Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 31, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | DSGN | |
Entity Registrant Name | Design Therapeutics, Inc. | |
Entity Central Index Key | 0001807120 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Common Stock, Shares Outstanding | 55,617,322 | |
Title of 12(b) Security | Common Stock, $0.0001 par value per share | |
Entity File Number | 001-40288 | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 82-3929248 | |
Entity Address, Address Line One | 6005 Hidden Valley Road | |
Entity Address, Address Line Two | Suite 110 | |
Entity Address, City or Town | Carlsbad | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92011 | |
City Area Code | 858 | |
Local Phone Number | 293-4900 | |
Document Transition Report | false | |
Document Quarterly Report | true |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 370,838 | $ 2,379 |
Investment securities | 31,998 | 33,712 |
Prepaid expense and other current assets (including related party amounts of $60 and $0, respectively) | 2,039 | 142 |
Total current assets | 404,875 | 36,233 |
Property and equipment, net | 271 | 71 |
Deferred offering costs | 212 | |
Total assets | 405,146 | 36,516 |
Current liabilities: | ||
Accounts payable (including related party amounts of $20 and $20, respectively) | 1,585 | 1,399 |
Accrued expenses | 1,820 | 931 |
Total current liabilities | 3,405 | 2,330 |
Other long-term liabilities | 140 | 145 |
Total liabilities | 3,545 | 2,475 |
Commitments and contingencies (See Note 8) | ||
Convertible preferred stock, $0.0001 par value; no shares and 22,500,000 shares authorized, no shares and 22,012,499 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively; liquidation preference of zero and $45,625 as of June 30, 2021 and December 31, 2020, respectively | 45,356 | |
Stockholders’ equity (deficit): | ||
Common stock, $0.0001 par value; 200,000,000 and 60,000,000 shares authorized, 55,617,322 and 16,604,774 shares issued, 55,114,729 and 15,957,821 shares outstanding at June 30, 2021 and December 31, 2020, respectively | 6 | 1 |
Additional paid-in capital | 426,680 | 451 |
Accumulated deficit | (25,073) | (11,923) |
Accumulated other comprehensive income | (12) | 156 |
Total stockholders’ equity (deficit) | 401,601 | (11,315) |
Total liabilities, convertible preferred stock and stockholders’ equity (deficit) | $ 405,146 | $ 36,516 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Prepaid expense and other current assets, related party amounts | $ 60 | $ 0 |
Accounts payable, related party amounts | $ 20 | $ 20 |
Convertible preferred stock, par value | $ 0.0001 | $ 0.0001 |
Convertible preferred stock, authorized | 0 | 22,500,000 |
Convertible preferred stock, issued | 0 | 22,012,499 |
Convertible preferred stock, outstanding | 0 | 22,012,499 |
Convertible preferred stock, liquidation preference | $ 0 | $ 45,625 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 200,000,000 | 60,000,000 |
Common stock, shares issued | 55,617,322 | 16,604,774 |
Common stock, shares outstanding | 55,114,729 | 15,957,821 |
Condensed Statements of Operati
Condensed Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue: | ||||
Grant revenue | $ 31 | $ 173 | ||
Revenue, Product and Service [Extensible List] | Grant | Grant | Grant | Grant |
Operating expenses: | ||||
Research and development (including related party amounts of $45, $0, $90 and $8, respectively) | $ 5,027 | $ 1,061 | $ 8,902 | $ 1,438 |
General and administrative (including related party amounts of $60, $60, $120 and $172, respectively) | 2,660 | 433 | 4,465 | 821 |
Total operating expenses | 7,687 | 1,494 | 13,367 | 2,259 |
Loss from operations | (7,687) | (1,463) | (13,367) | (2,086) |
Other income (expense), net (including related party expense amounts of $0, $0, $0, and $30, respectively) | 51 | 21 | 217 | (19) |
Net loss | $ (7,636) | $ (1,442) | $ (13,150) | $ (2,105) |
Net loss per share, basic and diluted | $ (0.14) | $ (0.06) | $ (0.36) | $ (0.08) |
Weighted-average shares of common stock outstanding, basic and diluted | 55,081,397 | 25,597,154 | 36,459,244 | 25,558,779 |
Condensed Statements of Opera_2
Condensed Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Research and development expenses related party amount | $ 45 | $ 0 | $ 90 | $ 8 |
General and administrative expenses related party amount | 60 | 60 | 120 | 172 |
Other income (expense), net related party expense amount | $ 0 | $ 0 | $ 0 | $ 30 |
Condensed Statements of Compreh
Condensed Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net loss | $ (7,636) | $ (1,442) | $ (13,150) | $ (2,105) |
Other comprehensive gain (loss): | ||||
Unrealized (loss) gain on available-for-sale securities | (14) | 13 | (168) | 194 |
Comprehensive loss | $ (7,650) | $ (1,429) | $ (13,318) | $ (1,911) |
Condensed Statements of Convert
Condensed Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Convertible Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Accumulated Deficit |
Beginning Balance at Dec. 31, 2019 | $ (3,642) | $ 1 | $ (3,643) | |||
Beginning Balance, Shares at Dec. 31, 2019 | 15,640,133 | |||||
Issuance of Series A and Series B convertible preferred stock, net of issuance costs | $ 44,731 | |||||
Issuance of Series A and Series B convertible preferred stock, net of issuance costs, Shares | 21,710,814 | |||||
Conversion of convertible debt and interest to Series A convertible preferred stock | $ 500 | |||||
Conversion of convertible debt and interest to Series A convertible preferred stock, Shares | 301,685 | |||||
Settlement of bifurcated conversion liability | $ 125 | |||||
Vesting of restricted stock, Shares | 50,452 | |||||
Stock-based compensation | 14 | $ 14 | ||||
Unrealized gain (loss) on investments | 194 | $ 194 | ||||
Net loss | (2,105) | (2,105) | ||||
Ending Balance at Jun. 30, 2020 | (5,539) | $ 1 | 14 | 194 | (5,748) | |
Ending Balance, Shares at Jun. 30, 2020 | 22,012,499 | |||||
Ending Balance at Jun. 30, 2020 | $ 45,356 | |||||
Ending Balance, Shares at Jun. 30, 2020 | 15,690,585 | |||||
Beginning Balance at Mar. 31, 2020 | (4,120) | $ 1 | 4 | 181 | (4,306) | |
Beginning Balance, Shares at Mar. 31, 2020 | 22,012,499 | |||||
Beginning Balance at Mar. 31, 2020 | $ 45,356 | |||||
Beginning Balance, Shares at Mar. 31, 2020 | 15,690,585 | |||||
Stock-based compensation | 10 | 10 | ||||
Unrealized gain (loss) on investments | 13 | 13 | ||||
Net loss | (1,442) | (1,442) | ||||
Ending Balance at Jun. 30, 2020 | (5,539) | $ 1 | 14 | 194 | (5,748) | |
Ending Balance, Shares at Jun. 30, 2020 | 22,012,499 | |||||
Ending Balance at Jun. 30, 2020 | $ 45,356 | |||||
Ending Balance, Shares at Jun. 30, 2020 | 15,690,585 | |||||
Beginning Balance at Dec. 31, 2020 | $ (11,315) | $ 1 | 451 | 156 | (11,923) | |
Beginning Balance, Shares at Dec. 31, 2020 | 22,012,499 | 22,012,499 | ||||
Beginning Balance at Dec. 31, 2020 | $ 45,356 | $ 45,356 | ||||
Beginning Balance, Shares at Dec. 31, 2020 | 15,957,821 | |||||
Issuance of Series A and Series B convertible preferred stock, net of issuance costs | $ 124,712 | |||||
Issuance of Series A and Series B convertible preferred stock, net of issuance costs, Shares | 19,083,979 | |||||
Preferred stock converted into shares of common stock | 170,068 | $ 4 | 170,064 | |||
Preferred stock converted into shares of common stock, Shares | (41,096,478) | |||||
Preferred stock converted into shares of common stock | $ (170,068) | |||||
Preferred stock converted into shares of common stock, Shares | 25,212,548 | |||||
Initial public offering of common shares, net of $22 of issuance costs | 254,271 | $ 1 | 254,270 | |||
Initial public offering of common shares, net of $22 of issuance costs, Shares | 13,800,000 | |||||
Vesting of restricted stock | 5 | 5 | ||||
Vesting of restricted stock, Shares | 144,360 | |||||
Stock-based compensation | 1,890 | 1,890 | ||||
Unrealized gain (loss) on investments | (168) | (168) | ||||
Net loss | (13,150) | (13,150) | ||||
Ending Balance at Jun. 30, 2021 | $ 401,601 | $ 6 | 426,680 | (12) | (25,073) | |
Ending Balance, Shares at Jun. 30, 2021 | 0 | |||||
Ending Balance, Shares at Jun. 30, 2021 | 55,114,729 | |||||
Beginning Balance at Mar. 31, 2021 | $ 408,006 | $ 6 | 425,435 | 2 | (17,437) | |
Beginning Balance, Shares at Mar. 31, 2021 | 55,042,550 | |||||
Vesting of restricted stock | 2 | 2 | ||||
Vesting of restricted stock, Shares | 72,179 | |||||
Stock-based compensation | 1,243 | 1,243 | ||||
Unrealized gain (loss) on investments | (14) | (14) | ||||
Net loss | (7,636) | (7,636) | ||||
Ending Balance at Jun. 30, 2021 | $ 401,601 | $ 6 | $ 426,680 | $ (12) | $ (25,073) | |
Ending Balance, Shares at Jun. 30, 2021 | 0 | |||||
Ending Balance, Shares at Jun. 30, 2021 | 55,114,729 |
Condensed Statement of Converti
Condensed Statement of Convertible Preferred stock and Stockholders' Equity (Deficit) (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Series B Convertible Preferred Stock | ||
Preferred stock issuance costs | $ 288 | |
Series A Convertible Preferred Stock | ||
Preferred stock issuance costs | $ 270 | |
Initial Public Offering | ||
Stock issuance costs | $ 21,728 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities | ||
Net loss | $ (13,150) | $ (2,105) |
Reconciliation of net loss to net cash used in operating activities: | ||
Depreciation | 16 | |
Stock-based compensation | 1,890 | 14 |
Amortization of premiums on investment securities, net | (128) | (11) |
Non-cash interest expense | 12 | |
Non-cash interest expense—related party | 26 | |
Change in operating assets and liabilities: | ||
Prepaid expense and other assets | (1,624) | (43) |
Prepaid expense and other assets—related party | (60) | |
Deferred revenue | (173) | |
Accounts payable and accrued liabilities | 1,075 | 151 |
Accounts payable and accrued liabilities—related party | (1,837) | |
Other long-term liabilities | (5) | |
Net cash used in operating activities | (11,986) | (3,966) |
Cash flows from investing activities | ||
Purchases of investment securities | (32,037) | (42,757) |
Proceeds from maturities of investment securities | 33,710 | 4,011 |
Purchases of property and equipment | (216) | |
Net cash provided by (used in) investing activities | 1,457 | (38,746) |
Cash flows from financing activities | ||
Proceeds from initial public offering, net of issuance costs | 254,271 | |
Proceeds from issuance of convertible preferred stock, net of issuance costs | 124,712 | 44,731 |
Proceeds from the exercise of stock options and vesting of restricted stock | 5 | |
Proceeds from the issuance of notes payable, net of issuance costs—related party | 200 | |
