Applied Molecular Transport (AMTI) 10-Q 11 May 23 2023 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2023	May 04, 2023
Entity Addresses [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-39306
Entity Registrant Name	APPLIED MOLECULAR TRANSPORT INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	81-4481426
City Area Code	650
Local Phone Number	392-0420
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	AMTI
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	false
Entity Shell Company	false
Entity Common Stock Shares Outstanding		39,337,933
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0001801777
Amendment Flag	false
Document Fiscal Year Focus	2023
Former Address
Entity Addresses [Line Items]
Entity Address, Address Line One	450 East Jamie Court
Entity Address, City or Town	South San Francisco
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94080
Business Contact
Entity Addresses [Line Items]
Entity Address, Address Line One	1209 Orange Street
Entity Address, City or Town	Wilmington
Entity Address, State or Province	DE
Entity Address, Postal Zip Code	19801

Condensed Balance Sheets (Unaud

Condensed Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 41,771	$ 61,145
Prepaid expenses	1,929	2,688
Other current assets	370	186
Long-lived assets held for sale	2,250	0
Total current assets	46,320	64,019
Property and equipment, net	2,790	8,183
Operating lease right-of-use assets	32,086	33,222
Finance lease right-of-use assets	688	584
Restricted cash	916	916
Other assets	495	522
Total assets	83,295	107,446
Current liabilities:
Accounts payable	871	1,583
Accrued expenses	10,990	8,660
Lease liabilities, operating lease - current	4,774	4,639
Lease liabilities, finance lease - current	184	205
Total current liabilities	16,819	15,087
Lease liabilities, operating lease	29,974	31,228
Lease liabilities, finance lease	114	49
Other liabilities	244	244
Total liabilities	47,151	46,608
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.0001 par value: 50,000,000 shares authorized; none issued and outstanding	0	0
Common stock, $0.0001 par value, 450,000,000 shares authorized; 39,200,952 and 39,181,801 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively	4	4
Additional paid-in capital	430,027	426,804
Accumulated deficit	(393,887)	(365,970)
Total stockholders’ equity	36,144	60,838
Total liabilities and stockholders’ equity	$ 83,295	$ 107,446

Condensed Balance Sheets (Una_2

Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	450,000,000	450,000,000
Common stock, shares issued (in shares)	39,200,952	39,181,801
Common stock, shares outstanding (in shares)	39,200,952	39,181,801

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Operating expenses:
Research and development	$ 12,988	$ 31,239
General and administrative	6,752	11,337
Restructuring, impairment, and related charges	8,743	0
Total operating expenses	28,483	42,576
Loss from operations	(28,483)	(42,576)
Interest income (expense), net	579	(3)
Other income (expense), net	(13)	4
Net loss	$ (27,917)	$ (42,575)
Net loss per share, basic (in dollars per share)	$ (0.71)	$ (1.10)
Net loss per share, diluted (in dollars per share)	$ (0.71)	$ (1.10)
Weighted-average shares of common stock outstanding, basic (in shares)	39,188,397	38,641,365
Weighted-average shares of common stock outstanding, diluted (in shares)	39,188,397	38,641,365

Condensed Statements of Stockho

Condensed Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit
Beginning balance at Dec. 31, 2021	$ 163,587	$ 4	$ 403,228	$ (239,645)
Beginning balance (in shares) at Dec. 31, 2021		38,619,957
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of common stock options	60		60
Exercise of common stock options (in shares)		34,206
Stock-based compensation expense	6,773		6,773
Net loss	(42,575)			(42,575)
Ending balance at Mar. 31, 2022	127,845	$ 4	410,061	(282,220)
Ending balance (in shares) at Mar. 31, 2022		38,654,163
Beginning balance at Dec. 31, 2022	$ 60,838	$ 4	426,804	(365,970)
Beginning balance (in shares) at Dec. 31, 2022	39,181,801	39,181,801
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon vesting of restricted stock units (in shares)		19,151
Exercise of common stock options (in shares)	0
Stock-based compensation expense	$ 3,223		3,223
Net loss	(27,917)			(27,917)
Ending balance at Mar. 31, 2023	$ 36,144	$ 4	$ 430,027	$ (393,887)
Ending balance (in shares) at Mar. 31, 2023	39,200,952	39,200,952

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Operating activities
Net loss	$ (27,917)	$ (42,575)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense	3,223	6,773
Depreciation and amortization	701	911
Non-cash operating lease expense	1,965	2,269
Impairment of long-lived assets held-for-sale	2,894	0
Changes in operating assets and liabilities:
Prepaid expenses	759	1,306
Other current assets	(236)	(71)
Other assets	27	(202)
Accounts payable	(1,071)	1,492
Accrued expenses	2,304	623
Operating lease liabilities	(1,947)	(1,660)
Other liabilities	0	3
Net cash used in operating activities	(19,298)	(31,131)
Investing activities
Purchases of property and equipment	(61)	(1,517)
Proceeds from disposal of property and equipment	54	0
Net cash used in investing activities	(7)	(1,517)
Financing activities
Payments for financing and offering costs	0	(690)
Principal payments on finance lease liabilities	(69)	(63)
Proceeds from exercise of common stock options	0	60
Net cash used in financing activities	(69)	(693)
Net decrease in cash, cash equivalents and restricted cash	(19,374)	(33,341)
Cash, cash equivalents and restricted cash, beginning of period	62,061	160,846
Cash, cash equivalents and restricted cash, end of period	42,687	127,505
Supplemental cash flow data:
Cash paid for interest on finance lease liabilities	7	7
Supplemental disclosure of non-cash investing and financing activities:
Property and equipment included in accounts payable and accrued expenses	395	1,541
Deferred financing and offering costs included in accounts payable and accrued expenses	$ 0	$ 129

