Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | May 09, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Transition Report | false | |
Entity File Number | 001-40544 | |
Entity Registrant Name | AEROVATE THERAPEUTICS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 83-1377888 | |
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 $0.0001 per share | |
Trading Symbol | AVTE | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 28,808,334 | |
Entity Central Index Key | 0001798749 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 9,122 | $ 23,491 |
Short-term investments | 90,212 | 98,948 |
Prepaid expenses and other current assets | 3,905 | 1,793 |
Total current assets | 103,239 | 124,232 |
Property and equipment, net | 260 | 288 |
Operating lease right-of-use assets | 725 | 614 |
Other long-term assets | 2,597 | 2,284 |
Total assets | 106,821 | 127,418 |
Current liabilities: | ||
Accounts payable | 3,313 | 2,396 |
Accrued and other current liabilities | 11,760 | 14,821 |
Operating lease liabilities | 445 | 420 |
Total current liabilities | 15,518 | 17,637 |
Operating lease liabilities, net of current portion | 329 | 255 |
Other liabilities | 70 | 70 |
Total liabilities | 15,917 | 17,962 |
Commitments and contingencies (Note 5) | ||
Stockholders' equity: | ||
Preferred stock, $0.0001 par value; 10,000,000 shares authorized as of March 31, 2024 and December 31, 2023, respectively; no shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively | ||
Common stock, $0.0001 par value; 150,000,000 shares authorized at March 31, 2024 and December 31, 2023, respectively; 27,898,761 and 27,762,703 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively | 3 | 3 |
Additional paid-in capital | 277,544 | 272,640 |
Accumulated other comprehensive (loss) income | (33) | 237 |
Accumulated deficit | (186,610) | (163,424) |
Total stockholders' equity | 90,904 | 109,456 |
Total liabilities and stockholders' equity | $ 106,821 | $ 127,418 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
Condensed Consolidated Balance Sheets (Unaudited) | ||
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 | 27,898,761 | 27,762,703 |
Common stock, shares outstanding | 27,898,761 | 27,762,703 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating expenses: | ||
Research and development | $ 20,080 | $ 13,488 |
General and administrative | 4,538 | 4,151 |
Total operating expenses | 24,618 | 17,639 |
Loss from operations | (24,618) | (17,639) |
Other income (expense): | ||
Interest income | 1,435 | 1,120 |
Other expense: | (3) | (1) |
Total other income | 1,432 | 1,119 |
Net loss | (23,186) | (16,520) |
Comprehensive loss: | ||
Net loss | (23,186) | (16,520) |
Other comprehensive loss: | ||
Unrealized (loss) gain on securities | (270) | 265 |
Comprehensive loss | $ (23,456) | $ (16,255) |
Net loss per share, basic | $ (0.83) | $ (0.67) |
Net loss per share, diluted | $ (0.83) | $ (0.67) |
Weighted-average shares of common stock outstanding, basic | 27,795,827 | 24,777,847 |
Weighted-average shares of common stock outstanding, diluted | 27,795,827 | 24,777,847 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Gain/(Loss) | Accumulated Deficit | Total |
Beginning balance, shares at Dec. 31, 2022 | 24,722,974 | ||||
Beginning balance, value at Dec. 31, 2022 | $ 2 | $ 215,110 | $ (466) | $ (87,903) | $ 126,743 |
Unrealized gain on investments | 265 | 265 | |||
Issuance of common stock upon exercise of stock options | 223 | 223 | |||
Issuance of common stock upon exercise of stock options (in shares) | 93,966 | ||||
Stock based compensation | 2,384 | 2,384 | |||
Net loss | (16,520) | (16,520) | |||
Ending balance, shares at Mar. 31, 2023 | 24,816,940 | ||||
Ending balance, value at Mar. 31, 2023 | $ 2 | 217,717 | (201) | (104,423) | 113,095 |
Beginning balance, shares at Dec. 31, 2023 | 27,762,703 | ||||
Beginning balance, value at Dec. 31, 2023 | $ 3 | 272,640 | 237 | (163,424) | 109,456 |
Unrealized loss on investments | (270) | (270) | |||
Issuance of common stock upon exercise of stock options | 704 | $ 704 | |||
Issuance of common stock upon exercise of stock options (in shares) | 133,282 | 133,282 | |||
Vesting of restricted stock units, shares | 2,776 | ||||
Stock based compensation | 4,200 | $ 4,200 | |||
Net loss | (23,186) | (23,186) | |||
Ending balance, shares at Mar. 31, 2024 | 27,898,761 | ||||
Ending balance, value at Mar. 31, 2024 | $ 3 | $ 277,544 | $ (33) | $ (186,610) | $ 90,904 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flow from operating activities: | ||
Net loss | $ (23,186) | $ (16,520) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation expense | 4,200 | 2,384 |
Depreciation and amortization expense | 28 | 21 |
Accretion of discounts and amortization of premiums on investments, net | (759) | (671) |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | (2,112) | 636 |
Other long-term assets | 2 | (89) |
Accounts payable | 835 | 2,121 |
Accrued and other liabilities | (3,061) | 716 |
Operating lease assets and liabilities, net | (12) | (31) |
Other liabilities | 392 | 9 |
Net cash used in operating activities | (23,673) | (11,424) |
Cash flow from investing activities: | ||
Purchases of short-term investments | (14,750) | (15,609) |
Maturities of short-term investments | 23,583 | 31,000 |
Purchases of property and equipment | (16) | |
Net cash provided by investing activities | 8,833 | 15,375 |
Cash flow from financing activities: | ||
Payments for offering costs | (233) | |
Proceeds from issuance of common stock upon exercise of stock options | 704 | 223 |
Net cash provided by financing activities | 471 | 223 |
Net (decrease) increase in cash and cash equivalents | (14,369) | 4,174 |
Cash and cash equivalents at the beginning of the year | 23,491 | 22,397 |
Cash and cash equivalents at the end of the period | 9,122 | 26,571 |
Supplemental disclosure of noncash investing and financing activities: | ||
Right-of-use asset obtained in exchange for operating lease liability | 206 | |
Deferred offering costs included in accounts payable | 82 | 104 |
Purchases of property and equipment in accounts payable and accrued liabilities | $ 30 |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 3 Months Ended |