Repayment of notes payable—related party | (400) | |
Net cash provided by financing activities | 378,988 | 44,531 |
Net increase in cash and cash equivalents | 368,459 | 1,819 |
Cash and cash equivalents at beginning of period | 2,379 | 77 |
Cash and cash equivalents at end of period | $ 370,838 | 1,896 |
Supplemental disclosures | ||
Conversion of convertible notes to convertible preferred shares, including bifurcated conversion liability | 271 | |
Conversion of convertible notes to convertible preferred shares, including bifurcated conversion liability - related party | 354 | |
Interest paid | $ 18 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Organization | 1. Organization Design Therapeutics, Inc. (the “Company”) was incorporated in Delaware in December 2017 and is based in Carlsbad, California. The Company is a biopharmaceutical company pioneering a novel class of disease-modifying small-molecule therapeutics, called gene targeted chimeras (“GeneTACs”), that are designed to target the underlying cause of inherited nucleotide repeat expansion diseases. The Company’s lead product candidate is in Friedreich ataxia (“FA”), its second GeneTAC™ program is in myotonic dystrophy type-1 (“DM1”), and it is also advancing its GeneTAC portfolio to address other serious nucleotide repeat-driven monogenic diseases. The Company has experienced net losses and negative cash flows from operating activities since inception and expects to incur net losses for the foreseeable future as it advances its research and development programs, conducts clinical trials for any future product candidates and commercializes any such product candidates for which it receives regulatory approval. As the Company continues to incur losses, its transition to profitability will depend on the successful development, approval and commercialization of its future product candidates, and on the achievement of sufficient revenue to support its cost structure. The Company may never achieve profitability, and unless and until it does, it will need to continue to raise additional capital to fund its operations. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | 2. Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Use of Estimates The Company’s financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and include all adjustments, consisting of only normal recurring accruals, which in the opinion of management are necessary to present fairly the Company’s financial position as of the reporting date and results of operations for the periods presented. The preparation of the Company’s financial statements requires it to make estimates and assumptions that impact the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in the Company’s financial statements and accompanying notes. The most significant estimates in the Company’s financial statements relate to the recognition of grant revenue, accruals for research and development expenses and the valuation of equity-based awards. These estimates and assumptions are based on current facts, historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of revenue and expenses that are not readily apparent from other sources. Actual results may differ materially and adversely from these estimates. The full extent to which the novel coronavirus-2019 (“COVID-19”) pandemic will directly or indirectly impact the Company’s business, results of operations and financial condition, including research and development costs, will depend on future developments that are highly uncertain, including as a result of new information that may emerge concerning COVID-19 and the actions taken to contain or treat COVID-19, as well as the economic impact on local, regional, national and international markets. The Company has considered potential impacts arising from the COVID-19 pandemic and is not presently aware of any events or circumstances that would require the Company to update its estimates, judgments or revise the carrying value of its assets or liabilities. Stock Splits In February 2020, the Company effected a 5-for-1 forward stock split of its issued and outstanding common stock. Further, in March 2021, the Company effected a 1-for-1.63 reverse stock split of its issued and outstanding common stock. The par value and the authorized shares of the common stock were not adjusted as a result of these stock splits. The reverse stock split in March 2021 resulted in an adjustment to the convertible preferred stock conversion prices to reflect a proportional decrease in the number of shares of common stock to be issued upon conversion. The accompanying financial statements and notes to the financial statements give retroactive effect to the stock splits for all periods presented. Cash and Cash Equivalents The Company considers all highly liquid investments with maturities at the date of acquisition of three months or less to be cash equivalents. These investments may include money market accounts, money market funds, U.S. Government agency securities, corporate debt securities and commercial paper. The Company’s cash reserves are in a readily available checking account. Investment Securities Investments in securities with maturities at the date of acquisition of more than three months are considered marketable securities. The Company determines the appropriate classification of its investments at the time of acquisition and reevaluates such determination at each balance sheet date. The Company has classified its investment holdings as available-for-sale, as the sale of such securities may be required prior to maturity to implement management strategies. Further, the Company classifies its available-for-sale investment securities, including those with maturities beyond one year, as current assets on its balance sheets based on the highly liquid nature of the securities and because these investments are considered available for use in current operations. The Company’s investment policy sets minimum credit quality criteria and maximum maturity limits on its investments to provide for safety of principle, liquidity and a reasonable rate of return. Available-for-sale securities are recorded at fair value, based on current market valuations. Unrealized holding gains and losses on available-for-sale securities are excluded from earnings and are reported as a separate component of other comprehensive income (loss) until realized. Allowances for credit losses are reported on the balance sheet, if any. The cost of available-for-sale investment securities is adjusted for amortization of premiums and accretion of discounts until the securities . Such amortization and accretion is included in other income (expense) on the statements of operations. Realized gains and losses, if any, are also included in other income (expense) on the statement of operations and are derived using the specific identification method for determining the cost of the securities sold. During the periods presented, no realized gains or losses were recorded on the sale of investment securities and no impairments to reduce the value of any security was taken. See Note 5 for further discussion. Revenue Recognition The Company has generated revenue from grants awarded to it by the National Science Foundation (“NSF”), the National Institutes of Health (“NIH”) and the Friedreich’s Ataxia Research Alliance (“FARA”). These grants provide the Company with funding for certain research and development activities on a best-efforts basis and do not require scientific achievement as a performance obligation. The Company has determined that the entities funding these grant awards do not meet the definition of a “customer”, as defined by Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (Topic 606) Research and Development Not-for-Profit Entities-Revenue Recognition The Company’s current grant revenue is not deemed refundable, and therefore, no liability is recognized when income is recorded. Grant funding received prior to expenses being incurred are recorded as deferred revenue on the Company’s balance sheets. See Note 7 for further discussion. Research and Development Expenses Research and development expenses consist primarily of direct and indirect costs incurred in connection with its discovery efforts, and the preclinical and formulation development of its product candidates. In the future, the Company expects a substantial portion of its research and development expenses will relate to the clinical development of its product candidates. Direct costs include contracted research development and manufacturing, consulting fees, license fees, laboratory supplies and other expenses incurred to sustain research and development programs. Indirect costs include personnel-related expenses, consisting of employee salaries, related benefits, and stock-based compensation expense for employees engaged in research and development activities, facilities related expenses, and other indirect expenses. A significant portion of the Company’s research and development expenses have been direct costs, which the Company tracks by stage of development, preclinical or clinical. However, the Company does not track its internal research and development expenses on a program specific basis, unless specific to research grants, because these costs are deployed across multiple projects and, as such, are not separately classified. Research and development expenses are charged to operating expenses as incurred when these expenditures relate to the Company’s research and development efforts and have no alternative future uses. The Company has entered into various contracts with research and development organizations, vendors and consultants. Payments for these activities are based on the terms of the individual agreements, which may differ from the of periods over which materials or services are provided. Payments made in advance of performance are reflected in the accompanying balance sheets as prepaid expenses. The Company records accruals for estimated costs incurred for ongoing research and development activities. The Company determines accrual estimates through review of the underlying contracts along with discussions with research and other key personnel as to the progress of the research and development activities, invoices received and contracted costs. During the course of a study or trial, the Company adjusts its rate of expense recognition if actual results differ from its estimates. Significant judgments and estimates may be made in determining the prepaid or accrued balances at the end of any reporting period. Actual