Business and Principal Activiti

Business and Principal Activities	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business and Principal Activities	Business and Principal Activities Applied Molecular Transport Inc. (the Company or AMT) has historically been a clinical-stage biopharmaceutical company developing novel oral biologic product candidates by leveraging its technology platform to design biologic product candidates in patient-friendly oral dosage forms. On March 27, 2023, the Company announced that it had commenced a process to explore strategic alternatives. Prior to this announcement, the Company had devoted substantial resources to research and development activities and raising capital. Concurrent with the announcement, the Company’s board of directors approved a restructuring plan which is described further in the Restructuring of Operations section below. AMT was incorporated in the state of Delaware in November 2016. The Company has transitioned to an all-remote model and does not have a principal executive office. The Company has historically been subject to risks common to clinical stage companies in the biopharmaceutical industry, including dependence on the clinical success of its product candidates, ability to obtain regulatory approvals of its product candidates, compliance with regulatory requirements, the need for substantial additional financing and protection of its proprietary technology. Restructuring of Operations On March 27, 2023, the Company announced the commencement of a process to explore strategic alternatives and engaged MTS Health Partners, L.P. as advisors. The Company also decided to halt all research and development efforts and close out existing programs and end the AMT-101 Castro trial in Rheumatoid Arthritis at its current enrollment. The Company made this decision following an extensive assessment of its clinical programs and the current business environment. To conserve cash resources pending the outcome of its strategic review, the Company restructured its business and implemented a series of cost-saving measures. These measures included implementing reductions in workforce across all functional areas impacting 63 employees representing approximately 82% of its employee base. As of the date of this report, the Company has 15 regular, full-time employees. In May 2023, the Company executed agreements relating to the exit of its headquarters lease in South San Francisco and will vacate the premises by the end of May 2023. All property and equipment consisting primarily of manufacturing and lab equipment located at this facility were reclassified as held-for-sale within current assets on the condensed balance sheet as of March 31, 2023. The sale is expected to be completed by the end of the second quarter of 2023. The Company has transitioned to a fully-remote company and will no longer maintain any physical facilities. See Notes 3, 4, 5 and 6 for additional discussion related to the financial impact of the restructuring of operations. Going Concern Considerations The Company has incurred net losses in each reporting period since inception, including net losses of $27.9 million and $42.6 million for the three months ended March 31, 2023 and 2022, respectively, and the Company’s accumulated deficit at March 31, 2023 was $393.9 million. The Company’s current operating plan, which is subject to change based on the ongoing strategic review, indicates it will continue to incur losses from operations and generate negative cash flows from operating activities, given the Company does not generate any revenue from product sales or otherwise. As a result of the restructuring actions described above, including halting all research and development activities, terminating the lease for its South San Francisco headquarters, and significantly reducing its workforce, management believes the Company’s existing cash and cash equivalents of $41.8 million as of March 31, 2023 are adequate to meet its cash needs for at least 12 months from the issuance date of these condensed financial statements. While the Company is exploring strategic alternatives, there are no assurances that this process will result in any such transaction and such sources of capital may not be available to the Company in the necessary time frame, in the amounts that the Company requires, on terms that are acceptable to the Company, or at all. If the Company is unable to consummate a strategic transaction or raise the necessary funds when needed or reduce spending on currently planned activities, it may not be able to resume the development of its remaining products or it could be required to cease operations, any of which may materially harm its business, financial position and results of operations. In January 2022, the Company entered into a Sales Agreement with SVB Securities LLC and JMP Securities LLC, as the Company’s sales agents (Agents), pursuant to which the Company may offer and sell from time to time through the Agents up to $150.0 million in shares of the Company’s common stock through an “at-the-market” program (ATM Facility). The shares will be offered and sold pursuant to the Company’s shelf registration statement on Form S-3 (File No. 333-263501) and the final prospectus supplement, which was filed on March 11, 2022. For so long as the Company’s non-affiliate public float does not exceed $75 million, the amount of securities that the Company may sell pursuant to registration statements on Form S-3 will be limited to the equivalent of one-third of its public float, which will limit its ability to raise capital. As of March 31, 2023, the Company has not yet sold any shares under the ATM facility. Current Economic Environment The extent of the ongoing impact of macroeconomic events on our business and on global economic activity is uncertain and the related financial impact cannot be reasonably estimated with any certainty at this time, although the impacts are expected to continue and may significantly affect our business. We expect that the impacts on our business will continue through this period of economic uncertainty as inflation, instability in the banking and financial services sector, a tightening of the credit markets, COVID-19 and other factors continue to worsen or emerge. Accordingly, management is carefully evaluating the Company’s liquidity position and continuing to review its near-term operating expenses as the uncertainty related to these factors continues to unfold. The risks related to the Company’s business, including further discussion of the impact and possible future impacts of the current economic conditions and COVID-19 on the Company’s business, are further described in the section titled “Risk Factors” in Part II, Item 1A of this Quarterly Report on Form 10-Q.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Financial Statement Preparation The financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) and applicable rules and regulations of the SEC for interim reporting. As permitted under those rules and regulations, certain footnotes or other financial information normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. Similarly, the balance sheet as of December 31, 2022 was derived from the Company’s audited financial statements but does not include all disclosures required by GAAP. The interim condensed financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal, recurring adjustments that are necessary to fairly state the financial position, results of operations and cash flows of the Company for the interim periods presented. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results to be expected for the year ending December 31, 2023 or for any other interim periods or future years. The accompanying interim unaudited condensed financial statements should be read in conjunction with the audited financial statements and the related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The Company bases its estimates on historical experience and market-specific or other relevant assumptions that it believes are reasonable under the circumstances. Assets and liabilities reported in the Company’s condensed balance sheets and expenses and income reported are affected by estimates and assumptions, which are used for, but are not limited to, recording research and development expenses and related accruals, valuation of long-lived assets, including right-of-use assets, leasehold improvements and assets held for sale, restructuring and other charges, and determining the fair value of stock options for stock-based compensation expense. The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company. Actual results could differ from such estimates or assumptions. Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents. The Company maintains bank deposits in federally insured financial institutions and these deposits may exceed federally insured limits. The Company is exposed to credit risk in the event of default by the financial institutions holding its cash and cash equivalents to the extent recorded in the condensed balance sheets. The Company’s cash equivalents consist of money market funds that invests all of its assets in direct obligations of the U.S. Treasury. Although the fund invests in U.S. government obligations, an investment in such funds is neither insured nor guaranteed by the U.S. government. The Company has not experienced any losses on its deposits of cash or holdings of money market funds. Significant Accounting Policies The significant accounting policies set forth in Note 2 to the financial statements in the Company’s 2022 Form 10-K appropriately represent, in all material respects, the current status of our accounting policies, except as described below. Restructuring Charges Restructuring charges are recorded in accordance with Accounting Standards Codification (“ASC”) 712-10, “Nonretirement Postemployment Benefits,” or “ASC 712-10,” and/or ASC 420-10, “Exit or Disposal Cost Obligations,” or “ASC 420-10,” as appropriate. Certain termination costs and obligations that do not meet the lease criteria are accounted for in accordance with ASC 420-10. The Company records severance costs provided under an ongoing benefit arrangement once they are both probable and estimable in accordance with the provisions of ASC 712-10. The Company accounts for one-time termination benefits and contract terminations in accordance with ASC 420-10, which addresses financial accounting and reporting for costs associated with restructuring activities. Under ASC 420-10, the Company establishes a liability for a cost associated with an exit or disposal activity, including severance and other contract termination costs, when the liability is incurred, rather than at the date that the Company commits to an exit plan. The Company reassesses the expected cost to complete the exit or disposal activities at the end of each reporting period and adjusts its remaining estimated liabilities, if necessary. Long-lived Assets Held for Sale The Company classifies assets as held for sale when management has approved to sell the assets, the sale is probable to occur during the next 12 months at a price that is reasonable in relation to its current estimated fair value and certain other specified criteria are met. The assets classified as held for sale is recorded at the lower of the carrying value and estimated fair value, less cost to sell. If the carrying value of the assets exceeds its estimated fair value, less cost to sell, a loss is recognized and reported in the condensed statement of operations. Impairment of Long-Lived Assets The Company assesses long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Such events include a significant change in the Company’s strategic business objectives and utilization of the assets. During the three months ended March 31, 2023, the Company commenced restructuring activities that included the decision to operate as a fully-remote company and the halting and wind down of its research and development programs which indicated that the carrying amount of its long-lived assets might not be recoverable. The Company evaluated the long-lived assets, consisting primarily of manufacturing and lab equipment, right-of-use assets and leasehold improvements for impairment by comparing the estimated future undiscounted cash flows generated from the use of the asset and its eventual disposition with the asset’s or asset groups’ net carrying value. If the carrying value of an asset or asset group is considered impaired, an impairment charge is recorded for the amount that the carrying value of the long-lived asset exceeds its fair value. Any loss is allocated to the long-lived assets of the group on a pro rata basis using the relative carrying amounts of those assets, except that the loss allocated to an individual long-lived asset of the group did not reduce the carrying value of that asset below its fair value. When an impairment loss is recognized for assets to be held and used, including leasehold improvements, the adjusted carrying amounts are depreciated over their remaining useful life. As of March 31, 2023, the Company’s manufacturing and lab equipment located in its headquarters in South San Francisco were held for sale. As such, the Company recorded impairment charges to write-down assets held for sale to their estimated fair value, less estimated costs to sell. The assets are classified as “long-lived assets held for sale” on the condensed balance sheet as of March 31, 2023. The sale is expected to be completed by the second quarter of 2023. All other asset groups were determined to be recoverable. Refer to Notes 3, 4, and 5 for additional information regarding restructuring and impairment charges recorded for the three months ended March 31, 2023. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents are held in accounts at financial institutions. Such deposits have and will continue to exceed federally insured limits in the foreseeable future. The Company considers all highly liquid investments purchased with original maturities of 90 days or less from the purchase date to be cash equivalents. Cash equivalents consist of amounts invested in money market funds exclusively composed of U.S. government obligations. As of March 31, 2023, the Company had $0.9 million in restricted cash, which was classified as long-term on the Company’s condensed balance sheets. The restricted cash was attributable to a letter of credit issued by the Company in connection with the operating lease for the Company’s headquarters. The lease was originally scheduled to expire in September 2029. In May 2023, the Company entered into a modification of this lease, which shortened the accounting lease term to May 31, 2023. Pursuant to the lease modification, the Company agreed to forfeit the security deposit (see Note 6) and the landlord was entitled to draw down the letter of credit and retain the full amount. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed statements of cash flows (in thousands): March 31, March 31, Cash and cash equivalents $ 41,771 $ 126,480 Restricted cash 916 1,025 Total cash, cash equivalents and restricted cash $ 42,687 $ 127,505 Recently Adopted Accounting Pronouncements Accounting pronouncements that became effective during the three months ended March 31, 2023 did not have a material impact on the Company’s financial condition, results of operations or cash flows. Recently Issued Accounting Pronouncements There were no new accounting pronouncements issued as of March 31, 2023 that are expected to have a material impact on the Company’s financial condition, results of operations or cash flows.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability, or an exit price, in the principal or most advantageous market for that asset or liability in an orderly transaction between market participants on the measurement date. A three-level valuation hierarchy has been established under GAAP for disclosure of fair value measurements. The valuation hierarchy is based on the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows: • Level 1—Quoted prices in active markets for identical assets and liabilities; • Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Assets Measured at Fair Value on a Recurring Basis As of March 31, 2023 and December 31, 2022, money market funds were the only financial instrument measured and recorded at fair value on a recurring basis on the Company’s condensed balance sheets. Money market funds were recorded within cash and cash equivalents. The following tables present money market funds at their level within the fair value hierarchy for the periods indicated (in thousands): March 31, 2023 Fair Value Hierarchy Level Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash equivalents: Money market funds invested in U.S. government obligations Level 1 $ 40,821 $ — $ — $ 40,821 Total $ 40,821 $ — $ — $ 40,821 December 31, 2022 Fair Value Hierarchy Level Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash equivalents: Money market funds invested in U.S. government obligations Level 1 $ 40,729 $ — $ — $ 40,729 Total $ 40,729 $ — $ — $ 40,729 Assets Measured at Fair Value on a Non-Recurring Basis Long-lived Assets Held-for-Sale Assets that are measured at fair value on a non-recurring basis relate to our long-lived assets held for sale recorded within current assets on the Company’s condensed balance sheet as of March 31, 2023 and primarily consisted of manufacturing and lab equipment located at our headquarters in South San Francisco. The Company is in the process of vacating its headquarters and has offered the long-lived assets for sale. As a result, the Company was required to value the assets at the lower of carrying amounts or fair value, less costs to sell. The Company determined the long-lived assets held-for-sale balance of $2.3 million based on estimates of potential sales values of used equipment by considering recent appraisals, valuations, offers and bids. Due to the subjective nature of the inputs used, amounts recorded as long-lived assets held for sale are classified within Level 3 of the fair value hierarchy. The sale is expected to be completed by the end of the second quarter of 2023. All other asset groups were determined to be recoverable. Financial Instruments Not Carried at Fair Value The Company’s financial instruments, including cash, restricted cash, other current assets, accounts payable and accrued expenses are carried at cost which approximates their fair value because of the short-term nature of these financial instruments.