Mar. 31, 2024 | |
ORGANIZATION AND NATURE OF OPERATIONS | |
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 global Phase 2b/Phase 3 trial of AV-101 in adults with PAH in December 2021 and announced in November 2023 completion of enrollment of the Phase 2b portion of this trial and enrollment of the first patient in the Phase 3 portion of this trial. (b) At-the-Market Offering On April 5, 2023, the Company entered into an ATM Equity Offering SM (c) 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 March 31, 2024, the Company had cash and cash equivalents and short-term investments of $99.3 million. 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 | 3 Months Ended |
Mar. 31, 2024 | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | |
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 March 31, 2024 and for the three months ended March 31, 2024 and 2023 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 months ended March 31, 2024 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, 2023 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, 2023. 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) 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. 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, fair value of investments, and operating lease right-of-use assets and lease liabilities. 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. (c) 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 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): Three Months Ended March 31, 2024 2023 Numerator: Net loss $ (23,186) $ (16,520) Net loss available to common stockholders $ (23,186) $ (16,520) Denominator: Weighted-average common stock outstanding, basic and diluted 27,795,827 24,777,847 Net loss per share, basic and diluted $ (0.83) $ (0.67) 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): As of March 31, 2024 2023 Options to purchase common stock 6,462,763 5,107,865 Unvested restricted stock units 19,192 31,881 6,481,955 5,139,746 (d) Recently Issued and Recently Adopted Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2024 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
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): Fair Value Measurements Using Quoted Prices in Active Markets Significant Other Significant for Identical Observable Unobservable March 31, Assets Inputs Inputs 2024 (Level 1) (Level 2) (level 3) Assets: Cash equivalents Money market funds $ 3,105 $ 3,105 $ — $ — Total cash equivalents 3,105 3,105 — — Short-term investments Agency bonds 37,446 — 37,446 — Commercial paper 36,582 — 36,582 — U.S. Treasury bills 9,328 9,328 — — Corporate debt securities 6,856 — 6,856 — Total short-term investments 90,212 9,328 80,884 — Total fair value of assets $ 93,317 $ 12,433 $ 80,884 $ — Fair Value Measurements Using Quoted Prices in Active Markets Significant Other Significant for Identical Observable Unobservable December 31, Assets Inputs Inputs 2023 (Level 1) (Level 2) (level 3) Assets: Cash equivalents Money market funds $ 19,787 $ 19,787 $ — $ — Total cash equivalents 19,787 19,787 — — Short-term investments Agency bonds 42,255 42,255 Commercial paper 38,386 — 38,386 — U.S. Treasury bills 10,362 10,362 — — Corporate debt securities 7,945 — 7,945 — Total short-term investments 98,948 10,362 88,586 — Total fair value of assets $ 118,735 $ 30,149 $ 88,586 $ — 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 cash, money market funds and commercial paper, and short-term investments consisted of U.S. Treasury bills, agency bonds, 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): As of March 31, 2024 Gross Gross Amortized unrealized unrealized Estimated fair Maturity cost gains losses value Agency bonds 2 years or less 37,450 35 (39) 37,446 Commercial paper 2 years or less 36,590 7 (15) 36,582 U.S. Treasury bills 2 years or less 9,339 1 (12) 9,328 Corporate debt securities 2 years or less 6,866 3 (13) 6,856 $ 90,245 $ 46 $ (79) $ 90,212 As of December 31, 2023 Gross Gross Amortized unrealized unrealized Estimated fair Maturity cost gains losses value Agency bonds 2 years or less $ 42,090 179 (14) $ 42,255 Commercial paper 2 years or less 38,362 29 (5) 38,386 U.S. Treasury bills 2 years or less 10,334 31 (3) 10,362 Corporate debt securities 2 years or less 7,925 21 (1) 7,945 $ 98,711 $ 260 $ (23) $ 98,948 The following tables summarize the Company’s short-term investments with unrealized losses for less than 12 months and 12 months or greater (in thousands): As of March 31, 2024 Less than 12 months 12 months or Greater Unrealized Unrealized Total Total Unrealized Fair Value Losses Fair Value Losses Fair Value Losses Agency bonds $ 20,886 $ (36) $ 752 $ (3) $ 21,638 $ (39) Commercial paper 20,371 (15) — — 20,371 (15) U.S. Treasury bills 7,364 (12) — — 7,364 (12) Corporate debt securities 1,976 (13) — — 1,976 (13) $ 50,597 $ (76) $ 752 $ (3) $ 51,349 $ (79) As of December 31, 2023 Less than 12 months 12 months or Greater Unrealized Unrealized Total Total Unrealized Fair Value Losses Fair Value Losses Fair Value Losses Commercial paper $ 6,042 $ (5) $ — $ — $ 6,042 $ (5) Agency bonds 3,760 (6) 6,579 (8) 10,339 (14) U.S. Treasury bills 488 (2) 1,007 (1) 1,495 (3) Corporate debt securities 3,110 (1) — — 3,110 (1) $ 13,400 $ (14) $ 7,586 $ (9) $ 20,986 $ (23) 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 March 31, 2024 and December 31, 2023 were caused by fluctuations in market value and interest rates as a result of the economic environment and not credit risk. As of March 31, 2024 and December 31, 2023, no allowance for credit losses was recorded. During the three months ended March 31, 2024 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. 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. Accrued interest receivable related to short-term investments was $0.3 million and $0.6 million as of March 31, 2024 and December 31, 2023, respectively. |
BALANCE SHEET COMPONENTS
BALANCE SHEET COMPONENTS | 3 Months Ended |
Mar. 31, 2024 | |
BALANCE SHEET COMPONENTS | |