results could differ from the Company’s estimates. Stock-Based Compensation Stock options issued pursuant to the Company’s 2021 Equity Incentive Plan (the “2021 Plan”) and 2018 Equity Incentive Plan (the “2018 Plan”) and option features associated with the rights to purchase shares pursuant to the Company’s 2021 Employee Stock Purchase Plan (the “ESPP”) are valued using the Black-Scholes option pricing model on the date of grant or subscription period. This option pricing model involves a number of estimates, including the expected lives of the stock options or subscription period or the number of shares estimated to be issued pursuant to the ESPP Stock-based compensation expense recognized in the Company’s statements of operations during the three and six months ended June 30, 2021 and 2020, were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Research and development $ 496 $ 7 $ 660 $ 10 General and administrative 747 3 1,230 4 Total $ 1,243 $ 10 $ 1,890 $ 14 Recent Accounting Pronouncements In May 2021, the Financial Accounting Standards Board (“FASB”) issued ASU 2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) . ASU 2021-04 clarifies and reduces diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options (for example, warrants) that remain equity classified after modification or exchange. The ASU provides guidance to clarify whether an issuer should account for a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange as (1) an adjustment to equity and, if so, the related earnings per share effects, if any, or (2) an expense and, if so, the manner and pattern of recognition. ASU 2021-04 is effective for annual beginning after December 15, 2021, inclding interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact that this new guidance will have on its condensed consolidated financial statements and does not currently expect the adoption will have a material impact on its financial statements and related disclosures. In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity . The guidance, among other items, clarifies that certain transactions between collaborative participants should be accounted for as revenue under Topic 606 when the collaborative arrangement participant is a customer in the context of a unit of account. The ASU’s amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years, with early adoption permitted for periods beginning after December 15, 2020. The Company has not yet adopted this guidance and does not currently expect the adoption will have a material impact on its financial statements and related disclosures. |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 3. Net Loss Per Share Basic net loss per share is computed by dividing the net loss by the weighted-average number of common shares outstanding for the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss by the weighted average number of common shares and dilutive common stock equivalents outstanding for the period determined using the treasury-stock and if-converted methods. Dilutive common stock equivalents are comprised of convertible preferred stock, restricted common stock subject to repurchase, stock options outstanding under the Company’s equity incentive plan s , employee stock purchase rights under the Company’s ESPP, and shares of common stock that are issuable under convertible debt , as applicable . For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding as inclusion of the potentially dilutive securities would be antidilutive. More specifically, as of June 30, 2021and 2020, 2,687,000 14,431,000 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements Accounting guidance defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or non-recurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the accounting guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets. Level 2: Inputs, other than the quoted prices in active markets that are observable either directly or indirectly. Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The carrying value of the Company’s cash, accounts payable and accrued liabilities are considered to be representative of their respective fair values due to the short-term nature of those instruments. The Company’s investment securities, which may include money market accounts, money market funds, certificates of deposits, U.S. Treasury securities, and high quality, marketable debt instruments of corporations and government sponsored enterprises, are measured at fair value in accordance with the fair value hierarchy. None of the Company’s non-financial assets or liabilities are recorded at fair value on a non-recurring basis and no transfers between levels have occurred during the periods presented. The following table summarize the Company’s financial instruments measured at fair value on a recurring basis at June 30, 2021 and December 31, 2020 (in thousands): Fair Value Measurement at End of Period Using: Quoted Prices In Active Markets Significant For Other Significant Identical Observable Unobservable Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) As of June 30, 2021: Assets: Money market funds ( 1) $ 369,796 $ 369,796 $ — $ — Certificates of deposit 1,919 1,919 — — U.S. Treasury securities 30,079 30,079 — — Total $ 401,794 $ 401,794 $ — $ — As of December 31, 2020: Assets: Money market funds ( 1) $ 2,100 $ 2,100 $ — $ — Certificates of deposit 1,754 1,754 — — U.S. Treasury securities 31,958 31,958 — — Total $ 35,812 $ 35,812 $ — $ — (1) Included in cash and cash equivalents on the accompanying balance sheets. Interest bearing money market accounts and certificates of deposit are valued at amortized cost, which approximates fair value. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Investment Securities | 5. Investment Securities The Company’s investment policy defines allowable investment securities and establishes guidelines relating to credit quality, diversification, and maturities of its investments to preserve principal and maintain liquidity. In accordance with the Company’s investment policy, it has invested funds in marketable securities. The cost, gross unrealized holding gains, gross unrealized holding losses, allowances for credit losses and fair value of available-for-sale investments by types, maturies and classes of securities at June 30, 2021 and December 31, 2020 consisted of the following (in thousands): As of June 30, 2021 Estimated Allowance Fair Amortized Unrealized Unrealized for Credit Market Maturity Cost Gains Losses Losses Value Certificates of deposits Within 1 year $ 1,470 $ 1 $ (1 ) $ — $ 1,470 Certificates of deposits 1 year to 2 years 449 — — — 449 U.S. Treasury securities 1 year to 2 years 30,091 — (12 ) — 30,079 Total $ 32,010 $ 1 $ (13 ) $ — $ 31,998 As of December 31, 2020 Estimated Allowance Fair Amortized Unrealized Unrealized for Credit Market Maturity Cost Gains Losses Losses Value Certificates of deposits Within 1 year $ 1,750 $ 4 $ — $ — $ 1,754 U.S. Treasury securities Within 1 year 31,806 152 — — 31,958 Total $ 33,556 $ 156 $ — $ — $ 33,712 The Company reviews its investments at each reporting date to identify and evaluate whether a decline in fair value below the amortized cost basis of available-for-sale securities is due to credit-related factors and determines if such unrealized losses are the result of credit losses that requires impairment. Factors considered in determining whether an unrealized loss is the result of a credit loss or other factors include the extent to which the fair value is less than the cost basis, any changes to the rating of the security by a rating agency, the financial condition and near-term prospects of the issuer, any historical failure of the issuer to make scheduled interest or principal payments, any adverse legal or regulatory events affecting the issuer or issuer’s industry, any significant deterioration in economic condition and the Company’s intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value. At June 30, 2021 there were eight securities in an unrealized loss position. considered the decline in market value to be primarily attributable to changes in interest rates. Each security remained at a high credit quality rating and and the Company did not record a reserve for credit losses. At December 31, 2020, there were no securities in an unrealized loss position. As of June 30, 2021, the Company held eight domestic certificates of deposit with amortized costs below the Federal Deposit Insurance Corporation (“FDIC”) insured limit. Accrued interest receivable on available-for-sale investment securities, included in prepaids and other current assets on the Company’s balance sheets, was less than $0.1 million at June 30, 2021 and December 31, 2020. |
Balance Sheet Details
Balance Sheet Details | 6 Months Ended |
Jun. 30, 2021 | |
Balance Sheet Component [Abstract] | |
Balance Sheet Details | 6. Balance Sheet Details Prepaid expenses and other current assets consisted of the following (in thousands): June 30, 2021 December 31, 2020 Prepaid expenses $ 1,859 $ 60 Security deposits 104 47 Interest receivable 76 10 Other — 25 Total $ 2,039 $ 142 Property and equipment consisted of the following (in thousands): June 30, 2021 December 31, 2020 Laboratory equipment $ 281 $ 76 Computer equipment and software 11 — 292 76 Less accumulated depreciation (21 ) (5 ) Total $ 271 $ 71 Accrued liabilities consisted of the following (in thousands): June 30, 2021 December 31, 2020 Accrued personnel costs $ 941 $ 565 Accrued research and development costs 640 266 Accrued other 239 100 Total $ 1,820 $ 931 |
Grant Revenue
Grant Revenue | 6 Months Ended |
Jun. 30, 2021 | |
Disaggregation Of Revenue [Abstract] | |