Balance Sheet Components

Balance Sheet Components	3 Months Ended
	Mar. 31, 2023
Balance Sheet Related Disclosures [Abstract]
Balance Sheet Components	Balance Sheet Components Prepaid Expenses Prepaid clinical expenses were $1.0 million and $1.2 million as of March 31, 2023 and December 31, 2022, respectively. Other prepaid expenses as of March 31, 2023 and December 31, 2022 included prepaid amounts for insurance and other services. Property and Equipment, Net Property and equipment, net, consisted of the following (in thousands): March 31, December 31, Laboratory and manufacturing equipment $ — $ 11,421 Leasehold improvements 3,348 5,246 Computer and office equipment — 491 Construction in progress — 72 Total property and equipment, gross 3,348 17,230 Accumulated depreciation (558) (9,047) Total property and equipment, net $ 2,790 $ 8,183 Long-lived assets held for sale $ 2,250 $ — Long-lived assets held for sale primarily consisted of manufacturing and lab equipment located at the Company’s headquarters in South San Francisco. The Company is in the process of vacating its headquarters and has offered the long-lived assets for sale. Refer to Note 3, Fair Value Measurements for more information on the Company’s valuation methodology. During the three months ended March 31, 2023, the Company recorded impairment charges of $2.9 million due to its restructuring of operations (see Note 5). Depreciation was $0.6 million and $0.9 million during the three months ended March 31, 2023 and 2022, respectively. Accrued Expenses Accrued expenses consisted of the following (in thousands): March 31, December 31, Research and development expenses $ 5,750 $ 3,508 Compensation expenses 3,803 3,985 Professional services 935 728 Property and equipment 26 7 Other 476 432 Total accrued expenses $ 10,990 $ 8,660 Accrued research and development expenses were primarily related to clinical trials, preclinical studies, contract manufacturing and materials. As of March 31, 2023, amounts were associated with closing out research and development activities. The accrued compensation expenses as of March 31, 2023 included $3.3 million in employee termination benefits, which are expected to be settled by the end of the second quarter of 2023.

Restructuring, Impairment, and

Restructuring, Impairment, and Related Charges	3 Months Ended
	Mar. 31, 2023
Restructuring and Related Activities [Abstract]
Restructuring, Impairment, and Related Charges	Restructuring, Impairment, and Related ChargesThe Company recorded restructuring, impairment, and related charges of $8.7 million for the three months ended March 31, 2023. These charges were included in “Restructuring, impairment, and related charges” in the condensed statements of operations. Restructuring, impairment, and related charges for the three months ended March 31, 2023 consisted of the following (in thousands): Three Months Ended Employee termination benefits $ 5,626 Asset impairments 2,894 Other related costs 223 Total restructuring, impairments, and related charges $ 8,743 Employee Termination Benefits As discussed in Note 1, in March 2023, the Company implemented reductions in workforce across all functional areas impacting 63 employees representing approximately 82% of its employee base. As of the date of this report, the Company has 15 regular, full-time employees. Impacted employees were eligible to receive severance benefits and Company-funded COBRA premiums, contingent upon an impacted employee’s execution (and non-revocation) of a customary separation agreement, which includes a general release of claims against the Company. For the three months ended March 31, 2023, the Company recognized $5.6 million of employee termination benefits provided under an ongoing benefit arrangement. As of March 31, 2023, accrued employee termination benefits were $3.3 million, which are expected to be settled by the second quarter of 2023. Asset Impairments In connection with its restructuring initiative, the Company determined that sufficient indicators existed to trigger the performance of an interim long-lived asset impairment analysis as of March 31, 2023. The Company committed to a plan to actively sell tangible fixed assets located in its South San Francisco headquarters, consisting primarily of manufacturing and laboratory equipment. These assets met all of the prescribed criteria required to classify it as held for sale and an impairment charge was recorded to write-down assets held for sale to their estimated fair value, less estimated costs to sell. Long-lived assets held for sale were recorded within current assets on the condensed balance sheet as of March 31, 2023. The sale is expected to be completed by the end of the second quarter of 2023. All other asset groups were determined to be recoverable. Subsequently, in May 2023, the Company modified its lease agreement for its South San Francisco headquarters, which shortened the accounting lease term to May 31, 2023 (see Note 6). Asset impairment charges for the three months ended March 31, 2023 consisted of the following (in thousands): Amount Net book value of long-lived assets held for sale $ 5,144 Less: Fair value of long-lived assets held-for-sale (2,250) Impairment of long-lived assets held-for-sale $ 2,894 See Note 4 for property and equipment, net and assets held for sale carrying amounts after the effects of impairment charges and held for sale reclassifications. Other Related Costs Other related costs primarily consisted of non-lease contract termination costs and costs for professional services incurred in connection with restructuring measures. The Company has transitioned to a remote-only company. As a result, it expects to incur additional restructuring charges associated with the exit of its real estate leases in the second quarter of 2023.