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): March 31, December 31, 2024 2023 Prepaid research and development $ 1,939 $ 375 Prepaid expenses 1,662 1,168 Other current assets 304 250 Total prepaid expenses and other current assets $ 3,905 $ 1,793 Accrued and Other Current Liabilities Accrued and other current liabilities consisted of the following (in thousands): March 31, December 31, 2024 2023 Accrued research and development $ 9,752 $ 9,363 Accrued payroll and other employee benefits 1,334 4,368 Other 674 1,090 Total accrued and other current liabilities $ 11,760 $ 14,821 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2024 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | (5) COMMITMENTS AND CONTINGENCIES In August 2021, the Company entered into a lease agreement (the “Waltham Lease”) for approximately 5,000 square feet of office space in Waltham, Massachusetts for the Company’s corporate headquarters. The Waltham Lease has a term of thirty-nine months (“Lease Term”), unless extended or earlier terminated. The Company has the option to extend the Waltham Lease for one additional period of three years. The Lease Term had an initial abatement period, and the initial base rent payable is approximately $18,000 per month following the abatement period. The initial base rent payable will increase by approximately 2% per year over the Lease Term. The Waltham Lease commencement date was September 1, 2021. In January 2024, the Company entered into the First Amendment to the Waltham Lease resulting in the lease expiring on December 31, 2025, and an increase of $1.00 per rentable square foot during the additional lease term. In obtaining this lease extension, the Company no longer has the option to extend the Waltham Lease for one additional period of three years. In April 2022, the Company entered into a lease agreement (the “Foster City Lease”) for approximately 3,500 square feet of office space in Foster City, California. The Foster City Lease has a term of thirty-nine months, unless extended or earlier terminated. The Company has the option to extend the Foster City Lease for an additional period of one year. The base rent payable under the Foster City Lease is approximately $22,600 per month and will be subject to annual increase of 3% on each anniversary. As of March 31, 2024, the future minimum annual lease payments under the operating leases were as follows (in thousands): Total Minimum Lease Payments 2024 $ 571 2025 242 Total operating lease payments 813 Less: Amount representing interest (39) Present value of net minimum lease payments $ 774 As the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the lease commencement date. The components of operating leases for the three months ended March 31, 2024 and year ended and December 31, 2023 were as follows (in thousands except lease term and discount rate): March 31, December 31, Operating lease liabilities: 2024 2023 Current 445 420 Non-current 329 255 Total lease liabilities $ 774 $ 675 Weighted-average remaining lease term (in years) 1.6 1.5 Weighted-average incremental borrowing rate 6.4 % 6.0 % Supplemental cash flow information related to cash paid for amounts included in the measurement of operating lease liabilities was as follows (in thousands): Three months ended March 31, 2024 2023 Cash paid included in operating cash flows $ 127 $ 123 Operating lease expense was as follows (in thousands): Three months ended March 31, 2024 2023 Operating lease $ 113 $ 111 Short-term lease 83 — Total rent expense $ 196 $ 111 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2024 | |
STOCKHOLDERS' EQUITY | |
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 authorized shares of common stock with a par value of $0.0001 per share and 10,000,000 authorized shares of undesignated preferred stock with a par value of $0.0001 per share. 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 March 31, 2024, the Company had reserved the following shares of common stock, on an as-converted basis, for future issuance: March 31, 2024 Common stock options granted and outstanding 6,462,763 Shares reserved for issuance under the 2021 Plan 349,170 Reserved for vesting of outstanding restricted stock units 19,192 Reserved for future ESPP issuances 435,252 Total 7,266,377 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2024 | |
SHARE-BASED COMPENSATION | |
SHARE-BASED COMPENSATION | (7) STOCK-BASED COMPENSATION (a) Stock Option Plan 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 March 31, 2024, a total of 5,675,841 shares of the Company’s common stock were authorized for issuance with respect to awards granted under the 2021 Plan, of which 349,170 shares remain available for issuance. The share limit will automatically increase on the first trading day in January of each year (commencing with 2022) by an amount equal to the lesser of (1) 4% 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. Since adoption, the number of shares available under the 2021 Plan pursuant to the annual increases totals 3,075,841 shares through January 1, 2024. 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 March 31, 2024, 5,257,038 and 1,205,725 options had been granted under the 2021 Plan and 2018 Plan, respectively. 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 of the date of grant. The vesting period generally occurs over three The following table summarizes the option activity under the 2021 Plan and 2018 Plan for the three months ended March 31, 2024: Weighted- Average Remaining Aggregate Weighted-Average Contractual Term Intrinsic Value Options Exercise Price (in years) (in thousands) Outstanding at December 31, 2023 5,230,344 $ 13.66 8.16 $ 49,728 Granted 1,396,691 19.75 Exercised (133,282) 5.30 Cancelled/Forfeited (30,990) 22.07 Outstanding at March 31, 2024 6,462,763 $ 15.11 8.32 $ 93,463 Vested and exercisable at March 31, 2024 2,440,412 12.04 7.65 42,791 The weighted-average grant date fair value of stock option grants was $14.99 per share for the three months ended March 31, 2024. As of March 31, 2024, there was $45.9 million of total unrecognized stock-based compensation expense related to unvested stock options granted under the 2021 Plan and 2018 Plan, which is expected to be recognized over a weighted-average period of approximately 2.6 years. (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 shares of the Company’s common stock was initially available for issuance under the ESPP. The share limit will automatically increase on the first trading day in January of each year (commencing with 2022) by an amount equal to the lesser of (1) 1% 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. The number of shares available under the 2021 Plan increased by 247,229 shares effective January 1, 2023 as determined by the Company’s board of directors. 