Grant Revenue | 7. Grant Revenue The Company recognizes revenue pursuant to grants, as described further in Note 2, by measuring the progress of the applicable research and development services provided over time, based on the effort the Company expends and costs incurred, relative to the estimated total effort and costs to be incurred under the grant. This results in a percentage that the Company multiplies by the grant award amount to determine the amount of grant revenue to be recognized each period. This approach requires the Company to use judgement and make estimates of future expenditures. If the Company’s estimates or judgements change over the course of the term of the grant, it may affect the timing and amount of revenue that it recognizes in the current and future periods. During the three and six months ended June 30, 2020, the Company recognized less than $0.1 million and $0.2 million of grant revenue, respectively, from awards by the NSF, NIH and FARA, respectively. No grant revenue was recognized for the three and six months ended June 30, 2021. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies Notes Payable-Related Party In January 2019, the Company issued an unsecured promissory note to borrow up to $ 0.5 million to a co-founder (the “January Note”) for working capital. The January Note bore interest at prime plus 4.5%, was scheduled to mature on or before January 30, 2021 and included a final payment of 3% on the amounts advanced at maturity. In February and March 2019, the Company borrowed an aggregate of $0.2 million under the January Note with interest payable at 10% per annum. The Company recorded an immaterial amount of debt issuance costs associated with the January Note. The debt issuance costs and final payment for the advances were amortized to interest expense using the effective interest rate method over the loan term. The principal and interest payable on the January Note were repaid in full in 2020. In November 2019, the Company issued an unsecured promissory note to borrow up to $ 0.5 million to a co-founder (the “November Note”) for working capital. The November Note bore interest at prime plus 4.5% and matured on or before January 1, 2022 and included a final payment of 3% on the amounts advanced at maturity. In December 2019 and January 2020, the Company borrowed a total of $0.4 million under the November Note with interest payable at 9.25% per annum. The final payment on the advances was amortized to interest expense using the effective interest rate method over the loan term. The principal and interest payable on the November Note were repaid in full in 2020. Convertible Notes In May and July 2018, the Company issued $0.3 million of convertible notes to a co-founder for cash with a maturity date on or after February 5, 2021, if not converted earlier. In February 2019, the Company issued an additional $0.2 million of convertible notes to consultants for services rendered with a maturity date on or after May 16, 2020, if not converted earlier. The convertible notes bore interest of 8% per annum and were convertible into equity securities sold at the next financing at 80% of the selling price per share of such equity financing. The conversion features of the convertible notes were recorded as a discount to the notes payable at issuance and amortized as interest expense over the loan term using the effective interest rate method. In February 2020, the outstanding principal and accrued interest of the convertible notes totaling $0.5 million were converted into 301,685 shares of the Company’s Series A convertible preferred stock at $1.65816 per share. See Note 10 for further discussion. Lease In May 2019 the Company entered into an agreement, as subsequently amended, to lease laboratory space pursuant to a three-month, automatically renewing lease. The lease is subject to annual rent increases of 3% and the Company had paid security deposits totaling $ 0.1 million as of June 30, 2021 which was included in prepaid expenses and other current assets on the Company’s balance sheets. Due to the short-term nature of the lease, it has not been included as an operating lease right of use asset nor as an operating lease liability on the Company’s balance sheets. The Company also has access to office space on an as-available basis from time to time pursuant to a consulting agreement. See Note 11 for further discussion. In February 2021, the Company entered into a lease agreement with Crossing Holdings, LLC to rent approximately 12,370 square feet of laboratory and office space (the “Lease”). The Company’s Executive Chairperson, co-founder and member of its board of directors, is the sole member and Manager of Crossing Holdings, LLC. The anticipated delivery date of the space is September 1, 2021 and the lease is expected to commence at that time. The term of the lease is 72 months after commencement with an option to extend the lease term for a period of three years. Lease payments are subject to annual increases of 3% and the Company is responsible for its share of operating expenses and taxes. Future minimum payments under the Lease as of June 30, 2021 are as follows (in thousands): 2021 $ 242 2022 733 2023 755 2024 778 2025 801 Thereafter 1,387 $ 4,696 Rent expense for the three months ended June 30, 2021 and 2020 was $136,000 and $22,000, respectively. Rent expense for the six months ended June 30, 2021 and 2020 was $212,000 and $34,000, respectively. Contingencies From time to time, the Company may become subject to claims or suits arising in the ordinary course of business. The Company accrues a liability for such matters when it is probable that the future expenditures will be made and such expenditures can be reasonably estimated. The Company had no such contingent liabilities as of June 30, 2021 or December 31, 2020. |
License Agreement
License Agreement | 6 Months Ended |
Jun. 30, 2021 | |
License Agreement [Abstract] | |
License Agreement | 9. License Agreement In February 2019, the Company entered into a Human Therapeutics Exclusive License Agreement (the “License Agreement”) with the Wisconsin Alumni Research Foundation (“WARF”). Under the License Agreement, the Company licensed the exclusive, worldwide, royalty-bearing, sublicensable, rights to certain WARF patents and the nonexclusive worldwide rights to certain know-how to develop and commercialize products for the prevention, diagnosis and treatment of disease. As consideration for the license, the Company agreed to pay an upfront fee of $250,000, which the Company immediately expensed as research and development expense in its statements of operations as there was no alternative future use for the license. The Company paid $25,000 of the upfront fee upon execution of the agreement and the remaining $225,000 was due upon the earlier of the first anniversary of the License Agreement or the Company receiving a certain level of gross proceeds from an equity financing. At December 31, 2019, the second payment of $225,000 was recorded as an accrued liability on the Company’s balance sheet. In February 2020, the Company paid the $225,000 balance upon the initial closing of its Series A preferred stock financing. Pursuant to the License Agreement, the Company is required to pay $125,000 upon the acceptance of an investigation new drug (“IND”) application in the U.S. and will be required to make further aggregate milestone payments of up to $17.5 million upon achievement of certain other regulatory and commercial milestones. The Company may also be required to pay royalties based on annual net product sales in the low single digits on its or its sublicensees’ net product sales on a country-by-country and product-by-product basis, and is subject to a minimum royalty of $0.1 million per calendar year upon first commercial product sale. Further, the Company may be required to pay sublicense fees in the mid-single digits percentage for fees, royalties or other payments earned from the granting of sublicenses to the WARF patents and know-how. The Company has paid no milestone or royalty payments as of June 30, 2021. The Company is responsible for reimbursing WARF for costs incurred in connection with prosecuting and maintaining patent rights that are specific to the License Agreement. Expenses recognized in connection with legal patent fees under this License Agreement were less than $0.1 The Company may terminate the License Agreement with 90 days written notice or for certain breaches of the agreement. WARF may terminate the License Agreement with 90 days written notice if first commercial sale does not occur before December 31, 2031. Unless terminated earlier by the parties, the term of the License Agreement will continue until the last licensed patent expires in all countries. |
Convertible Preferred Stock and
Convertible Preferred Stock and Stockholders' Deficit | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Convertible Preferred Stock and Stockholders' Deficit | 10. Convertible Preferred Stock and Stockholders’ Deficit Authorized Shares In connection with the completion of the Company’s initial public offering (“IPO”) in March 2021, the Company amended its Certificate of Incorporation to authorize 200,000,000 shares of common stock, par value $0.0001 per share, and 10,000,000 shares of preferred stock, par value $0.0001 per share, respectively. Public Offering and Related Transaction In March 2021, the Company completed its IPO selling 13,800,000 shares its common stock at $20.00 per share. Proceeds from the Company’s IPO, net of underwriting discounts and commissions and other offering costs, were $254.3 million. In connection with the IPO, all 41,096,478 shares of convertible preferred stock outstanding at the time of the IPO converted into 25,212,548 shares of the Company’s common stock. Convertible Preferred Stock In February and March 2020, the Company issued 21,710,814 shares of Series A convertible preferred stock at $2.0727 per share for net cash proceeds of $ 44.7 million (the “Series A Financing”). In connection with the Series A Financing, the Company issued an additional 301,685 shares of its Series A convertible preferred stock at $1.65816 per share in February 2020 upon the conversion and extinguishment of its convertible notes, as discussed further in Note 8. In January 2021, the Company issued 19,083,979 shares of Series B convertible preferred stock at $6.55 per share for net cash proceeds of approximately $124.7 million. All shares of convertible preferred stock outstanding at the Company’s IPO were converted into shares of the Company’s common stock. Equity Incentive Award Plans In March 2021, the Company’s board of directors and stockholders adopted the 2021 Plan, which became effective on March 25, 2021, the date of the underwriting agreement related to the Company’s IPO. Upon adoption of the 2021 Plan, the Company restricted future grants from its 2018 Plan. Under the 2021 Plan, the Company may grant stock options, stock appreciation rights, restricted stock, restricted stock units, performance stock awards, performance cash awards and other forms of stock awards to employees, directors and consultants, including employees and consultants of the Company’s affiliates. A total of 6,118,648 new shares of common stock were approved to be initially reserved for issuance under the 2021 Plan. The number of shares reserved under the 2021 Plan also include 881,352 shares of common stock that remained available for issuance under the 2018 Plan at the