22,901) | (8,556) |
Other comprehensive loss: | ||||
Unrealized loss on securities | (141) | (726) | ||
Comprehensive loss | $ (12,132) | $ (5,775) | $ (23,627) | $ (8,556) |
Net loss per share, basic and diluted | $ (0.49) | $ (23.80) | $ (0.94) | $ (35.29) |
Weighted-average shares of common stock outstanding, basic and diluted | 24,410,503 | 243,076 | 24,410,448 | 243,076 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands | Preferred Stock [Member] Series A Redeemable Convertible Preferred Stock [Member] | Preferred Stock [Member] Series Seed Redeemable Convertible Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Beginning balance, shares at Dec. 31, 2020 | 6,489,534 | 4,000,000 | |||||
Beginning balance, value at Dec. 31, 2020 | $ 12,285 | $ 4,000 | |||||
Beginning balance, shares at Dec. 31, 2020 | 243,076 | ||||||
Beginning balance, value at Dec. 31, 2020 | $ 63 | $ (13,407) | $ (13,344) | ||||
Stock based compensation | 23 | 23 | |||||
Net loss | (2,781) | (2,781) | |||||
Issuance of Series A redeemable convertible preferred stock, net of issuance costs | $ 7,983 | ||||||
Issuance of Series A redeemable convertible preferred stock, net of issuance costs, shares | 4,224,274 | ||||||
Accretion of Series A redeemable convertible preferred stock to redemption value | $ 13 | (13) | (13) | ||||
Ending balance, shares at Mar. 31, 2021 | 10,713,808 | 4,000,000 | |||||
Ending balance, value at Mar. 31, 2021 | $ 20,281 | $ 4,000 | |||||
Ending balance, shares at Mar. 31, 2021 | 243,076 | ||||||
Ending balance, value at Mar. 31, 2021 | 86 | (16,201) | (16,115) | ||||
Beginning balance, shares at Dec. 31, 2020 | 6,489,534 | 4,000,000 | |||||
Beginning balance, value at Dec. 31, 2020 | $ 12,285 | $ 4,000 | |||||
Beginning balance, shares at Dec. 31, 2020 | 243,076 | ||||||
Beginning balance, value at Dec. 31, 2020 | 63 | (13,407) | (13,344) | ||||
Unrealized loss on investments | |||||||
Net loss | (8,556) | ||||||
Ending balance, shares at Jun. 30, 2021 | 40,052,154 | 4,000,000 | |||||
Ending balance, value at Jun. 30, 2021 | $ 75,819 | $ 4,000 | |||||
Ending balance, shares at Jun. 30, 2021 | 243,076 | ||||||
Ending balance, value at Jun. 30, 2021 | 407 | (21,985) | (21,578) | ||||
Beginning balance, shares at Mar. 31, 2021 | 10,713,808 | 4,000,000 | |||||
Beginning balance, value at Mar. 31, 2021 | $ 20,281 | $ 4,000 | |||||
Beginning balance, shares at Mar. 31, 2021 | 243,076 | ||||||
Beginning balance, value at Mar. 31, 2021 | 86 | (16,201) | (16,115) | ||||
Unrealized loss on investments | |||||||
Stock based compensation | 321 | 321 | |||||
Net loss | (5,775) | (5,775) | |||||
Issuance of Series A redeemable convertible preferred stock, net of issuance costs | $ 55,529 | ||||||
Issuance of Series A redeemable convertible preferred stock, net of issuance costs, shares | 29,338,346 | ||||||
Accretion of Series A redeemable convertible preferred stock to redemption value | $ 9 | (9) | (9) | ||||
Ending balance, shares at Jun. 30, 2021 | 40,052,154 | 4,000,000 | |||||
Ending balance, value at Jun. 30, 2021 | $ 75,819 | $ 4,000 | |||||
Ending balance, shares at Jun. 30, 2021 | 243,076 | ||||||
Ending balance, value at Jun. 30, 2021 | 407 | (21,985) | (21,578) | ||||
Beginning balance, shares at Dec. 31, 2021 | |||||||
Beginning balance, value at Dec. 31, 2021 | |||||||
Beginning balance, shares at Dec. 31, 2021 | 24,410,393 | ||||||
Beginning balance, value at Dec. 31, 2021 | $ 2 | 208,867 | (59) | (36,392) | 172,418 | ||
Unrealized loss on investments | (585) | (585) | |||||
Stock based compensation | 1,024 | 1,024 | |||||
Net loss | (10,910) | (10,910) | |||||
Ending balance, shares at Mar. 31, 2022 | |||||||
Ending balance, value at Mar. 31, 2022 | |||||||
Ending balance, shares at Mar. 31, 2022 | 24,410,393 | ||||||
Ending balance, value at Mar. 31, 2022 | $ 2 | 209,891 | (644) | (47,302) | 161,947 | ||
Beginning balance, shares at Dec. 31, 2021 | |||||||
Beginning balance, value at Dec. 31, 2021 | |||||||
Beginning balance, shares at Dec. 31, 2021 | 24,410,393 | ||||||
Beginning balance, value at Dec. 31, 2021 | $ 2 | 208,867 | (59) | (36,392) | 172,418 | ||
Unrealized loss on investments | (726) | ||||||
Net loss | (22,901) | ||||||
Ending balance, shares at Jun. 30, 2022 | |||||||
Ending balance, value at Jun. 30, 2022 | |||||||
Ending balance, shares at Jun. 30, 2022 | 24,418,434 | ||||||
Ending balance, value at Jun. 30, 2022 | $ 2 | 211,129 | (785) | (59,293) | 151,053 | ||
Beginning balance, shares at Mar. 31, 2022 | |||||||
Beginning balance, value at Mar. 31, 2022 | |||||||
Beginning balance, shares at Mar. 31, 2022 | 24,410,393 | ||||||
Beginning balance, value at Mar. 31, 2022 | $ 2 | 209,891 | (644) | (47,302) | 161,947 | ||
Unrealized loss on investments | (141) | (141) | |||||
Stock based compensation | 1,224 | 1,224 | |||||
Net loss | (11,991) | (11,991) | |||||
Issuance of common stock upon exercise of stock options | 14 | 14 | |||||
Ending balance, shares at Jun. 30, 2022 | |||||||
Ending balance, value at Jun. 30, 2022 | |||||||
Ending balance, shares at Jun. 30, 2022 | 24,418,434 | ||||||
Ending balance, value at Jun. 30, 2022 | $ 2 | $ 211,129 | $ (785) | $ (59,293) | $ 151,053 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Mar. 31, 2021 | |
Accretion of Series A redeemable convertible preferred stock | $ (9) | $ (13) |
Preferred Stock [Member] | Series A Redeemable Convertible Preferred Stock [Member] | ||
Share price | $ 1.893 | $ 1.893 |
Accretion of Series A redeemable convertible preferred stock | $ 9 | $ 13 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flow from operating activities: | ||
Net loss | $ (22,901) | $ (8,556) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation expense | 2,248 | 344 |
Depreciation and amortization expense | 28 | 4 |
Accretion of discounts and amortization of premiums on investments, net | (32) | |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | 5,493 | (56) |
Other long-term assets | (428) | (74) |
Accounts payable | 875 | 563 |
Accrued and other liabilities | 191 | (5) |
Operating lease assets and liabilities, net | (11) | |
Net cash used in operating activities | (14,537) | (7,780) |
Cash flow from investing activities: | ||
Purchases of short-term investments | (71,791) | |
Sales and maturities of short-term investments | 59,744 | |
Purchases of property and equipment | (158) | (40) |
Net cash used in investing activities | (12,205) | (40) |