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 March 31, 2024, 41,977 shares had been issued under the ESPP, and 435,252 shares authorized under the ESPP Plan were available for issuance. (c) Restricted Stock Units As of March 31, 2024, 31,881 restricted stock units had been awarded under the 2021 Plan. A summary of the status of and changes in unvested restricted stock unit activity under the Company’s equity award plans for the three months ended March 31, 2024 was as follows: Weighted- Average Grant Date Fair Value Units Per Unit Unvested restricted stock units as of December 31, 2023 21,968 $ 22.26 Granted — — Vested (2,776) 23.10 Forfeited — — Unvested restricted stock units as of March 31, 2024 19,192 $ 22.14 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. The vesting period generally occurs over three As of March 31, 2024, the Company had unrecognized stock-based compensation expense related to its unvested restricted stock units of $0.4 million, which is expected to be recognized over the remaining weighted-average vesting period of 2.2 years. (d) Stock-Based Compensation Expense Stock-based compensation expense recognized for all equity awards has been reported in the statements of operations and comprehensive loss as follows (in thousands): Three Months Ended March 31, 2024 2023 Research and development $ 2,494 $ 1,299 General and administrative 1,706 1,085 Total $ 4,200 $ 2,384 Stock-based compensation expense by type of award included within the consolidated statements of operations and comprehensive income (loss) was as follows: Three Months Ended March 31, 2024 2023 Stock options $ 4,067 $ 2,289 Restricted stock awards and units 47 48 Employee stock purchase plan awards 86 47 Total $ 4,200 $ 2,384 |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | (a) Basis of Presentation The accompanying unaudited condensed consolidated financial statements as of March 31, 2024 and for the three months ended March 31, 2024 and 2023 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 months ended March 31, 2024 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, 2023 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, 2023. 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”). |
Use of Estimates | (b) 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. 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, fair value of investments, and operating lease right-of-use assets and lease liabilities. 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 | (c) 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 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): Three Months Ended March 31, 2024 2023 Numerator: Net loss $ (23,186) $ (16,520) Net loss available to common stockholders $ (23,186) $ (16,520) Denominator: Weighted-average common stock outstanding, basic and diluted 27,795,827 24,777,847 Net loss per share, basic and diluted $ (0.83) $ (0.67) 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): As of March 31, 2024 2023 Options to purchase common stock 6,462,763 5,107,865 Unvested restricted stock units 19,192 31,881 6,481,955 5,139,746 |
Recently Issued and Recently Adopted Accounting Pronouncements | In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) |
BASIS OF PRESENTATION AND SIG_3
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | |
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): Three Months Ended March 31, 2024 2023 Numerator: Net loss $ (23,186) $ (16,520) Net loss available to common stockholders $ (23,186) $ (16,520) Denominator: Weighted-average common stock outstanding, basic and diluted 27,795,827 24,777,847 Net loss per share, basic and diluted $ (0.83) $ (0.67) |
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): As of March 31, 2024 2023 Options to purchase common stock 6,462,763 5,107,865 Unvested restricted stock units 19,192 31,881 6,481,955 5,139,746 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
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): Fair Value Measurements Using Quoted Prices in Active Markets Significant Other Significant for Identical Observable Unobservable March 31, Assets Inputs Inputs 2024 (Level 1) (Level 2) (level 3) Assets: Cash equivalents Money market funds $ 3,105 $ 3,105 $ — $ — Total cash equivalents 3,105 3,105 — — Short-term investments Agency bonds 37,446 — 37,446 — Commercial paper 36,582 — 36,582 — U.S. Treasury bills 9,328 9,328 — — Corporate debt securities 6,856 — 6,856 — Total short-term investments 90,212 9,328 80,884 — Total fair value of assets $ 93,317 $ 12,433 $ 80,884 $ — Fair Value Measurements Using Quoted Prices in Active Markets Significant Other Significant for Identical Observable Unobservable December 31, Assets Inputs Inputs 2023 (Level 1) (Level 2) (level 3) Assets: Cash equivalents Money market funds $ 19,787 $ 19,787 $ — $ — Total cash equivalents 19,787 19,787 — — Short-term investments Agency bonds 42,255 42,255 Commercial paper 38,386 — 38,386 — U.S. Treasury bills 10,362 10,362 — — Corporate debt securities 7,945 — 7,945 — Total short-term investments 98,948 10,362 88,586 — Total fair value of assets $ 118,735 $ 30,149 $ 88,586 $ — |
SCHEDULE OF SHORT TERM INVESTMENTS | The following tables summarize the Company’s short-term investments (in thousands): As of March 31, 2024 Gross Gross Amortized unrealized unrealized Estimated fair Maturity cost gains losses value Agency bonds 2 years or less 37,450 35 (39) 37,446 Commercial paper 2 years or less 36,590 7 (15) 36,582 U.S. Treasury bills 2 years or less 9,339 1 (12) 9,328 Corporate debt securities 2 years or less 6,866 3 (13) 6,856 $ 90,245 $ 46 $ (79) $ 90,212 As of December 31, 2023 Gross Gross Amortized unrealized unrealized Estimated fair Maturity cost gains losses value Agency bonds 2 years or less $ 42,090 179 (14) $ 42,255 Commercial paper 2 years or less 38,362 29 (5) 38,386 U.S. Treasury bills 2 years or less 10,334 31 (3) 10,362 Corporate debt securities 2 years or less 7,925 21 (1) 7,945 $ 98,711 $ 260 $ (23) $ 98,948 |