time the 2021 Plan became effective, and will be increased by the number of shares under the 2018 Plan that are repurchased, forfeited, expired or cancelled on or after the effective date of the 2021 Plan. In addition, the number of shares of common stock available for issuance under the 2021 Plan will automatically increase on January 1 of each calendar year, starting on January 1, 2022 through January 1, 2031, in an amount equal to 5% of the total number of shares of the Company’s common stock on the last day of the calendar month before the date of each automatic increase, or a lesser number of shares determined by the Company’s board of directors. Shares subject to Repurchase Pursuant to the 2018 Plan, the Company has issued shares of restricted common stock to employees, consultants and members of its board of directors. Additionally, certain stock options granted pursuant to the 2018 Plan provide for the right to elect to exercise unvested options early in exchange for restricted shares of common stock. These restricted shares of common stock generally vest over a four-year A summary of the Company’s restricted shares of common stock and unvested stock liability, recorded as a long-term liability on the Company’s balance sheets, is as follows (in thousands, except share data): Shares Liability Balance at December 31, 2020 646,953 $ 145 Vested shares (144,360 ) (5 ) Balance at June 30, 2021 502,593 $ 140 2021 Employee Stock Purchase Plan In March 2021, the Company’s board of directors and stockholders adopted the 2021 Employee Stock Purchase Plan (the “ESPP”), which became effective on March 25, 2021, the date of the underwriting agreement related to the Company’s IPO. The ESPP permits eligible employees who elect to participate in an offering under the ESPP to have up to 15% of their eligible earnings withheld, subject to certain limitations, to purchase shares of common stock pursuant to the ESPP. The price of common stock purchased under the ESPP is equal to 85% of the lower of the fair market value of the common stock at the commencement date of each offering period or the relevant date of purchase. A total of 600,000 shares of common stock were approved to be initially reserved for issuance under the ESPP. the number of shares of common stock available for issuance under the ESPP will automatically increase on January 1 of each calendar year, starting on January 1, 2022 through January 1, 2031, in an amount equal to the lesser of (i) 1% of the total number of shares of the Company’s common stock on the last day of the calendar month before the date of each automatic increase and (ii) 1,200,000 shares; provided that before the date of any such increase, the Company’s board of directors may determine that such increase will be less than the amount set forth in clauses (i) and (ii). As of June 30, 2021 , no shares of the Company’s common stock have been purchased under the ESPP. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 11. Related Party Transactions Consulting Agreements In January 2019, the Company entered into an agreement with the Marlinspike Group, LLC (“Marlinspike Group”) for research support, management, and business consulting services (the “2019 Consulting Agreement”). Further, Marlinspike Group provides the use of approximately 2,120 square feet of its office space in Carlsbad, California to the Company on an as-available basis from time to time pursuant to the agreement. The Company’s Executive Chairperson, co-founder and member of its board of directors is an executive officer of Marlinspike Group and, the Company’s Chief Operating Officer was an executive officer of Marlinspike Group until February 2020. The term of the 2019 Consulting Agreement was for a one-year period, subject to automatic one-month renewals unless terminated upon 14 days’ written notice. In March 2020, the Consulting Agreement was terminated and replaced with an amended consulting agreement (the “2020 Consulting Agreement”), which provides for the similar services and use of office space for a monthly fee of $20,000. Pursuant to the terms of the 2020 Consulting Agreement, it shall remain in effect until otherwise terminated. Termination may occur at any time upon mutual agreement or unilaterally upon 30 days’ written notice. If the Company unilaterally terminates the 2020 Consulting Agreement for any reason other than cause, it would be subject to a $240,000 termination fee. The Company cannot determine when, or if, such a termination will occur and hence has not recorded a liability for the fee. Expenses recognized by the Company under the 2020 Consulting Agreement during the periods presented were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Research and development $ — $ — $ — $ 8 General and administrative 60 60 120 172 Total expenses $ 60 $ 60 $ 120 $ 180 In December 2017, the Company entered into a consulting agreement with Aseem Z. Ansari, Ph.D. Dr. Asnsari, a co-founder, provides consulting services and advises on certain research and development activities (the “Research Consulting Agreement”). Pursuant to the Research Consulting Agreement, as amended, Dr. Ansari performs these services for a monthly fee of $15,000. Expenses recognized by the Company under the Research Consulting Agreement during the periods presented were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Research and development $ 45 $ — $ 90 $ — Total expenses $ 45 $ — $ 90 $ — As of June 30, 2021 and December 31, 2020, the Company had accounts payable of $20,000 pursuant to its related party consulting agreements. Convertible Notes and Notes Payable In May and July 2018, the Company issued a total of $0.3 million of convertible notes to a co-founder for cash with a maturity date on or after February 5, 2021, if not converted earlier. The notes bore interest of 8% per annum and were convertible into equity securities sold at the next financing at 80% of the selling price per share of such equity financing. In February 2020, these notes converted into 171,025 shares of the Company’s convertible preferred stock pursuant to the closing of the Series A preferred stock financing. Further, the Company has issued unsecured promissory notes to this co-founder for working capital. See Note 8 for further discussion. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Use of Estimates | Basis of Presentation and Use of Estimates The Company’s financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and include all adjustments, consisting of only normal recurring accruals, which in the opinion of management are necessary to present fairly the Company’s financial position as of the reporting date and results of operations for the periods presented. The preparation of the Company’s financial statements requires it to make estimates and assumptions that impact the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in the Company’s financial statements and accompanying notes. The most significant estimates in the Company’s financial statements relate to the recognition of grant revenue, accruals for research and development expenses and the valuation of equity-based awards. These estimates and assumptions are based on current facts, historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of revenue and expenses that are not readily apparent from other sources. Actual results may differ materially and adversely from these estimates. The full extent to which the novel coronavirus-2019 (“COVID-19”) pandemic will directly or indirectly impact the Company’s business, results of operations and financial condition, including research and development costs, will depend on future developments that are highly uncertain, including as a result of new information that may emerge concerning COVID-19 and the actions taken to contain or treat COVID-19, as well as the economic impact on local, regional, national and international markets. The Company has considered potential impacts arising from the COVID-19 pandemic and is not presently aware of any events or circumstances that would require the Company to update its estimates, judgments or revise the carrying value of its assets or liabilities. |
Stock Splits | Stock Splits In February 2020, the Company effected a 5-for-1 forward stock split of its issued and outstanding common stock. Further, in March 2021, the Company effected a 1-for-1.63 reverse stock split of its issued and outstanding common stock. The par value and the authorized shares of the common stock were not adjusted as a result of these stock splits. The reverse stock split in March 2021 resulted in an adjustment to the convertible preferred stock conversion prices to reflect a proportional decrease in the number of shares of common stock to be issued upon conversion. The accompanying financial statements and notes to the financial statements give retroactive effect to the stock splits for all periods presented. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with maturities at the date of acquisition of three months or less to be cash equivalents. These investments may include money market accounts, money market funds, U.S. Government agency securities, corporate debt securities and commercial paper. The Company’s cash reserves are in a readily available checking account. |
Investment Securities | Investment Securities Investments in securities with maturities at the date of acquisition of more than three months are considered marketable securities. The Company determines the appropriate classification of its investments at the time of acquisition and reevaluates such determination at each balance sheet date. The Company has classified its investment holdings as available-for-sale, as the sale of such securities may be required prior to maturity to implement management strategies. Further, the Company classifies its available-for-sale investment securities, including those with maturities beyond one year, as current assets on its balance sheets based on the highly liquid nature of the securities and because these investments are considered available for use in current operations. The Company’s investment policy sets minimum credit quality criteria and maximum maturity limits on its investments to provide for safety of principle, liquidity and a reasonable rate of return. Available-for-sale securities are recorded at fair value, based on current market valuations. Unrealized holding gains and losses on available-for-sale securities are excluded from earnings and are reported as a separate component of other comprehensive income (loss) until realized. Allowances for credit losses are reported on the balance sheet, if any. The cost of available-for-sale investment securities is adjusted for amortization of premiums and accretion of discounts until the securities . Such amortization and accretion is included in other income (expense) on the statements of operations. Realized gains and losses, if any, are also included in other income (expense) on the statement of operations and are derived using the specific identification method for determining the cost of the securities sold. During the periods presented, no realized gains or losses were recorded on the sale of investment securities and no impairments to reduce the value of any security was taken. See Note 5 for further discussion. |