Leases

Leases	3 Months Ended
	Mar. 31, 2023
Leases [Abstract]
Leases	Leases Operating Leases In February 2021, the Company entered into an operating lease for its headquarters comprising 84,321 of rentable square feet of office, laboratory and manufacturing space in South San Francisco, California (HQ Lease), which was originally scheduled to expire in October 2029. As part of the Company’s March 2023 restructuring initiative, the Company plans to operate under a remote-only model. In May 2023, the Company entered into a modification of the HQ Lease (Lease Modification), which shortened the accounting lease term to May 31, 2023. Pursuant to the Lease Modification, the Company made a one-time payment of $5.4 million, which released the Company from all rent obligations under the HQ Lease from and after April 1, 2023. In addition, the Company agreed to forfeit the security deposit of $0.9 million in the form of a letter of credit (see Note 2). The Lease Modification requires the Company to surrender the premises by May 31, 2023. Concurrently, the Company entered into a Third Amendment to the HQ Lease, which removes the third floor of the leased building from the HQ Lease. The Company also concurrently entered into a side letter with the Company’s subtenant, which together with the Third Amendment, effectively terminates the sublease. The financial impact of the Lease Modification and the Third Amendment will be recognized in the second quarter of 2023. In December 2016, the Company entered into an operating lease for approximately 18,748 rentable square feet of office and laboratory space in South San Francisco, California, which served as the Company’s headquarters through February 2021. The lease expires in August 2024. In March 2022, the Company entered into a sublease for this facility in which the rental period was co-terminus with the term of the head lease. The subtenant was not provided any renewal or extension options. Finance Leases The Company has various finance lease agreements for laboratory and manufacturing equipment. The terms of the Company’s finance leases generally range from three The following table summarizes total lease expense for the three months ended March 31, 2023 and 2022 (in thousands): Condensed Statements of Operations Classification Three Months Ended March 31, 2023 2022 Operating lease expense Operating expenses $ 1,965 $ 2,269 Finance lease expense: Amortization of ROU assets Operating expenses 61 50 Interest on lease liabilities Interest income, net 7 7 Variable lease expense Operating expenses 318 561 Short-term lease expense Operating expenses 5 62 Sublease income Operating expenses (810) (405) Total lease expense $ 1,546 $ 2,544 The following table summarizes supplemental cash flow information for the three months ended March 31, 2023 and 2022 (in thousands): Three Months Ended March 31, 2023 2022 Cash paid for amounts included in the measurement of liabilities: Operating cash flows from operating leases $ 1,906 $ 1,660 Operating cash flows from finance leases 7 7 Financing cash flows from finance leases 69 63 Right-of-use asset obtained in exchange for new operating lease liability — 454 Right-of-use asset obtained in exchange for new finance lease liability 114 148 The following table summarizes maturities of lease liabilities and sublease income as of March 31, 2023 (in thousands): Operating Leases Sublease Income Finance Leases 2023 (remaining nine months) $ 5,920 $ (2,503) $ 182 2024 7,577 (2,898) 91 2025 6,717 (157) 53 2026 6,898 — 4 2027 7,082 — — Thereafter 12,705 — — Total lease payments (undiscounted) 46,899 $ (5,558) 330 Less interest or imputed interest (12,151) (32) Total present value of lease liabilities 34,748 298 Less: Lease liabilities, current (4,774) (184) Lease liabilities, non-current $ 29,974 $ 114 As a result of the Lease Modification, minimum lease payments (net of related sublease income) presented in the table above will be reduced by approximately $38.4 million. The following table includes supplemental information: March 31, 2023 March 31, 2022 Operating Leases Finance Leases Operating Leases Finance Leases Weighted-average remaining lease term (years) 6.1 1.7 6.7 1.8 Weighted-average discount rate 10.4 % 10.5 % 10.1 % 7.3 %
Leases	Leases Operating Leases In February 2021, the Company entered into an operating lease for its headquarters comprising 84,321 of rentable square feet of office, laboratory and manufacturing space in South San Francisco, California (HQ Lease), which was originally scheduled to expire in October 2029. As part of the Company’s March 2023 restructuring initiative, the Company plans to operate under a remote-only model. In May 2023, the Company entered into a modification of the HQ Lease (Lease Modification), which shortened the accounting lease term to May 31, 2023. Pursuant to the Lease Modification, the Company made a one-time payment of $5.4 million, which released the Company from all rent obligations under the HQ Lease from and after April 1, 2023. In addition, the Company agreed to forfeit the security deposit of $0.9 million in the form of a letter of credit (see Note 2). The Lease Modification requires the Company to surrender the premises by May 31, 2023. Concurrently, the Company entered into a Third Amendment to the HQ Lease, which removes the third floor of the leased building from the HQ Lease. The Company also concurrently entered into a side letter with the Company’s subtenant, which together with the Third Amendment, effectively terminates the sublease. The financial impact of the Lease Modification and the Third Amendment will be recognized in the second quarter of 2023. In December 2016, the Company entered into an operating lease for approximately 18,748 rentable square feet of office and laboratory space in South San Francisco, California, which served as the Company’s headquarters through February 2021. The lease expires in August 2024. In March 2022, the Company entered into a sublease for this facility in which the rental period was co-terminus with the term of the head lease. The subtenant was not provided any renewal or extension options. Finance Leases The Company has various finance lease agreements for laboratory and manufacturing equipment. The terms of the Company’s finance leases generally range from three The following table summarizes total lease expense for the three months ended March 31, 2023 and 2022 (in thousands): Condensed Statements of Operations Classification Three Months Ended March 31, 2023 2022 Operating lease expense Operating expenses $ 1,965 $ 2,269 Finance lease expense: Amortization of ROU assets Operating expenses 61 50 Interest on lease liabilities Interest income, net 7 7 Variable lease expense Operating expenses 318 561 Short-term lease expense Operating expenses 5 62 Sublease income Operating expenses (810) (405) Total lease expense $ 1,546 $ 2,544 The following table summarizes supplemental cash flow information for the three months ended March 31, 2023 and 2022 (in thousands): Three Months Ended March 31, 2023 2022 Cash paid for amounts included in the measurement of liabilities: Operating cash flows from operating leases $ 1,906 $ 1,660 Operating cash flows from finance leases 7 7 Financing cash flows from finance leases 69 63 Right-of-use asset obtained in exchange for new operating lease liability — 454 Right-of-use asset obtained in exchange for new finance lease liability 114 148 The following table summarizes maturities of lease liabilities and sublease income as of March 31, 2023 (in thousands): Operating Leases Sublease Income Finance Leases 2023 (remaining nine months) $ 5,920 $ (2,503) $ 182 2024 7,577 (2,898) 91 2025 6,717 (157) 53 2026 6,898 — 4 2027 7,082 — — Thereafter 12,705 — — Total lease payments (undiscounted) 46,899 $ (5,558) 330 Less interest or imputed interest (12,151) (32) Total present value of lease liabilities 34,748 298 Less: Lease liabilities, current (4,774) (184) Lease liabilities, non-current $ 29,974 $ 114 As a result of the Lease Modification, minimum lease payments (net of related sublease income) presented in the table above will be reduced by approximately $38.4 million. The following table includes supplemental information: March 31, 2023 March 31, 2022 Operating Leases Finance Leases Operating Leases Finance Leases Weighted-average remaining lease term (years) 6.1 1.7 6.7 1.8 Weighted-average discount rate 10.4 % 10.5 % 10.1 % 7.3 %

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Contingencies From time to time, the Company may become involved in legal proceedings arising in the ordinary course of business. The Company was not subject to any material legal proceedings as of March 31, 2023 and December 31, 2022, and no material legal proceedings are currently pending or threatened. Indemnification In the ordinary course of business, the Company enters into agreements that may include indemnification provisions. As permitted under Delaware law and in accordance with its bylaws, the Company indemnifies its officers and directors for certain events or occurrences while the officer or director is or was serving in such capacity. The Company is also party to indemnification agreements with its officers and directors. In some cases, the indemnification will continue after the termination of the agreement. The maximum potential amount of future payments that the Company could be required to make under these provisions is not determinable. The Company also maintains director and officer insurance, which may cover certain liabilities arising from the Company’s obligation to indemnify directors and officers. The Company has never incurred costs to defend lawsuits or settle claims related to these indemnification provisions and is not currently aware of any indemnification claims.