SCHEDULE OF SHORT-TERM INVESTMENTS WITH UNREALIZED LOSSES | The following tables summarize the Company’s short-term investments with unrealized losses for less than 12 months and 12 months or greater (in thousands): As of March 31, 2024 Less than 12 months 12 months or Greater Unrealized Unrealized Total Total Unrealized Fair Value Losses Fair Value Losses Fair Value Losses Agency bonds $ 20,886 $ (36) $ 752 $ (3) $ 21,638 $ (39) Commercial paper 20,371 (15) — — 20,371 (15) U.S. Treasury bills 7,364 (12) — — 7,364 (12) Corporate debt securities 1,976 (13) — — 1,976 (13) $ 50,597 $ (76) $ 752 $ (3) $ 51,349 $ (79) As of December 31, 2023 Less than 12 months 12 months or Greater Unrealized Unrealized Total Total Unrealized Fair Value Losses Fair Value Losses Fair Value Losses Commercial paper $ 6,042 $ (5) $ — $ — $ 6,042 $ (5) Agency bonds 3,760 (6) 6,579 (8) 10,339 (14) U.S. Treasury bills 488 (2) 1,007 (1) 1,495 (3) Corporate debt securities 3,110 (1) — — 3,110 (1) $ 13,400 $ (14) $ 7,586 $ (9) $ 20,986 $ (23) |
BALANCE SHEET COMPONENTS (Table
BALANCE SHEET COMPONENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
BALANCE SHEET COMPONENTS | |
SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS | Prepaid expenses and other current assets consisted of the following (in thousands): March 31, December 31, 2024 2023 Prepaid research and development $ 1,939 $ 375 Prepaid expenses 1,662 1,168 Other current assets 304 250 Total prepaid expenses and other current assets $ 3,905 $ 1,793 |
SCHEDULE OF ACCRUED AND OTHER CURRENT LIABILITIES | Accrued and other current liabilities consisted of the following (in thousands): March 31, December 31, 2024 2023 Accrued research and development $ 9,752 $ 9,363 Accrued payroll and other employee benefits 1,334 4,368 Other 674 1,090 Total accrued and other current liabilities $ 11,760 $ 14,821 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
COMMITMENTS AND CONTINGENCIES | |
SCHEDULE OF FUTURE MINIMUM ANNUAL LEASE PAYMENTS FOR OPERATING LEASES | As of March 31, 2024, the future minimum annual lease payments under the operating leases were as follows (in thousands): Total Minimum Lease Payments 2024 $ 571 2025 242 Total operating lease payments 813 Less: Amount representing interest (39) Present value of net minimum lease payments $ 774 |
SCHEDULE OF COMPONENTS OF OPERATING LEASES | As the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the lease commencement date. The components of operating leases for the three months ended March 31, 2024 and year ended and December 31, 2023 were as follows (in thousands except lease term and discount rate): March 31, December 31, Operating lease liabilities: 2024 2023 Current 445 420 Non-current 329 255 Total lease liabilities $ 774 $ 675 Weighted-average remaining lease term (in years) 1.6 1.5 Weighted-average incremental borrowing rate 6.4 % 6.0 % |
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): Three months ended March 31, 2024 2023 Cash paid included in operating cash flows $ 127 $ 123 |
SCHEDULE OF OPERATING LEASE EXPENSE | Operating lease expense was as follows (in thousands): Three months ended March 31, 2024 2023 Operating lease $ 113 $ 111 Short-term lease 83 — Total rent expense $ 196 $ 111 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
STOCKHOLDERS' EQUITY | |
SCHEDULE OF COMMON STOCK SHARES RESERVED FOR ON AND AS-CONVERTED BASIS, FOR FUTURE ISSUANCE | As of March 31, 2024, the Company had reserved the following shares of common stock, on an as-converted basis, for future issuance: March 31, 2024 Common stock options granted and outstanding 6,462,763 Shares reserved for issuance under the 2021 Plan 349,170 Reserved for vesting of outstanding restricted stock units 19,192 Reserved for future ESPP issuances 435,252 Total 7,266,377 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
SHARE-BASED COMPENSATION | |
SCHEDULE OF OPTION ACTIVITY UNDER 2021 PLAN AND 2018 PLAN | Weighted- Average Remaining Aggregate Weighted-Average Contractual Term Intrinsic Value Options Exercise Price (in years) (in thousands) Outstanding at December 31, 2023 5,230,344 $ 13.66 8.16 $ 49,728 Granted 1,396,691 19.75 Exercised (133,282) 5.30 Cancelled/Forfeited (30,990) 22.07 Outstanding at March 31, 2024 6,462,763 $ 15.11 8.32 $ 93,463 Vested and exercisable at March 31, 2024 2,440,412 12.04 7.65 42,791 |
SCHEDULE OF UNVESTED RESTRICTED STOCK UNIT ACTIVITY | Weighted- Average Grant Date Fair Value Units Per Unit Unvested restricted stock units as of December 31, 2023 21,968 $ 22.26 Granted — — Vested (2,776) 23.10 Forfeited — — Unvested restricted stock units as of March 31, 2024 19,192 $ 22.14 |
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): Three Months Ended March 31, 2024 2023 Research and development $ 2,494 $ 1,299 General and administrative 1,706 1,085 Total $ 4,200 $ 2,384 Stock-based compensation expense by type of award included within the consolidated statements of operations and comprehensive income (loss) was as follows: Three Months Ended March 31, 2024 2023 Stock options $ 4,067 $ 2,289 Restricted stock awards and units 47 48 Employee stock purchase plan awards 86 47 Total $ 4,200 $ 2,384 |
ORGANIZATION AND NATURE OF OP_2
ORGANIZATION AND NATURE OF OPERATIONS (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Apr. 05, 2023 | Apr. 30, 2024 | Mar. 31, 2024 | |
Sale of Stock | |||
Cash and cash equivalents and short-term investments | $ 99.3 | ||
BofA Securities, Inc. | |||
Sale of Stock | |||
Aggregate amount of shares | $ 75 | ||
Shares sold | 2,662,721 | ||
Proceeds from issuance of common stock | $ 44.3 | ||
Value of remaining common stock available for sale under ATM Program | $ 6 | ||
BofA Securities, Inc. | Subsequent Event | |||
Sale of Stock | |||
Proceeds from issuance of common stock | $ 23.6 |
BASIS OF PRESENTATION AND SIG_4
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - SCHEDULE OF NET LOSS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Net loss | $ (23,186) | $ (16,520) |