Revenue Recognition | Revenue Recognition The Company has generated revenue from grants awarded to it by the National Science Foundation (“NSF”), the National Institutes of Health (“NIH”) and the Friedreich’s Ataxia Research Alliance (“FARA”). These grants provide the Company with funding for certain research and development activities on a best-efforts basis and do not require scientific achievement as a performance obligation. The Company has determined that the entities funding these grant awards do not meet the definition of a “customer”, as defined by Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (Topic 606) Research and Development Not-for-Profit Entities-Revenue Recognition The Company’s current grant revenue is not deemed refundable, and therefore, no liability is recognized when income is recorded. Grant funding received prior to expenses being incurred are recorded as deferred revenue on the Company’s balance sheets. See Note 7 for further discussion. |
Research and Development Expenses | Research and Development Expenses Research and development expenses consist primarily of direct and indirect costs incurred in connection with its discovery efforts, and the preclinical and formulation development of its product candidates. In the future, the Company expects a substantial portion of its research and development expenses will relate to the clinical development of its product candidates. Direct costs include contracted research development and manufacturing, consulting fees, license fees, laboratory supplies and other expenses incurred to sustain research and development programs. Indirect costs include personnel-related expenses, consisting of employee salaries, related benefits, and stock-based compensation expense for employees engaged in research and development activities, facilities related expenses, and other indirect expenses. A significant portion of the Company’s research and development expenses have been direct costs, which the Company tracks by stage of development, preclinical or clinical. However, the Company does not track its internal research and development expenses on a program specific basis, unless specific to research grants, because these costs are deployed across multiple projects and, as such, are not separately classified. Research and development expenses are charged to operating expenses as incurred when these expenditures relate to the Company’s research and development efforts and have no alternative future uses. The Company has entered into various contracts with research and development organizations, vendors and consultants. Payments for these activities are based on the terms of the individual agreements, which may differ from the of periods over which materials or services are provided. Payments made in advance of performance are reflected in the accompanying balance sheets as prepaid expenses. The Company records accruals for estimated costs incurred for ongoing research and development activities. The Company determines accrual estimates through review of the underlying contracts along with discussions with research and other key personnel as to the progress of the research and development activities, invoices received and contracted costs. During the course of a study or trial, the Company adjusts its rate of expense recognition if actual results differ from its estimates. Significant judgments and estimates may be made in determining the prepaid or accrued balances at the end of any reporting period. Actual results could differ from the Company’s estimates. |
Stock-Based Compensation | Stock-Based Compensation Stock options issued pursuant to the Company’s 2021 Equity Incentive Plan (the “2021 Plan”) and 2018 Equity Incentive Plan (the “2018 Plan”) and option features associated with the rights to purchase shares pursuant to the Company’s 2021 Employee Stock Purchase Plan (the “ESPP”) are valued using the Black-Scholes option pricing model on the date of grant or subscription period. This option pricing model involves a number of estimates, including the expected lives of the stock options or subscription period or the number of shares estimated to be issued pursuant to the ESPP Stock-based compensation expense recognized in the Company’s statements of operations during the three and six months ended June 30, 2021 and 2020, were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Research and development $ 496 $ 7 $ 660 $ 10 General and administrative 747 3 1,230 4 Total $ 1,243 $ 10 $ 1,890 $ 14 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2021, the Financial Accounting Standards Board (“FASB”) issued ASU 2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) . ASU 2021-04 clarifies and reduces diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options (for example, warrants) that remain equity classified after modification or exchange. The ASU provides guidance to clarify whether an issuer should account for a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange as (1) an adjustment to equity and, if so, the related earnings per share effects, if any, or (2) an expense and, if so, the manner and pattern of recognition. ASU 2021-04 is effective for annual beginning after December 15, 2021, inclding interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact that this new guidance will have on its condensed consolidated financial statements and does not currently expect the adoption will have a material impact on its financial statements and related disclosures. In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity . The guidance, among other items, clarifies that certain transactions between collaborative participants should be accounted for as revenue under Topic 606 when the collaborative arrangement participant is a customer in the context of a unit of account. The ASU’s amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years, with early adoption permitted for periods beginning after December 15, 2020. The Company has not yet adopted this guidance and does not currently expect the adoption will have a material impact on its financial statements and related disclosures. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share Based Compensation Allocation And Classification In Financial Statements [Abstract] | |
Summary of Stock-based Compensation Expense | Stock-based compensation expense recognized in the Company’s statements of operations during the three and six months ended June 30, 2021 and 2020, were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Research and development $ 496 $ 7 $ 660 $ 10 General and administrative 747 3 1,230 4 Total $ 1,243 $ 10 $ 1,890 $ 14 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Company's Financial Instruments Measured at Fair Value on a Recurring Basis | The following table summarize the Company’s financial instruments measured at fair value on a recurring basis at June 30, 2021 and December 31, 2020 (in thousands): Fair Value Measurement at End of Period Using: Quoted Prices In Active Markets Significant For Other Significant Identical Observable Unobservable Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) As of June 30, 2021: Assets: Money market funds ( 1) $ 369,796 $ 369,796 $ — $ — Certificates of deposit 1,919 1,919 — — U.S. Treasury securities 30,079 30,079 — — Total $ 401,794 $ 401,794 $ — $ — As of December 31, 2020: Assets: Money market funds ( 1) $ 2,100 $ 2,100 $ — $ — Certificates of deposit 1,754 1,754 — — U.S. Treasury securities 31,958 31,958 — — Total $ 35,812 $ 35,812 $ — $ — (1) Included in cash and cash equivalents on the accompanying balance sheets. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Disclosure - Investment Securities - Summary of Cost, Gross Unrealized Holding Gains and Losses, Allowances for Credit Losses and Fair Value of Available-for-Sale Investments by Types, Maturities and Classes of Securities (Detail) | The cost, gross unrealized holding gains, gross unrealized holding losses, allowances for credit losses and fair value of available-for-sale investments by types, maturies and classes of securities at June 30, 2021 and December 31, 2020 consisted of the following (in thousands): As of June 30, 2021 Estimated Allowance Fair Amortized Unrealized Unrealized for Credit Market Maturity Cost Gains Losses Losses Value Certificates of deposits Within 1 year $ 1,470 $ 1 $ (1 ) $ — $ 1,470 Certificates of deposits 1 year to 2 years 449 — — — 449 U.S. Treasury securities 1 year to 2 years 30,091 — (12 ) — 30,079 Total $ 32,010 $ 1 $ (13 ) $ — $ 31,998 As of December 31, 2020 Estimated Allowance Fair Amortized Unrealized Unrealized for Credit Market Maturity Cost Gains Losses Losses Value Certificates of deposits Within 1 year $ 1,750 $ 4 $ — $ — $ 1,754 U.S. Treasury securities Within 1 year 31,806 152 — — 31,958 Total $ 33,556 $ 156 $ — $ — $ 33,712 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands): June 30, 2021 December 31, 2020 Prepaid expenses $ 1,859 $ 60 Security deposits 104 47 Interest receivable 76 10 Other — 25 Total $ 2,039 $ 142 |
Summary of Property and Equipment | Property and equipment consisted of the following (in thousands): June 30, 2021 December 31, 2020 Laboratory equipment $ 281 $ 76 Computer equipment and software 11 — 292 76 Less accumulated depreciation (21 ) (5 ) Total $ 271 $ 71 |
Summary of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): June 30, 2021 December 31, 2020 Accrued personnel costs $ 941 $ 565 Accrued research and development costs 640 266 Accrued other 239 100 Total $ 1,820 $ 931 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Future Minimum Payments Under Lease | Future minimum payments under the Lease as of June 30, 2021 are as follows (in thousands): 2021 $ 242 2022 733 2023 755 2024 778 2025 801 Thereafter 1,387 $ 4,696 |
Convertible Preferred Stock a_2
Convertible Preferred Stock and Stockholders' Deficit (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Summary of Restricted Shares of Common Stock and Unvested Stock Liability | A summary of the Company’s restricted shares of common stock and unvested stock liability, recorded as a long-term liability on the Company’s balance sheets, is as follows (in thousands, except share data): Shares Liability Balance at December 31, 2020 646,953 $ 145 Vested shares (144,360 ) (5 ) Balance at June 30, 2021 502,593 $ 140 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transaction [Line Items] | |
Summary of Expenses Recognized under Consulting Agreement | Expenses recognized by the Company under the 2020 Consulting Agreement during the periods presented were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Research and development $ — $ — $ — $ 8 General and administrative 60 60 120 172 Total expenses $ 60 $ 60 $ 120 $ 180 |
Research Consulting Agreements | |
Related Party Transaction [Line Items] | |
Summary of Expenses Recognized under Consulting Agreement | Expenses recognized by the Company under the Research Consulting Agreement during the periods presented were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Research and development $ 45 $ — $ 90 $ — Total expenses $ 45 $ — $ 90 $ — |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Stock split of issued and outstanding common stock | 5-for-1 |
Reverse stock split of issued and outstanding common stock | 1-for-1.63 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 1,243 | $ 10 | $ 1,890 | $ 14 |
Research and Development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 496 | 7 | 660 | 10 |
General and Administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 747 | $ 3 | $ 1,230 | $ 4 |
Net Loss Per Share - Additional
Net Loss Per Share - Additional Information (Detail) - shares | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from calculation of diluted net loss per share | 2,687,000 | 14,431,000 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Instruments Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | $ 401,794 | $ 35,812 |
Money market funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 369,796 | 2,100 |
Certificates of deposit | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 1,919 | 1,754 |
U.S. Treasury securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 30,079 | 31,958 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 401,794 | 35,812 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 369,796 | 2,100 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Certificates of deposit | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 1,919 | 1,754 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | $ 30,079 | $ 31,958 |
Investment Securities - Summary
Investment Securities - Summary of Cost, Gross Unrealized Holding Gains and Losses, Allowances for Credit Losses and Fair Value of Available-for-Sale Investments by Types, Maturities and Classes of Securities (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Amortized Cost | $ 32,010 | $ 33,556 |
Debt securities, Unrealized Gains | 1 | 156 |
Debt securities, Unrealized Losses | (13) | |
Debt securities, Estimated Fair Value | $ 31,998 | $ 33,712 |
Certificates of deposit | Within 1 Year | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Maturity | Within 1 year | Within 1 year |
Debt securities, Amortized Cost | $ 1,470 | $ 1,750 |
Debt securities, Unrealized Gains | 1 | 4 |
Debt securities, Unrealized Losses | (1) | |
Debt securities, Estimated Fair Value | $ 1,470 | $ 1,754 |
Certificates of deposit | 1 Year to 2 Years | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Maturity | 1 year to 2 years | |
Debt securities, Amortized Cost | $ 449 | |
Debt securities, Estimated Fair Value | $ 449 | |
U.S. Treasury securities | Within 1 Year | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Maturity | Within 1 year | |
Debt securities, Amortized Cost | $ 31,806 | |
Debt securities, Unrealized Gains | 152 | |
Debt securities, Estimated Fair Value | $ 31,958 | |
U.S. Treasury securities | 1 Year to 2 Years | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Maturity | 1 year to 2 years | |
Debt securities, Amortized Cost | $ 30,091 | |
Debt securities, Unrealized Losses | (12) | |
Debt securities, Estimated Fair Value | $ 30,079 |
Investment Securities - Additio
Investment Securities - Additional Information (Detail) | Jun. 30, 2021USD ($)Security | Dec. 31, 2020USD ($)Security |
Schedule Of Available For Sale Securities [Line Items] | ||
Number of available-for-sale investment securities in continuous unrealized loss position, less than 12 months | 8 | 0 |
Number of domestic certificates of deposit held | 8 | |
Maximum | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Accrued interest receivable on available-for-sale investment securities | $ | $ 100,000 | $ 100,000 |
Balance Sheet Details - Summary
Balance Sheet Details - Summary of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Prepaid expenses | $ 1,859 | $ 60 |
Security deposits | 104 | 47 |
Interest receivable | 76 | 10 |
Other | 25 | |
Total | $ 2,039 | $ 142 |
Balance Sheet Details - Summa_2
Balance Sheet Details - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Property and equipment | $ 292 | $ 76 |
Less accumulated depreciation | (21) | (5) |
Total | 271 | 71 |
Laboratory Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 281 | $ 76 |
Computer Equipment and Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | $ 11 |
Balance Sheet Details - Summa_3
Balance Sheet Details - Summary of Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Accrued Liabilities Current [Abstract] | ||
Accrued personnel costs | $ 941 | $ 565 |
Accrued research and development costs | 640 | 266 |
Accrued other | 239 | 100 |
Total | $ 1,820 | $ 931 |
Grant Revenue - Additional Info
Grant Revenue - Additional Information (Detail) - Grant - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation Of Revenue [Line Items] | ||||
Recognized grant revenue | $ 0 | $ 0 | $ 200,000 | |
Maximum | ||||
Disaggregation Of Revenue [Line Items] | ||||
Recognized grant revenue | $ 100,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||||
Feb. 28, 2021ft² | Feb. 29, 2020USD ($)$ / sharesshares | Nov. 30, 2019USD ($) | Jan. 31, 2019USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Jan. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Feb. 28, 2019USD ($) | Jul. 31, 2018 | |
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||||
Debt instrument interest rate | 8.00% | 8.00% | 8.00% | 8.00% | ||||||||||
Convertible notes issued | $ 200,000 | |||||||||||||
Percentage of selling price per share that can convertible into equity securities sold | 80.00% | 80.00% | 80.00% | 80.00% | ||||||||||
Converted amount | $ 500,000 | |||||||||||||
Percentage of annual rent increase in lease agreement | 3.00% | 3.00% | ||||||||||||
Security deposits | $ 104,000 | $ 104,000 | $ 47,000 | |||||||||||
Rent expense | 136,000 | $ 22,000 | $ 212,000 | $ 34,000 | ||||||||||
Crossing Holdings, LLC | ||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||||
Area of lease space | ft² | 12,370 | |||||||||||||
Lease term | 72 months | |||||||||||||
Lessee, Operating Lease, Existence of Option to Extend [true false] | true | |||||||||||||
Lease term, option to extend period | three years | |||||||||||||
Percentage of annual increase in lease payments | 3.00% | |||||||||||||
Prepaid Expenses and Other Current Assets | ||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||||
Security deposits | 100,000 | $ 100,000 | ||||||||||||
Series A Convertible Preferred Stock | ||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||||
Converted shares | shares | 301,685 | |||||||||||||
Share price | $ / shares | $ 1.65816 | |||||||||||||
May 2018 Note | ||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||||
Maturity description | on or after February 5, 2021, if not converted earlier | |||||||||||||
July 2018 Note | ||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||||
Maturity description | on or after February 5, 2021, if not converted earlier | |||||||||||||
February 2019 Note | ||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||||
Maturity description | on or after May 16, 2020, if not converted earlier | |||||||||||||
Unsecured Promissory Note | January Note | ||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||||
Maturity description | on or before January 30, 2021 | |||||||||||||
Percentage of final payment on advanced at maturity | 3.00% | |||||||||||||
Debt instrument interest rate | 10.00% | 10.00% | ||||||||||||
Unsecured Promissory Note | January Note | Maximum | ||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||||
Notes issued | $ 500,000 | |||||||||||||
Unsecured Promissory Note | January Note | Prime Plus | ||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||||
Debt instrument variable interest rate | 4.50% | |||||||||||||
Unsecured Promissory Note | November Note | ||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||||
Maturity description | on or before January 1, 2022 | |||||||||||||
Percentage of final payment on advanced at maturity | 3.00% | |||||||||||||
Debt instrument interest rate | 9.25% | 9.25% | ||||||||||||
Unsecured Promissory Note | November Note | Maximum | ||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||||
Notes issued | $ 500,000 | |||||||||||||
Unsecured Promissory Note | November Note | Prime Plus | ||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||||
Debt instrument variable interest rate | 4.50% | |||||||||||||
Unsecured Promissory Note | February and March 2019 Draws | January Note | ||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||||
Borrowings | 200,000 | $ 200,000 | ||||||||||||
Unsecured Promissory Note | Jan 2020 and Dec 2019 Draws | November Note | ||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||||
Borrowings | 400,000 | 400,000 | ||||||||||||
Convertible Notes Issued in May and July 2018 | ||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||||
Convertible notes issued | $ 300,000 | $ 300,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Future Minimum Payments Under Lease (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
2021 | $ 242 |
2022 | 733 |
2023 | 755 |
2024 | 778 |
2025 | 801 |
Thereafter | 1,387 |
Total | $ 4,696 |
License Agreement - Additional
License Agreement - Additional Information (Detail) - License Agreement - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Feb. 29, 2020 | Feb. 28, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2019 | |