Common Stock and Stock-Based Co

Common Stock and Stock-Based Compensation	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Common Stock and Stock-Based Compensation	Common Stock and Stock-Based Compensation Common Stock As of March 31, 2023 and December 31, 2022, the Company was authorized to issue 450,000,000 shares of $0.0001 par value common stock. Common stockholders are entitled to dividends if and when declared by the Board of Directors. The holder of each share of common stock is entitled to one vote. The Company has never declared or paid dividends on its common stock. Common stock reserved for future issuance, on an as converted basis, consisted of the following: March 31, December 31, Stock options outstanding 4,650,705 5,369,808 RSUs outstanding 253,871 531,366 Shares available for future grants under equity incentive plans 7,591,459 4,654,922 Shares available for issuance under ESPP 1,264,610 872,792 Total 13,760,645 11,428,888 On January 1, 2023, the shares available for grant under the Company’s 2020 Equity Incentive Plan and the 2020 ESPP were automatically increased by 1,959,090 shares and 391,818 shares, respectively, pursuant to the annual evergreen increase provisions under each respective plan. Stock-based Compensation The Company has awards outstanding under various stock-based compensation plans as described in the financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. The Company utilizes stock options and restricted stock units (RSUs) for equity compensation. Stock-based compensation expense is measured at fair value on the date of grant and recognized ratably over the requisite service period. The following table summarizes the components of stock-based compensation expense recognized in the Company’s condensed statements of operations during the three months ended March 31, 2023 and 2022 (in thousands): Three Months Ended 2023 2022 Research and development $ 959 $ 3,436 General and administrative 2,264 3,337 Total stock-based compensation expense $ 3,223 $ 6,773 Stock Options The following summarizes stock option activity (in thousands, except share, per share, and year amounts): Stock Options Outstanding and Exercisable Total Options Outstanding Weighted- Weighted- Aggregate Outstanding as of December 31, 2022 5,369,808 $ 17.28 7.6 $ 11 Granted 668,000 0.39 Exercised 0 — Cancelled (1,387,103) 19.72 Outstanding as of March 31, 2023 4,650,705 $ 14.13 5.8 $ 6 Exercisable as of March 31, 2023 3,023,252 $ 14.48 4.1 $ 6 As of March 31, 2023, the total unrecognized stock-based compensation expense related to stock options was $14.1 million, which is expected to be recognized over a weighted-average period of approximately 2.1 years. Restricted Stock Units The following summarizes restricted stock unit activity: RSUs Outstanding Number of Shares Weighted- Outstanding as of December 31, 2022 531,366 $ 10.12 Granted — — Vested (19,151) 7.54 Cancelled (258,344) 11.62 Outstanding as of March 31, 2023 253,871 $ 8.79 As of March 31, 2023, the total unrecognized stock-based compensation expense related to unvested restricted stock units and awards was $1.8 million, which is expected to be recognized over a weighted-average period of approximately 2.3 years.

Net Loss Per Share

Net Loss Per Share	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Net Loss Per Share	Net Loss Per Share Basic net loss per common share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share of common stock is computed by giving effect to all potential dilutive shares of common stock, including options and RSUs. Basic and diluted net loss per share were the same for all periods presented as the impact of all potentially dilutive securities outstanding was anti-dilutive. The following table sets forth the computation of the basic and diluted net loss per share (in thousands except share and per share data): Three Months Ended 2023 2022 Numerator: Net loss $ (27,917) $ (42,575) Denominator: Weighted-average shares of common stock outstanding used in the calculation of basic and diluted net loss per share 39,188,397 38,641,365 Net loss per share, basic and diluted $ (0.71) $ (1.10) The Company’s basic net loss per share was the same as its diluted net loss per share for all the periods presented as the inclusion of all common stock equivalents outstanding would have been anti-dilutive. Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows: March 31, 2023 2022 Stock options outstanding 4,650,705 6,527,444 RSUs outstanding 253,871 1,075,829

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsIn April 2023, the Company granted 2,575,529 RSUs, pursuant to the terms and conditions of the Company’s 2020 Equity Incentive Plan, to employees that contain performance conditions associated with a strategic transaction, if such a transaction occurs. The restricted stock units also vest in full if an employee is involuntarily terminated. In April 2023, the Company entered into a Consulting Agreement with Tahir Mahmood, a current director of the Company and the Company’s co-founder and former CEO. The Consulting Agreement has a six-month term and will expire in October 2023. Under the terms of the Consulting Agreement, Dr. Mahmood will provide consulting services relating to potential strategic transactions. As consideration for the Consulting Agreement, Dr. Mahmood was granted 886,111 RSUs, pursuant to the terms and conditions of the Company’s 2020 Equity Incentive Plan, that contain performance conditions associated with a strategic transaction, if such a transaction occurs. The foregoing description of the terms of the Consulting Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Consulting Agreement, a copy of which is filed hereto as Exhibit 10.3. In May 2023, the Company entered into a Lease Modification of its HQ Lease, which shortened the accounting lease term to May 31, 2023 (see Note 6).