Net loss available to common stockholders | $ (23,186) | $ (16,520) |
Weighted-average common stock outstanding, basic | 27,795,827 | 24,777,847 |
Weighted-average common stock outstanding, diluted | 27,795,827 | 24,777,847 |
Net loss per share, basic | $ (0.83) | $ (0.67) |
Net loss per share, diluted | $ (0.83) | $ (0.67) |
BASIS OF PRESENTATION AND SIG_5
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - SCHEDULE OF POTENTIALLY DILUTIVE SECURITIES NOT INCLUDED IN THE CALCULATION OF DILUTED NET LOSS PER SHARE (Details) - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Antidilutive Securities | ||
Antidilutive Securities | 6,481,955 | 5,139,746 |
Employee Stock Option | ||
Antidilutive Securities | ||
Antidilutive Securities | 6,462,763 | 5,107,865 |
Restricted stock units | ||
Antidilutive Securities | ||
Antidilutive Securities | 19,192 | 31,881 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS - SCHEDULE OF FAIR VALUE INSTRUMENTS (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total short-term investments | $ 90,212 | $ 98,948 |
Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total cash equivalents | 3,105 | 19,787 |
Total short-term investments | 90,212 | 98,948 |
Total fair value of assets | 93,317 | 118,735 |
Fair Value, Recurring | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total cash equivalents | 3,105 | 19,787 |
Total short-term investments | 9,328 | 10,362 |
Total fair value of assets | 12,433 | 30,149 |
Fair Value, Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total cash equivalents | ||
Total short-term investments | 80,884 | 88,586 |
Total fair value of assets | 80,884 | 88,586 |
Fair Value, Recurring | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total cash equivalents | ||
Total short-term investments | ||
Total fair value of assets | ||
Money market funds | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total cash equivalents | 3,105 | 19,787 |
Money market funds | Fair Value, Recurring | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total cash equivalents | 3,105 | 19,787 |
Money market funds | Fair Value, Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total cash equivalents | ||
Money market funds | Fair Value, Recurring | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total cash equivalents | ||
Agency bonds | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total short-term investments | 37,446 | 42,255 |
Agency bonds | Fair Value, Recurring | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total short-term investments | ||
Agency bonds | Fair Value, Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total short-term investments | 37,446 | 42,255 |
Agency bonds | Fair Value, Recurring | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total short-term investments | ||
Commercial paper | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total short-term investments | 36,582 | 38,386 |
Commercial paper | Fair Value, Recurring | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total short-term investments | ||
Commercial paper | Fair Value, Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total short-term investments | 36,582 | 38,386 |
Commercial paper | Fair Value, Recurring | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total short-term investments | ||
U.S. Treasury bills | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total short-term investments | 9,328 | 10,362 |
U.S. Treasury bills | Fair Value, Recurring | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total short-term investments | 9,328 | 10,362 |
U.S. Treasury bills | Fair Value, Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total short-term investments | ||
U.S. Treasury bills | Fair Value, Recurring | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total short-term investments | ||
Corporate debt securities | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total short-term investments | 6,856 | 7,945 |
Corporate debt securities | Fair Value, Recurring | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total short-term investments | ||
Corporate debt securities | Fair Value, Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total short-term investments | $ 6,856 | 7,945 |
Corporate debt securities | Fair Value, Recurring | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total short-term investments |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS - SCHEDULE OF SHORT TERM INVESTMENT (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Fair Value, off-Balance-Sheet Risks, Disclosure Information | ||
Amortized cost | $ 90,245 | $ 98,711 |
Gross unrealized gains | 46 | 260 |
Gross unrealized loss | (79) | (23) |
Estimated fair value | 90,212 | 98,948 |
Allowance for credit loss | 0 | 0 |
Accrued interest receivable | 300 | 600 |
Agency bonds | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information | ||
Amortized cost | 37,450 | 42,090 |
Gross unrealized gains | 35 | 179 |
Gross unrealized loss | (39) | (14) |
Estimated fair value | 37,446 | 42,255 |
Commercial paper | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information | ||
Amortized cost | 36,590 | 38,362 |
Gross unrealized gains | 7 | 29 |
Gross unrealized loss | (15) | (5) |
Estimated fair value | 36,582 | 38,386 |
U.S. Treasury bills | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information | ||
Amortized cost | 9,339 | 10,334 |
Gross unrealized gains | 1 | 31 |
Gross unrealized loss | (12) | (3) |
Estimated fair value | 9,328 | 10,362 |
Corporate debt securities | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information | ||
Amortized cost | 6,866 | 7,925 |
Gross unrealized gains | 3 | 21 |
Gross unrealized loss | (13) | (1) |
Estimated fair value | $ 6,856 | $ 7,945 |
Maximum | Agency bonds | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information | ||
Maturity term | 2 years | 2 years |
Maximum | Commercial paper | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information | ||
Maturity term | 2 years | 2 years |
Maximum | U.S. Treasury bills | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information | ||
Maturity term | 2 years | 2 years |