Schedule Of License Agreement [Line Items] | |||||||
Payment for upfront fee | $ 225,000 | ||||||
Upfront payment upon execution of agreement | $ 25,000 | ||||||
Upfront payment within first anniversary of license agreement | 225,000 | ||||||
Written notice period for termination of agreement | 90 days | ||||||
Termination period Description | WARF may terminate the License Agreement with 90 days written notice if first commercial sale does not occur before December 31, 2031. Unless terminated earlier by the parties, the term of the License Agreement will continue until the last licensed patent expires in all countries. | ||||||
Investigation New Drug (IND) | |||||||
Schedule Of License Agreement [Line Items] | |||||||
Expected milestone payment on achieving certain regulatory and commercial milestones | $ 125,000 | $ 125,000 | |||||
Milestone payment | 0 | 0 | |||||
Royalty payments | 0 | ||||||
Investigation New Drug (IND) | Maximum | |||||||
Schedule Of License Agreement [Line Items] | |||||||
Expected milestone payment on achieving certain regulatory and commercial milestones | 17,500,000 | 17,500,000 | |||||
Investigation New Drug (IND) | Minimum [Member] | |||||||
Schedule Of License Agreement [Line Items] | |||||||
Expected royalty payments upon first commercial product sale | 100,000 | 100,000 | |||||
Initial Closing of Series A Preferred Stock | |||||||
Schedule Of License Agreement [Line Items] | |||||||
Payment for upfront fee | $ 225,000 | ||||||
Research and Development | |||||||
Schedule Of License Agreement [Line Items] | |||||||
Payment for upfront fee | $ 250,000 | ||||||
General and Administrative Expenses | Maximum | |||||||
Schedule Of License Agreement [Line Items] | |||||||
Legal patent fees | $ 100,000 | $ 100,000 | $ 100,000 | $ 100,000 |
Convertible Preferred Stock a_3
Convertible Preferred Stock and Stockholders' Deficit - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 25, 2021 | Mar. 31, 2021 | Jan. 31, 2021 | Mar. 31, 2020 | Feb. 29, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 |
Convertible Preferred Stock And Stockholders Deficit [Line Items] | ||||||||
Common stock, shares authorized | 200,000,000 | 60,000,000 | ||||||
Common stock, par value | $ 0.0001 | $ 0.0001 | ||||||
Convertible preferred stock, issued | 0 | 22,012,499 | ||||||
Convertible preferred stock, par value | $ 0.0001 | $ 0.0001 | ||||||
Proceeds from issuance of convertible preferred stock, net of issuance costs | $ 124,712 | $ 44,731 | ||||||
2021 Equity Incentive Award Plan | ||||||||
Convertible Preferred Stock And Stockholders Deficit [Line Items] | ||||||||
Common stock reserved for issuance | 6,118,648 | |||||||
Common stock issuance, description and terms | the number of shares of common stock available for issuance under the 2021 Plan will automatically increase on January 1 of each calendar year, starting on January 1, 2022 through January 1, 2031, in an amount equal to 5% of the total number of shares of the Company’s common stock on the last day of the calendar month before the date of each automatic increase, or a lesser number of shares determined by the Company’s board of directors. | |||||||
2018 Equity Incentive Plan | ||||||||
Convertible Preferred Stock And Stockholders Deficit [Line Items] | ||||||||
Common stock remained available for issuance | 881,352 | |||||||
2021 Employee Stock Purchase Plan | ||||||||
Convertible Preferred Stock And Stockholders Deficit [Line Items] | ||||||||
Common stock reserved for issuance | 600,000 | |||||||
Common stock remained available for issuance | 1,200,000 | |||||||
Common stock issuance, description and terms | the number of shares of common stock available for issuance under the ESPP will automatically increase on January 1 of each calendar year, starting on January 1, 2022 through January 1, 2031, in an amount equal to the lesser of (i) 1% of the total number of shares of the Company’s common stock on the last day of the calendar month before the date of each automatic increase and (ii) 1,200,000 shares; provided that before the date of any such increase, the Company’s board of directors may determine that such increase will be less than the amount set forth in clauses (i) and (ii). As of June 30, 2021, no shares of the Company’s common stock have been purchased under the ESPP. | |||||||
Maximum percentage of eligible earnings withheld to participate in offering | 15.00% | |||||||
Price of common stock purchased | 85.00% | |||||||
Number of common stock purchased | 0 | |||||||
Series A Convertible Preferred Stock | ||||||||
Convertible Preferred Stock And Stockholders Deficit [Line Items] | ||||||||
Share price | $ 1.65816 | |||||||
Convertible preferred stock, issued | 21,710,814 | 21,710,814 | ||||||
Convertible preferred stock, par value | $ 2.0727 | $ 2.0727 | ||||||
Proceeds from issuance of convertible preferred stock, net of issuance costs | $ 44,700 | $ 44,700 | ||||||
Converted shares | 301,685 | |||||||
Series B Convertible Preferred Stock | ||||||||
Convertible Preferred Stock And Stockholders Deficit [Line Items] | ||||||||
Convertible preferred stock, issued | 19,083,979 | |||||||
Convertible preferred stock, par value | $ 6.55 | |||||||
Proceeds from issuance of convertible preferred stock, net of issuance costs | $ 124,700 | |||||||
Common Stock | ||||||||
Convertible Preferred Stock And Stockholders Deficit [Line Items] | ||||||||
Initial public offering of common shares | 13,800,000 | |||||||
Common Stock | 2018 Equity Incentive Plan | Restricted Shares | ||||||||
Convertible Preferred Stock And Stockholders Deficit [Line Items] | ||||||||
Vesting period | 4 years | |||||||
Initial Public Offering | ||||||||
Convertible Preferred Stock And Stockholders Deficit [Line Items] | ||||||||
Common stock, shares authorized | 200,000,000 | |||||||
Common stock, par value | $ 0.0001 | |||||||
Preferred stock, authorized | 10,000,000 | |||||||
Preferred stock, par value | $ 0.0001 | |||||||
Initial public offering of common shares | 13,800,000 | |||||||
Share price | $ 20 | |||||||
Proceeds from sale of common stock | $ 254,300 | |||||||
Convertible preferred stock, shares issued upon conversion | 41,096,478 | |||||||
Initial Public Offering | Common Stock | ||||||||
Convertible Preferred Stock And Stockholders Deficit [Line Items] | ||||||||
Convertible preferred stock, shares issued upon conversion | 25,212,548 |
Convertible Preferred Stock a_4
Convertible Preferred Stock and Stockholders' Deficit - Summary of Restricted Shares of Common Stock and Unvested Stock Liability (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($)shares | |
Liabilities And Stockholders Equity [Line Items] | |
Beginning Balance, Unvested stock liability | $ | $ 145 |
Vested shares, Unvested stock liability | $ | (5) |
Ending Balance, Unvested stock liability | $ | $ 140 |
Restricted Shares | |
Liabilities And Stockholders Equity [Line Items] | |
Beginning Balance | shares | 646,953 |
Vested shares | shares | (144,360) |
Ending Balance | shares | 502,593 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||
Mar. 31, 2020USD ($) | Feb. 29, 2020shares | Jan. 31, 2019ft² | Dec. 31, 2017USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Feb. 28, 2019USD ($) | Jul. 31, 2018USD ($) | May 31, 2018USD ($) | |
Related Party Transaction [Line Items] | ||||||||||||
Research and development (including related party amounts of $45, $0, $90 and $8, respectively) | $ 5,027,000 | $ 1,061,000 | $ 8,902,000 | $ 1,438,000 | ||||||||
Convertible notes issued | $ 200,000 | |||||||||||
Debt instrument interest rate | 8.00% | 8.00% | 8.00% | 8.00% | ||||||||
Percentage of selling price per share that can convertible into equity securities sold | 80.00% | 80.00% | 80.00% | 80.00% | ||||||||
Consulting Agreements | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Accounts payable | $ 20,000 | $ 20,000 | $ 20,000 | |||||||||
Marlinspike Group, LLC | 2020 Consulting Agreement | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Monthly fee for consultancy services | $ 20,000 | |||||||||||
Termination fee | $ 240,000 | |||||||||||
Marlinspike Group, LLC | Consulting Agreements | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Research and development (including related party amounts of $45, $0, $90 and $8, respectively) | $ 8,000 | |||||||||||
Marlinspike Group, LLC | Carlsbad, California | 2019 Consulting Agreement | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Area of office space | ft² | 2,120 | |||||||||||
Aseem Z. Ansari, Ph.D. | Convertible Notes and Notes Payable | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Convertible notes issued | $ 300,000 | $ 300,000 | ||||||||||
Debt instrument interest rate | 8.00% | |||||||||||
Percentage of selling price per share that can convertible into equity securities sold | 80.00% | |||||||||||
Aseem Z. Ansari, Ph.D. | Convertible Notes and Notes Payable | Series A Preferred Stock | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Convertible preferred stock converted | shares | 171,025 | |||||||||||
Aseem Z. Ansari, Ph.D. | May Note | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Maturity description | on or after February 5, 2021, if not converted earlier | |||||||||||
Aseem Z. Ansari, Ph.D. | July Note | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Maturity description | on or after February 5, 2021, if not converted earlier | |||||||||||
Aseem Z. Ansari, Ph.D. | Consulting Agreements | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Monthly fee for services | $ 15,000 |
Related Party Transactions - Su
Related Party Transactions - Summary of Expenses Recognized under Consulting Agreement (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Related Party Transaction [Line Items] | ||||
Research and development (including related party amounts of $45, $0, $90 and $8, respectively) | $ 5,027 | $ 1,061 | $ 8,902 | $ 1,438 |
General and administrative (including related party amounts of $60, $60, $120 and $172, respectively) | 2,660 | 433 | 4,465 | 821 |
Research Consulting Agreements | ||||
Related Party Transaction [Line Items] | ||||
Research and development (including related party amounts of $45, $0, $90 and $8, respectively) | 45 | 90 | ||
Total expenses | 45 | 90 | ||
Marlinspike Group, LLC | Consulting Agreements | ||||
Related Party Transaction [Line Items] | ||||
Research and development (including related party amounts of $45, $0, $90 and $8, respectively) | 8 | |||
General and administrative (including related party amounts of $60, $60, $120 and $172, respectively) | 60 | 60 | 120 | 172 |
Total expenses | $ 60 | $ 60 | $ 120 | $ 180 |