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Financial Statement Preparation	Financial Statement Preparation The financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) and applicable rules and regulations of the SEC for interim reporting. As permitted under those rules and regulations, certain footnotes or other financial information normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. Similarly, the balance sheet as of December 31, 2022 was derived from the Company’s audited financial statements but does not include all disclosures required by GAAP. The interim condensed financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal, recurring adjustments that are necessary to fairly state the financial position, results of operations and cash flows of the Company for the interim periods presented. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results to be expected for the year ending December 31, 2023 or for any other interim periods or future years. The accompanying interim unaudited condensed financial statements should be read in conjunction with the audited financial statements and the related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The Company bases its estimates on historical experience and market-specific or other relevant assumptions that it believes are reasonable under the circumstances. Assets and liabilities reported in the Company’s condensed balance sheets and expenses and income reported are affected by estimates and assumptions, which are used for, but are not limited to, recording research and development expenses and related accruals, valuation of long-lived assets, including right-of-use assets, leasehold improvements and assets held for sale, restructuring and other charges, and determining the fair value of stock options for stock-based compensation expense. The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company. Actual results could differ from such estimates or assumptions.
Concentration of Credit Risk	Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents. The Company maintains bank deposits in federally insured financial institutions and these deposits may exceed federally insured limits. The Company is exposed to credit risk in the event of default by the financial institutions holding its cash and cash equivalents to the extent recorded in the condensed balance sheets. The Company’s cash equivalents consist of money market funds that invests all of its assets in direct obligations of the U.S. Treasury. Although the fund invests
Restructuring Charges	Restructuring Charges Restructuring charges are recorded in accordance with Accounting Standards Codification (“ASC”) 712-10, “Nonretirement Postemployment Benefits,” or “ASC 712-10,” and/or ASC 420-10, “Exit or Disposal Cost Obligations,” or “ASC 420-10,” as appropriate. Certain termination costs and obligations that do not meet the lease criteria are accounted for in accordance with ASC 420-10. The Company records severance costs provided under an ongoing benefit arrangement once they are both probable and estimable in accordance with the provisions of ASC 712-10. The Company accounts for one-time termination benefits and contract terminations in accordance with ASC 420-10, which addresses financial accounting and reporting for costs associated with restructuring activities. Under ASC 420-10, the Company establishes a liability for a cost associated with an exit or disposal activity, including severance and other contract termination costs, when the liability is incurred, rather than at the date that the Company commits to an exit plan. The Company reassesses the expected cost to complete the exit or disposal activities at the end of each reporting period and adjusts its remaining estimated liabilities, if necessary.
Long-lived Assets Held for Sale and Impairment of Long-Lived Assets	Long-lived Assets Held for Sale The Company classifies assets as held for sale when management has approved to sell the assets, the sale is probable to occur during the next 12 months at a price that is reasonable in relation to its current estimated fair value and certain other specified criteria are met. The assets classified as held for sale is recorded at the lower of the carrying value and estimated fair value, less cost to sell. If the carrying value of the assets exceeds its estimated fair value, less cost to sell, a loss is recognized and reported in the condensed statement of operations. Impairment of Long-Lived Assets The Company assesses long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Such events include a significant change in the Company’s strategic business objectives and utilization of the assets. During the three months ended March 31, 2023, the Company commenced restructuring activities that included the decision to operate as a fully-remote company and the halting and wind down of its research and development programs which indicated that the carrying amount of its long-lived assets might not be recoverable. The Company evaluated the long-lived assets, consisting primarily of manufacturing and lab equipment, right-of-use assets and leasehold improvements for impairment by comparing the estimated future undiscounted cash flows generated from the use of the asset and its eventual disposition with the asset’s or asset groups’ net carrying value. If the carrying value of an asset or asset group is considered impaired, an impairment charge is recorded for the amount that the carrying value of the long-lived asset exceeds its fair value. Any loss is allocated to the long-lived assets of the group on a pro rata basis using the relative carrying amounts of those assets, except that the loss allocated to an individual long-lived asset of the group did not reduce the carrying value of that asset below its fair value. When an impairment loss is recognized for assets to be held and used, including leasehold improvements, the adjusted carrying amounts are depreciated over their remaining useful life.
Cash, Cash Equivalents and Restricted Cash	Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents are held in accounts at financial institutions. Such deposits have and will continue to exceed federally insured limits in the foreseeable future. The Company considers all highly liquid investments purchased with original maturities of 90 days or less from the purchase date to be cash equivalents. Cash equivalents consist of amounts invested in money market funds exclusively composed of U.S. government obligations.
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements	Recently Adopted Accounting Pronouncements Accounting pronouncements that became effective during the three months ended March 31, 2023 did not have a material impact on the Company’s financial condition, results of operations or cash flows. Recently Issued Accounting Pronouncements There were no new accounting pronouncements issued as of March 31, 2023 that are expected to have a material impact on the Company’s financial condition, results of operations or cash flows.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash	The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed statements of cash flows (in thousands): March 31, March 31, Cash and cash equivalents $ 41,771 $ 126,480 Restricted cash 916 1,025 Total cash, cash equivalents and restricted cash $ 42,687 $ 127,505
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash	The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed statements of cash flows (in thousands): March 31, March 31, Cash and cash equivalents $ 41,771 $ 126,480 Restricted cash 916 1,025 Total cash, cash equivalents and restricted cash $ 42,687 $ 127,505

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Summary of Financial Assets Measured at Fair Value on Recurring Basis	March 31, 2023 Fair Value Hierarchy Level Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash equivalents: Money market funds invested in U.S. government obligations Level 1 $ 40,821 $ — $ — $ 40,821 Total $ 40,821 $ — $ — $ 40,821 December 31, 2022 Fair Value Hierarchy Level Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash equivalents: Money market funds invested in U.S. government obligations Level 1 $ 40,729 $ — $ — $ 40,729 Total $ 40,729 $ — $ — $ 40,729

Balance Sheet Components (Table

Balance Sheet Components (Tables)	3 Months Ended
	Mar. 31, 2023
Balance Sheet Related Disclosures [Abstract]
Schedule of Property, Plant and Equipment, Net	Property and equipment, net, consisted of the following (in thousands): March 31, December 31, Laboratory and manufacturing equipment $ — $ 11,421 Leasehold improvements 3,348 5,246 Computer and office equipment — 491 Construction in progress — 72 Total property and equipment, gross 3,348 17,230 Accumulated depreciation (558) (9,047) Total property and equipment, net $ 2,790 $ 8,183 Long-lived assets held for sale $ 2,250 $ —
Schedule of Accrued Liabilities	Accrued expenses consisted of the following (in thousands): March 31, December 31, Research and development expenses $ 5,750 $ 3,508 Compensation expenses 3,803 3,985 Professional services 935 728 Property and equipment 26 7 Other 476 432 Total accrued expenses $ 10,990 $ 8,660

Restructuring, Impairment, an_2

Restructuring, Impairment, and Related Charges (Tables)	3 Months Ended
	Mar. 31, 2023
Restructuring and Related Activities [Abstract]
Schedule of Restructuring, Impairment, and Related Charges	Restructuring, impairment, and related charges for the three months ended March 31, 2023 consisted of the following (in thousands): Three Months Ended Employee termination benefits $ 5,626 Asset impairments 2,894 Other related costs 223 Total restructuring, impairments, and related charges $ 8,743
Schedule of Asset Impairment Charges	Asset impairment charges for the three months ended March 31, 2023 consisted of the following (in thousands): Amount Net book value of long-lived assets held for sale $ 5,144 Less: Fair value of long-lived assets held-for-sale (2,250) Impairment of long-lived assets held-for-sale $ 2,894

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2023
Leases [Abstract]
Summary of Lease Expense	The following table summarizes total lease expense for the three months ended March 31, 2023 and 2022 (in thousands): Condensed Statements of Operations Classification Three Months Ended March 31, 2023 2022 Operating lease expense Operating expenses $ 1,965 $ 2,269 Finance lease expense: Amortization of ROU assets Operating expenses 61 50 Interest on lease liabilities Interest income, net 7 7 Variable lease expense Operating expenses 318 561 Short-term lease expense Operating expenses 5 62 Sublease income Operating expenses (810) (405) Total lease expense $ 1,546 $ 2,544
Summary of Supplemental Cash Flow Information	The following table summarizes supplemental cash flow information for the three months ended March 31, 2023 and 2022 (in thousands): Three Months Ended March 31, 2023 2022 Cash paid for amounts included in the measurement of liabilities: Operating cash flows from operating leases $ 1,906 $ 1,660 Operating cash flows from finance leases 7 7 Financing cash flows from finance leases 69 63 Right-of-use asset obtained in exchange for new operating lease liability — 454 Right-of-use asset obtained in exchange for new finance lease liability 114 148
Schedule of Future Minimum Payments and Sublease Income under Noncancelable Leases	The following table summarizes maturities of lease liabilities and sublease income as of March 31, 2023 (in thousands): Operating Leases Sublease Income Finance Leases 2023 (remaining nine months) $ 5,920 $ (2,503) $ 182 2024 7,577 (2,898) 91 2025 6,717 (157) 53 2026 6,898 — 4 2027 7,082 — — Thereafter 12,705 — — Total lease payments (undiscounted) 46,899 $ (5,558) 330 Less interest or imputed interest (12,151) (32) Total present value of lease liabilities 34,748 298 Less: Lease liabilities, current (4,774) (184) Lease liabilities, non-current $ 29,974 $ 114
Summary of Lease Terms and Discount Rates	The following table includes supplemental information: March 31, 2023 March 31, 2022 Operating Leases Finance Leases Operating Leases Finance Leases Weighted-average remaining lease term (years) 6.1 1.7 6.7 1.8 Weighted-average discount rate 10.4 % 10.5 % 10.1 % 7.3 %

Common Stock and Stock-Based _2

Common Stock and Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of Common Stock Reserved for Future Issuance	Common stock reserved for future issuance, on an as converted basis, consisted of the following: March 31, December 31, Stock options outstanding 4,650,705 5,369,808 RSUs outstanding 253,871 531,366 Shares available for future grants under equity incentive plans 7,591,459 4,654,922 Shares available for issuance under ESPP 1,264,610 872,792 Total 13,760,645 11,428,888
Summary of Components of Stock-Based Compensation Expense	The following table summarizes the components of stock-based compensation expense recognized in the Company’s condensed statements of operations during the three months ended March 31, 2023 and 2022 (in thousands): Three Months Ended 2023 2022 Research and development $ 959 $ 3,436 General and administrative 2,264 3,337 Total stock-based compensation expense $ 3,223 $ 6,773
Summary of Stock Option Activity	The following summarizes stock option activity (in thousands, except share, per share, and year amounts): Stock Options Outstanding and Exercisable Total Options Outstanding Weighted- Weighted- Aggregate Outstanding as of December 31, 2022 5,369,808 $ 17.28 7.6 $ 11 Granted 668,000 0.39 Exercised 0 — Cancelled (1,387,103) 19.72 Outstanding as of March 31, 2023 4,650,705 $ 14.13 5.8 $ 6 Exercisable as of March 31, 2023 3,023,252 $ 14.48 4.1 $ 6
Summary of Restricted Stock Unit Activity	The following summarizes restricted stock unit activity: RSUs Outstanding Number of Shares Weighted- Outstanding as of December 31, 2022 531,366 $ 10.12 Granted — — Vested (19,151) 7.54 Cancelled (258,344) 11.62 Outstanding as of March 31, 2023 253,871 $ 8.79

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Schedule of Computation of Basic and Diluted Net Loss Per Share	The following table sets forth the computation of the basic and diluted net loss per share (in thousands except share and per share data): Three Months Ended 2023 2022 Numerator: Net loss $ (27,917) $ (42,575) Denominator: Weighted-average shares of common stock outstanding used in the calculation of basic and diluted net loss per share 39,188,397 38,641,365 Net loss per share, basic and diluted $ (0.71) $ (1.10)
Summary of Weighted Average Potential Shares Excluded from Computation of Diluted Net Loss Per Common Share	Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows: March 31, 2023 2022 Stock options outstanding 4,650,705 6,527,444 RSUs outstanding 253,871 1,075,829

Business and Principal Activi_2

Business and Principal Activities (Details) $ in Thousands		1 Months Ended		3 Months Ended		12 Months Ended
	Mar. 27, 2023 employee	Mar. 31, 2023 USD ($) employee	Jan. 31, 2022 shares	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($) shares	May 11, 2023 employee	May 11, 2023 employees
Business And Principal Activities [Line Items]
Net loss				$ (27,917)	$ (42,575)
Accumulated deficit		$ 393,887		393,887		$ 365,970
Cash and cash equivalents		$ 41,771		41,771	$ 126,480	$ 61,145
At The Market | Sales Agreement | Agents
Business And Principal Activities [Line Items]
Shares reserved for issuance of common stock upon initial public offering, net of underwriter's' commission and issuance costs (in shares) | shares			150,000,000
Maximum public float limit to raise capital				$ 75,000
Issuance of common stock upon initial public offering, net of underwriters’ commission and issuance costs (in shares) | shares						0
Subsequent Event
Business And Principal Activities [Line Items]
Number of employees							15	15
Severance Payments and Other Employee-Related Separation Costs | Reduction in Workforce Plan
Business And Principal Activities [Line Items]
Reduction in number of employees | employee	63	63
Percentage of reduction in workforce	82%	82%

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022
Accounting Policies [Abstract]
Restricted cash	$ 916	$ 916	$ 1,025

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022
Accounting Policies [Abstract]
Cash and cash equivalents	$ 41,771	$ 61,145	$ 126,480
Restricted cash	916	$ 916	1,025
Total cash, cash equivalents and restricted cash	$ 42,687		$ 127,505

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Financial Assets Measured at Fair Value on Recurring Basis (Details) - Fair Value, Recurring - Level 1 - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Amortized Cost	$ 40,821	$ 40,729
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	40,821	40,729
Money market funds invest in U.S. government obligations
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Amortized Cost	40,821	40,729
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	$ 40,821	$ 40,729

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Long-lived assets held for sale	$ 2,250	$ 0
Fair Value, Nonrecurring | Fair Value, Inputs, Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Long-lived assets held for sale	$ 2,300

Balance Sheet Components - Narr

Balance Sheet Components - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Balance Sheet Related Disclosures [Abstract]
Prepaid clinical expenses	$ 1,000		$ 1,200
Asset impairments	2,894	$ 0
Depreciation expense	$ 600	$ 900

Balance Sheet Components - Sche

Balance Sheet Components - Schedule of Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Property Plant And Equipment [Line Items]
Total property and equipment, gross	$ 3,348	$ 17,230
Accumulated depreciation	(558)	(9,047)
Total property and equipment, net	2,790	8,183
Long-lived assets held for sale	2,250	0
Laboratory and manufacturing equipment
Property Plant And Equipment [Line Items]
Total property and equipment, gross	0	11,421
Leasehold improvements
Property Plant And Equipment [Line Items]
Total property and equipment, gross	3,348	5,246
Computer and office equipment
Property Plant And Equipment [Line Items]
Total property and equipment, gross	0	491
Construction in progress
Property Plant And Equipment [Line Items]
Total property and equipment, gross	$ 0	$ 72

Balance Sheet Components - Sc_2

Balance Sheet Components - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Balance Sheet Related Disclosures [Abstract]
Research and development expenses	$ 5,750	$ 3,508
Compensation expenses	3,803	3,985
Professional services	935	728
Property and equipment	26	7
Other	476	432
Total accrued expenses	$ 10,990	$ 8,660

Restructuring, Impairment, an_3

Restructuring, Impairment, and Related Charges - Narrative (Details) $ in Thousands		1 Months Ended	3 Months Ended
	Mar. 27, 2023 employee	Mar. 31, 2023 USD ($) employee	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)	May 11, 2023 employee	May 11, 2023 employees
Restructuring Cost and Reserve [Line Items]
Restructuring, impairment, and related charges			$ 8,743	$ 0
Employee termination benefits			5,626
Accrued employee termination benefits		$ 3,300	$ 3,300
Subsequent Event
Restructuring Cost and Reserve [Line Items]
Number of employees					15	15
Severance Payments and Other Employee-Related Separation Costs | Reduction in Workforce Plan
Restructuring Cost and Reserve [Line Items]
Reduction in number of employees | employee	63	63
Percentage of reduction in workforce	82%	82%

Restructuring, Impairment, an_4

Restructuring, Impairment, and Related Charges - Restructuring and Related Charges (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Restructuring and Related Activities [Abstract]
Employee termination benefits	$ 5,626
Asset impairments	2,894	$ 0
Other related costs	223
Total restructuring, impairments, and related charges	$ 8,743	$ 0

Restructuring, Impairment, an_5

Restructuring, Impairment, and Related Charges - Asset Impairment Charges (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Restructuring and Related Activities [Abstract]
Net book value of long-lived assets held for sale	$ 5,144
Less: Fair value of long-lived assets held-for-sale	(2,250)		$ 0
Impairment of long-lived assets held-for-sale	$ 2,894	$ 0

Leases - Additional Information

Leases - Additional Information (Details) $ in Millions		3 Months Ended
	May 11, 2023 USD ($)	Jun. 30, 2023 USD ($)	Mar. 31, 2023	Feb. 28, 2021 USD ($) ft²	Dec. 31, 2016 ft²
Forecast
Lessee Lease Description [Line Items]
Reduction of minimum lease payments		$ 38.4
Minimum
Lessee Lease Description [Line Items]
Finance lease term			3 years
Maximum
Lessee Lease Description [Line Items]
Finance lease term			5 years
Office and Laboratory Space
Lessee Lease Description [Line Items]
Rentable area | ft²				84,321	18,748
Security deposit				$ 0.9
Office and Laboratory Space | Subsequent Event
Lessee Lease Description [Line Items]
Payment for lease modification	$ 5.4

Leases - Summary of Lease Expen

Leases - Summary of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Leases [Abstract]
Operating lease expense	$ 1,965	$ 2,269
Finance lease expense:
Amortization of ROU assets	61	50
Interest on lease liabilities	7	7
Variable lease expense	318	561
Short-term lease expense	5	62
Sublease income	(810)	(405)
Total lease expense	$ 1,546	$ 2,544

Leases - Summary of Supplementa

Leases - Summary of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash paid for amounts included in the measurement of liabilities:
Operating cash flows from operating leases	$ 1,906	$ 1,660
Operating cash flows from finance leases	7	7
Financing cash flows from finance leases	69	63
Right-of-use asset obtained in exchange for new operating lease liability	0	454
Right-of-use asset obtained in exchange for new finance lease liability	$ 114	$ 148

Leases - Schedule of Future Min

Leases - Schedule of Future Minimum Payments and Sublease Income under Noncancelable Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Operating Leases
2023 (remaining nine months)	$ 5,920
2024	7,577
2025	6,717
2026	6,898
2027	7,082
Thereafter	12,705
Total lease payments (undiscounted)	46,899
Less interest or imputed interest	(12,151)
Total present value of lease liabilities	34,748
Less: Lease liabilities, current	(4,774)	$ (4,639)
Lease liabilities, non-current	29,974	31,228
Sublease Income
2023 (remaining nine months)	(2,503)
2024	(2,898)
2025	(157)
2026	0
Total lease payments (undiscounted)	(5,558)
Finance Leases
2023 (remaining nine months)	182
2024	91
2025	53
2026	4
Total lease payments (undiscounted)	330
Less interest or imputed interest	(32)
Total present value of lease liabilities	298
Less: Lease liabilities, current	(184)	(205)
Lease liabilities, non-current	$ 114	$ 49

Leases - Summary of Lease Terms

Leases - Summary of Lease Terms and Discount Rates (Details)	Mar. 31, 2023	Mar. 31, 2022
Leases [Abstract]
Operating Leases, Weighted-average remaining lease term (years)	6 years 1 month 6 days	6 years 8 months 12 days
Operating Leases, Weighted-average discount rate	10.40%	10.10%
Finance Leases, Weighted-average remaining lease term (years)	1 year 8 months 12 days	1 year 9 months 18 days
Finance Leases, Weighted-average discount rate	10.50%	7.30%

Common Stock and Stock-Based _3

Common Stock and Stock-Based Compensation - Additional Information (Details) $ / shares in Units, $ in Millions		3 Months Ended
	Jan. 01, 2023 shares	Mar. 31, 2023 USD ($) votes $ / shares shares	Dec. 31, 2022 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock, shares authorized (in shares)		450,000,000	450,000,000
Common stock, par value (in dollars per share) | $ / shares		$ 0.0001	$ 0.0001
Number of voting rights for each common stock held | votes		1
Total unrecognized stock-based compensation expense related to stock options granted | $		$ 14.1
Total unrecognized stock-based compensation expense related to nonvested awards weighted average period of recognition		2 years 1 month 6 days
RSUs Outstanding
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total unrecognized stock-based compensation expense related to nonvested awards weighted average period of recognition		2 years 3 months 18 days
Total stock-based compensation expense related to unvested restricted stock units and awards | $		$ 1.8
ESPP
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Increase in shares available for grant (in shares)	391,818
2020 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Increase in shares available for grant (in shares)	1,959,090

Common Stock and Stock-Based _4

Common Stock and Stock-Based Compensation - Schedule of Common Stock Reserved for Future Issuance (Details) - shares	Mar. 31, 2023	Dec. 31, 2022
Class Of Stock [Line Items]
Common stock reserved for future issuance	13,760,645	11,428,888
Stock options outstanding
Class Of Stock [Line Items]
Common stock reserved for future issuance	4,650,705	5,369,808
RSUs outstanding
Class Of Stock [Line Items]
Common stock reserved for future issuance	253,871	531,366
Shares available for future grants under equity incentive plans
Class Of Stock [Line Items]
Common stock reserved for future issuance	7,591,459	4,654,922
ESPP
Class Of Stock [Line Items]
Common stock reserved for future issuance	1,264,610	872,792

Common Stock and Stock-Based _5

Common Stock and Stock-Based Compensation - Summary of Components of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 3,223	$ 6,773
Research and development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	959	3,436
General and administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 2,264	$ 3,337

Common Stock and Stock-Based _6

Common Stock and Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Total Options Outstanding
Beginning balance (in shares)	5,369,808
Granted (in shares)	668,000
Exercised (in shares)	0
Cancelled (in shares)	(1,387,103)
Ending balance (in shares)	4,650,705	5,369,808
Weighted- Average Exercise Price
Beginning balance (in dollars per share)	$ 17.28
Granted (in dollars per share)	0.39
Exercised (in dollars per share)	0
Cancelled (in dollars per share)	19.72
Ending balance (in dollars per share)	$ 14.13	$ 17.28
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract]
Options exercisable (in shares)	3,023,252
Options exercisable, weighted-average exercise price (in dollars per share)	$ 14.48
Options outstanding, weighted-average remaining contractual life	5 years 9 months 18 days	7 years 7 months 6 days
Options exercisable, weighted-average remaining contractual life	4 years 1 month 6 days
Options outstanding, aggregate intrinsic value	$ 6	$ 11
Options exercisable, aggregate intrinsic value	$ 6

Common Stock and Stock-Based _7

Common Stock and Stock-Based Compensation - Summary of Restricted Stock Unit Activity (Details) - RSUs Outstanding	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Number of Shares
Outstanding (in shares) | shares	531,366
Granted (in shares) | shares	0
Vested (in shares) | shares	(19,151)
Cancelled (in shares) | shares	(258,344)
Outstanding (in shares) | shares	253,871
Weighted- Average Grant Date Fair Value per Share
Outstanding (in dollars per share) | $ / shares	$ 10.12
Granted (in dollars per share) | $ / shares	0
Vested (in dollars per share) | $ / shares	7.54
Cancelled (in dollars per share) | $ / shares	11.62
Outstanding (in dollars per share) | $ / shares	$ 8.79

Net Loss Per Share - Schedule o

Net Loss Per Share - Schedule of Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Numerator:
Net loss	$ (27,917)	$ (42,575)
Denominator:
Weighted-average shares of common stock outstanding used in the calculation of basic net loss per share (in shares)	39,188,397	38,641,365
Weighted-average shares of common stock outstanding used in the calculation of diluted net loss per share (in shares)	39,188,397	38,641,365
Net loss per share, basic (in dollars per share)	$ (0.71)	$ (1.10)
Net loss per share, diluted (in dollars per share)	$ (0.71)	$ (1.10)

Net Loss Per Share - Summary of

Net Loss Per Share - Summary of Weighted Average Potential Shares Excluded from Computation of Diluted Net Loss Per Common Share (Details) - shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Stock options outstanding
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total stock options outstanding	4,650,705	6,527,444
RSUs outstanding
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total stock options outstanding	253,871	1,075,829

Subsequent Events (Details)

Subsequent Events (Details) - shares	1 Months Ended	3 Months Ended
	Apr. 30, 2023	Mar. 31, 2023
RSUs outstanding
Subsequent Event [Line Items]
Granted (in shares)		0
Subsequent Event
Subsequent Event [Line Items]
Consulting agreement term	6 months
Subsequent Event | RSUs outstanding
Subsequent Event [Line Items]
Granted (in shares)	2,575,529
Subsequent Event | RSUs outstanding | Director
Subsequent Event [Line Items]
Granted (in shares)	886,111