Maximum | Corporate debt securities | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information | ||
Maturity term | 2 years | 2 years |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS - SCHEDULE OF SHORT-TERM INVESTMENTS WITH UNREALIZED LOSSES (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-Sale, Unrealized Loss Position | ||
Short-term investments, Less than 12 months, Fair Value | $ 50,597 | $ 13,400 |
Short-term investments, Less than 12 months, Unrealized Losses | (76) | (14) |
Short-term investments, 12 months or Greater, Fair Value | 752 | 7,586 |
Short-term investments, 12 months or Greater, Unrealized Losses | (3) | (9) |
Short-term investments, Total Fair Value | 51,349 | 20,986 |
Short-term investments, Total Unrealized Losses | (79) | (23) |
Agency bonds | ||
Debt Securities, Available-for-Sale, Unrealized Loss Position | ||
Short-term investments, Less than 12 months, Fair Value | 20,886 | 3,760 |
Short-term investments, Less than 12 months, Unrealized Losses | (36) | (6) |
Short-term investments, 12 months or Greater, Fair Value | 752 | 6,579 |
Short-term investments, 12 months or Greater, Unrealized Losses | (3) | (8) |
Short-term investments, Total Fair Value | 21,638 | 10,339 |
Short-term investments, Total Unrealized Losses | (39) | (14) |
Commercial paper | ||
Debt Securities, Available-for-Sale, Unrealized Loss Position | ||
Short-term investments, Less than 12 months, Fair Value | 20,371 | 6,042 |
Short-term investments, Less than 12 months, Unrealized Losses | (15) | (5) |
Short-term investments, Total Fair Value | 20,371 | 6,042 |
Short-term investments, Total Unrealized Losses | (15) | (5) |
U.S. Treasury bills | ||
Debt Securities, Available-for-Sale, Unrealized Loss Position | ||
Short-term investments, Less than 12 months, Fair Value | 7,364 | 488 |
Short-term investments, Less than 12 months, Unrealized Losses | (12) | (2) |
Short-term investments, 12 months or Greater, Fair Value | 1,007 | |
Short-term investments, 12 months or Greater, Unrealized Losses | (1) | |
Short-term investments, Total Fair Value | 7,364 | 1,495 |
Short-term investments, Total Unrealized Losses | (12) | (3) |
Corporate debt securities | ||
Debt Securities, Available-for-Sale, Unrealized Loss Position | ||
Short-term investments, Less than 12 months, Fair Value | 1,976 | 3,110 |
Short-term investments, Less than 12 months, Unrealized Losses | (13) | (1) |
Short-term investments, Total Fair Value | 1,976 | 3,110 |
Short-term investments, Total Unrealized Losses | $ (13) | $ (1) |
BALANCE SHEET COMPONENTS - SCHE
BALANCE SHEET COMPONENTS - SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
BALANCE SHEET COMPONENTS | ||
Prepaid research and development | $ 1,939 | $ 375 |
Prepaid expenses | 1,662 | 1,168 |
Other current assets | 304 | 250 |
Total prepaid expenses and other current assets | $ 3,905 | $ 1,793 |
BALANCE SHEET COMPONENTS - SC_2
BALANCE SHEET COMPONENTS - SCHEDULE OF ACCRUED AND OTHER CURRENT LIABILITIES - (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
BALANCE SHEET COMPONENTS | ||
Accrued research and development | $ 9,752 | $ 9,363 |
Accrued payroll and other employee benefits | 1,334 | 4,368 |
Other | 674 | 1,090 |
Total accrued and other current liabilities | $ 11,760 | $ 14,821 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) | 1 Months Ended | ||||
Jan. 31, 2024 USD ($) | Apr. 30, 2022 USD ($) ft² | Aug. 31, 2021 USD ($) ft² | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | |
Lessee, Lease, Description | |||||
Operating lease liability | $ 774,000 | $ 675,000 | |||
Waltham Lease | |||||
Lessee, Lease, Description | |||||
Area of land | ft² | 5,000 | ||||
Operating lease term | 39 months | ||||
Lease, option to extend | false | true | |||
Renewal term | 3 years | 3 years | |||
Increase of rental value for square foot | $ 1 | ||||
Payment for rent | $ 18,000 | ||||
Lease rent percentage | 2% | ||||
Foster City Lease | |||||
Lessee, Lease, Description | |||||
Area of land | ft² | 3,500 | ||||
Operating lease term | 39 months | ||||
Renewal term | 1 year | ||||
Payment for rent | $ 22,600 | ||||
Lease rent percentage | 3% |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - SCHEDULE OF FUTURE MINIMUM ANNUAL LEASE PAYMENTS FOR OPERATING LEASES (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
COMMITMENTS AND CONTINGENCIES | ||
2024 | $ 571 | |
2025 | 242 | |
Total operating lease payments | 813 | |
Less: Amount representing interest | (39) | |
Present value of net minimum lease payments | 774 | $ 675 |
Operating lease liabilities: | ||
Current | 445 | 420 |
Non-current | 329 | 255 |
Present value of net minimum lease payments | $ 774 | $ 675 |
Weighted-average remaining lease term (in years) | 1 year 7 months 6 days | 1 year 6 months |
Weighted-average incremental borrowing rate | 6.40% | 6% |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - SCHEDULE OF SUPPLEMENTAL CASH FLOW (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES | ||
Cash paid included in operating cash flows | $ 127 | $ 123 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES - SCHEDULE OF RENT EXPENSES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES | ||
Operating lease | $ 113 | $ 111 |
Short-term lease | 83 | |
Total rent expense | $ 196 | $ 111 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) | Mar. 31, 2024 Vote $ / shares shares | Dec. 31, 2023 $ / shares shares | Jul. 02, 2021 $ / shares shares |
STOCKHOLDERS' EQUITY | |||
Common stock, shares authorized | shares | 150,000,000 | 150,000,000 | 150,000,000 |
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | shares | 10,000,000 | 10,000,000 | 10,000,000 |
Preferred stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Number of votes for each share of common stock | Vote | 1 |
STOCKHOLDERS' EQUITY - SCHEDULE
STOCKHOLDERS' EQUITY - SCHEDULE OF COMMON STOCK SHARES RESERVED FOR ON AND AS-CONVERTED BASIS, FOR FUTURE ISSUANCE (Details) | Mar. 31, 2024 shares |
Sale of Stock | |
Common stock reserved for future issuance | 7,266,377 |
Common Stock | |
Sale of Stock | |
Common stock reserved for future issuance | 6,462,763 |
Employee Stock Option | |
Sale of Stock | |
Common stock reserved for future issuance | 349,170 |