Cash flow from financing activities: | ||
Proceeds from sale of Series A redeemable convertible preferred stock, net of issuance costs | 63,512 | |
Payments for deferred offering costs | (1,115) | |
Proceeds from issuance of common stock upon exercise of stock options | 2 | |
Net cash provided by financing activities | 2 | 62,397 |
Net (decrease) increase in cash | (26,740) | 54,577 |
Cash and cash equivalents at the beginning of the year | 54,197 | 4,573 |
Cash and cash equivalents at the end of the period | 27,457 | 59,150 |
Supplemental disclosure of noncash investing and financing activities: | ||
Right-of-use asset obtained in exchange for operating lease liability | 765 | |
Deferred offering costs included in accounts payable | $ 1 | $ 1,901 |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND NATURE OF OPERATIONS | (1) ORGANIZATION AND NATURE OF OPERATIONS (a) Organization and Nature of Operations Aerovate Therapeutics Inc. (“Aerovate” or the “Company”) was incorporated in the state of Delaware in July 2018, and is headquartered in Waltham, Massachusetts. The Company has a wholly owned subsidiary, Aerovate Securities Corporation. The Company is a clinical stage biopharmaceutical company that is focused on the development of drugs that meaningfully improve the lives of patients with rare cardiopulmonary disease. The Company’s initial focus is on advancing AV-101, the Company’s dry powder inhaled formulation of imatinib for the treatment of pulmonary arterial hypertension (“PAH”). The Company initiated a Phase 2b/Phase 3 trial of AV-101 in PAH patients in December 2021. (b) Liquidity and Management Plans Since inception, the Company has devoted substantially all of its resources to research and development activities, business planning, establishing and maintaining its intellectual property portfolio, hiring personnel, raising capital, and providing general and administrative support for these operations and has not realized revenues from its planned principal operations. The Company has incurred losses and negative cash flows from operations since inception. In addition, the Company expects to incur substantial operating losses for the next several years as it continues its research and development activities. As of June 30, 2022, the Company had cash and cash equivalents and short-term investments of $ 152.0 Management plans to continue to incur substantial costs in order to conduct research and development activities and additional capital will be needed to undertake these activities. The Company intends to raise such capital through debt or equity financings or other arrangements to fund operations. Management believes that the Company’s current cash and cash equivalents and short-term investments will provide sufficient funds to enable the Company to meet its obligations for at least twelve months from the filing date of this report. |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | (2) BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Presentation The accompanying unaudited condensed consolidated financial statements as of June 30, 2022 and for the three and six months ended June 30, 2022 and 2021 have been prepared in conformity with generally accepted accounting principles (“GAAP”) in the United States of America for interim financial information and pursuant to Article 10 of Regulation S-X of the Securities Act of 1933, as amended (the Securities Act). Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. These unaudited condensed consolidated financial statements include only normal and recurring adjustments that the Company believes are necessary to fairly state the Company’s financial position and the results of its operations and cash flows. The results for the three and six months ended June 30, 2022 are not necessarily indicative of the results expected for the full fiscal year or any subsequent interim period. The condensed consolidated balance sheet as of December 31, 2021 has been derived from the audited financial statements at that date but does not include all disclosures required by GAAP for complete financial statements. Because all of the disclosures required by GAAP for complete financial statements are not included herein, these unaudited condensed consolidated 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, 2021. Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”). (b) Reverse Stock Split On June 22, 2021, the Company effected a 1-for-3.1060103 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. (c) Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of expenses during the reporting period. Reported amounts and note disclosures reflect the overall economic conditions that are most likely to occur and anticipated measures management intends to take. The full extent to which the COVID-19 pandemic will directly or indirectly impact our business, results of operations, and financial condition will depend on future developments that are highly uncertain, including as a result of new information that may emerge concerning COVID-19 and the actions taken to contain or treat it, as well as the economic impact on local, regional, national and international markets. Actual results could differ materially from those estimates. Accounting estimates and management judgements reflected in the consolidated financial statements include: normal recurring accruals, including the accrual for research and development expenses, stock-based compensation and fair value of investments. Estimates and assumptions are reviewed quarterly. Any revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. (d) 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 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. The following table summarizes the Company’s net loss per share (in thousands, except share and per share amounts): SCHEDULE OF NET LOSS PER SHARE Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Numerator: Net loss $ (11,991 ) $ (5,775 ) $ (22,901 ) $ (8,556 ) Accretion of Series A redeemable convertible preferred stock to redemption value — (9 ) — (22 ) Net loss available to common stockholders $ (11,991 ) $ (5,784 ) $ (22,901 ) $ (8,578 ) Denominator: Weighted-average common stock outstanding, basic and diluted 24,410,503 243,076 24,410,448 243,076 Net loss per share, basic and diluted $ (0.49 ) $ (23.80 ) $ (0.94 ) $ (35.29 ) Potentially dilutive securities not included in the calculation of diluted net loss per share attributable to common stockholders because to do so would have had an anti-dilutive effect are as follows (in common stock equivalent shares): SCHEDULE OF POTENTIALLY DILUTIVE SECURITIES NOT INCLUDED IN THE CALCULATION OF DILUTED NET LOSS PER SHARE As of June 30, 2022 2021 Options to purchase common stock 3,953,390 2,770,954 Unvested restricted stock units 1,631 — Series Seed redeemable convertible preferred stock — 1,287,825 Series A redeemable convertible preferred stock — 12,895,029 Antidilutive Securities 3,955,021 16,953,808 (e) Recently Issued and Recently Adopted Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that are adopted by the Company as of the specified effective date. The Company has evaluated recently issued accounting pronouncements and does not believe any will have a material impact on the Company’s condensed consolidated financial statements or related financial statement disclosures. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | (3) FAIR VALUE OF FINANCIAL INSTRUMENTS The following tables summarize the Company’s financial assets measured at fair value on a recurring basis and their respective input levels based on the fair value hierarchy (in thousands): SCHEDULE OF FAIR VALUE INSTRUMENTS Fair Value Measurements Using June 30, 2022 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable (level 3) Assets: Cash equivalents Money market funds $ 16,286 $ 16,286 $ — $ — Commercial paper 5,991 — 5,991 — Total cash equivalents 22,277 16,286 5,991 — Short-term investments U.S. Treasury bills 32,147 32,147 — — Corporate debt securities 1,991 — 1,991 — Commercial paper 84,905 — 84,905 — Agency bond 5,488 — 5,488 — Total short-term investments 124,531 32,147 92,384 — Total fair value of assets $ 146,808 $ 48,433 $ 98,375 $ — Fair Value Measurements Using December 31, 2021 Quoted Prices in Significant Significant Assets: Cash equivalents Money market funds $ 39,653 $ 39,653 $ — $ — Commercial paper 14,448 — 14,448 — Total cash equivalents 54,101 39,653 14,448 — Short-term investments U.S. Treasury bills 25,135 25,135 — — Corporate debt securities 10,715 — 10,715 — Commercial paper 77,328 — 77,328 — Total short-term investments 113,178 25,135 88,043 — Total fair value of assets $ 167,279 $ 64,788 $ 102,491 $ — 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 commercial paper, and short-term investments consisted of U.S. Treasury bills, corporate debt securities and commercial paper. 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. The following tables summarize the Company’s short-term investments (in thousands): SCHEDULE OF SHORT TERM INVESTMENT As of June 30, 2022 Maturity Amortized cost Gross Gross Estimated Corporate debt securities 1 year or less $ 2,001 $ — $ (10 ) $ 1,991 Commercial paper 1 year or less 85,197 — (292 ) 84,905 U.S. Treasury bills 2 years or less 32,620 — (473 ) 32,147 Agency bond 2 years or less 5,498 — (10 ) 5,488 $ 125,316 $ — $ (785 ) $ 124,531 As of December 31, 2021 Maturity Amortized cost Gross Gross Estimated Corporate debt securities 1 year or less $ 10,726 $ — $ (11 ) $ 10,715 Commercial paper 1 year or less 77,328 9 (9 ) 77,328 U.S. Treasury bills 2 years or less 25,183 — (48 ) 25,135 $ 113,237 $ 9 $ (68 ) $ 113,178 The Company considers whether unrealized losses have resulted from a credit loss or other factors. The unrealized losses on the Company’s available-for-sale securities as of June 30, 2022 and December 31, 2021 were caused by fluctuations in market value and interest rates as a result of the economic environment and not credit risk. As of June 30, 2022 and December 31, 2021, no allowance for credit losses was recorded. During the six months ended June 30, 2022, the Company did not recognize any impairment losses related to its short-term investments. 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. The Company excludes accrued interest from both the fair value and the amortized cost basis of the available-for-sale debt securities for the purposes of identifying and measuring an impairment and to not measure an allowance for expected credit losses for accrued interest receivables. Accrued interest receivable is written off through net realized investment gains (losses) at the time the issuer of the bond defaults or is expected to default on payment. It is the Company’s policy to present the accrued interest receivable balance as part of prepaid expenses and other current assets in the balance sheets. Accrued interest receivable related to short-term investments was $ 0.1 |
BALANCE SHEET COMPONENTS
BALANCE SHEET COMPONENTS | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BALANCE SHEET COMPONENTS | (4) BALANCE SHEET COMPONENTS Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS June 30, December 31, 2022 2021 Prepaid research and development $ 820 $ 5,233 Prepaid expenses 415 1,485 Other current assets 226 240 Total prepaid expenses and other current assets $ 1,461 $ 6,958 Accrued and Other Current Liabilities Accrued and other current liabilities consisted of the following (in thousands): SCHEDULE OF ACCRUED AND OTHER CURRENT LIABILITIES June 30, December 31, 2022 2021 Accrued payroll and other employee benefits $ 817 $ 790 Accrued research and development 373 217 Other 151 143 Total accrued and other current liabilities $ 1,341 $ 1,150 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | (5) COMMITMENTS AND CONTINGENCIES In August 2021, the Company entered into a lease agreement (the “Waltham Lease”) for approximately 5,000 thirty-nine The Company has the option to extend the Waltham Lease for one additional period of three years. 18,000 2 In April 2022, the Company entered into a lease agreement (the “Foster City Lease”) for approximately 3,500 thirty-nine The Company has the option to extend the Foster City Lease for on additional period of one year. 22,600 3 As of June 30, 2022, the future minimum annual lease payments under the operating leases were as follows (in thousands): SCHEDULE OF FUTURE MINIMUM ANNUAL LEASE PAYMENTS FOR OPERATING LEASES 2022 $ 147 2023 449 2024 489 2025 242 Total operating lease payments 1,327 Less: Amount representing interest (118 ) Present value of net minimum lease payments $ 1,209 Operating lease liabilities: Current 347 Non-current 862 Total lease liabilities $ 1,209 Weighted-average remaining lease term (in years) 3.0 Weighted-average incremental borrowing rate 6 % Supplemental cash flow information related to cash paid for amounts included in the measurement of operating lease liabilities was as follows (in thousands): SCHEDULE OF SUPPLEMENTAL CASH FLOW Six months ended June 30, 2021 2020 Cash paid included in operating cash flows $ 113 $ — Rent expense was as follows (in thousands): SCHEDULE OF RENT EXPENSES Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Operating lease $ 92 $ — $ 142 $ — Short-term lease 11 — 46 — Total rent expense $ 103 $ — $ 188 $ — |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | (6) STOCKHOLDERS’ EQUITY On July 2, 2021, the Company’s certificate of amendment to its certificate of incorporation became effective, which provided 150,000,000 0.0001 10,000,000 0.0001 In August 2018, the Company issued 241,467 0.0012 9,984,463 14,182,854 The holders of the common stock are entitled to one vote for each share of common stock held at all meetings of stockholders. As of June 30, 2022, the Company had reserved the following shares of common stock, on an as-converted basis, for future issuance: SCHEDULE OF COMMON STOCK SHARES RESERVED FOR ON AND AS-CONVERTED BASIS, FOR FUTURE ISSUANCE June 30, 2022 Common stock options granted and outstanding 3,953,390 Reserved for exercise of outstanding stock options 1,552,307 Reserved for vesting of outstanding restricted stock units 1,631 Reserved for future ESPP issuances 230,000 Total 5,737,328 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | (7) STOCK-BASED COMPENSATION The Company’s 2021 Stock Option and Incentive Plan (the “2021 Plan”) was adopted by the Company’s board of directors and approved by the Company’s stockholders in June 2021 and became effective as of June 29, 2021. Upon the effectiveness of the 2021 Plan, the Company’s 2018 Equity Incentive Plan (the “2018 Plan”) was terminated and no further grants may be made thereunder. The Company’s 2021 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 June 30, 2022, a total of 3,576,415 4 976,415 Any shares subject to awards granted under the 2021 Plan or the 2018 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 2021 Plan. As of June 30, 2022, 2,022,477 1,631 1,552,307 1,930,913 The options that are granted under the 2021 Plan and the 2018 Plan are exercisable at various dates as determined upon grant and terminate within 10 years three to four years. The following table summarizes the option activity under the 2021 Plan and 2018 Plan for the six months ended June 30, 2022: SCHEDULE OF OPTION ACTIVITY UNDER 2021 PLAN AND 2018 PLAN Options Weighted- Weighted- Aggregate Vested and expected to vest at December 31, 2021 3,454,374 $ 6.85 9.42 $ 19,378 Granted 507,057 $ 13.08 9.79 Exercised (8,041 ) 1.74 Cancelled/Forfeited — — Outstanding at June 30, 2022 3,953,390 $ 7.66 9.02 $ 31,633 Vested and exercisable at June 30, 2022 875,657 $ 5.91 8.80 $ 8,533 Vested and expected to vest at June 30, 2022 3,953,390 $ 7.66 9.02 $ 31,633 The weighted-average grant date fair value of stock option grants was $ 8.73 (b) Employee Stock Purchase Plan The Company’s Employee Stock Purchase Plan (the “ESPP”) was adopted by the Company’s board of directors and stockholders in June 2021 and became effective upon the consummation of the IPO. A total of 230,000 15 85 no (c) Stock-Based Compensation Expense The Company estimated the fair value of stock options using the Black-Scholes valuation model. The Company accounts for any forfeitures of options when they occur. Previously recognized compensation expense for an award is reversed in the period that the award is forfeited. The fair value of stock options was estimated using the following assumptions: SCHEDULE OF FAIR VALUE OF STOCK OPTIONS ASSUMPTIONS Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Expected term (in years) 5.5 6.1 5.8 6.1 5.5 6.1 5.8 6.1 Expected volatility 73.8 76.5 % 68.7 69.6 % 73.6 76.5 % 68.7 69.6 % Risk-free interest rate 2.5 3.4 % 1.0 1.2 % 1.6 3.4 % 1.0 1.2 % Expected dividend — — — — Stock-based compensation expense recognized for all equity awards has been reported in the statements of operations and comprehensive loss as follows (in thousands): SCHEDULE OF STOCK-BASED COMPENSATION EXPENSE RECOGNIZED FOR STOCK OPTION GRANTS Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Research and development $ 445 $ 101 $ 701 $ 113 General and administrative 779 220 1,547 231 Total $ 1,224 $ 321 $ 2,248 $ 344 As of June 30, 2022, there was approximately $ 14.8 3.0 (d) Restricted Stock Units A summary of the status of and changes in unvested restricted stock unit activity under the Company’s equity award plans for the six months ended June 30, 2022 was as follows: SCHEDULE OF UNVESTED STOCK UNIT ACTIVITY Units Weighted- Unvested restricted stock units as of December 31, 2021 – – Granted 1,631 $ 12.26 Vested – – Forfeited – – Unvested restricted stock units as of June 30, 2022 1,631 $ 12.26 Stock-based compensation of restricted stock units is based on the fair value of the Company’s common stock on the date of grant and recognized over the vesting period. Restricted stock units awarded by the Company vest in equal amounts annually over two years As of June 30, 2022, the Company had unrecognized stock-based compensation expense related to its unvested restricted stock units of $ 20,000 2.0 |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | (a) Basis of Presentation The accompanying unaudited condensed consolidated financial statements as of June 30, 2022 and for the three and six months ended June 30, 2022 and 2021 have been prepared in conformity with generally accepted accounting principles (“GAAP”) in the United States of America for interim financial information and pursuant to Article 10 of Regulation S-X of the Securities Act of 1933, as amended (the Securities Act). Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. These unaudited condensed consolidated financial statements include only normal and recurring adjustments that the Company believes are necessary to fairly state the Company’s financial position and the results of its operations and cash flows. The results for the three and six months ended June 30, 2022 are not necessarily indicative of the results expected for the full fiscal year or any subsequent interim period. The condensed consolidated balance sheet as of December 31, 2021 has been derived from the audited financial statements at that date but does not include all disclosures required by GAAP for complete financial statements. Because all of the disclosures required by GAAP for complete financial statements are not included herein, these unaudited condensed consolidated 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, 2021. Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”). |
Reverse Stock Split | (b) Reverse Stock Split On June 22, 2021, the Company effected a 1-for-3.1060103 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. |
Use of Estimates | (c) Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of expenses during the reporting period. Reported amounts and note disclosures reflect the overall economic conditions that are most likely to occur and anticipated measures management intends to take. The full extent to which the COVID-19 pandemic will directly or indirectly impact our business, results of operations, and financial condition will depend on future developments that are highly uncertain, including as a result of new information that may emerge concerning COVID-19 and the actions taken to contain or treat it, as well as the economic impact on local, regional, national and international markets. Actual results could differ materially from those estimates. Accounting estimates and management judgements reflected in the consolidated financial statements include: normal recurring accruals, including the accrual for research and development expenses, stock-based compensation and fair value of investments. Estimates and assumptions are reviewed quarterly. Any revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. |
Net Loss Per Share | (d) 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 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. The following table summarizes the Company’s net loss per share (in thousands, except share and per share amounts): SCHEDULE OF NET LOSS PER SHARE Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Numerator: Net loss $ (11,991 ) $ (5,775 ) $ (22,901 ) $ (8,556 ) Accretion of Series A redeemable convertible preferred stock to redemption value — (9 ) — (22 ) Net loss available to common stockholders $ (11,991 ) $ (5,784 ) $ (22,901 ) $ (8,578 ) Denominator: Weighted-average common stock outstanding, basic and diluted 24,410,503 243,076 24,410,448 243,076 Net loss per share, basic and diluted $ (0.49 ) $ (23.80 ) $ (0.94 ) $ (35.29 ) Potentially dilutive securities not included in the calculation of diluted net loss per share attributable to common stockholders because to do so would have had an anti-dilutive effect are as follows (in common stock equivalent shares): SCHEDULE OF POTENTIALLY DILUTIVE SECURITIES NOT INCLUDED IN THE CALCULATION OF DILUTED NET LOSS PER SHARE As of June 30, 2022 2021 Options to purchase common stock 3,953,390 2,770,954 Unvested restricted stock units 1,631 — Series Seed redeemable convertible preferred stock — 1,287,825 Series A redeemable convertible preferred stock — 12,895,029 Antidilutive Securities 3,955,021 16,953,808 |
Recently Issued and Recently Adopted Accounting Pronouncements | (e) Recently Issued and Recently Adopted Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that are adopted by the Company as of the specified effective date. The Company has evaluated recently issued accounting pronouncements and does not believe any will have a material impact on the Company’s condensed consolidated financial statements or related financial statement disclosures. |
BASIS OF PRESENTATION AND SIG_3
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
SCHEDULE OF NET LOSS PER SHARE | The following table summarizes the Company’s net loss per share (in thousands, except share and per share amounts): SCHEDULE OF NET LOSS PER SHARE Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Numerator: Net loss $ (11,991 ) $ (5,775 ) $ (22,901 ) $ (8,556 ) Accretion of Series A redeemable convertible preferred stock to redemption value — (9 ) — (22 ) Net loss available to common stockholders $ (11,991 ) $ (5,784 ) $ (22,901 ) $ (8,578 ) Denominator: Weighted-average common stock outstanding, basic and diluted 24,410,503 243,076 24,410,448 243,076 Net loss per share, basic and diluted $ (0.49 ) $ (23.80 ) $ (0.94 ) $ (35.29 ) |
SCHEDULE OF POTENTIALLY DILUTIVE SECURITIES NOT INCLUDED IN THE CALCULATION OF DILUTED NET LOSS PER SHARE | Potentially dilutive securities not included in the calculation of diluted net loss per share attributable to common stockholders because to do so would have had an anti-dilutive effect are as follows (in common stock equivalent shares): SCHEDULE OF POTENTIALLY DILUTIVE SECURITIES NOT INCLUDED IN THE CALCULATION OF DILUTED NET LOSS PER SHARE As of June 30, 2022 2021 Options to purchase common stock 3,953,390 2,770,954 Unvested restricted stock units 1,631 — Series Seed redeemable convertible preferred stock — 1,287,825 Series A redeemable convertible preferred stock — 12,895,029 Antidilutive Securities 3,955,021 16,953,808 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
SCHEDULE OF FAIR VALUE INSTRUMENTS | The following tables summarize the Company’s financial assets measured at fair value on a recurring basis and their respective input levels based on the fair value hierarchy (in thousands): SCHEDULE OF FAIR VALUE INSTRUMENTS Fair Value Measurements Using June 30, 2022 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable (level 3) Assets: Cash equivalents Money market funds $ 16,286 $ 16,286 $ — $ — Commercial paper 5,991 — 5,991 — Total cash equivalents 22,277 16,286 5,991 — Short-term investments U.S. Treasury bills 32,147 32,147 — — Corporate debt securities 1,991 — 1,991 — Commercial paper 84,905 — 84,905 — Agency bond 5,488 — 5,488 — Total short-term investments 124,531 32,147 92,384 — Total fair value of assets $ 146,808 $ 48,433 $ 98,375 $ — Fair Value Measurements Using December 31, 2021 Quoted Prices in Significant Significant Assets: Cash equivalents Money market funds $ 39,653 $ 39,653 $ — $ — Commercial paper 14,448 — 14,448 — Total cash equivalents 54,101 39,653 14,448 — Short-term investments U.S. Treasury bills 25,135 25,135 — — Corporate debt securities 10,715 — 10,715 — Commercial paper 77,328 — 77,328 — Total short-term investments 113,178 25,135 88,043 — Total fair value of assets $ 167,279 $ 64,788 $ 102,491 $ — |
SCHEDULE OF SHORT TERM INVESTMENT | The following tables summarize the Company’s short-term investments (in thousands): SCHEDULE OF SHORT TERM INVESTMENT As of June 30, 2022 Maturity Amortized cost Gross Gross Estimated Corporate debt securities 1 year or less $ 2,001 $ — $ (10 ) $ 1,991 Commercial paper 1 year or less 85,197 — (292 ) 84,905 U.S. Treasury bills 2 years or less 32,620 — (473 ) 32,147 Agency bond 2 years or less 5,498 — (10 ) 5,488 $ 125,316 $ — $ (785 ) $ 124,531 As of December 31, 2021 Maturity Amortized cost Gross Gross Estimated Corporate debt securities 1 year or less $ 10,726 $ — $ (11 ) $ 10,715 Commercial paper 1 year or less 77,328 9 (9 ) 77,328 U.S. Treasury bills 2 years or less 25,183 — (48 ) 25,135 $ 113,237 $ 9 $ (68 ) $ 113,178 |
BALANCE SHEET COMPONENTS (Table
BALANCE SHEET COMPONENTS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS | Prepaid expenses and other current assets consisted of the following (in thousands): SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS June 30, December 31, 2022 2021 Prepaid research and development $ 820 $ 5,233 Prepaid expenses 415 1,485 Other current assets 226 240 Total prepaid expenses and other current assets $ 1,461 $ 6,958 |
SCHEDULE OF ACCRUED AND OTHER CURRENT LIABILITIES | Accrued and other current liabilities consisted of the following (in thousands): SCHEDULE OF ACCRUED AND OTHER CURRENT LIABILITIES June 30, December 31, 2022 2021 Accrued payroll and other employee benefits $ 817 $ 790 Accrued research and development 373 217 Other 151 143 Total accrued and other current liabilities $ 1,341 $ 1,150 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
SCHEDULE OF FUTURE MINIMUM ANNUAL LEASE PAYMENTS FOR OPERATING LEASES | As of June 30, 2022, the future minimum annual lease payments under the operating leases were as follows (in thousands): SCHEDULE OF FUTURE MINIMUM ANNUAL LEASE PAYMENTS FOR OPERATING LEASES 2022 $ 147 2023 449 2024 489 2025 242 Total operating lease payments 1,327 Less: Amount representing interest (118 ) Present value of net minimum lease payments $ 1,209 Operating lease liabilities: Current 347 Non-current 862 Total lease liabilities $ 1,209 Weighted-average remaining lease term (in years) 3.0 Weighted-average incremental borrowing rate 6 % |
SCHEDULE OF SUPPLEMENTAL CASH FLOW | Supplemental cash flow information related to cash paid for amounts included in the measurement of operating lease liabilities was as follows (in thousands): SCHEDULE OF SUPPLEMENTAL CASH FLOW Six months ended June 30, 2021 2020 Cash paid included in operating cash flows $ 113 $ — |
SCHEDULE OF RENT EXPENSES | Rent expense was as follows (in thousands): SCHEDULE OF RENT EXPENSES Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Operating lease $ 92 $ — $ 142 $ — Short-term lease 11 — 46 — Total rent expense $ 103 $ — $ 188 $ — |
STOCKHOLDERS_ EQUITY (Tables)
STOCKHOLDERS’ EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
SCHEDULE OF COMMON STOCK SHARES RESERVED FOR ON AND AS-CONVERTED BASIS, FOR FUTURE ISSUANCE | As of June 30, 2022, the Company had reserved the following shares of common stock, on an as-converted basis, for future issuance: SCHEDULE OF COMMON STOCK SHARES RESERVED FOR ON AND AS-CONVERTED BASIS, FOR FUTURE ISSUANCE June 30, 2022 Common stock options granted and outstanding 3,953,390 Reserved for exercise of outstanding stock options 1,552,307 Reserved for vesting of outstanding restricted stock units 1,631 Reserved for future ESPP issuances 230,000 Total 5,737,328 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
SCHEDULE OF OPTION ACTIVITY UNDER 2021 PLAN AND 2018 PLAN | The following table summarizes the option activity under the 2021 Plan and 2018 Plan for the six months ended June 30, 2022: SCHEDULE OF OPTION ACTIVITY UNDER 2021 PLAN AND 2018 PLAN Options Weighted- Weighted- Aggregate Vested and expected to vest at December 31, 2021 3,454,374 $ 6.85 9.42 $ 19,378 Granted 507,057 $ 13.08 9.79 Exercised (8,041 ) 1.74 Cancelled/Forfeited — — Outstanding at June 30, 2022 3,953,390 $ 7.66 9.02 $ 31,633 Vested and exercisable at June 30, 2022 875,657 $ 5.91 8.80 $ 8,533 Vested and expected to vest at June 30, 2022 3,953,390 $ 7.66 9.02 $ 31,633 |
SCHEDULE OF FAIR VALUE OF STOCK OPTIONS ASSUMPTIONS | SCHEDULE OF FAIR VALUE OF STOCK OPTIONS ASSUMPTIONS Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Expected term (in years) 5.5 6.1 5.8 6.1 5.5 6.1 5.8 6.1 Expected volatility 73.8 76.5 % 68.7 69.6 % 73.6 76.5 % 68.7 69.6 % Risk-free interest rate 2.5 3.4 % 1.0 1.2 % 1.6 3.4 % 1.0 1.2 % Expected dividend — — — — |
SCHEDULE OF STOCK-BASED COMPENSATION EXPENSE RECOGNIZED FOR STOCK OPTION GRANTS | Stock-based compensation expense recognized for all equity awards has been reported in the statements of operations and comprehensive loss as follows (in thousands): SCHEDULE OF STOCK-BASED COMPENSATION EXPENSE RECOGNIZED FOR STOCK OPTION GRANTS Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Research and development $ 445 $ 101 $ 701 $ 113 General and administrative 779 220 1,547 231 Total $ 1,224 $ 321 $ 2,248 $ 344 |
SCHEDULE OF UNVESTED STOCK UNIT ACTIVITY | A summary of the status of and changes in unvested restricted stock unit activity under the Company’s equity award plans for the six months ended June 30, 2022 was as follows: SCHEDULE OF UNVESTED STOCK UNIT ACTIVITY Units Weighted- Unvested restricted stock units as of December 31, 2021 – – Granted 1,631 $ 12.26 Vested – – Forfeited – – Unvested restricted stock units as of June 30, 2022 1,631 $ 12.26 |
ORGANIZATION AND NATURE OF OP_2
ORGANIZATION AND NATURE OF OPERATIONS (Details Narrative) $ in Millions | Jun. 30, 2022 USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Cash and cash equivalents and short term investment | $ 152 |
SCHEDULE OF NET LOSS PER SHARE
SCHEDULE OF NET LOSS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net loss | $ (11,991) | $ (10,910) | $ (5,775) | $ (2,781) | $ (22,901) | $ (8,556) |
Accretion of Series A redeemable convertible preferred stock to redemption value | (9) | $ (13) | ||||
Net loss available to common stockholders | $ (11,991) | $ (5,784) | $ (22,901) | $ (8,578) | ||
Weighted-average common stock outstanding, basic and diluted | 24,410,503 | 243,076 | 24,410,448 | 243,076 | ||
Net loss per share, basic and diluted | $ (0.49) | $ (23.80) | $ (0.94) | $ (35.29) | ||
Series A Redeemable Convertible Preferred Stock [Member] | ||||||
Accretion of Series A redeemable convertible preferred stock to redemption value | $ (9) | $ (22) |
SCHEDULE OF POTENTIALLY DILUTIV
SCHEDULE OF POTENTIALLY DILUTIVE SECURITIES NOT INCLUDED IN THE CALCULATION OF DILUTED NET LOSS PER SHARE (Details) - shares | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities | 3,955,021 | 16,953,808 |
Share-Based Payment Arrangement, Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities | 3,953,390 | 2,770,954 |
Restricted Stock Units (RSUs) [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities | 1,631 | |
Series Seed Redeemable Convertible Preferred Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities | 1,287,825 | |
Series A Redeemable Convertible Preferred Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities | 12,895,029 |
BASIS OF PRESENTATION AND SIG_4
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | Jun. 22, 2021 |
Accounting Policies [Abstract] | |
Stockholders' equity, reverse stock split | 1-for-3.1060103 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. |
SCHEDULE OF FAIR VALUE INSTRUME
SCHEDULE OF FAIR VALUE INSTRUMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 16,286 | $ 39,653 |
Commercial paper | 5,991 | 14,448 |
Total cash equivalents | 22,277 | 54,101 |
U.S. Treasury bills | 32,147 | 25,135 |
Corporate debt securities | 1,991 | 10,715 |
Commercial paper | 84,905 | 77,328 |
Agency bond | 5,488 | |
Total short-term investments | 124,531 | 113,178 |
Total fair value of assets | 146,808 | 167,279 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 16,286 | 39,653 |
Commercial paper | ||
Total cash equivalents | 16,286 | 39,653 |
U.S. Treasury bills | 32,147 | 25,135 |
Corporate debt securities | ||
Commercial paper | ||
Agency bond | ||
Total short-term investments | 32,147 | 25,135 |
Total fair value of assets | 48,433 | 64,788 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | ||
Commercial paper | 5,991 | 14,448 |
Total cash equivalents | 5,991 | 14,448 |
U.S. Treasury bills | ||
Corporate debt securities | 1,991 | 10,715 |
Commercial paper | 84,905 | 77,328 |
Agency bond | 5,488 | |
Total short-term investments | 92,384 | 88,043 |
Total fair value of assets | 98,375 | 102,491 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | ||
Commercial paper | ||
Total cash equivalents | ||
U.S. Treasury bills | ||
Corporate debt securities | ||
Commercial paper | ||
Agency bond | ||
Total short-term investments | ||
Total fair value of assets |
SCHEDULE OF SHORT TERM INVESTME
SCHEDULE OF SHORT TERM INVESTMENT (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Amortized cost | $ 125,316 | $ 113,237 |
Gross unrealized gains | 9 | |
Gross unrealized losses | (785) | (68) |
Estimated fair value | 124,531 | 113,178 |
Corporate Debt Securities [Member] | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Amortized cost | 2,001 | 10,726 |
Gross unrealized gains | ||
Gross unrealized losses | $ (10) | $ (11) |
Maturity | 1 year or less | 1 year or less |
Estimated fair value | $ 1,991 | $ 10,715 |
Commercial Paper [Member] | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Amortized cost | 85,197 | 77,328 |
Gross unrealized gains | 9 | |
Gross unrealized losses | $ (292) | $ (9) |
Maturity | 1 year or less | 1 year or less |
Estimated fair value | $ 84,905 | $ 77,328 |
US Treasury Securities [Member] | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Amortized cost | 32,620 | 25,183 |
Gross unrealized gains | ||
Gross unrealized losses | $ (473) | $ (48) |
Maturity | 2 years or less | 2 years or less |
Estimated fair value | $ 32,147 | $ 25,135 |
Agency Bond [Member] | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Amortized cost | 5,498 | |
Gross unrealized gains | ||
Gross unrealized losses | $ (10) | |
Maturity | 2 years or less | |
Estimated fair value | $ 5,488 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details Narrative) - USD ($) $ in Millions | Dec. 31, 2021 | Jun. 30, 2021 |
Short-Term Investments [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Short-term investments | $ 0.1 | $ 0.1 |
SCHEDULE OF PREPAID EXPENSES AN
SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid research and development | $ 820 | $ 5,233 |
Prepaid expenses | 415 | 1,485 |
Other current assets | 226 | 240 |
Total prepaid expenses and other current assets | $ 1,461 | $ 6,958 |
SCHEDULE OF ACCRUED AND OTHER C
SCHEDULE OF ACCRUED AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued payroll and other employee benefits | $ 817 | $ 790 |
Accrued research and development | 373 | 217 |
Other | 151 | 143 |
Total accrued and other current liabilities | $ 1,341 | $ 1,150 |
SCHEDULE OF FUTURE MINIMUM ANNU
SCHEDULE OF FUTURE MINIMUM ANNUAL LEASE PAYMENTS FOR OPERATING LEASES (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
2022 | $ 147 | |
2023 | 449 | |
2024 | 489 | |
2025 | 242 | |
Total operating lease payments | 1,327 | |
Less: Amount representing interest | (118) | |
Total lease liabilities | 1,209 | |
Operating lease liabilities: | ||
Current | 347 | $ 192 |
Non-current | $ 862 | $ 382 |
Weighted-average remaining lease term (in years) | 3 years | |
Weighted-average incremental borrowing rate | 6% |
SCHEDULE OF SUPPLEMENTAL CASH F
SCHEDULE OF SUPPLEMENTAL CASH FLOW (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Cash paid included in operating cash flows | $ 113 |
SCHEDULE OF RENT EXPENSES (Deta
SCHEDULE OF RENT EXPENSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Operating lease | $ 92 | $ 142 | ||
Short-term lease | 11 | 46 | ||
Total rent expense | $ 103 | $ 188 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Narrative) $ in Thousands | 1 Months Ended | |
Apr. 30, 2022 USD ($) ft² | Aug. 31, 2021 USD ($) ft² | |
Waltham Lease [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Area of land | ft² | 5,000 | |
Operating lease term | 39 months | |
Lease, option to extend | The Company has the option to extend the Waltham Lease for one additional period of three years. | |
Payment for rent | $ | $ 18,000 | |
Lease rent percentage | 2% | |
Foster City Lease [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Area of land | ft² | 3,500 | |
Operating lease term | 39 months | |
Lease, option to extend | The Company has the option to extend the Foster City Lease for on additional period of one year. | |
Payment for rent | $ | $ 22,600 | |
Lease rent percentage | 3% |
SCHEDULE OF COMMON STOCK SHARES
SCHEDULE OF COMMON STOCK SHARES RESERVED FOR ON AND AS-CONVERTED BASIS, FOR FUTURE ISSUANCE (Details) - shares | Jun. 30, 2022 | Dec. 31, 2021 |
Equity [Abstract] | ||
Common stock options granted and outstanding | 3,953,390 | 3,454,374 |
Reserved for exercise of outstanding stock options | 1,552,307 | |
Reserved for vesting of outstanding restricted stock units | 1,631 | |
Reserved for future ESPP issuances | 230,000 | |
Total | 5,737,328 |
STOCKHOLDERS_ EQUITY (Details N
STOCKHOLDERS’ EQUITY (Details Narrative) - $ / shares | 1 Months Ended | |||
Jul. 02, 2021 | Aug. 31, 2018 | Jun. 30, 2022 | Dec. 31, 2021 | |
Subsidiary, Sale of Stock [Line Items] | ||||
Common stock, shares authorized | 150,000,000 | 150,000,000 | 150,000,000 | |
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | |
Preferred stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
IPO [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Number of shares issued | 9,984,463 | |||
RA Capital Healthcare Fund, L.P [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Number of shares issued | 241,467 | |||
Share price | $ 0.0012 | |||
Conversion of stock shares issued | 14,182,854 |
SCHEDULE OF OPTION ACTIVITY UND
SCHEDULE OF OPTION ACTIVITY UNDER 2021 PLAN AND 2018 PLAN (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | ||
Options Outstanding, beginning balance | 3,454,374 | |
Weighted-Average Exercise Price Outstanding, beginning balance | $ 6.85 | |
Weighted- Average Remaining Contractual Term, Outstanding | 9 years 7 days | 9 years 5 months 1 day |
Aggregate Intrinsic Value Outstanding, beginning balance | $ 19,378 | |
Options Granted | 507,057 | |
Weighted-Average Exercise Price, Granted | $ 13.08 | |
Weighted- Average Remaining Contractual Term, Granted | 9 years 9 months 14 days | |
Options Exercised | (8,041,000) | |
Weighted-Average Exercise Price, Exercised | $ 1.74 | |
Options, Cancelled/Forfeited | ||
Weighted-Average Exercise Price, Cancelled/Forfeited | ||
Options Outstanding, ending balance | 3,953,390 | 3,454,374 |
Weighted-Average Exercise Price Outstanding, ending balance | $ 7.66 | $ 6.85 |
Aggregate Intrinsic Value Outstanding, ending balance | $ 31,633 | $ 19,378 |
Options, Vested and exercisable | 875,657 | |
Weighted-Average Exercise Price, Vested and exercisable | $ 5.91 | |
Weighted- Average Remaining Contractual Term, Vested and exercisable | 8 years 9 months 18 days | |
Aggregate Intrinsic Value, Vested and exercisable | $ 8,533 | |
Options, Vested and expected to vest | 3,953,390,000 | |
Weighted-Average Exercise Price, Vested and expected to vest | $ 7.66 | |
Weighted- Average Remaining Contractual Term, Vested and expected to vest | 9 years 7 days | |
Aggregate Intrinsic Value, Vested and expected to vest | $ 31,633 |
SCHEDULE OF FAIR VALUE OF STOCK
SCHEDULE OF FAIR VALUE OF STOCK OPTIONS ASSUMPTIONS (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Expected volatility, minimum | 73.80% | 68.70% | 73.60% | 68.70% |
Expected volatility, maximum | 76.50% | 69.60% | 76.50% | 69.60% |
Risk-free interest rate, minimum | 2.50% | 1% | 1.60% | 1% |
Risk-free interest rate, maximum | 3.40% | 1.20% | 3.40% | 1.20% |
Expected dividend | ||||
Minimum [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Expected term (in years) | 5 years 6 months | 5 years 9 months 18 days | 5 years 6 months | 5 years 9 months 18 days |
Maximum [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Expected term (in years) | 6 years 1 month 6 days | 6 years 1 month 6 days | 6 years 1 month 6 days | 6 years 1 month 6 days |
SCHEDULE OF STOCK-BASED COMPENS
SCHEDULE OF STOCK-BASED COMPENSATION EXPENSE RECOGNIZED FOR STOCK OPTION GRANTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total | $ 1,224 | $ 321 | $ 2,248 | $ 344 |
Research and Development Expense [Member] | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total | 445 | 101 | 701 | 113 |
General and Administrative Expense [Member] | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total | $ 779 | $ 220 | $ 1,547 | $ 231 |
SCHEDULE OF UNVESTED STOCK UNIT
SCHEDULE OF UNVESTED STOCK UNIT ACTIVITY (Details) - Restricted Stock Units (RSUs) [Member] | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Number of units, beginning | shares | |
Weighted Average Grant date fair value, beginning | $ / shares | |
Number of units, Granted | shares | 1,631 |
Weighted Average Grant date fair value, Granted | $ / shares | $ 12.26 |
Number of units, Vested | shares | |
Weighted Average Grant date fair value, Vested | $ / shares | |
Number of units, forfeited | shares | |
Weighted Average Grant date fair value, Forfeited | $ / shares | |
Number of units, Ending | shares | 1,631 |
Weighted Average Grant date fair value, Ending | $ / shares | $ 12.26 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details Narrative) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2022 | Feb. 01, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Stock option grants per share | $ 8.73 | ||
2021 Stock Option and Incentive Plan [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Percentage on total number of shares outstanding | 4% | ||
Employee Stock Purchase Plan [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Number of shares authorized | 230,000 | 976,415 | |
Percentage of common stock purchase price | 15% | ||
Discount percentage on marker price | 85% | ||
Shares issued | 0 | ||
2021 Plan and 2018 Plan [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Expiration period | 10 years | ||
Vesting period description | three to four years. | ||
Unrecognized stock based compensation | $ 14.8 | ||
Unrecognized stock-based compensation weighted-average period | 3 years | ||
Share-Based Payment Arrangement, Option [Member] | 2021 Stock Option and Incentive Plan [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Common stock available for issuance | 3,576,415 | ||
Number of shares authorized | 1,552,307 | ||
Common stock available for issuance, awards granted | 2,022,477 | ||
Restricted Stock [Member] | 2021 Stock Option and Incentive Plan [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Restricted stock units award | 1,631 | ||
Restricted Stock [Member] | 2018 Plan [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Common stock available for issuance, awards granted | 1,930,913 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Restricted stock units award | 1,631 | ||
Unrecognized stock based compensation | $ 20,000 | ||
Vested term | 2 years | ||
Weighted- average remaining vesting period | 2 years |