Restricted stock units | |
Sale of Stock | |
Common stock reserved for future issuance | 19,192 |
Employee stock purchase plan awards | |
Sale of Stock | |
Common stock reserved for future issuance | 435,252 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 30 Months Ended | |
Jan. 01, 2023 | Jun. 30, 2021 | Mar. 31, 2024 | Dec. 31, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award | ||||
Options granted | 1,396,691 | |||
2021 Stock Option and Incentive Plan | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award | ||||
Common stock available for issuance | 349,170 | |||
Percentage on total number of shares outstanding | 4% | |||
Number of shares authorized | 5,675,841 | |||
Common stock available for issuance, awards granted | 3,075,841 | |||
Employee Stock Option [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award | ||||
Stock option grants per share | $ 14.99 | |||
Employee Stock Option [Member] | 2021 Stock Option and Incentive Plan | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award | ||||
Common stock available for issuance, awards granted | 5,257,038 | |||
Employee Stock Option [Member] | 2018 Plan | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award | ||||
Options granted | 1,205,725 | |||
Employee Stock Option [Member] | 2021 Plan and 2018 Plan | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award | ||||
Expiration period | 10 years | |||
Unrecognized stock based compensation | $ 45.9 | |||
Unrecognized stock-based compensation weighted-average period | 2 years 7 months 6 days | |||
Employee Stock Option [Member] | Minimum | 2021 Plan and 2018 Plan | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award | ||||
Vested term | 3 years | |||
Employee Stock Option [Member] | Maximum | 2021 Plan and 2018 Plan | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award | ||||
Vested term | 4 years | |||
Restricted stock units | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award | ||||
Unrecognized stock based compensation | $ 0.4 | |||
Weighted- average remaining vesting period | 2 years 2 months 12 days | |||
Restricted stock units | 2021 Stock Option and Incentive Plan | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award | ||||
Restricted stock units award | 31,881 | |||
Restricted stock units | Minimum | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award | ||||
Vested term | 3 years | |||
Restricted stock units | Maximum | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award | ||||
Vested term | 4 years | |||
ESPP | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award | ||||
Number of shares authorized | 230,000 | 435,252 | ||
Number of additional shares authorized | 247,229 | |||
Percentage of common stock purchase price | 85% | 1% | ||
Offering period | 6 months | |||
Discount percentage on marker price | 15% | |||
Shares issued | 41,977 |
SHARE-BASED COMPENSATION - SCHE
SHARE-BASED COMPENSATION - SCHEDULE OF OPTION ACTIVITY UNDER 2021 PLAN AND 2018 PLAN (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
SHARE-BASED COMPENSATION | ||
Options Outstanding, beginning balance | 5,230,344 | |
Weighted-Average Exercise Price Outstanding, beginning balance | $ 13.66 | |
Weighted- Average Remaining Contractual Term, Outstanding | 8 years 3 months 25 days | 8 years 1 month 28 days |
Aggregate Intrinsic Value Outstanding, beginning balance | $ 49,728 | |
Options Granted | 1,396,691 | |
Weighted-Average Exercise Price, Granted | $ 19.75 | |
Options Exercised | (133,282) | |
Weighted-Average Exercise Price, Exercised | $ 5.30 | |
Options, Cancelled/Forfeited | (30,990) | |
Weighted-Average Exercise Price, Cancelled/Forfeited | $ 22.07 | |
Options Outstanding, ending balance | 6,462,763 | 5,230,344 |
Weighted-Average Exercise Price Outstanding, ending balance | $ 15.11 | $ 13.66 |
Aggregate Intrinsic Value Outstanding, ending balance | $ 93,463 | $ 49,728 |
Options, Vested and exercisable | 2,440,412 | |
Weighted-Average Exercise Price, Vested and exercisable | $ 12.04 | |
Weighted- Average Remaining Contractual Term, Vested and exercisable | 7 years 7 months 24 days | |
Aggregate Intrinsic Value, Vested and exercisable | $ 42,791 |
SHARE-BASED COMPENSATION - SC_2
SHARE-BASED COMPENSATION - SCHEDULE OF UNVESTED RESTRICTED STOCK UNIT ACTIVITY (Details) - Restricted stock units | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award | |
Number of units, beginning | shares | 21,968 |
Weighted Average Grant date fair value, beginning | $ / shares | $ 22.26 |
Number of units, Vested | shares | (2,776) |
Weighted Average Grant date fair value, Vested | $ / shares | $ 23.10 |
Number of units, forfeited | shares | |
Weighted Average Grant date fair value, Forfeited | $ / shares | |
Number of units, Ending | shares | 19,192 |
Weighted Average Grant date fair value, Ending | $ / shares | $ 22.14 |
SHARE-BASED COMPENSATION - SC_3
SHARE-BASED COMPENSATION - SCHEDULE OF STOCK-BASED COMPENSATION EXPENSE RECOGNIZED FOR STOCK OPTION GRANTS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount | ||
Stock-based compensation expense | $ 4,200 | $ 2,384 |
Research and Development Expense | ||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount | ||
Stock-based compensation expense | 2,494 | 1,299 |
General and Administrative Expense | ||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount | ||
Stock-based compensation expense | $ 1,706 | $ 1,085 |
SHARE-BASED COMPENSATION - SC_4
SHARE-BASED COMPENSATION - SCHEDULE OF STOCK-BASED COMPENSATION EXPENSE BY TYPE OF AWARDS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award | ||
Stock-based compensation expense | $ 4,200 | $ 2,384 |
Employee Stock Option [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award | ||
Stock-based compensation expense | 4,067 | 2,289 |
Employee stock purchase plan awards | ||
Share-Based Compensation Arrangement by Share-Based Payment Award | ||
Stock-based compensation expense | 86 | 47 |
Restricted stock awards and units | ||
Share-Based Compensation Arrangement by Share-Based Payment Award | ||
Stock-based compensation expense | $ 47 | $ 48 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ (23,186) | $ (16,520) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |