Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Mar. 18, 2022 | |
Cover [Abstract] | ||
Document Type | 10-K | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | FY | |
Document Annual Report | true | |
Document Transition Report | false | |
Trading Symbol | ITOS | |
Entity Registrant Name | iTeos Therapeutics, Inc. | |
Entity Central Index Key | 0001808865 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Incorporation, State or Country Code | DE | |
Entity Shell Company | false | |
Entity File Number | 001-39401 | |
Entity Tax Identification Number | 84-3365066 | |
Entity Address Address Line1 | 321 Arsenal St | |
Entity Address City Or Town | Watertown | |
Entity Address State Or Province | MA | |
Entity Address Postal Zip Code | 02472 | |
City Area Code | 339 | |
Local Phone Number | 217 0161 | |
Entity Common Stock Shares Outstanding | 35,514,613 | |
Entity Public Float | $ 855.2 | |
Security12b Title | Common stock, $0.001 par value per share | |
Security Exchange Name | NASDAQ | |
ICFR Auditor Attestation Flag | false | |
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement for its 2021 Annual Meeting of Stockholders to be filed pursuant to Regulation 14A within 120 days of the end of the registrant’s fiscal year ended December 31, 2021 are incorporated by reference into Part III of this Annual Report on Form 10-K to the extent stated herein. | |
Auditor Name | Deloitte Bedrijfsrevisoren/Réviseurs d’Entreprises BV/SRL | |
Auditor Location | Zaventem, Belgium | |
Auditor Firm ID | 1133 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 848,537 | $ 336,326 |
Grants receivable | 4,022 | 133 |
Research and development tax credits receivable | 524 | 192 |
Refundable income taxes | 7,544 | 0 |
Prepaid expenses and other current assets | 14,086 | 2,893 |
Total current assets | 874,713 | 339,544 |
Property and equipment, net | 2,072 | 1,352 |
Research and development tax credits receivable, net of current portion | 2,004 | 3,286 |
Restricted cash | 298 | 128 |
Right of use assets | 5,329 | 0 |
Other assets | 296 | 248 |
Total assets | 884,712 | 344,558 |
Current liabilities: | ||
Accounts payable | 5,145 | 3,026 |
Accrued expenses and other current liabilities | 17,157 | 7,486 |
Deferred income | 827 | 4,486 |
Deferred revenue | 280,225 | |
Lease liabilities | 770 | |
Total current liabilities | 304,124 | 14,998 |
Grants repayable | 6,164 | 5,883 |
Lease liabilities, net of current portion | 4,571 | |
Unrecognized tax benefits | 17,000 | 0 |
Other noncurrent liabilities | 33 | 480 |
Total liabilities | 331,892 | 21,361 |
Commitments and contingencies (Note 10) | ||
Stockholders’ equity (deficit): | ||
Preferred stock, $0.001 par value; 10,000,000 and zero shares authorized at December 31, 2021 and 2020, respectively, and zero shares issued or outstanding | 0 | 0 |
Common stock, $0.001 par value, 150,000,000 shares authorized at December 31, 2021 and 2020, respectively; 35,466,001 and 35,044,758 shares issued and outstanding at December 31, 2021 and 2020, respectively | 35 | 35 |
Additional paid-in capital | 413,180 | 396,443 |
Accumulated other comprehensive (loss) income | (1,018) | 617 |
Retained earnings (accumulated deficit) | 140,623 | (73,898) |
Total stockholders' equity | 552,820 | 323,197 |
Total liabilities and stockholders' equity | $ 884,712 | $ 344,558 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Preferred Stock, par value | $ 0.001 | $ 0.001 |
Preferred Stock Shares Authorized | 10,000,000 | 0 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 35,466,001 | 35,044,758 |
Common stock, shares outstanding | 35,466,001 | 35,044,758 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue: | ||
License and collaboration revenue | $ 344,775 | |
Total revenue | 344,775 | |
Operating expenses: | ||
Research and development expenses | 59,369 | $ 29,900 |
General and administrative expenses | 40,505 | 15,340 |
Total operating expenses | 99,874 | 45,240 |
Income (loss) from operations | 244,901 | (45,240) |
Other income and (expenses): | ||
Grant Income | 10,181 | 5,647 |
Research and development tax credits | 286 | |
Fair value adjustment for preferred stock tranche rights liability | 1,265 | |
Other income (expense), net | 1,382 | (48) |
Income (loss) before income tax expense (benefit) | 256,464 | (38,090) |
Income tax expense (benefit) | 41,943 | (57) |
Net income (loss) | 214,521 | (38,033) |
Cumulative dividends on Series A Preferred Stock | (249) | |
Accretion of redeemable convertible preferred stock to redemption value | (5,120) | |
Net income (loss) attributable to common stockholders | $ 214,521 | $ (43,402) |
Basic net income (loss) per common share | $ 6.10 | $ (2.88) |
Diluted net income (loss) per common share | $ 5.68 | $ (2.88) |
Weighted-average common shares outstanding - basic | 35,181,383 | 15,080,266 |
Weighted-average common shares outstanding - diluted | 37,774,790 | 15,080,266 |
Net income (loss) | $ 214,521 | $ (38,033) |
Foreign currency translation adjustments | (1,635) | 841 |
Comprehensive income (loss) | $ 212,886 | (37,192) |
Series A Preferred Stock | ||
Other income and (expenses): | ||
Accretion of redeemable convertible preferred stock to redemption value | $ (5,120) |
Consolidated Statements of Rede
Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Retained Earnings (Accumulated deficit) | Series A preferred stock | Series B preferred stock |
Beginning balance at Dec. 31, 2019 | $ (36,088) | $ 1 | $ (224) | $ (35,865) | |||
Temporary equity, beginning balance (in shares) at Dec. 31, 2019 | 6,167,726 | 20,942,781 | |||||
Temporary equity, beginning balance at Dec. 31, 2019 | $ 5,353 | $ 46,404 | |||||
Beginning balance (in shares) at Dec. 31, 2019 | 256,548 | ||||||
Issuance of Preferred Stock | $ 125,026 | ||||||
Issuance of Preferred Stock (in shares) | 44,453,477 | ||||||
Settlement of preferred stock tranche right | 4,135 | $ 4,135 | |||||
Accretion of Series B and B-2 Preferred Stock to redemption value | 5,120 | 5,120 | $ (5,120) | ||||
Conversion of redeemable convertible preferred stock to common stock upon closing of initial public offering | 181,903 | $ 22 | 181,881 | $ (5,353) | $ (176,550) | ||
Conversion of redeemable convertible preferred stock to common stock upon closing of initial public offering, Shares | 22,460,076 | (6,167,726) | (65,396,258) | ||||
Issuance of common stock from initial public offering | 210,612 | $ 12 | 210,600 | ||||
Issuance of common stock from initial public offering, shares | 12,091,675 | ||||||
Stock-based compensation | 4,292 | 4,292 | |||||
Common stock issued upon exercises of options | 655 | 655 | |||||
Common stock issued upon exercises of options (in shares) | 236,459 | ||||||
Currency translation adjustment | 841 | 841 | |||||
Net income (loss) | (38,033) | (38,033) | |||||
Ending balance at Dec. 31, 2020 | 323,197 | $ 35 | 396,443 | 617 | 73,898 | ||
Ending balance (in shares) at Dec. 31, 2020 | 35,044,758 | ||||||
Settlement of preferred stock tranche right | |||||||
Stock-based compensation | 13,794 | 13,794 | |||||
Common stock issued upon exercises of options | $ 2,943 | 2,943 | |||||
Common stock issued upon exercises of options (in shares) | 421,947 | 421,243 | |||||
Currency translation adjustment | $ (1,635) | (1,635) | |||||
Net income (loss) | 214,521 | 214,521 | |||||
Ending balance at Dec. 31, 2021 | $ 552,820 | $ 35 | $ 413,180 | $ (1,018) | $ 140,623 | ||
Ending balance (in shares) at Dec. 31, 2021 | 35,466,001 |
Consolidated Statements of Re_2
Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Net of Issuance costs | $ 332 |
I P O [Member] | |
Net of Issuance costs | 19,100 |
Series B-2 Preferred Stock | |
Net of Issuance costs | $ 332 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | ||
Net loss | $ 214,521 | $ (38,033) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 603 | 535 |
Stock-based compensation | 13,794 | 4,292 |
Change in operating lease right of use assets | 12 | |
Fair value adjustment for preferred stock tranche rights liability | (1,265) | |
Deferred rent | (35) | |
Changes in operating assets and liabilities: | ||
Grants receivable | (4,071) | 5,175 |
Research and development tax credits receivable | 727 | (142) |
Refundable income taxes | (7,544) | |
Prepaid expenses and other current assets | (11,789) | (1,927) |
Accounts payable | 2,280 | 1,677 |
Accrued expenses and other liabilities | 9,959 | 2,759 |
Deferred income | 3,480 | 0 |
Deferred revenue | 281,128 | 1,788 |
Unrecognized tax benefits | 17,000 | 0 |
Net cash provided by (used in) operating activities | 513,140 | (25,176) |
Cash flows from investing activities | ||
Purchase of property and equipment | (1,181) | (356) |
Purchase other assets | (61) | (21) |
Net cash used in investing activities | (1,242) | (377) |
Cash flows from financing activities | ||
Proceeds from issuance of Preferred Stock | 125,358 | |
Payment of issuance costs on Series B-2 Preferred Stock | (332) | |
Proceeds from issuance of common stock upon exercise of options | 2,943 | 655 |
Proceeds from grants repayable | 716 | 4,046 |
Net cash provided by financing activities | 3,659 | 340,339 |
Effects of exchange rate changes on cash, cash equivalents and restricted cash | (3,176) | 1,678 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 512,381 | 316,464 |
Cash, cash equivalents and restricted cash at beginning of year | 336,454 | 19,990 |
Cash, cash equivalents and restricted cash at end of year | 848,835 | 336,454 |
Non-cash investing and financing activities | ||
Conversion of redeemable convertible preferred stock to common stock upon closing of the initial public offering | 181,903 | |
Capital expenditure included in accounts payable | 175 | |
Accretion of Series B and B-2 Preferred Stock to redemption value | 5,120 | |
Settlement of preferred stock tranche right | 4,135 | |
Operating lease liabilities arising from obtaining right-of-use assets (non-cash) | 5,877 | |
Supplemental disclosure of cash flows | ||
Cash paid for taxes | $ 32,019 | 108 |
Series B-2 Preferred Stock | ||
Cash flows from financing activities | ||
Proceeds from initial public offering, net of underwriting discount | 213,660 | |
Payment of initial public offering costs | $ (3,048) |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Text Block [Abstract] | |
Nature of Business and Basis of Presentation | Note 1. Nature of Business and Basis of Presentation Organization iTeos Therapeutics, Inc. (iTeos Inc. or the Company), a Delaware corporation headquartered in Watertown, Massachusetts (incorporated on October 4, 2019), is the successor to iTeos Belgium SA (iTeos Belgium) a company organized under the laws of Belgium in 2011 and headquartered in Charleroi, Belgium. The Company is a clinical stage biopharmaceutical company pioneering the discovery and development of a new generation of highly differentiated immuno-oncology therapeutics for people living with cancer. The Company leverages its deep understanding of the tumor immunology and immunosuppressive pathways to design novel product candidates with the aim of restoring the immune response against cancer. The Company’s innovative pipeline includes two clinical-stage programs targeting novel, de-risked immuno-oncology pathways. Each of the Company's therapies in development has optimized pharmacologic properties designed to improve clinical outcomes. The Company’s lead antibody product candidate, EOS-448, also known as GSK4428859A, is an antagonist of TIGIT, or T-cell immunoreceptor with lg and ITIM domains, an immune checkpoint with multiple mechanisms of action. EOS-448 was selected for its affinity for TIGIT, its potency and its potential to engage the Fc gamma receptor, or FcγR, to activate dendritic cells, natural killer cells, and macrophages and to promote cytokine 2A R antagonist inupadenant in patients with solid tumors. As of January 2022, the Company continues to explore EOS-448 in combination with pembrolizumab, dostarlimab or inupadenant in patients with solid tumors in ongoing Phase 1b trials. Based on favorable preclinical data generated in collaboration with Fred Hutchinson Cancer Research Center, the Company is also advancing an open-label dose-escalation/expansion Phase 1/2 trial evaluating the safety, tolerability and preliminary activity of EOS-448 as monotherapy and in combination with Bristol Myers Squibb’s iberdomide - a novel, potent oral cereblon E3 ligase modulator (CELMoD ® ) compound with enhanced tumoricidal and immune-stimulatory effects compared with immunomodulatory (IMiD ® ) agents - with or without dexamethasone, in adults with relapsed or refractory multiple myeloma. On June 11, 2021, the Company's wholly owned subsidiary, iTeos Belgium S.A., and GlaxoSmithKline Intellectual Property (No. 4) Limited, or GSK, executed a Collaboration and License Agreement, or the GSK Collaboration Agreement, which became effective on July 26, 2021. Pursuant to the GSK Collaboration Agreement, the Company agreed to grant GSK a license under certain of its intellectual property rights to develop, manufacture, and commercialize products comprised of or containing EOS-448, which license is exclusive in all countries outside of the United States and co-exclusive, with iTeos, in the United States. GSK and iTeos intend to develop EOS-448 in combination, including with other oncology assets of GSK, and iTeos and GSK will jointly own the intellectual property created under the GSK Collaboration Agreement that covers such combinations. In partnership with GSK, the Company will assess the doublet of GSK’s anti-PD-1 (dostarlimab) with EOS-448 in first line PD-L1 high non-small cell lung cancer, head and neck squamous cell carcinoma and an additional indication in registration-directed trials. The Company and GSK also are initiating trials with novel triplets, including dostarlimab with EOS-448 and inupadenant as well as EOS-448 with dostarlimab and GSK’s anti-CD96 antibody, GSK’608. The Company is also advancing inupadenant, a next-generation adenosine A 2A receptor antagonist tailored to overcome the specific adenosine-mediated immunosuppression found in tumor microenvironment, into proof-of concept trials in several indications following encouraging single-agent activity in Phase 1. The Company is investigating inupadenant in an open-label multi-arm Phase 1/2a clinical trial in adult cancer patients with advanced solid tumors. The single-agent dose-escalation and expansion portions of the Company's Phase 1/2a clinical trial of inupadenant have demonstrated durable monotherapy antitumor activity in patients with advanced solid tumors and safety consistent with previously reported results. As part of this monotherapy assessment of inupadenant, the Company identified a potential predictive biomarker and it continues to evaluate this signal in the ongoing Phase 1b/2a trial. In 2022, the Company plans to initiate a randomized Phase 2 trial in a solid tumor indication to evaluate the combination of inupadenant with chemotherapy compared to standard of care chemotherapy alone. The Company has completed enrollment in the safety evaluation portion of the clinical trial of inupadenant in combination with chemotherapy and with pembrolizumab, as well as the monotherapy expansion cohort in prostate cancer. The Company has initiated an expansion arm evaluating inupadenant in combination with pembrolizumab in patients with PD-1-resistant melanoma, currently in an ongoing trial. In addition, the Company is evaluating a salt form of inupadenant in a Phase 1 study. The Company began its research and development activities as a spin-off of Ludwig Cancer Research and have built significant expertise in designing novel cancer immunotherapies. The Company's internal research and development team has extensive expertise in tumor immunology, characterization of immunosuppressive mechanisms in the tumor microenvironment, pharmacology and translational medicine. The Company has also built discovery capabilities to develop both small molecules and antibodies with differentiated and optimized product profiles for targets validated by a strong scientific rationale. The Company continues to progress research programs focused on additional targets that complement its TIGIT and A 2A R programs or address additional immunosuppressive pathways. In September 2021, the Company nominated a product candidate in the adenosine pathway for Investigational New Drug, or IND, enabling studies. The Company's expertise also allows it to integrate a biomarker-rich strategy into its clinical programs to measure the activity of a product candidate in patients, seek to optimize combination agents and identify patients it deems most likely to benefit from treatment. On December 2, 2020, iTeos Securities Corporation (iTeos SC) was incorporated as a Massachusetts Security Corporation. It is a wholly-owned subsidiary of iTeos Inc. On July 27, 2021, iTeos BE, LLC (iTeos LLC) was incorporated as a Delaware Limited Liability Company. It is a wholly-owned subsidiary of iTeos Belgium. Reverse Stock Split and Initial Public Offering On July 20, 2020, the Company effected a 1-for-3.3115 reverse stock split of the Company’s common stock and adjusted the ratio at which the Company’s preferred stock is convertible into common stock, as well as the number of shares under the 2019 Stock Option and Grant Plan and the Amended and Restated Certificate of Incorporation of iTeos Therapeutics, Inc., as well as the share amounts of stock grants under the plan and the number of options and exercise prices of options under the plan. All shares of common stock, stock options exercisable for shares of common stock, and per share information presented in the accompanying consolidated financial statements and notes thereto have been adjusted, where applicable, to reflect the reverse stock split on a retroactive basis for all periods presented. There was no change in the par value of the Company’s common stock. On July 28, 2020, the Company completed its initial public offering (IPO), in which the Company issued and sold 10,586,316 shares of its common stock, for aggregate gross proceeds of $ 201.1 million and its shares started trading on The Nasdaq Global Select Market under the ticker symbol “ITOS.” The Company received approximately $ 184.0 million in net proceeds after deducting underwriting discounts and commissions and other offering expenses paid by the Company. Upon closing of the IPO, all of the Company's outstanding shares of convertible preferred stock automatically converted into 22,460,076 shares of common stock. On August 5, 2020, the underwriters purchased an additional 1,505,359 shares of common stock pursuant to their option to purchase additional shares for net proceeds of $ 26.6 million after deducting underwriting discounts and commissions. Liquidity and capital resources Since inception, the Company’s activities have consisted primarily of performing research and development to advance its product candidates. For the first time since inception, the Company has earned income during the current period, which equaled net income of $ 214.5 million for the year ended December 31, 2021. As of December 31, 2021, the Company had retained earnings of $ 140.6 million. As of March 23, 2022, the issuance date of the consolidated financial statements for the year ended December 31, 2021, the Company expects that its cash and cash equivalents would be sufficient to fund its operating expenses, capital expenditure requirements and debt service payments through at least 12 months from the issuance date of the consolidated financial statements. The Company may seek additional funding in order to reach its development and commercialization objectives. The Company may not be able to obtain funding on acceptable terms, or at all, and the Company may not be able to enter into collaborations or other arrangements. The terms of any funding may adversely affect the holdings or the rights of the Company’s stockholders. If the Company is unable to obtain funding, the Company could be forced to delay, reduce or eliminate some or all of its research and development programs, product portfolio expansion or commercialization efforts, which could adversely affect its business prospects. The Company’s future results of operations involve a number of risks and uncertainties. Factors that could affect the Company’s future operating results and cause actual results to vary materially from expectations include, but are not limited to, uncertainty regarding results of clinical trials and reaching milestones, uncertainty of regulatory approval of the Company’s current or future product candidates, uncertainty of market acceptance of the Company’s product candidates, if approved, competition from substitute products and larger companies, securing and protecting proprietary technology, strategic relationships and dependence on key individuals and sole source suppliers. Product candidates currently under development will require significant additional research and development efforts, including extensive preclinical and clinical testing and regulatory approval prior to commercialization. These efforts require significant amounts of capital, adequate personnel and infrastructure and extensive compliance-reporting capabilities and may not ultimately lead to a marketing approval and commercialization of a product. The Company’s product candidates require approvals from the U.S. Food and Drug Administration (FDA) and comparable foreign regulatory agencies prior to commercial sales in their respective jurisdictions. There can be no assurance that any product candidates will receive the necessary approvals. If the Company was denied approval, approval was delayed or the Company was unable to maintain approval for any product candidate, it could have a materially adverse impact on the Company. Even if the Company’s product development efforts are successful, it is uncertain when, if ever, the Company will realize significant revenue from product sales. The Company will need to generate significant revenue to achieve sustained profitability, and it may never do so. COVID-19 With the ongoing concern related to the COVID-19 pandemic during 2020 and 2021, the Company has maintained and expanded its business continuity plans to address and mitigate the impact of the COVID-19 pandemic on its business. In March 2020, to protect the health of its employees, and their families and communities, the Company restricted access to its offices to personnel who performed critical activities that must be completed on-site, limited the number of such personnel that could be present at its facilities at any one time, and requested that most of its employees work remotely. In May 2020, as certain states eased restrictions, the Company established new protocols to better allow its full laboratory staff access to the Company’s facilities. These protocols included several shifts working over a seven-day-week protocol. With increased availability of vaccines and public health guidelines evolving to reflect their availability, we have shifted to a hybrid model for all our employees. We will continue to monitor and make adjustments in response to the public health environment, together with local, state and federal guidance regarding workplace protective measures. The Company expects to continue incurring additional costs to ensure it adheres to the best-practice safe hygiene guidelines issued by recognized health experts such as the U.S. Centers for Disease Control and Prevention (CDC), the European Center for Disease Prevention and Control (ECDC) and the World Health Organization (WHO), and to provide a safe working environment to its onsite employees. The extent to which the ongoing COVID-19 pandemic impacts the Company’s business, its corporate development objectives, results of operations and financial condition, and the value of and market for its common stock, will depend on future developments that are highly uncertain and cannot be predicted with confidence at this time, such as the ultimate duration of the pandemic, the severity of COVID-19, the identification of additional variants of COVID-19, the availability and utilization of vaccines and treatments for COVID-19, or the effectiveness of actions taken globally to contain and address COVID-19, such as travel restrictions, quarantines, social distancing and business closure requirements, but particularly in the geographies where the Company, its third party manufacturers, contract research organizations (CROs) or current and planned clinical trial sites operate. Disruptions to the global economy, disruption of global healthcare systems, and other significant impacts of the COVID-19 pandemic could have a material adverse effect on the Company’s business, financial condition, results of operations and growth prospects. Basis of presentation The consolidated financial statements and accompanying notes have been prepared in accordance with generally accepted accounting principles in the United States of America (U.S. GAAP). |
Summary of significant accounti
Summary of significant accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Note 2. Summary of significant accounting policies Principles of consolidation The consolidated financial statements include the Company’s accounts and those of its wholly owned subsidiaries. All intercompany accounts, transactions and balances have been eliminated. Use of estimates The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses, as well as the related disclosures of contingent assets and liabilities. The Company bases its estimates and assumptions on historical experiences, when available, and on various factors that it believes to be reasonable under the circumstances. The Company evaluates its estimates and assumptions on an ongoing basis. Actual results could differ materially from these estimates. The full extent to which the COVID-19 pandemic will directly or indirectly impact the Company’s business, results of operations and financial condition, including expenses, research and development costs and employee-related amounts, 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 the impact of COVID-19 on estimates within its financial statements and there may be changes to those estimates in future periods. As of the date of issuance of these consolidated financial statements, the Company has not experienced material business disruptions or incurred impairment losses in the carrying value of its assets as a result of the pandemic and is not aware of any specific related event or circumstance that would require it to update its estimates. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents consist of standard checking accounts, money market accounts, and a sweep account that consists of money market funds with highly liquid investments with maturities of three months or less. Restricted cash represents collateral provided for letters of credit issued as security deposits in connection with the Company’s leases of its corporate facilities. Foreign currency, currency translation and comprehensive income (loss) The reporting currency of the consolidated financial statements is the U.S. dollar (USD). The functional currency for iTeos Belgium is the euro and the functional currency for iTeos Inc., iTeos SC, and iTeos LLC is the USD. Income items and expenses are translated at the average exchange rate in effect during the period. Unrealized translation gains and losses are recorded as a cumulative translation adjustment, which is included in the Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) as a component of accumulated other comprehensive income (loss). Adjustments that arise from exchange rate changes on transactions denominated in a currency other than the local currency are included in Other income (expense), net in the Consolidated Statements of Operations and Comprehensive Income (Loss) as settled. Comprehensive income (loss) is defined as a change in equity of a business enterprise during a period, resulting from transactions from non-owner sources. The Company had unrealized gains and losses from foreign currency translation of iTeos Belgium during the years ended December 31, 2021 and 2020, which meets the criteria as other comprehensive income (loss) and, therefore, the Company has reported comprehensive income (loss) and net income (loss). Fair value measurements Fair value accounting is applied for all financial assets and liabilities. The carrying amount of the Company’s financial instruments, including grants receivable, R&D credits receivable—current, accounts payable, accrued expenses and other current liabilities approximate fair value due to the short-term duration of those instruments. The carrying amounts of long-term R&D credits receivable and grants repayable approximate fair value due to low local market interest rates. FASB ASC Topic 820, Fair Value Measurement and Disclosures (ASC 820), established a hierarchy of inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the financial instrument based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the financial instrument and are developed based on the best information available in the circumstances. The accounting standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, which are the following: • Level 1—Quoted prices in active markets that are accessible at the market date for identical unrestricted assets or liabilities. • Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs for which all significant inputs are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Financial instruments measured at fair value on a recurring basis include cash equivalents (money market funds) and preferred stock tranche rights liabilities prior to their settlement (Note 3). The fair value of cash equivalents was determined based on Level 1 inputs as described in Note 3. The fair value of preferred stock tranche rights liabilities was determined based on Level 3 inputs as described in Note 3. An entity may elect to measure many financial instruments and certain other items at fair value at specified election dates. The Company did not elect to measure any additional financial instruments or other items at fair value. There have been no changes to the valuation methods utilized by the Company during the years ended December 31, 2021 or 2020. The Company evaluates transfers between levels at the end of each reporting period. There were no transfers of financial instruments between levels during the years ended December 31, 2021 or 2020. Concentration of credit risk As of December 31, 2021 and 2020, the Company’s cash and cash equivalents consisted primarily of cash balances held in U.S. dollars in money market funds and money market accounts and euro in accounts with European banks in excess of publicly insured limits. The Company does not believe it is subject to unusual credit risk associated with commercial banking relationships. Research and development tax credits iTeos Belgium is considered a biotech company in Belgium and therefore qualifies for a cash-based tax credit on research and development (R&D) expenses. The R&D tax credit is calculated based on a percentage of eligible R&D expenses defined by the Belgian government for each fiscal year ( 13.5 % for 2021 and 2020) and then applying the effective tax rate to that result. Under current tax laws, the R&D tax credits are refundable if the Company is unable to use the credits to offset income taxes for the five subsequent tax years. The Company records a receivable and other income as the eligible R&D expenses are incurred, as it is reasonably assured that the R&D tax credit will be received, based upon its history of filing for the tax credits. R&D tax credits receivable where cash is expected to be received by the Company more than one year after the balance sheet date are classified as noncurrent in the consolidated balance sheets. Property and equipment Property and equipment, including leasehold improvements, are stated at cost and depreciated when placed into service using the straight-line method over the estimated useful lives as follows: Asset Estimated Useful Life Computer equipment and software 3 years Furniture, fixtures and other 5 years Scientific equipment 5 – 6 years Leasehold improvements Shorter of useful life or term of lease Upon retirement or sale, the cost and related accumulated depreciation are removed from the consolidated balance sheets and the resulting gain or loss is reflected in the consolidated statements of operations and comprehensive income (loss). Impairment of long-lived assets The Company reviews long-lived assets, including property and equipment, for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. An impairment charge would be recorded when estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. Impairment, if any, is assessed using discounted cash flows or other appropriate measures of fair value. As there were no indicators of impairment, the Company did not recognize any impairment charges for the years ended December 31, 2021 or 2020. Deferred offering costs The Company capitalizes incremental legal, professional accounting and other third-party fees that are directly associated with in-process preferred stock or common stock financings as other non-current assets until such financings are consummated. After consummation of the equity financing, these costs are recorded as a reduction to the carrying value of the related equity generated as a result of the offering. Should a planned equity financing be abandoned, the deferred offering costs will be expensed immediately as a charge to operating expenses in the consolidated statement of operations and comprehensive income (loss). After consummation of the IPO, which closed on July 28, 2020, these costs were all recorded in stockholders’ equity (deficit) as a reduction of additional paid-in capital generated as a result of the offering. Revenue recognition The Company analyzes its collaboration arrangements to assess whether they are within the scope of Accounting Standards Codification ASC Topic 808, Collaborative Arrangements ( ASC 808). If the Company concludes that some or all aspects of the arrangement are within the scope of ASC 808 and do not represent a transaction with a customer, the Company recognizes its allocation of the shared costs incurred with respect to the jointly conducted activities pursuant to ASC 730, Research and Development . As such, the Company will expense costs as incurred, including any reimbursements made, and recognize reimbursements received as a reduction of research and development expense. If the Company concludes that some or all aspects of the arrangement represent a transaction with a customer, the Company accounts for those aspects of the arrangement within the scope of ASC 606, Revenue from Contracts with Customers (ASC 606). At inception, the Company determines whether contracts are within the scope of ASC 606 or other topics. For contracts that are determined to be within the scope of ASC 606, revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these goods and services. To achieve this core principle, the Company applies the following five steps (i) identify the contract with the customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when performance obligation is satisfied. The Company only applies the five-step model to contracts when it determines that collection of substantially all consideration for goods and services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. Performance obligations promised in a contract are identified based on the goods and services that will be transferred to the customer that are both capable of being distinct and are distinct in the context of the contract. To the extent a contract includes multiple promised goods and services, the Company applies judgment to determine whether promised goods and services are both capable of being distinct and distinct in the context of the contract. If these criteria are not met, the promised goods and services are accounted for as a combined performance obligation. The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring goods and services to the customer. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method, depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in management’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Any estimates, including the effect of the constraint on variable consideration, are evaluated at each reporting period for any changes. Determining the transaction price requires significant judgment. For arrangements that include sales-based royalties, including milestone payments based on levels of sales, if the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). To date, the Company has not recognized any royalty revenue resulting from any of its agreements. If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation on a relative standalone selling price basis unless the transaction price is variable and meets the criteria to be allocated entirely to a performance obligation or to a distinct service that forms part of a single performance obligation. The Company satisfies performance obligations either over time or at a point in time. Revenue is recognized over time if either (i) the customer simultaneously receives and consumes the benefits provided by the entity’s performance, (ii) the entity’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced, or (iii) the entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date. If the entity does not satisfy a performance obligation over time, the related performance obligation is satisfied at a point in time by transferring the control of a promised good or service to a customer. For licenses of intellectual property (IP), if the license to the Company’s IP is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenues from consideration allocated to the license when the license is transferred to the customer and the customer can use and benefit from the licenses. For licenses that are combined with other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. At the inception of each arrangement that includes development or regulatory milestone payments, the Company evaluates the probability of reaching the milestones and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur in the future, the associated milestone value is included in the transaction price. Milestone payments that are not within the Company’s control or the licensee’s, such as regulatory approvals, are not considered probable of being achieved until those approvals are received and therefore revenue is constrained as management is unable to assert that a reversal of revenue would not be possible. At the end of each subsequent reporting period, the Company re-evaluates the probability of achievement of such development milestones and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect revenues and earnings in the period of adjustment. To date, the Company has not recognized any milestone revenue resulting from any of its agreements. Deferred revenue arises from amounts received in advance of the transfer of control and is recognized as revenue in future periods as performance obligations are satisfied. Deferred revenue expected to be recognized within the next twelve months is classified as a current liability. Upfront payment contract liabilities resulting from the Company’s license agreements do not represent a financing component as the payment is not financing the transfer of goods or services, and the technology underlying the licenses granted reflects research and development expenses already incurred by the Company. Contract costs The Company recognizes as an asset the incremental costs of obtaining a contract with a customer if the costs are expected to be recovered. The Company has elected the practical expedient in ASC 340, Other Assets and Deferred Costs , wherein it recognizes the incremental costs of obtaining a contract as an expense when incurred if, at inception, the expected amortization period of the asset that the Company otherwise would have recognized is one year or less. Collaborative Arrangements The Company analyzes its collaboration arrangements to assess whether such arrangements involve joint operating activities performed by parties that are both active participants in the activities and exposed to significant risks and rewards dependent on the commercial success of such activities and are, therefore within the scope of ASC Topic 808, Collaborative Arrangements . This assessment is performed throughout the life of the arrangement and takes into consideration changes in the responsibilities of all parties to the arrangement. Collaboration agreements may include reimbursements from and payments to parties due to the activities performed by either party. Any reimbursement from and payment to parties involved in a collaboration agreement are recorded as a reduction to research and development expense. Research and development expenses Research and development costs are expensed as incurred. Research and development expenses consist of personnel costs for the Company’s research and product development employees, as well as non-personnel costs such as facilities and overhead costs attributable to research and development, and professional fees payable to third parties for preclinical and clinical studies and research services, clinical trial costs, laboratory supplies and equipment maintenance, and other consulting costs. The Company estimates preclinical and clinical study and research expenses based on the services performed, pursuant to contracts with research institutions that conduct and manage preclinical and clinical studies and research services on its behalf. The Company estimates these expenses based on discussions with internal management personnel and external service providers as to the progress or stage of completion of services and the contracted fees to be paid for such services. If the actual timing of the performance of services or the level of effort varies from the original estimates, the Company will adjust the accrual accordingly. When third-party service providers’ billing terms do not coincide with the Company’s period-end, the Company is required to make estimates of its obligations to those third parties, including clinical trial and pharmaceutical development costs, contractual services costs and costs for supply of its drug candidates, incurred in a given accounting period and record accruals at the end of the period. The Company bases its estimates on its knowledge of the research and development programs, services performed for the period, history for related activities and the expected duration of the third-party service contract, where applicable. Payments associated with licensing agreements to acquire exclusive licenses to develop, use, manufacture and commercialize products that have not reached technological feasibility and do not have alternate commercial use are expensed as incurred. Payments made to third parties under these arrangements in advance of the performance of the related services by the third parties are recorded as prepaid expenses until the services are rendered. Government grant funding and potential repayment commitments under recoverable cash advance grants (RCAs) The Company has agreements with granting agencies whereby the Company receives funding under grants which partially or fully reimburse the Company for qualifying research and development expenditures. Certain grant agreements require the Company to repay the funding depending on whether the Company decides to pursue commercial development or out licensing of any drug candidate that is produced from the research program. The repayment provision includes a portion that is repayable in fixed annual installments (corresponding to 30% of the grant), which is effective unless the Company decides not to pursue commercial development or out licensing of the drug candidate. The repayment provision also includes a potential obligation to pay a royalty that is contingent upon achieving sales of a product developed through the program. The maximum amount repayable to the granting agency under each grant, including the fixed repayments, the royalty on revenue, and the interest thereon, is twice the amount of funding received. Grant funding for research and development received under grant agreements where there is no obligation to repay is recognized as grant income in the period during which the related qualifying expenses are incurred, based on the applicable reimbursement percentage, provided that the grants are fully approved by the granting agencies and the conditions under which the grants were provided have been met. Grant funding for research and development received under grant agreements where there is a repayment provision is recognized as grant income to the extent there is no potential obligation to repay this funding. The Company records the present value of the liability of the portion of funding relating to fixed repayment upon receipt in the consolidated balance sheets. The grant repayable is subsequently recorded at amortized cost. The Company assesses whether there is an obligation to make a royalty payment based on the probability of successful completion of the research and development and future sales and commercial success of the drug candidate. Grant funding that has been received by the Company in advance of incurring qualifying expenses is recorded as deferred income. Grant income recognized upon incurring qualifying expenses in advance of receipt of grant funding is recorded in the consolidated balance sheets as grants receivable. Leases On January 1, 2021, the Company adopted Accounting Standard Update, or ASU No. 2016-02 (Topic 842), Leases, or ASC 842. Under the standard, the Company accounts for leases using a right-of-use, or ROU, model, which recognizes that, at the date of commencement, a lessee has a financial obligation to make lease payments to the lessor for the right to use the underlying asset during the lease term. On the date of adoption, the Company recognized $ 0.9 million of right-to-use assets and lease liabilities in the consolidated balance sheet. At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present in the arrangement. Leases with a term greater than one year are recognized on the balance sheet as ROU assets and short-term and long-term lease liabilities, as applicable. The Company typically only includes an initial lease term deemed reasonable certain to occur. It also considers termination options and factors those into the determination of lease payments. Options to renew a lease are not included in the assessment unless there is reasonable certainty that the Company will renew. Operating lease liabilities and their corresponding ROU assets are recorded based on the present value of lease payments over the expected remaining lease term. The interest rate implicit in lease contracts is typically not readily determinable. As a result, the Company utilizes its incremental borrowing rate, which reflects the fixed rate at which it could borrow on a collateralized basis the amount of the lease payments in the same currency, for a similar term, in a similar economic environment. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company is required to pay fees for operating expenses in addition to monthly base rent for certain operating leases (nonlease components). The Company will elect the practical expedient, which allows non-lease components to be combined with lease components on an asset-by-asset class basis. For real estate asset class, the Company has not elected the practical expedient. Variable non-lease components are not included within the lease right-of-use asset and lease liability on the consolidated balance sheet, and instead are reflected as expense in the period they are paid. Stock-based compensation The Company accounts for stock-based compensation arrangements with employees in accordance with ASC 718, Stock Compensation. Stock-based awards granted are in the form of stock options. ASC 718 requires the recognition of stock-based compensation expense, using a fair value-based method, for costs related to all stock options granted. The Company’s determination of the fair value of stock options with time-based vesting on the date of grant utilizes the Black-Scholes option-pricing model, and is impacted by the estimated fair value of its common stock as well as other variables including, but not limited to, the expected term that stock options will remain outstanding, the expected common stock price volatility over the term of the stock option, risk-free interest rates and expected dividends. The fair value of stock options is recognized over the period during which an optionee is required to provide services in exchange for the stock option award, known as the requisite service period (usually the vesting period) on a straight-line basis. Stock-based compensation expense is recognized based on the fair value determined on the date of grant and is reduced for forfeitures as they occur. For stock options granted to recipients in Belgium, option holders have a period of time (no longer than 30 days) to accept their awards. Accordingly, the grant date is determined based on the date of acceptance, as that is the point when a mutual understanding of the key terms of the awards are established. The Black-Scholes option pricing model requires inputs based on certain subjective assumptions, including (i) the expected stock price volatility, (ii) the expected term of the award, (iii) the risk-free rate of interest, and (iv) expected dividends. Due to the lack of a public market for the Company’s common stock prior to IPO and lack of company-specific historical implied volatility data, the Company has based its computations of expected volatility on the historical volatility of a representative group of public companies with similar characteristics of the Company, including stage of product development and life science industry focus. The historical volatility is calculated based on a period of time commensurate with the expected term assumption. The Company uses the simplified method as prescribed by the SEC Staff Accounting Bulletin No. 107, Share-Based Payment , to calculate the expected term for options granted to employees and non-employees, whereby, the expected term equals the arithmetic average of the vesting term and the original contractual term of the options due to its lack of sufficient historical data. The risk-free interest rate is based on U.S. Treasury securities with a maturity date commensurate with the expected term of the associated award. The expected dividend yield is assumed to be zero as the Company has never paid dividends and has no current plans to pay any dividends on its common stock. The fair value of common stock is determined based on the quoted market price of the common stock. Due to the absence of an active market for the Company’s common stock prior to IPO, the Company utilized methodologies in accordance with the framework of the American Institute of Certified Public Accountants Technical Practice Aid, Valuation of Privately-Held Company Equity Securities Issued as Compensation, to estimate the fair value of its common stock. In determining the exercise prices for options granted, the Company has considered the estimated fair value of the common stock as of the measurement date. The estimated fair value of the common stock has been determined at each grant date prior to the IPO based upon a variety of factors, including the illiquid nature of the common stock, arm’s-length sales of the Company’s capital stock (including redeemable convertible preferred stock), the effect of the rights and preferences of the preferred shareholders, and the prospects of a liquidity event. Among other factors are the Company’s financial position and historical financial performance, the status of technological developments within the Company’s research, the composition and ability of the current research and management team, an evaluation or benchmark of the Company’s competition, and the current business climate in the marketplace. Significant changes to the key assumptions underlying the factors used could result in different fair values of common stock at each valuation date. The Company classifies stock-based compensation expense in its statement of operations and comprehensive income (loss) in the same manner in which the award recipient’s payroll costs are classified or in which the award recipient’s service payments are classified. Preferred stock When preferred stock is considered either currently redeemable or probable of becoming redeemable, the Company has selected a policy of accreting the carrying value to the redemption amount over time. As the former Series B and B-2 Preferred Stock was considered probable of becoming redeemable solely due to the passage of time, and since the liquidation preference formula included 6% cumulative dividends, the Company was accreting the Series B and B-2 Preferred Stock to its estimated redemption amount based on the 6% annual dividend using the interest method until the IPO. The Company determined that the rights granted to the investors of Series B Preferred Stock to purchase additional stock at the original issuance price in two subsequent closings were considered freestanding financial instruments and were accounted |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 3. Fair value measurements Certain of the Company’s assets and liabilities are recorded at fair value, as described below. The following tables set forth the Company’s financial instruments that were measured at fair value on a recurring basis by level within the fair value hierarchy: December 31, 2021 (in thousands) Level 1 Level 2 Level 3 Total Cash equivalents (money market funds) $ 797,448 $ — $ — $ 797,448 Totals $ 797,448 $ — $ — $ 797,448 December 31, 2020 (in thousands) Level 1 Level 2 Level 3 Total Cash equivalents (money market funds) $ 314,636 $ — $ — $ 314,636 Totals $ 314,636 $ — $ — $ 314,636 Cash equivalents consist of money market funds, which are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in an active market. The fair value of the Series B Preferred Stock tranche rights liability was estimated using a probability-weighted present value of the benefit of investment with the following significant unobservable inputs (Level 3): March 23, 2020 Implied equity value (in millions) $ 208.2 Probability of success of reaching necessary Tranche 2 milestone N/A Tranche 3 milestone (by March 31, 2020) 90 % Expected industry return over period during 13.0 % Risk-free interest rate 1.1 % During the periods presented, the Company has not changed the manner in which it values assets and liabilities that are measured at fair value. The Company recognizes transfers between levels of the fair value hierarchy as of the end of the reporting period. There were no transfers within the hierarchy during the years ended December 31, 2021 and 2020. The following table presents changes during the year ended December 31, 2020 in Level 3 liabilities measured at fair value on a recurring basis: (in thousands) Preferred Balances at January 1, 2020 $ 5,400 Change in estimated fair value ( 1,265 ) Settlement of tranche right ( 4,135 ) Balances at December 31, 2020 $ — The preferred stock tr anche rights liability was settled on March 24, 2020 and no liability exists thereafter. There were no Level 3 measurements used during the year ended December 31, 2021. The above fair value measurements are sensitive to changes in the underlying unobservable inputs. A change in those inputs could result in a significantly higher or lower fair value measurement. |
Consolidated Balance Sheet Comp
Consolidated Balance Sheet Components | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Balance Sheet Information [Abstract] | |
Consolidated Balance Sheet Components | Note 4. Consolidated balance sheet components Property and equipment Property and equipment, net consisted of the following: December 31, (in thousands) 2021 2020 Scientific equipment $ 2,970 $ 2,617 Furniture & office equipment 1,002 542 Leasehold improvements 1,071 855 Total 5,043 4,014 Accumulated depreciation and amortization ( 2,971 ) ( 2,662 ) Property & equipment, net $ 2,072 $ 1,352 Depreciation and amortization expense was $ 0.6 million and $ 0.5 million for the years ended December 31, 2021 and 2020, respectively. Accrued expenses and other current liabilities Accrued liabilities consisted of the following: December 31, (in thousands) 2021 2020 Accrued clinical trial costs $ 12,991 $ 4,012 Accrued personnel costs 3,884 3,208 Accrued professional fees 25 37 Accrued other 257 229 Total accrued expenses and other current $ 17,157 $ 7,486 |
License and Collaboration Agree
License and Collaboration Agreements | 12 Months Ended |
Dec. 31, 2021 | |
License Agreements [Abstract] | |
License and collaboration agreements | Note 5. License and collaboration agreements Adimab In January 2017, the Company entered into a collaboration agreement (as amended, the Adimab Agreement) with Adimab, LLC (Adimab). Adimab has developed an antibody discovery and optimization technology platform. This collaboration enables the Company’s research and development efforts on discovery and optimization of new antibodies against immuno-oncology targets the Company may identify. Under the terms of the Adimab Agreement, Adimab has granted the Company a worldwide, non-exclusive research license for a one-year research term period and evaluation period for up to 18 months per research program. The Company is required to use commercially reasonable efforts to perform its research activities under the Adimab Agreement and, if the Company exercises its right to obtain a development and commercialization license, the Company is required to use commercially reasonable efforts to pursue development and commercialization of a product directed to the applicable target. Under the terms of the Adimab Agreement, the Company granted Adimab a worldwide, non-exclusive license under all of its patents and know-how that are reasonably necessary or useful for Adimab to perform its research activities under the Adimab Agreement. In February 2021, the Company entered into an amendment to the Adimab Agreement (the Amended Adimab Agreement). The Amended Adimab Agreement specifies different milestone payments for new products that are derived from research programs beginning after February 22, 2021 (the New Products). For New Products, on a per target basis, the Company may be required to pay development, regulatory and commercial milestone payments totaling up to an aggregate of $ 45.8 million for the first three products and additional milestone payments up to $ 14.5 million for each additional product. The Company will pay Adimab low to mid single-digit percentage royalties on a country-by-country and product-by-product basis, on worldwide net product sales of licensed products. Royalties are payable on a licensed product-by-licensed product and country-by-country basis until the later of (i) expiration of the last valid claim of a licensed patent right that covers such licensed product in such country, and (ii) ten years following the first commercial sale of such licensed product in such country. Through December 31, 2021, the Company has paid a total of $ 3.4 million to Adimab under the Adimab Agreement. In 2020, the Company made a payment of $ 1.0 million due to reaching an additional milestone (dosing of first patient for Phase 1 clinical trial). As of the date of these consolidated financial statements, the Company has not pursued any additional targets under the Adimab agreement that could potentially result in such milestone payments. Adimab controls the filing, prosecution, maintenance and enforcement of the intellectual property that it licenses to the Company under the Adimab Agreement. The Company has the right to enforce such licensed intellectual property against infringement if the infringement is competitive with the Company’s licensed products and Adimab does not pursue enforcement. The Company controls the filing, prosecution, maintenance and enforcement of the intellectual property the Company licenses to Adimab under the Adimab Agreement and all program antibody patents. The term of the Adimab Agreement will continue until the last to expire royalty term on a product-by-product and country-by-country basis if the Company exercises its option, or in the event no option is exercised, the conclusion of the last-to-expire evaluation term, unless terminated earlier by either party. Each party has the right to terminate the Adimab Agreement due to the other party’s uncured material breach or the Company’s abandonment of the product. GlaxoSmithKline (GSK) Summary of Agreement On June 11, 2021, the Company’s wholly owned subsidiary, iTeos Belgium S.A., and GSK executed a Collaboration and License Agreement, or the GSK Collaboration Agreement, pursuant to which the Company agreed to grant GSK a license under certain of the Company’s intellectual property rights to develop, manufacture, and commercialize products comprised of or containing the Company’s antibody product, EOS-448. Under the GSK Collaboration Agreement, GSK agreed to make an upfront nonrefundable payment of $ 625.0 million to the Company within 10 business days of the date on which the GSK Collaboration Agreement became effective, which occurred on July 26, 2021. Additionally, the Company is eligible to receive up to $ 1.45 billion in milestone payments, contingent upon the EOS-448 program achieving certain development and commercial milestones. Within the collaboration, GSK and the Company agree to share responsibility and costs for the global development of EOS-448 beyond the Phase 1 study (the "Global Development Plan") and will jointly commercialize and equally split profits in the United States. Outside of the United States, GSK will receive an exclusive license for commercialization, and the Company is eligible to receive tiered double digit royalty payments up to 20 % during a customary royalty term. Collaboration The Company concluded that the GSK Collaboration Agreement is under the scope of ASC 808 as both parties will actively participate in a joint operating activity and are exposed to significant risks and rewards that depend on the activity’s commercial success. ASC 808 provides that certain transactions between collaborative arrangement participants should be accounted for as revenue under ASC 606 when the collaborative arrangement participant is a customer in the context of a unit of account. In those situations, all of the guidance in ASC 606 should be applied, including recognition, measurement, presentation, and disclosure requirements related to such unit of account. The unit-of-account guidance in ASC 808, which aligns with the guidance in ASC 606 (that is, a distinct good or service) is used when an entity is assessing whether the collaborative arrangement or a part of the arrangement is within the scope of ASC 606. The Company determined that the co-development in Phases 2 and 3 and the co-commercialization efforts of the GSK Collaboration Agreement represent joint operating activities in which both parties are active participants and of which both parties are exposed to significant risks and rewards that are dependent on the success of the activities. Accordingly, the Company is accounting for these activities in accordance with ASC No. 808, Collaborative Arrangements (ASC 808). Additionally, the Company has determined that in the context of these activities, GSK does not represent a customer as contemplated by ASC 606-10-15, Revenue from Contracts with Customers – Scope and Scope Exceptions . As a result, these activities will be accounted for as a component of the related expense in the period incurred. GSK is responsible for 60 % of the costs related to the Global Development Plan. During the year ended December 31, 2021, the Company expensed approximately $ 11.5 million of costs related to the cost-sharing provisions of the GSK Collaboration Agreement, of which approximately $ 4.8 million are reimbursable by GSK and recorded as a reduction to research and development expense during the year ended December 31, 2021. As of December 31, 2021, $ 3.0 million of the reimbursable expenses have not been collected and are included in the prepaid and other current assets in the consolidated balance sheet. The Company and GSK have collectively agreed to spend an aggregate of $ 900.0 million on the Global Development Plan. Revenue Recognition The Company also evaluated the elements of the GSK Collaboration Agreement in accordance with the provisions of ASC 606 and concluded that the contract counterparty, GSK, is a customer. The Company’s arrangement with GSK contains the following material promises under the contract at inception: (i) transfer of the license under certain of the Company’s intellectual property related to EOS-448, (ii) completion of the Phase 1 clinical study related to EOS-448, (iii) transfer of “Know How” under the EOS-448 intellectual property, and (iv) manufacturing until the “Know How” transfer is complete. The Company evaluated the above material promises under ASC 606 and determined that it has one combined performance obligation. The transaction price totaling $ 625.0 million was comprised of the upfront license payment. As of December 31, 2021, no development or regulatory milestones have been assessed as probable of being reached and thus have been fully constrained. As part of its evaluation of the constraint, the Company considered numerous factors, including that receipt of the milestones is outside the control of the Company and contingent upon success in future clinical trials and the licensee’s efforts. Any consideration related to sales-based milestones will be recognized when the related sales occur as they were determined to relate predominantly to the license granted to GSK and therefore have also been excluded from the transaction price. The Company is applying the royalty exception for sales-based royalties and will not recognize revenue until the subsequent sale of product occurs. The transaction price is being recognized as revenue over time as the costs to complete the Phase 1 study, perform interim clinical supply manufacturing, and perform the know-how transfer are incurred. This is expected to be completed by end of 2022. Revenue is recognized using a percent complete method based on costs incurred compared with the total expected costs to be incurred (cost to cost measure of progress). There are no outputs from the performance obligation. As a result, an input method was appropriate. A cost to cost measure of progress provides a faithful depiction of the transfer of services to the customer since the predominant inputs to the performance obligation are labor costs, research and development supplies and manufacturing supplies related to the Phase 1 Study, clinical manufacturing and know-how transfer. During the year ended December 31, 2021, the Company recognized revenue totaling approximately $ 344.8 million with respect to the GSK Collaboration Agreement. The revenue is classified as license and collaboration revenue in the accompanying consolidated statements of operations. As of December 31, 2021, there was approximately $ 280.2 million of deferred revenue related to the GSK Collaboration Agreement of which all was classified as current deferred revenue in the accompanying consolidated balance sheet based on the performance period of the underlying obligations. Contract Costs The Company incurred approximately $ 6.8 million of capitalizable costs to obtain the contact. The Company utilized the practical expedient in ASC 340 and recognized such costs immediately in 2021 as the Company expected to complete its performance obligations under the GSK Collaboration Agreement in less than 12 months. Contract Assets and Liabilities The following table presents changes in the Company’s GSK contract assets and liabilities during the year ended December 31, 2021: Year Ended December 31, 2021 (in thousands) Balance at Beginning of Year Additions Deductions Balance at Year End Contract liabilities Deferred revenue $ — $ 625,000 $ ( 344,775 ) $ 280,225 MSD International GmbH On December 10, 2019, the Company entered into a Clinical Trial Collaboration and Supply Agreement (the MSD Agreement) with MSD International GmbH (MSD), a subsidiary of Merck & Co., Inc. Under the MSD Agreement, the Company will sponsor a clinical trial in which both the Company’s compound and MSD’s compound will be dosed in combination. The Company will conduct the research at its own cost and MSD will contribute its compound towards the study at no cost to the Company. The parties will equally own the clinical data and inventions from the study, with the exception of inventions relating solely to each party’s compound class. The MSD Agreement will expire upon the delivery of a written report on the results of the study, unless earlier terminated or agreed by the parties. The Company began receiving compounds from MSD on April 1, 2020 and the Company began the research study in the third quarter of 2020. The terms of the MSD Agreement meet the criteria under ASC 808, as both parties are active participants in the activity and are exposed to the risks and rewards dependent on the commercial success of the activity. ASC 808 does not provide guidance on how to account for the activities under the collaboration, and the Company determined that neither party met the definition of a customer under ASC 606, Revenue from Contracts with Customers . Accordingly, the Company considered other guidance to determine the accounting for the respective elements of the arrangement. The Company accounted for the collaboration activities by analogy to ASC Topic 845, Nonmonetary Transactions , and recognized nonmonetary income with an offsetting entry to expense for amounts received from MSD within research and development expense in the consolidated statement of operations and comprehensive income (loss). |
Government Grant Funding and Po
Government Grant Funding and Potential Repayment Commitments Under Recoverable Cash Advance Grants (RCAs) | 12 Months Ended |
Dec. 31, 2021 | |
Research And Development Arrangement With Federal Government [Abstract] | |
Government Grant Funding and Potential Repayment Commitments | Note 6. Government grant funding and potential repayment commitments under recoverable cash advance grants (RCAs) The Company has been awarded grants from a federal region of Belgium (the Walloon Region), and the European Union (collectively, the granting agencies) to fund research and development activities. The grants reimburse a percentage ( 55 - 100 %) of actual qualifying expenditures. The Company periodically submits proof of qualifying expenditures to the granting agencies for approval and reimbursement. To date, the Company received funding under several grants which included no obligation to repay and two grants that include potential obligations to repay (RCAs). As the granting agencies do not meet the definition of a customer under Topic 606, qualifying grants receipts are recognized as grant income within other income in the consolidated statements of operations and comprehensive income (loss). Grant income recognized under all of the grants for research and development activities totaled approximately $ 10.2 million and $ 5.6 million for the years ended December 31, 2021 and 2020, respectively. Grants which do not include an obligation to repay As of December 31, 2021, the total amount that the granting agencies have agreed to fund in the future if the Company incurs qualifying research and development expenses under these grants is $ 1.5 million. Grants which include a potential obligation to repay—RCAs On July 20, 2017, the Company entered into an arrangement whereby the Walloon Region will provide the Company with up to $ 21.4 million for a research and development program to perform clinical validation of an A 2A receptor antagonist drug candidate for immune-oncology (RCA-1). On December 3, 2019, the Company entered into another recoverable cash advance grant with the Walloon Region (RCA-2) for up to $ 4.9 million to be received to fund a research and development program conducted to develop a TIGIT blocking antibody with anti-tumor properties. Under the terms of both agreements, the Company must decide within 6 months after the end of the research period whether it will further pursue commercial development or out licensing of the drug candidate. The research period for RCA-1 ended in December 2021. The Company negotiated an extension on the research period for RCA-2 with the Walloon Region. The original research period for RCA-2 ended February 2021, and was extended to March 2022. The Company must repay 30 % of the amount received under the grant by annual installments from 2023 to 2042 (the fixed annual repayments) unless the Company decides not to pursue commercial development or out licensing of the drug candidate, applies for a waiver from the Walloon Region justifying its decision based upon the failure of the program, and returns the intellectual property to the Walloon Region. Because of the requirement to repay 30% of the amounts received under the grant, the Company records the present value of such amounts as grants repayable on the consolidated balance sheets. In addition, in the event that the Company receives revenue from products or services related to the results of the research, it has to pay to the Walloon Region a 0.33 % royalty on revenue resulting from RCA-1 and a 0.15 % royalty on revenue resulting from RCA-2 (increased from 0.12% effective December 2021). The maximum amount payable to the Walloon Region under each grant, including the fixed annual repayments, the royalty on revenue, and the interest thereon, is twice the amount of funding received. The Company assessed whether there is an obligation to make a royalty payment based on the probability of successful completion of the research and development and future sales and commercial success of the drug candidate. For the RCA-1, no grant repayable related to royalties was recorded as of December 30, 2021 or December 31, 2020. For the RCA-2, the Company recorded a royalty accrual of $ 0.9 million as of December 31, 2021, due to the upfront payment from the GSK Collaboration Agreement. The royalty accrual is included in the accrued expenses and other current liabilities in the consolidated balance sheet. No grant repayable related to royalties was recorded as of December 31, 2020 for the RCA-2. The Company recorded grant income in the consolidated statement of operations and comprehensive income (loss) for the years ended December 31, 2021 and 2020 for amounts of grants received from the Walloon Region in the period during which the related qualifying expenses were incurred, net of any grants repayable recorded in the consolidated balance sheets. The Company recorded receivables on the consolidated balance sheets related to amounts the Walloon Region owes the Company based on qualifying expenses incurred by the Company. The Company recorded deferred income in the consolidated balance sheets for amounts received from the Walloon Region in advance of incurring qualifying expenses. The following table reflects activity for grant programs for the years ended December 31, 2021 and 2020 and end of year balances as of December 31, 2021 and December 31, 2020: RCA -1 RCA-2 Other Grants Total (In thousands) 2021 2020 2021 2020 2021 2020 2021 2020 Cash received $ 1,990 $ 11,944 $ 585 2,479 $ 592 $ 2,630 $ 3,167 $ 17,053 Grant income recognized 4,113 3,913 1,286 1,290 4,782 444 10,181 5,647 Grants receivable 1,832 — 1,097 — 1,093 133 4,022 133 Grants repayable 5,278 5,102 886 781 — — 6,164 5,883 |
Stockholders_ equity
Stockholders’ equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Stockholders’ equity (Deficit) | Note 7. Stockholders’ equity Upon closing of the IPO, all of the Company's outstanding shares of redeemable convertible preferred stock automatically converted into 22,460,076 shares of common stock. As of December 31, 2021 and 2020, there were no shares of redeemable convertible preferred stock issued and outstanding. On July 28, 2020, in connection with the IPO, the Company filed a restated Certificate of Incorporation, which, among other things, restated the number of shares of all classes of stock that the Company has authority to issue to 160,000,000 shares, of which (i) 150,000,000 shares shall be a class designated as common stock, par value $ 0.001 per share, and (ii) 10,000,000 shares shall be a class designated as undesignated preferred stock, par value $ 0.001 per share. Each share of common stock entitles the holders to one vote on all matters submitted to a vote of the Company’s stockholders. Common stockholders are not entitled to receive dividends, unless declared by the board of directors. |
Stock-based compensation
Stock-based compensation | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based compensation | Note 8. Stock-based compensation General The Board of Directors, at its sole discretion, shall determine the exercise price. Stock options expire 7 to 10 years from the date of grant. The stock options generally vest 25 % upon the one-year anniversary of the service inception date and then ratably each month over the remaining 36 months . Upon termination of service, any unvested stock options are automatically returned to Company. Vested stock options that are not exercised within the specified period, according to the terms and conditions of the option plan, following the termination as an employee, consultant, or service provider to the Company are surrendered back to the Company. Those stock options are added back to the pool and made available for future grants. 2019 Stock Option and Grant Plan The Company’s 2019 Stock Option and Grant Plan (the 2019 Plan) provided for the Company to grant stock options and other stock-based awards to employees and non-employees to purchase the Company’s common stock. Total authorized options under the 2019 Stock Option and Grant Plan is 3,464,316 . Upon the effectiveness of the 2020 Plan (as defined below), no further issuances will be made under the 2019 Plan. On July 15, 2020, the Company’s Board of Directors approved an amendment to stock options outstanding under the 2019 Stock Option and Grant Plan to provide for immediate 100 % vesting for all outstanding options under the plan upon the consummation of a Sale Event, as defined by the amendment. 2020 Stock Option and Incentive Plan The 2020 Stock Option and Incentive Plan (the 2020 Plan) was approved by the Company’s board of directors on July 15, 2020, and the Company’s stockholders on July 20, 2020 and became effective on July 22, 2020, the date immediately prior to the date on which the registration statement for the Company’s IPO became effective. The 2020 Plan provides for the grant of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock units, restricted stock awards, unrestricted stock awards, cash-based awards and dividend equivalent rights to the Company’s officers, employees, directors and consultants. The number of shares of common stock reserved for issuance as of December 31, 2021 under the 2020 Plan was 5,562,055 and will be increased each January 1 by 5 % of the number of shares of the Company’s common stock outstanding on the immediately preceding December 31 or such lesser number of shares as determined by the Company’s compensation committee of the board of directors. Accordingly, on January 1, 2022, the number of shares of common stock reserved and available for issuance under the 2020 Plan increased by 1,773,300 . The 2020 Plan replaced the 2019 Plan, as the Company’s board of directors is not expected to make additional awards under the 2019 Plan following the completion of the IPO. However, the 2019 Plan will continue to govern outstanding equity awards granted thereunder. Employee Stock Purchase Plan The 2020 Employee Stock Purchase Plan (the 2020 ESPP) was approved by the Company’s board of directors on July 15, 2020, and the Company’s stockholders on July 20, 2020, and became effective on July 22, 2020, the date immediately prior to the date on which the registration statement for the Company’s IPO was declared effective. The number of shares of common stock reserved for issuance as of December 31, 2021 under the 2020 ESPP was 667,931 . The ESPP provides that the number of shares reserved and available for issuance will automatically increase each January 1 thereafter by the lesser of 634,969 shares of common stock, 1 % of the outstanding number of shares of common stock on the immediately preceding December 31, or such lesser number of shares as determined by the Company’s compensation committee. T here was no increase to the number of shares of common stock reserved and available for issuance under the 2020 ESPP on January 1, 2022. As of December 31, 2021, no shares had been issued under the 2020 ESPP. Stock-Based Compensation Expense The following table summarizes stock option activity for the year ended December 31, 2021: Stock Options Shares Weighted Weighted Aggregate Outstanding as of December 31, 2020 4,552,396 $ 9.13 8.2 Granted 1,104,666 33.39 Forfeited ( 28,031 ) 27.02 Exercised ( 421,947 ) 6.98 Outstanding as of December 31, 2021 5,207,084 $ 14.35 7.7 $ 167,709 Vested and expected to vest as of 5,207,084 $ 14.35 7.7 $ 167,709 Exercisable at December 31, 2021 2,045,416 $ 8.06 6.2 $ 78,747 The following table summarizes stock-based compensation expense, and also the allocation within the consolidated statements of operations and comprehensive income (loss): Year Ended December 31, (in thousands) 2021 2020 Research and development $ 1,906 $ 425 General and administrative 11,888 3,867 Total stock-based compensation expense $ 13,794 $ 4,292 The weighted-average grant-date fair value of options awarded during the year ended December 31, 2021 and 2020 was approximately $ 27.46 per share and $ 7.75 per share, respectively. The aggregate intrinsic value of stock options exercised during the years ended December 31, 2021 and 2020 was $ 11.0 million and $ 3.1 million, respectively. The aggregate grant date fair value of stock options vested during the years ended December 31, 2021 and 2020 were $ 10.7 million and $ 0.8 million, respectively. As of December 31, 2021, there was a total of $ 38.1 million of unrecognized employee compensation costs related to non-vested stock option awards expected to be recognized over a weighted average period of 2.8 years. The Company estimates the fair value of stock-based compensation utilizing the Black-Scholes option pricing model, which is dependent upon several variables, such as expected term, volatility, risk-free interest rate, and expected dividends. Each of these inputs is subjective and generally requires significant judgment to determine. The following table summarizes the range of key assumptions used to determine the fair value of stock options granted during: Year Ended December 31, 2021 2020 Risk-free interest rate 0.42 % - 1.27 % 0.36 % - 1.35 % Expected term (in years) 6 5 - 6 Expected volatility 92 % - 100 % 90 % - 102 % Expected dividend yield 0 % 0 % Estimated fair value of common stock $ 20.54 - $ 46.68 $ 2.95 - $ 33.12 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9. Income taxes For financial reporting purposes, income (loss) before income tax expense (benefit) for the years ended December 31, 2021 and 2020 consisted of the following: (in thousands) 2021 2020 Domestic $ ( 47,242 ) $ ( 31,184 ) Foreign 303,706 ( 6,906 ) Income (loss) before income tax expense (benefit) $ 256,464 $ ( 38,090 ) The Company’s worldwide effective tax rate for the years ended December 31, 2021 and 2020 was 16.4 % and 0.2 %, respectively. The reconciliation of the statutory U.S. federal income tax rate ( 21 %) to the effective income tax rate is as follows: 2021 2020 U.S. statutory federal income tax rate 21.0 % 21.0 % State income taxes ( 0.5 ) 4.8 Foreign tax differential 4.7 0.8 Non-deductible/non-taxable permanent differences 0.1 3.4 Innovation income deduction tax exemption ( 28.2 ) — Net GILTI Inclusion Income 15.2 — Change in local tax rate — ( 8.6 ) Unrecognized tax benefits 6.6 — Other ( 1.1 ) 0.9 Change in valuation allowance ( 1.4 ) ( 22.1 ) Effective income tax rate 16.4 % 0.2 % The components of income tax expense (benefit) for the years ended December 31, 2021 and 2020 consisted of the following: (in thousands) 2021 2020 Current Domestic $ 41,535 $ ( 60 ) Foreign 408 3 Deferred — — Total income tax expense (benefit) $ 41,943 $ ( 57 ) Deferred income taxes reflected the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes and operating losses and tax credit carryforwards. The significant components of the Company’s deferred tax assets and liabilities are comprised of the following: December 31, (in thousands) 2021 2020 Deferred tax assets : Net operating loss carryforward $ 17,097 $ 25,206 Foreign research and development expenses 7,884 6,219 Stock-based compensation 1,784 758 Operating lease liabilities 1,374 — Accrued bonus 390 — Other 17 313 Total deferred tax assets 28,546 32,496 Valuation allowance ( 26,647 ) ( 32,029 ) Deferred tax assets, net of valuation allowance 1,899 467 Deferred tax liabilities: Operating lease right of use assets ( 1,371 ) — Prepaid expenses ( 497 ) ( 445 ) Depreciation and amortization ( 31 ) ( 22 ) Total deferred tax liabilities ( 1,899 ) ( 467 ) Deferred tax assets and liabilities, net of valuation $ — $ — The Company has evaluated the positive and negative evidence bearing upon its ability to realize its deferred tax assets. Management has considered the Company’s history of losses in prior years, the nature of the Company’s deferred tax assets, and the timing, likelihood and amount, if any, of future taxable income during the periods in which those temporary differences and carryforwards become deductible and has concluded that it is more likely than not that the company will not realize the benefits of the deferred tax assets. Accordingly, a full valuation will be maintained on the net deferred tax assets until there is sufficient evidence to support the reversal of some portion of these allowances. The valuation allowance decreased $ 5.4 million during the year ended December 31, 2021 primarily due to the utilization of federal net operating loss (“NOL”) carryforwards in the U.S., which was partially offset by an increase in cumulative temporary differences related to stock based compensation and foreign research and development expenses. The Tax Cuts and Jobs Act, or TCJA, which was enacted in December 2017, will generally allow federal losses generated after 2017 to be carried over indefinitely, but will generally limit the NOL deduction to the lesser of the NOL carryover or 80 % of a corporation’s taxable income (subject to Section 382 of the Internal Revenue Code of 1986, as amended). In addition, there will be no carryback for losses generated after 2017. Losses generated prior to 2018 will generally be deductible to the extent of the lesser of a corporation’s NOL carryover or 100 % of a corporation’s taxable income and be available for twenty years from the period the loss was generated. The Company does not have any NOLs generated prior to 2018. The Coronavirus Aid, Relief and Economic Security (“CARES”) Act temporarily allows the Company to carryback NOLs arising in 2018, 2019 and 2020 to the five prior tax years. In addition, NOLs generated in these years could fully offset prior year taxable income without the 80 % of the taxable income limitation under the TCJA which was enacted on December 22, 2017. The Company filed a U.S. NOL carryback claim to carryback a portion of its U.S. 2020 NOL to offset income generated in the tax years ended December 31, 2018 and 2019, which resulted in a minimal tax refund of less than $ 0.1 million. As of December 31, 2021, the Company has Belgium net operating loss carryforwards for Belgian federal income tax purposes of approximately $ 56.3 million, that can be carried forward indefinitely. As of December 31, 2021, the Company has fully utilized its U.S. federal NOL carryforwards and has $ 52.0 million of state NOL carryforwards, which may be available to offset future state income tax liabilities. They expire at various dates through 2041 . As of December 31, 2021, the Company has de minimis U.S. federal and state tax credit carryforwards available to reduce future tax labilities, which expire at various dates through 2041 and 2036 , respectively. Utilization of net operating loss and research and development credit carryforwards may be subject to a substantial annual limitation under Section 382 and Section 383 of the Internal Revenue Code of 1986, as amended, due to ownership changes that have occurred previously or that could occur in the future. These ownership changes may limit the amount of net operating losses that can be utilized annually to offset future taxable income. The Company has completed several financings since its inception, which may result in a change of control as defined in Section 382 or could result in a change in control in the future. The Company has not yet completed a study to assess whether a change of ownership has occurred, or whether there have been multiple ownership changes since its formation. Any limitation may result in expiration of a portion of the net operating loss carryforwards or research and development credit carryforwards before utilization. The Company has not, as of yet, conducted a study of research and development credit carryforward in the U.S. Such a study, once undertaken by the Company, may result in an adjustment to the Company’s U.S. research and development credit carryforward. A full valuation allowance has been provided against the U.S. research and development credit carryforward and, if an adjustment is required, this adjustment would be offset by an adjustment to the valuation allowance. Thus, there would be no impact to the Company’s balance sheet or statement of operations if an adjustment is required. The Company files income tax returns in the U.S., Indiana, New Hampshire, Massachusetts and Belgium. The Company is subject to U.S. federal, state and Belgium tax examinations by tax authorities for years 2018 through present. To the extent that the Company has tax attribute carryforwards, the tax years in which the attributes were generated may still be adjusted upon examination by the Internal Revenue Service, state or foreign tax authorities to the extent utilized in a future period. Unrecognized tax benefits were $17.0 million and zero as of December 31, 2021 and 2020, respectively. iTeos Belgium is currently under examination by taxing authorities in that country. Their latest assessment of $ 0.4 million of additional taxes owed has been included in income tax expense in the 2021 statement of operations and other comprehensive income (loss). There was no accrual for uncertain tax positions or for interest and penalties related to uncertain tax positions for 2020. The changes to the unrecognized tax benefits during the year ended December 31, 2021 were as follows: (in thousands) Balance at December 31, 2020 $ — Increase related to current year tax positions 17,000 Balance at December 31, 2021 $ 17,000 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10. Commitments and contingencies Purchase commitments The Company has contractual arrangements with research and development organizations and suppliers; however, these contracts are generally cancelable on 30 - 60 days ’ notice and the obligations under these contracts are largely based on services performed. The Company may also enter into contracts in the normal course of business with clinical research organizations for clinical trials, with contract manufacturing organizations for clinical supplies and with other vendors for preclinical studies, supplies and other services and products for operating purposes. These contracts generally provide for termination on notice. As of December 31, 2021 and 2020, there were no amounts accrued related to termination charges. The Company has entered into a Biologics Master Services Agreement with WuXi Biologics (Hong Kong) Limited (WuXi) herein referred to as the WuXi Agreement. The WuXi Agreement includes the terms and conditions under which WuXi will coordinate the Company’s biologics development and manufacturing services. Pursuant to the WuXi Agreement, the Company may be required to pay WuXi a royalty percentage or a one-time milestone payment on global net sales of third-party manufactured products at the Company’s election. The royalty or one-time milestone payment is only payable if the Company does not use WuXi as the manufacturer in part, or in totality. As of December 31, 2021 and 2020, there are no minimum commitments under the WuXi Agreement. Additionally, as of December 31, 2021 and 2020 there are no royalties or milestones payable. Leases The Company’s operating leases are as follows: • An April 2016 lease for 1,577 square meters of office and laboratory space in Gosselies, Belgium, which commenced in May 2016 and terminated in December 2021 . In January 2021, the Company entered into an amendment to extend the lease, effective February 2021 with a termination date of January 2030 , and increase the office and laboratory space by 201 square meters. In October 2021, the Company entered into an amendment to increase the office and laboratory space by 453 square meters. • A December 2018 lease for 2,479 square feet of office space in Cambridge, Massachusetts, which commenced in May 2019 and terminates in May 2022 . The lease is subject to fixed-rate rent escalations. • A November 2021 lease for 9,068 square feet of office space in Watertown, Massachusetts, which commenced in November 2021 and terminates in February 2027 . The lease is subject to fixed-rate rent escalations. • Various car leases that the Company enters into from time to time. The life of each car lease ranges from 48 to 60 months . The Company identified and assessed the following estimates in recognizing the operating lease right of use assets and corresponding liabilities. Expected lease term : The expected lease term includes non-cancelable lease periods and, when applicable, periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option, as well as periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option. Incremental borrowing rate: As the discount rates in the Company’s lease are not implicit, management estimated the incremental borrowing rate based on the rate of interest the Company would have to pay to borrow a similar amount on a collateralized basis over a similar term. Lease and non-lease components: The Company is required to pay fees for operating expenses in addition to monthly base rent for certain operating leases (non-lease components). The Company has not elected the practical expedient which allows non-lease components to be combined with lease components for all asset classes. Variable non-lease components are not included within the lease right-of-use asset and lease liability on the consolidated balance sheet, and instead are reflected as expense in the period they are paid. Rent expense was $ 0.7 million and $ 0.6 million for the year ended December 31, 2021 and 2020, respectively. The following table summarizes lease terms and discount rate: December 31, 2021 Weighted-average remaining lease term (years) 5.9 Weighted-average discount rate 4.76 % The following table summarizes the cash flow and other information: Year ended December 31, (in thousands) 2021 Operating lease liabilities arising from obtaining right-of-use assets (non-cash) $ 5,877 Operating cash flows used in operating leases $ 767 As of December 31, 2021, the Company had the following future minimum lease payments under non-cancelable operating leases for the future years thereafter (in thousands): Year ending December 31: 2022 $ 920 2023 1,001 2024 997 2025 990 2026 917 Thereafter 1,418 Total Lease Payments 6,243 Less: Interest ( 902 ) Total Lease Liability $ 5,341 Lease liabilities - current $ 770 Lease liabilities, net of current portion $ 4,571 In March 2019, the Company provided a letter of credit for approximately $ 57,000 to secure its obligation under its lease in Cambridge, Massachusetts. In November 2021, the Company provided a letter of credit for approximately $ 142,000 to secure its obligation under its lease in Watertown, Massachusetts. The Company maintains that amount of cash on hand (restricted) to fund any necessary draws on the letter of credit. In addition, as of December 31, 2021 and 2020, the Company has approximately $ 99,000 and $ 71,000 on hand serving as a guarantee for its lease obligation in Belgium. These amounts have been classified as restricted cash in the consolidated balance sheets as of December 31, 2021 and 2020. |
Employee benefit plan
Employee benefit plan | 12 Months Ended |
Dec. 31, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee benefit plan | Note 11. Employee benefit plan iTeos Belgium sponsors a defined contribution insurance plan (the Plan) for its employees. In the first quarter of each year, iTeos Belgium pays an annual premium to the insurance company which corresponds to 5 % of employees’ gross salaries. Interest accrues each year into a pool for each employee and when they retire, they collect the total in their accounts. The Company contributed approximately $ 254,000 and $ 167,000 to the Plan for the years ended December 31, 2021 and 2020, respectively. iTeos Inc. has a 401(k) defined contribution plan (the 401(k) Plan) for its U.S. employees. The 401(k) plan provides for voluntary tax-deferred salary deductions for all employees of up to 100 % of their annual compensation, as limited by an annual maximum amount as determined by the Internal Revenue Service. The Company may match employee contributions in amounts to be determined at the Company’s sole discretion. The Company contributed approximately $ 82,000 and $ 28,000 to the 401(k) Plan for the years ended December 31, 2021 and 2020, respectively. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 12. Related party transactions On June 11, 2018, the Company entered into a Royalty Transfer Agreement with the charitable foundations of two of its investors (MPM Oncology Charitable Foundation, Inc. and UBS Optimus Foundation), which requires it to pay a royalty equal to 1 % of its net product sales on any product developed or owned by iTeos Therapeutics, Inc. or iTeos Belgium S.A., each year within 120 days following each year end. Such agreement was entered into as a result of the capital contributions received from the investors. As the Company had no product sales in 2021 and 2020, no royalties were owed to these charitable foundations as of December 31, 2021 and 2020. |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Stock | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Attributable to Common Stock | Note 13. Net income (loss) per share attributable to common stockholders The Company grants certain stock options under the 2019 and 2020 Stock Option Plans as these are considered common stock equivalents. For the year ending December 31, 2020, the common stock equivalents were excluded from the calculation of net income (loss) per share due to their anti-dilutive effect. For the year ending December 31, 2021, the common stock equivalents were included to calculate weighted-average diluted shares outstanding. The Company used the treasury stock method. The following table summarizes the impact of the treasury stock method: Net income (loss) per shares December 31, (in thousands, except per share amounts) 2021 2020 Numerator Net income (loss) attributable to common stockholders $ 214,521 $ ( 43,402 ) Denominator Weighted-average shares used to compute net income (loss) per share, basic 35,181,383 15,080,266 Effect of dilutive securities (a) ( 2,593,407 ) - Weighted-average shares used to compute net income (loss) per share, diluted 37,774,790 15,080,266 Net income (loss) per share: Basic $ 6.10 $ ( 2.88 ) Diluted $ 5.68 $ ( 2.88 ) (a) The common stock equivalents, which equaled 4,552,396 stock options outstanding as of December 31, 2020, were excluded for the year ending December 31, 2020, due to their anti-dilutive effect. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the Company’s accounts and those of its wholly owned subsidiaries. All intercompany accounts, transactions and balances have been eliminated. |
Use of estimates | Use of estimates The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses, as well as the related disclosures of contingent assets and liabilities. The Company bases its estimates and assumptions on historical experiences, when available, and on various factors that it believes to be reasonable under the circumstances. The Company evaluates its estimates and assumptions on an ongoing basis. Actual results could differ materially from these estimates. The full extent to which the COVID-19 pandemic will directly or indirectly impact the Company’s business, results of operations and financial condition, including expenses, research and development costs and employee-related amounts, 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 the impact of COVID-19 on estimates within its financial statements and there may be changes to those estimates in future periods. As of the date of issuance of these consolidated financial statements, the Company has not experienced material business disruptions or incurred impairment losses in the carrying value of its assets as a result of the pandemic and is not aware of any specific related event or circumstance that would require it to update its estimates. |
Cash, cash equivalents and restricted cash | Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents consist of standard checking accounts, money market accounts, and a sweep account that consists of money market funds with highly liquid investments with maturities of three months or less. Restricted cash represents collateral provided for letters of credit issued as security deposits in connection with the Company’s leases of its corporate facilities. |
Foreign currency, currency translation and comprehensive Income (loss) | Foreign currency, currency translation and comprehensive income (loss) The reporting currency of the consolidated financial statements is the U.S. dollar (USD). The functional currency for iTeos Belgium is the euro and the functional currency for iTeos Inc., iTeos SC, and iTeos LLC is the USD. Income items and expenses are translated at the average exchange rate in effect during the period. Unrealized translation gains and losses are recorded as a cumulative translation adjustment, which is included in the Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) as a component of accumulated other comprehensive income (loss). Adjustments that arise from exchange rate changes on transactions denominated in a currency other than the local currency are included in Other income (expense), net in the Consolidated Statements of Operations and Comprehensive Income (Loss) as settled. Comprehensive income (loss) is defined as a change in equity of a business enterprise during a period, resulting from transactions from non-owner sources. The Company had unrealized gains and losses from foreign currency translation of iTeos Belgium during the years ended December 31, 2021 and 2020, which meets the criteria as other comprehensive income (loss) and, therefore, the Company has reported comprehensive income (loss) and net income (loss). |
Fair Value Measurements | Fair value measurements Fair value accounting is applied for all financial assets and liabilities. The carrying amount of the Company’s financial instruments, including grants receivable, R&D credits receivable—current, accounts payable, accrued expenses and other current liabilities approximate fair value due to the short-term duration of those instruments. The carrying amounts of long-term R&D credits receivable and grants repayable approximate fair value due to low local market interest rates. FASB ASC Topic 820, Fair Value Measurement and Disclosures (ASC 820), established a hierarchy of inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the financial instrument based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the financial instrument and are developed based on the best information available in the circumstances. The accounting standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, which are the following: • Level 1—Quoted prices in active markets that are accessible at the market date for identical unrestricted assets or liabilities. • Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs for which all significant inputs are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Financial instruments measured at fair value on a recurring basis include cash equivalents (money market funds) and preferred stock tranche rights liabilities prior to their settlement (Note 3). The fair value of cash equivalents was determined based on Level 1 inputs as described in Note 3. The fair value of preferred stock tranche rights liabilities was determined based on Level 3 inputs as described in Note 3. An entity may elect to measure many financial instruments and certain other items at fair value at specified election dates. The Company did not elect to measure any additional financial instruments or other items at fair value. There have been no changes to the valuation methods utilized by the Company during the years ended December 31, 2021 or 2020. The Company evaluates transfers between levels at the end of each reporting period. There were no transfers of financial instruments between levels during the years ended December 31, 2021 or 2020. |
Concentration of credit risk | Concentration of credit risk As of December 31, 2021 and 2020, the Company’s cash and cash equivalents consisted primarily of cash balances held in U.S. dollars in money market funds and money market accounts and euro in accounts with European banks in excess of publicly insured limits. The Company does not believe it is subject to unusual credit risk associated with commercial banking relationships. |
Research And Development Tax Credits | Research and development tax credits iTeos Belgium is considered a biotech company in Belgium and therefore qualifies for a cash-based tax credit on research and development (R&D) expenses. The R&D tax credit is calculated based on a percentage of eligible R&D expenses defined by the Belgian government for each fiscal year ( 13.5 % for 2021 and 2020) and then applying the effective tax rate to that result. Under current tax laws, the R&D tax credits are refundable if the Company is unable to use the credits to offset income taxes for the five subsequent tax years. The Company records a receivable and other income as the eligible R&D expenses are incurred, as it is reasonably assured that the R&D tax credit will be received, based upon its history of filing for the tax credits. R&D tax credits receivable where cash is expected to be received by the Company more than one year after the balance sheet date are classified as noncurrent in the consolidated balance sheets. |
Property and equipment | Property and equipment Property and equipment, including leasehold improvements, are stated at cost and depreciated when placed into service using the straight-line method over the estimated useful lives as follows: Asset Estimated Useful Life Computer equipment and software 3 years Furniture, fixtures and other 5 years Scientific equipment 5 – 6 years Leasehold improvements Shorter of useful life or term of lease Upon retirement or sale, the cost and related accumulated depreciation are removed from the consolidated balance sheets and the resulting gain or loss is reflected in the consolidated statements of operations and comprehensive income (loss). |
Impairment of long-lived assets | Impairment of long-lived assets The Company reviews long-lived assets, including property and equipment, for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. An impairment charge would be recorded when estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. Impairment, if any, is assessed using discounted cash flows or other appropriate measures of fair value. As there were no indicators of impairment, the Company did not recognize any impairment charges for the years ended December 31, 2021 or 2020. |
Deferred Offering Costs | Deferred offering costs The Company capitalizes incremental legal, professional accounting and other third-party fees that are directly associated with in-process preferred stock or common stock financings as other non-current assets until such financings are consummated. After consummation of the equity financing, these costs are recorded as a reduction to the carrying value of the related equity generated as a result of the offering. Should a planned equity financing be abandoned, the deferred offering costs will be expensed immediately as a charge to operating expenses in the consolidated statement of operations and comprehensive income (loss). After consummation of the IPO, which closed on July 28, 2020, these costs were all recorded in stockholders’ equity (deficit) as a reduction of additional paid-in capital generated as a result of the offering. |
Revenue recognition | Revenue recognition The Company analyzes its collaboration arrangements to assess whether they are within the scope of Accounting Standards Codification ASC Topic 808, Collaborative Arrangements ( ASC 808). If the Company concludes that some or all aspects of the arrangement are within the scope of ASC 808 and do not represent a transaction with a customer, the Company recognizes its allocation of the shared costs incurred with respect to the jointly conducted activities pursuant to ASC 730, Research and Development . As such, the Company will expense costs as incurred, including any reimbursements made, and recognize reimbursements received as a reduction of research and development expense. If the Company concludes that some or all aspects of the arrangement represent a transaction with a customer, the Company accounts for those aspects of the arrangement within the scope of ASC 606, Revenue from Contracts with Customers (ASC 606). At inception, the Company determines whether contracts are within the scope of ASC 606 or other topics. For contracts that are determined to be within the scope of ASC 606, revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these goods and services. To achieve this core principle, the Company applies the following five steps (i) identify the contract with the customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when performance obligation is satisfied. The Company only applies the five-step model to contracts when it determines that collection of substantially all consideration for goods and services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. Performance obligations promised in a contract are identified based on the goods and services that will be transferred to the customer that are both capable of being distinct and are distinct in the context of the contract. To the extent a contract includes multiple promised goods and services, the Company applies judgment to determine whether promised goods and services are both capable of being distinct and distinct in the context of the contract. If these criteria are not met, the promised goods and services are accounted for as a combined performance obligation. The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring goods and services to the customer. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method, depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in management’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Any estimates, including the effect of the constraint on variable consideration, are evaluated at each reporting period for any changes. Determining the transaction price requires significant judgment. For arrangements that include sales-based royalties, including milestone payments based on levels of sales, if the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). To date, the Company has not recognized any royalty revenue resulting from any of its agreements. If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation on a relative standalone selling price basis unless the transaction price is variable and meets the criteria to be allocated entirely to a performance obligation or to a distinct service that forms part of a single performance obligation. The Company satisfies performance obligations either over time or at a point in time. Revenue is recognized over time if either (i) the customer simultaneously receives and consumes the benefits provided by the entity’s performance, (ii) the entity’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced, or (iii) the entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date. If the entity does not satisfy a performance obligation over time, the related performance obligation is satisfied at a point in time by transferring the control of a promised good or service to a customer. For licenses of intellectual property (IP), if the license to the Company’s IP is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenues from consideration allocated to the license when the license is transferred to the customer and the customer can use and benefit from the licenses. For licenses that are combined with other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. At the inception of each arrangement that includes development or regulatory milestone payments, the Company evaluates the probability of reaching the milestones and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur in the future, the associated milestone value is included in the transaction price. Milestone payments that are not within the Company’s control or the licensee’s, such as regulatory approvals, are not considered probable of being achieved until those approvals are received and therefore revenue is constrained as management is unable to assert that a reversal of revenue would not be possible. At the end of each subsequent reporting period, the Company re-evaluates the probability of achievement of such development milestones and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect revenues and earnings in the period of adjustment. To date, the Company has not recognized any milestone revenue resulting from any of its agreements. Deferred revenue arises from amounts received in advance of the transfer of control and is recognized as revenue in future periods as performance obligations are satisfied. Deferred revenue expected to be recognized within the next twelve months is classified as a current liability. Upfront payment contract liabilities resulting from the Company’s license agreements do not represent a financing component as the payment is not financing the transfer of goods or services, and the technology underlying the licenses granted reflects research and development expenses already incurred by the Company. Contract costs The Company recognizes as an asset the incremental costs of obtaining a contract with a customer if the costs are expected to be recovered. The Company has elected the practical expedient in ASC 340, Other Assets and Deferred Costs , wherein it recognizes the incremental costs of obtaining a contract as an expense when incurred if, at inception, the expected amortization period of the asset that the Company otherwise would have recognized is one year or less. |
Collaborative Arrangements | Collaborative Arrangements The Company analyzes its collaboration arrangements to assess whether such arrangements involve joint operating activities performed by parties that are both active participants in the activities and exposed to significant risks and rewards dependent on the commercial success of such activities and are, therefore within the scope of ASC Topic 808, Collaborative Arrangements . This assessment is performed throughout the life of the arrangement and takes into consideration changes in the responsibilities of all parties to the arrangement. Collaboration agreements may include reimbursements from and payments to parties due to the activities performed by either party. Any reimbursement from and payment to parties involved in a collaboration agreement are recorded as a reduction to research and development expense. |
Research and Development Expenses | Research and development expenses Research and development costs are expensed as incurred. Research and development expenses consist of personnel costs for the Company’s research and product development employees, as well as non-personnel costs such as facilities and overhead costs attributable to research and development, and professional fees payable to third parties for preclinical and clinical studies and research services, clinical trial costs, laboratory supplies and equipment maintenance, and other consulting costs. The Company estimates preclinical and clinical study and research expenses based on the services performed, pursuant to contracts with research institutions that conduct and manage preclinical and clinical studies and research services on its behalf. The Company estimates these expenses based on discussions with internal management personnel and external service providers as to the progress or stage of completion of services and the contracted fees to be paid for such services. If the actual timing of the performance of services or the level of effort varies from the original estimates, the Company will adjust the accrual accordingly. When third-party service providers’ billing terms do not coincide with the Company’s period-end, the Company is required to make estimates of its obligations to those third parties, including clinical trial and pharmaceutical development costs, contractual services costs and costs for supply of its drug candidates, incurred in a given accounting period and record accruals at the end of the period. The Company bases its estimates on its knowledge of the research and development programs, services performed for the period, history for related activities and the expected duration of the third-party service contract, where applicable. Payments associated with licensing agreements to acquire exclusive licenses to develop, use, manufacture and commercialize products that have not reached technological feasibility and do not have alternate commercial use are expensed as incurred. Payments made to third parties under these arrangements in advance of the performance of the related services by the third parties are recorded as prepaid expenses until the services are rendered. |
Government grant funding and potential repayment commitments under recoverable cash advance grants (RCAs) | Government grant funding and potential repayment commitments under recoverable cash advance grants (RCAs) The Company has agreements with granting agencies whereby the Company receives funding under grants which partially or fully reimburse the Company for qualifying research and development expenditures. Certain grant agreements require the Company to repay the funding depending on whether the Company decides to pursue commercial development or out licensing of any drug candidate that is produced from the research program. The repayment provision includes a portion that is repayable in fixed annual installments (corresponding to 30% of the grant), which is effective unless the Company decides not to pursue commercial development or out licensing of the drug candidate. The repayment provision also includes a potential obligation to pay a royalty that is contingent upon achieving sales of a product developed through the program. The maximum amount repayable to the granting agency under each grant, including the fixed repayments, the royalty on revenue, and the interest thereon, is twice the amount of funding received. Grant funding for research and development received under grant agreements where there is no obligation to repay is recognized as grant income in the period during which the related qualifying expenses are incurred, based on the applicable reimbursement percentage, provided that the grants are fully approved by the granting agencies and the conditions under which the grants were provided have been met. Grant funding for research and development received under grant agreements where there is a repayment provision is recognized as grant income to the extent there is no potential obligation to repay this funding. The Company records the present value of the liability of the portion of funding relating to fixed repayment upon receipt in the consolidated balance sheets. The grant repayable is subsequently recorded at amortized cost. The Company assesses whether there is an obligation to make a royalty payment based on the probability of successful completion of the research and development and future sales and commercial success of the drug candidate. Grant funding that has been received by the Company in advance of incurring qualifying expenses is recorded as deferred income. Grant income recognized upon incurring qualifying expenses in advance of receipt of grant funding is recorded in the consolidated balance sheets as grants receivable. |
Leases | Leases On January 1, 2021, the Company adopted Accounting Standard Update, or ASU No. 2016-02 (Topic 842), Leases, or ASC 842. Under the standard, the Company accounts for leases using a right-of-use, or ROU, model, which recognizes that, at the date of commencement, a lessee has a financial obligation to make lease payments to the lessor for the right to use the underlying asset during the lease term. On the date of adoption, the Company recognized $ 0.9 million of right-to-use assets and lease liabilities in the consolidated balance sheet. At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present in the arrangement. Leases with a term greater than one year are recognized on the balance sheet as ROU assets and short-term and long-term lease liabilities, as applicable. The Company typically only includes an initial lease term deemed reasonable certain to occur. It also considers termination options and factors those into the determination of lease payments. Options to renew a lease are not included in the assessment unless there is reasonable certainty that the Company will renew. Operating lease liabilities and their corresponding ROU assets are recorded based on the present value of lease payments over the expected remaining lease term. The interest rate implicit in lease contracts is typically not readily determinable. As a result, the Company utilizes its incremental borrowing rate, which reflects the fixed rate at which it could borrow on a collateralized basis the amount of the lease payments in the same currency, for a similar term, in a similar economic environment. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company is required to pay fees for operating expenses in addition to monthly base rent for certain operating leases (nonlease components). The Company will elect the practical expedient, which allows non-lease components to be combined with lease components on an asset-by-asset class basis. For real estate asset class, the Company has not elected the practical expedient. Variable non-lease components are not included within the lease right-of-use asset and lease liability on the consolidated balance sheet, and instead are reflected as expense in the period they are paid. |
Stock-based compensation | Stock-based compensation The Company accounts for stock-based compensation arrangements with employees in accordance with ASC 718, Stock Compensation. Stock-based awards granted are in the form of stock options. ASC 718 requires the recognition of stock-based compensation expense, using a fair value-based method, for costs related to all stock options granted. The Company’s determination of the fair value of stock options with time-based vesting on the date of grant utilizes the Black-Scholes option-pricing model, and is impacted by the estimated fair value of its common stock as well as other variables including, but not limited to, the expected term that stock options will remain outstanding, the expected common stock price volatility over the term of the stock option, risk-free interest rates and expected dividends. The fair value of stock options is recognized over the period during which an optionee is required to provide services in exchange for the stock option award, known as the requisite service period (usually the vesting period) on a straight-line basis. Stock-based compensation expense is recognized based on the fair value determined on the date of grant and is reduced for forfeitures as they occur. For stock options granted to recipients in Belgium, option holders have a period of time (no longer than 30 days) to accept their awards. Accordingly, the grant date is determined based on the date of acceptance, as that is the point when a mutual understanding of the key terms of the awards are established. The Black-Scholes option pricing model requires inputs based on certain subjective assumptions, including (i) the expected stock price volatility, (ii) the expected term of the award, (iii) the risk-free rate of interest, and (iv) expected dividends. Due to the lack of a public market for the Company’s common stock prior to IPO and lack of company-specific historical implied volatility data, the Company has based its computations of expected volatility on the historical volatility of a representative group of public companies with similar characteristics of the Company, including stage of product development and life science industry focus. The historical volatility is calculated based on a period of time commensurate with the expected term assumption. The Company uses the simplified method as prescribed by the SEC Staff Accounting Bulletin No. 107, Share-Based Payment , to calculate the expected term for options granted to employees and non-employees, whereby, the expected term equals the arithmetic average of the vesting term and the original contractual term of the options due to its lack of sufficient historical data. The risk-free interest rate is based on U.S. Treasury securities with a maturity date commensurate with the expected term of the associated award. The expected dividend yield is assumed to be zero as the Company has never paid dividends and has no current plans to pay any dividends on its common stock. The fair value of common stock is determined based on the quoted market price of the common stock. Due to the absence of an active market for the Company’s common stock prior to IPO, the Company utilized methodologies in accordance with the framework of the American Institute of Certified Public Accountants Technical Practice Aid, Valuation of Privately-Held Company Equity Securities Issued as Compensation, to estimate the fair value of its common stock. In determining the exercise prices for options granted, the Company has considered the estimated fair value of the common stock as of the measurement date. The estimated fair value of the common stock has been determined at each grant date prior to the IPO based upon a variety of factors, including the illiquid nature of the common stock, arm’s-length sales of the Company’s capital stock (including redeemable convertible preferred stock), the effect of the rights and preferences of the preferred shareholders, and the prospects of a liquidity event. Among other factors are the Company’s financial position and historical financial performance, the status of technological developments within the Company’s research, the composition and ability of the current research and management team, an evaluation or benchmark of the Company’s competition, and the current business climate in the marketplace. Significant changes to the key assumptions underlying the factors used could result in different fair values of common stock at each valuation date. The Company classifies stock-based compensation expense in its statement of operations and comprehensive income (loss) in the same manner in which the award recipient’s payroll costs are classified or in which the award recipient’s service payments are classified. |
Preferred stock | Preferred stock When preferred stock is considered either currently redeemable or probable of becoming redeemable, the Company has selected a policy of accreting the carrying value to the redemption amount over time. As the former Series B and B-2 Preferred Stock was considered probable of becoming redeemable solely due to the passage of time, and since the liquidation preference formula included 6% cumulative dividends, the Company was accreting the Series B and B-2 Preferred Stock to its estimated redemption amount based on the 6% annual dividend using the interest method until the IPO. The Company determined that the rights granted to the investors of Series B Preferred Stock to purchase additional stock at the original issuance price in two subsequent closings were considered freestanding financial instruments and were accounted for as a liability under ASC 480. The preferred stock tranche rights were reported at fair value at inception with an allocation of the proceeds from the preferred stock issuance and were remeasured at fair value at each reporting date until settlement, with the changes in fair value included in the other income and expense section of the consolidated statements of operations and comprehensive income (loss). |
Derivatives | Derivatives Upon issuing financial instruments, the Company assesses the nature of the host contract and considers whether any of the features embedded within the financial instrument could be considered derivatives that require bifurcation. In determining whether the embedded features represent derivatives that could require bifurcation, the Company assesses whether the economic characteristics of embedded features are not clearly and closely related to the economic characteristics of the remaining component of the financial instruments (i.e., the host contracts), whether the instrument is measured at fair value with changes in fair value reported in earnings as they occur and whether a separate, non-embedded instrument with the same terms as the embedded instruments would meet the definition of a derivative instrument. When it is determined that all of the criteria above are met, the embedded derivative is separated from the host contract and carried at fair value with any changes in fair value recorded in current period earnings. |
Income Tax | Income taxes The Company provides for income taxes under the asset and liability method. Current income tax expense or benefit represents the amount of income taxes expected to be payable or refundable for the current year. Deferred income tax assets and liabilities are determined based on differences between the financial statement reporting and tax bases of assets and liabilities and net operating loss and credit carryforwards, and are measured using the enacted tax rates and laws that will be in effect when such items are expected to reverse. Deferred income tax assets are reduced, as necessary, by a valuation allowance when management determines it is more likely than not that some or all of the tax benefits will not be realized. The global intangible low-taxed income ("GILTI") provisions require the Company to include in its U.S. income tax return foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary's tangible assets. The Company is electing to account for GILTI tax in the period in which it is incurred. The Company accounts for uncertain tax positions in accordance with ASC 740-10, Accounting for Uncertainty in Income Taxes. The Company assesses all material positions taken in any income tax return, including all significant uncertain positions, in all tax years that are still subject to assessment or challenge by relevant taxing authorities. Assessing an uncertain tax position begins with the initial determination of the position’s sustainability and is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. As of each balance sheet date, unresolved uncertain tax positions must be reassessed, and the Company will determine whether (i) the factors underlying the sustainability assertion have changed and (ii) the amount of the recognized tax benefit is still appropriate. The recognition and measurement of tax benefits requires significant judgment. Judgments concerning the recognition and measurement of a tax benefit might change as new information becomes available. The Company accounts for interest and penalties related to uncertain tax positions as part of its provision for income taxes. |
Segment information | Segment information Operating segments are defined as components of an enterprise for which separate discrete financial information is available for evaluation by the chief operating decision maker (CODM) in deciding how to allocate resources and in assessing operating performance. The Company’s CODM is the Chief Executive Officer. The Company views its operations and manages its business in one operating segment, the business of developing cancer immunotherapies. |
Net income (loss) per share attributable to common stockholders | Net income (loss) per share attributable to common stockholders Basic net income (loss) per share and diluted net income (loss) per share are computed using the weighted-average number of shares of common stock outstanding for the period. Net income (loss) per share attributable to common stockholders is calculated using the two-class method, which is an earnings allocation formula that determines net income (loss) per share for the holders of shares of the Company’s common stock and participating securities. The Company’s Series A-1 Preferred Stock, Series A-2 Preferred Stock and Series B and B-2 Preferred Stock contained participation rights in any dividend paid by the Company as well as residuals in liquidation and were deemed to be participating securities prior to the IPO. The participating securities did not include a contractual obligation to share in losses of the Company and were not included in the calculation of net loss per share in the periods in which a net loss was recorded. Except where the result would be antidilutive to net income (loss), diluted net income (loss) per share is computed assuming the exercise of common stock options. |
Recently adopted accounting standards updates | Recently issued accounting standards and updates not yet effective In June 2016 the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This standard requires that credit losses be reported using an expected losses model rather than the incurred losses model that is currently used, and establishes additional disclosures related to credit risks. For available-for-sale debt securities with unrealized losses, this standard now requires allowances to be recorded instead of reducing the amortized cost of the investment. This standard will be effective for the Company on January 1, 2023. The Company is currently evaluating the potential impact that this standard may have on its consolidated financial position and results of operations. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Public Utility Property, Plant, and Equipment [Table Text Block] | Property and equipment, including leasehold improvements, are stated at cost and depreciated when placed into service using the straight-line method over the estimated useful lives as follows: Asset Estimated Useful Life Computer equipment and software 3 years Furniture, fixtures and other 5 years Scientific equipment 5 – 6 years Leasehold improvements Shorter of useful life or term of lease |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Summary of Financial Instruments Measured at Fair Value on a Recurring Basis | The following tables set forth the Company’s financial instruments that were measured at fair value on a recurring basis by level within the fair value hierarchy: December 31, 2021 (in thousands) Level 1 Level 2 Level 3 Total Cash equivalents (money market funds) $ 797,448 $ — $ — $ 797,448 Totals $ 797,448 $ — $ — $ 797,448 December 31, 2020 (in thousands) Level 1 Level 2 Level 3 Total Cash equivalents (money market funds) $ 314,636 $ — $ — $ 314,636 Totals $ 314,636 $ — $ — $ 314,636 |
Level 3 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Summary of Fair Value of Series B Preferred Stock Tranche Rights Liability | The fair value of the Series B Preferred Stock tranche rights liability was estimated using a probability-weighted present value of the benefit of investment with the following significant unobservable inputs (Level 3): March 23, 2020 Implied equity value (in millions) $ 208.2 Probability of success of reaching necessary Tranche 2 milestone N/A Tranche 3 milestone (by March 31, 2020) 90 % Expected industry return over period during 13.0 % Risk-free interest rate 1.1 % |
Summary of Changes in Level 3 Liabilities Measures at Fair Value on a Recurring Basis | The following table presents changes during the year ended December 31, 2020 in Level 3 liabilities measured at fair value on a recurring basis: (in thousands) Preferred Balances at January 1, 2020 $ 5,400 Change in estimated fair value ( 1,265 ) Settlement of tranche right ( 4,135 ) Balances at December 31, 2020 $ — |
Consolidated Balance Sheet Co_2
Consolidated Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Balance Sheet Information [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following: December 31, (in thousands) 2021 2020 Scientific equipment $ 2,970 $ 2,617 Furniture & office equipment 1,002 542 Leasehold improvements 1,071 855 Total 5,043 4,014 Accumulated depreciation and amortization ( 2,971 ) ( 2,662 ) Property & equipment, net $ 2,072 $ 1,352 |
Schedule of Accrued Expenses | Accrued liabilities consisted of the following: December 31, (in thousands) 2021 2020 Accrued clinical trial costs $ 12,991 $ 4,012 Accrued personnel costs 3,884 3,208 Accrued professional fees 25 37 Accrued other 257 229 Total accrued expenses and other current $ 17,157 $ 7,486 |
Government Grant Funding and _2
Government Grant Funding and Potential Repayment Commitments Under Recoverable Cash Advance Grants (RCAs) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Research And Development Arrangement With Federal Government [Abstract] | |
Schedule of Activity for Grant Programs | The following table reflects activity for grant programs for the years ended December 31, 2021 and 2020 and end of year balances as of December 31, 2021 and December 31, 2020: RCA -1 RCA-2 Other Grants Total (In thousands) 2021 2020 2021 2020 2021 2020 2021 2020 Cash received $ 1,990 $ 11,944 $ 585 2,479 $ 592 $ 2,630 $ 3,167 $ 17,053 Grant income recognized 4,113 3,913 1,286 1,290 4,782 444 10,181 5,647 Grants receivable 1,832 — 1,097 — 1,093 133 4,022 133 Grants repayable 5,278 5,102 886 781 — — 6,164 5,883 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Options Activity | The following table summarizes stock option activity for the year ended December 31, 2021: Stock Options Shares Weighted Weighted Aggregate Outstanding as of December 31, 2020 4,552,396 $ 9.13 8.2 Granted 1,104,666 33.39 Forfeited ( 28,031 ) 27.02 Exercised ( 421,947 ) 6.98 Outstanding as of December 31, 2021 5,207,084 $ 14.35 7.7 $ 167,709 Vested and expected to vest as of 5,207,084 $ 14.35 7.7 $ 167,709 Exercisable at December 31, 2021 2,045,416 $ 8.06 6.2 $ 78,747 |
Summary of Stock-Based Compensation Expense | The following table summarizes stock-based compensation expense, and also the allocation within the consolidated statements of operations and comprehensive income (loss): Year Ended December 31, (in thousands) 2021 2020 Research and development $ 1,906 $ 425 General and administrative 11,888 3,867 Total stock-based compensation expense $ 13,794 $ 4,292 |
Schedule of Fair Value Assumptions for Stock Options Granted | The following table summarizes the range of key assumptions used to determine the fair value of stock options granted during: Year Ended December 31, 2021 2020 Risk-free interest rate 0.42 % - 1.27 % 0.36 % - 1.35 % Expected term (in years) 6 5 - 6 Expected volatility 92 % - 100 % 90 % - 102 % Expected dividend yield 0 % 0 % Estimated fair value of common stock $ 20.54 - $ 46.68 $ 2.95 - $ 33.12 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) Before Income Tax Expense (Benefit) | For financial reporting purposes, income (loss) before income tax expense (benefit) for the years ended December 31, 2021 and 2020 consisted of the following: (in thousands) 2021 2020 Domestic $ ( 47,242 ) $ ( 31,184 ) Foreign 303,706 ( 6,906 ) Income (loss) before income tax expense (benefit) $ 256,464 $ ( 38,090 ) |
Schedule of Reconciliation of Income Tax Expense (Benefit) Computed at the Statutory Federal Income Tax Rate | The reconciliation of the statutory U.S. federal income tax rate ( 21 %) to the effective income tax rate is as follows: 2021 2020 U.S. statutory federal income tax rate 21.0 % 21.0 % State income taxes ( 0.5 ) 4.8 Foreign tax differential 4.7 0.8 Non-deductible/non-taxable permanent differences 0.1 3.4 Innovation income deduction tax exemption ( 28.2 ) — Net GILTI Inclusion Income 15.2 — Change in local tax rate — ( 8.6 ) Unrecognized tax benefits 6.6 — Other ( 1.1 ) 0.9 Change in valuation allowance ( 1.4 ) ( 22.1 ) Effective income tax rate 16.4 % 0.2 % |
Schedule of Components of Income Tax Expense | The components of income tax expense (benefit) for the years ended December 31, 2021 and 2020 consisted of the following: (in thousands) 2021 2020 Current Domestic $ 41,535 $ ( 60 ) Foreign 408 3 Deferred — — Total income tax expense (benefit) $ 41,943 $ ( 57 ) |
Schedule of Significant Components of the Company Deferred Tax Assets and Lliabilities | The significant components of the Company’s deferred tax assets and liabilities are comprised of the following: December 31, (in thousands) 2021 2020 Deferred tax assets : Net operating loss carryforward $ 17,097 $ 25,206 Foreign research and development expenses 7,884 6,219 Stock-based compensation 1,784 758 Operating lease liabilities 1,374 — Accrued bonus 390 — Other 17 313 Total deferred tax assets 28,546 32,496 Valuation allowance ( 26,647 ) ( 32,029 ) Deferred tax assets, net of valuation allowance 1,899 467 Deferred tax liabilities: Operating lease right of use assets ( 1,371 ) — Prepaid expenses ( 497 ) ( 445 ) Depreciation and amortization ( 31 ) ( 22 ) Total deferred tax liabilities ( 1,899 ) ( 467 ) Deferred tax assets and liabilities, net of valuation $ — $ — |
Schedule of Changes to the Unrecognized Tax Benefits | The changes to the unrecognized tax benefits during the year ended December 31, 2021 were as follows: (in thousands) Balance at December 31, 2020 $ — Increase related to current year tax positions 17,000 Balance at December 31, 2021 $ 17,000 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule Of Lease Terms And Discount Rate | The following table summarizes lease terms and discount rate: December 31, 2021 Weighted-average remaining lease term (years) 5.9 Weighted-average discount rate 4.76 % |
Schedule Of Cash Flow And Other Information | The following table summarizes the cash flow and other information: Year ended December 31, (in thousands) 2021 Operating lease liabilities arising from obtaining right-of-use assets (non-cash) $ 5,877 Operating cash flows used in operating leases $ 767 |
Schedule of Future Minimum Lease Payments Under Non-cancelable Operating Leases | As of December 31, 2021, the Company had the following future minimum lease payments under non-cancelable operating leases for the future years thereafter (in thousands): Year ending December 31: 2022 $ 920 2023 1,001 2024 997 2025 990 2026 917 Thereafter 1,418 Total Lease Payments 6,243 Less: Interest ( 902 ) Total Lease Liability $ 5,341 Lease liabilities - current $ 770 Lease liabilities, net of current portion $ 4,571 |
Net loss per share attributab_2
Net loss per share attributable to common stockholders (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Net Income (loss) Per Shares By Treasury Stock Method | The following table summarizes the impact of the treasury stock method: Net income (loss) per shares December 31, (in thousands, except per share amounts) 2021 2020 Numerator Net income (loss) attributable to common stockholders $ 214,521 $ ( 43,402 ) Denominator Weighted-average shares used to compute net income (loss) per share, basic 35,181,383 15,080,266 Effect of dilutive securities (a) ( 2,593,407 ) - Weighted-average shares used to compute net income (loss) per share, diluted 37,774,790 15,080,266 Net income (loss) per share: Basic $ 6.10 $ ( 2.88 ) Diluted $ 5.68 $ ( 2.88 ) (a) The common stock equivalents, which equaled 4,552,396 stock options outstanding as of December 31, 2020, were excluded for the year ending December 31, 2020, due to their anti-dilutive effect. |
Nature of Business and Basis _2
Nature of Business and Basis of Presentation - Additional Information (Details) - USD ($) $ in Thousands | Aug. 05, 2020 | Jul. 28, 2020 | Jul. 20, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |||||
Issuance of common stock from initial public offering | $ 210,612 | ||||
Net income (loss) | $ 214,521 | (38,033) | |||
Retained earnings (accumulated deficit) | $ 140,623 | $ (73,898) | |||
Common stock | |||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |||||
Reverse stock split | On July 20, 2020, the Company effected a 1-for-3.3115 reverse stock split of the Company’s common stock | ||||
Issuance of common stock from initial public offering, shares | 12,091,675 | ||||
Issuance of common stock from initial public offering | $ 12 | ||||
Convertible Preferred Stock, Shares Issued upon Conversion | 22,460,076 | 22,460,076 | |||
Common stock | IPO | |||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |||||
Issuance of common stock from initial public offering, shares | 10,586,316 | ||||
Issuance of common stock from initial public offering | $ 201,100 | ||||
Proceeds from initial public offering, net of underwriting discount | $ 184,000 | ||||
Underwriters exercise option to purchase additional shares of common stock | 1,505,359 | ||||
Net proceeds after deducting commissions from underwriter purchase of additional share of common stock | $ 26,600 |
Summary of significant accoun_4
Summary of significant accounting policies - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)Segment | Dec. 31, 2020USD ($) | Jan. 01, 2021USD ($) | |
Accounting Policies [Abstract] | |||
Transfers of financial instruments between levels | $ 0 | $ 0 | |
Research And Development Tax Credits Percentage | 13.50% | 13.50% | |
Impairment charges | $ 0 | $ 0 | |
Right-to-use assets and lease liabilities | $ 900 | ||
Operating segment | Segment | 1 |
Summary of significant accoun_5
Summary of significant accounting policies - Summary of Property and Equipment Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Line Items] | |
Leasehold improvements | Shorter of useful life or term of lease |
Computer equipment and software | |
Property Plant And Equipment [Line Items] | |
Useful life (in years) | 3 years |
Furniture, fixtures and other | |
Property Plant And Equipment [Line Items] | |
Useful life (in years) | 5 years |
Scientific equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Useful life (in years) | 5 years |
Scientific equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Useful life (in years) | 6 years |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Instruments Measured at Fair Value on a Recurring Basis (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents (money market funds) | $ 797,448,000 | $ 314,636,000 |
Totals | 797,448,000 | 314,636,000 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents (money market funds) | 797,448 | 314,636,000 |
Totals | $ 797,448 | $ 314,636,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Mar. 24, 2020 | |
Class Of Warrant Or Right [Line Items] | |||
Transfers within hierarchy | $ 0 | $ 0 | |
Preferred stock tranche rights liability | $ 0 | ||
Fair Value, Inputs, Level 3 | Preferred Stock Tranche Rights Liability | |||
Class Of Warrant Or Right [Line Items] | |||
Level 3 fair value measurement | $ 0 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Fair Value of Series B Preferred Stock Tranche Rights Liability (Details) - Series B Preferred Stock - Fair Value, Inputs, Level 3 - Tranche Three Settlement $ in Millions | Mar. 23, 2020USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Implied equity value | $ 208.2 |
Tranche 3 milestone (by March 31, 2020) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Probability of success of reaching necessary milestone | 90.00% |
Expected industry return over period during which milestones are expected to be achieved | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Measurement input | 0.130 |
Risk-free interest rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Measurement input | 0.011 |
Fair Value Measurements - Sum_3
Fair Value Measurements - Summary of Changes in Level 3 Liabilities Measures at Fair Value on a Recurring Basis (Details) - Fair Value, Inputs, Level 3 - Preferred Stock Tranche Rights Liability $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Balances | $ 5,400 |
Change in estimated fair value | (1,265) |
Settlement of tranche right | (4,135) |
Balances | $ 0 |
Consolidated Balance Sheet Co_3
Consolidated Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 5,043 | $ 4,014 |
Accumulated depreciation and amortization | (2,971) | (2,662) |
Property & equipment, net | 2,072 | 1,352 |
Scientific Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 2,970 | 2,617 |
Furniture and Office Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 1,002 | 542 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 1,071 | $ 855 |
Consolidated Balance Sheet Co_4
Consolidated Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Supplemental Balance Sheet Information [Abstract] | ||
Depreciation and amortization | $ 603 | $ 535 |
Consolidated Balance Components
Consolidated Balance Components - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Payables And Accruals [Abstract] | ||
Accrued clinical trial costs | $ 12,991 | $ 4,012 |
Accrued personnel costs | 3,884 | 3,208 |
Accrued professional fees | 25 | 37 |
Accrued other | 257 | 229 |
Total accrued expenses and other current liabilities | $ 17,157 | $ 7,486 |
License and Collaboration Agr_2
License and Collaboration Agreements - Additional Information (Details) - USD ($) $ in Thousands | Jun. 11, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||
Upfront payment received | $ 625,000 | ||
License revenue | 344,775 | ||
Revenue From Contract With Customer Including Assessed Tax | 344,775 | ||
Contract with Customer, Liability | 280,225 | ||
Adimab L L C | |||
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||
Maximum additional receivable based on achievement of research milestones | 14,500 | $ 1,000 | |
Adimab L L C | License revenue | |||
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||
License revenue | 3,400 | ||
Revenue From Contract With Customer Including Assessed Tax | 3,400 | ||
Adimab L L C | Development Regulatory and Sales Milestone | |||
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||
Maximum option fees receivable based on achievement of research milestones | 45,800 | ||
GSK | |||
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||
Upfront payment received | $ 625,000 | ||
Milestone payments | $ 1,450,000 | ||
Eligible royalty payments percentage | 20.00% | ||
Contract with Customer, Liability | 280,200 | ||
Cost Share Costs Incurred For License Agreement | 11,500 | ||
Capitalized contract cost, net | $ 6,800 | ||
Costs related to global development plan | 60.00% | ||
Payment for license agreement reimbursement of costs incurred | $ 4,800 | ||
Due to related parties | 3,000 | ||
Related party transaction, expenses from transactions with related party | 900,000 | ||
GSK | License revenue | |||
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||
License revenue | 344,800 | ||
Revenue From Contract With Customer Including Assessed Tax | $ 344,800 |
License and Collaboration Agr_3
License and Collaboration Agreements - Schedule Of Contract Assets And Liabilities (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
License Agreements [Abstract] | |
Deferred revenue, Additions | $ 625,000 |
Deferred revenue, Deductions | (344,775) |
Deferred revenue, Ending balance | $ 280,225 |
Government Grant Funding and _3
Government Grant Funding and Potential Repayment Commitments Under Recoverable Cash Advance Grants (RCAs) - Additional Information (Details) - USD ($) $ in Thousands | Dec. 03, 2019 | Jul. 20, 2017 | Dec. 31, 2021 | Dec. 31, 2020 |
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||
Grant income recognized for research and development activities | $ 1,500 | |||
Grant repayable | $ 6,164 | $ 5,883 | ||
RCA- 1 | ||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||
Recoverable cash advance | $ 21,400 | |||
Percentage of royalty on revenue | 0.33% | |||
Grant repayable | $ 5,278 | 5,102 | ||
RCA- 2 | ||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||
Royalty accruals | $ 900 | 0 | ||
Recoverable cash advance | $ 4,900 | |||
Percentage of royalty on revenue | 0.15% | |||
Grant repayable | $ 886 | 781 | ||
RCA-1 and RCA-2 | ||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||
Percentage of repayment amount received under grant | 30.00% | |||
Research And Development And Future Sales | ||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||
Grant repayable | $ 0 | 0 | ||
Research and Development Expenses | ||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||
Grant income recognized for research and development activities | $ 10,200 | $ 5,600 | ||
Minimum | ||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||
Percentage of grant reimburse of actual qualifying expenditures | 55.00% | |||
Minimum | RCA-1 and RCA-2 | ||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||
Term of repayment amount received under grant | 2023 | |||
Maximum | ||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||
Percentage of grant reimburse of actual qualifying expenditures | 100.00% | |||
Maximum | RCA-1 and RCA-2 | ||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||
Term of repayment amount received under grant | 2042 |
Government Grant Funding and _4
Government Grant Funding and Potential Repayment Commitments Under Recoverable Cash Advance Grants (RCAs) - Schedule of Activity for Grant Programs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||
Cash received | $ 3,167 | $ 17,053 |
Grant income recognized | 10,181 | 5,647 |
Grants receivable | 4,022 | 133 |
Grant repayable | 6,164 | 5,883 |
RCA- 1 | ||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||
Cash received | 1,990 | 11,944 |
Grant income recognized | 4,113 | 3,913 |
Grants receivable | 1,832 | |
Grant repayable | 5,278 | 5,102 |
RCA- 2 | ||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||
Cash received | 585 | 2,479 |
Grant income recognized | 1,286 | 1,290 |
Grants receivable | 1,097 | |
Grant repayable | 886 | 781 |
Other Grants | ||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||
Cash received | 592 | 2,630 |
Grant income recognized | 4,782 | 444 |
Grants receivable | $ 1,093 | $ 133 |
Stockholders' equity - Addition
Stockholders' equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 05, 2020 | Jul. 28, 2020 | Dec. 31, 2020 | Dec. 31, 2021 |
Class Of Stock [Line Items] | ||||
Issuance of common stock from initial public offering | $ 210,612 | |||
Common stock, shares authorized | 150,000,000 | 150,000,000 | ||
Common stock, par value | $ 0.001 | $ 0.001 | ||
Preferred Stock Shares Authorized | 0 | 10,000,000 | ||
Preferred Stock, par value | $ 0.001 | $ 0.001 | ||
Common stock, voting rights | Each share of common stock entitles the holders to one vote on all matters submitted to a vote of the Company’s stockholders. | |||
IPO | ||||
Class Of Stock [Line Items] | ||||
Capital units, authorized | 160,000,000 | |||
Common stock, shares authorized | 150,000,000 | |||
Common stock, par value | $ 0.001 | |||
Preferred Stock Shares Authorized | 10,000,000 | |||
Preferred Stock, par value | $ 0.001 | |||
Redeemable Convertible Preferred Stock | ||||
Class Of Stock [Line Items] | ||||
Redeemable Convertible Preferred Stock Shares Issued | 0 | |||
Redeemable Convertible Preferred Stock Shares Outstanding | 0 | |||
Common stock | ||||
Class Of Stock [Line Items] | ||||
Issuance of common stock from initial public offering, shares | 12,091,675 | |||
Issuance of common stock from initial public offering | $ 12 | |||
Convertible Preferred Stock, Shares Issued upon Conversion | 22,460,076 | 22,460,076 | ||
Common stock | IPO | ||||
Class Of Stock [Line Items] | ||||
Issuance of common stock from initial public offering, shares | 10,586,316 | |||
Issuance of common stock from initial public offering | $ 201,100 | |||
Proceeds from initial public offering, net of underwriting discount | $ 184,000 | |||
Underwriters exercise option to purchase additional shares of common stock | 1,505,359 | |||
Net proceeds after deducting commissions from underwriter purchase of additional share of common stock | $ 26,600 |
Stock-based compensation - Addi
Stock-based compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 15, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock option vesting percentage | 25.00% | ||
Stock options vesting period | 36 months | ||
Weighted-average estimated fair value of options awarded (in dollars per share) | $ 27.46 | $ 7.75 | |
Aggregate intrinsic value of options exercise | $ 11 | $ 3.1 | |
Aggregate grant date fair value of stock options vested | $ 10.7 | $ 0.8 | |
Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1 | 6 years | ||
2020 ESPP | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock initially reserved for future issuance | 667,931 | ||
Percentage of outstanding shares increase in shares reserved for issuance | 1.00% | ||
Maximum increase in common stock shares reserved for issuance | 634,969 | ||
Stock Issued under Employee Stock Purchase Plans | 0 | ||
Non Vested Stock Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized compensation costs for non-vested stock awards | $ 38.1 | ||
Recognition period for compensation cost not yet recognized (in years, months, and days) | 2 years 9 months 18 days | ||
2019 Stock Option And Grant Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of options authorized | 3,464,316 | ||
Amendment to 2019 Stock Option and Grant Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock option vesting percentage | 100.00% | ||
2020 Stock Option and Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock initially reserved for future issuance | 5,562,055 | ||
Cumulative increase in common stock reserve for issuance, percentage | 5.00% | ||
Cumulative increase in common stock reserve for issuance | 1,773,300 | ||
Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share based compensation, stock options expiry period | 7 years | ||
Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1 | 5 years | ||
Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share based compensation, stock options expiry period | 10 years | ||
Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1 | 6 years |
Stock-based compensation - Summ
Stock-based compensation - Summary of Stock Options Activity (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Shares | ||
Outstanding as of December 31, 2020 | 4,552,396 | |
Granted | 1,104,666 | |
Forfeited | (28,031) | |
Exercised | (421,947) | |
Outstanding as of December 31, 2021 | 5,207,084 | 4,552,396 |
Vested and expected to vest as of December 31, 2021 | 5,207,084 | |
Exercisable at December 31, 2021 | 2,045,416 | |
Weighted-Average Exercise Price Per Share | ||
Outstanding as of December 31, 2020 | $ 9.13 | |
Granted | 33.39 | |
Forfeited | 27.02 | |
Exercised | 6.98 | |
Outstanding as of December 31, 2021 | 14.35 | $ 9.13 |
Vested and expected to vest as of December 31, 2021 | 14.35 | |
Exercisable at December 31, 2021 | $ 8.06 | |
Weighted-Average Remaining Contractual Term | ||
Options outstanding | 7 years 8 months 12 days | 8 years 2 months 12 days |
Vested and expected to vest as of December 31, 2021 | 7 years 8 months 12 days | |
Exercisable at December 31, 2021 | 6 years 2 months 12 days | |
Aggregate Intrinsic Value | ||
Outstanding as of December 31, 2019 | $ 167,709 | |
Vested and expected to vest as of December 31, 2021 | 167,709 | |
Exercisable at December 31, 2021 | $ 78,747 |
Stock-based compensation - Su_2
Stock-based compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 13,794 | $ 4,292 |
Research and Development Expenses | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | 1,906 | 425 |
General And Administrative | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 11,888 | $ 3,867 |
Stock-based compensation - Sche
Stock-based compensation - Schedule of Fair Value Assumptions for Stock Options Granted (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate, minimum | 0.42% | 0.36% |
Risk-free interest rate, maximum | 1.27% | 1.35% |
Expected term (in years) | 6 years | |
Expected Volatility, minimum | 92.00% | 90.00% |
Expected Volatility, maximum | 100.00% | 102.00% |
Expected dividend yield | 0.00% | 0.00% |
Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term (in years) | 5 years | |
Estimated fair value of common stock | $ 20.54 | $ 2.95 |
Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term (in years) | 6 years | |
Estimated fair value of common stock | $ 46.68 | $ 33.12 |
Income Taxes - Schedule of Loss
Income Taxes - Schedule of Loss Before Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Domestic | $ (47,242) | $ (31,184) |
Foreign | 303,706 | (6,906) |
Income (loss) before income tax expense (benefit) | $ 256,464 | $ (38,090) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2017 | |
Income Tax Contingency [Line Items] | |||
Effective income tax rate reconciliation, percent | 16.40% | 0.20% | |
Effective income tax rate reconciliation, at federal statutory income tax rate, percent | 21.00% | 21.00% | |
Decrease in valuation allowance | $ 5,400,000 | ||
Deferred tax assets valuation allowance | $ 26,647,000 | $ 32,029,000 | |
Net operating loss Carry forwards deductible at maximum rate of corporations taxable income | 80.00% | 100.00% | |
Net operating loss, available to offset rate for the taxable income limitation under the TCJA | 80.00% | ||
Operating loss carryforwards | $ 100,000 | ||
Foreign | 303,706,000 | $ (6,906,000) | |
State NOL carryforwards | $ 52,000,000 | ||
Date expiring, de minimis federal future tax liabilities | 2041 | ||
Date expiring, state tax credit available to reduce future tax liabilities | 2036 | ||
Unrecognized tax benefits | $ 17,000,000 | 0 | |
Income tax expense benefit | $ 41,943,000 | (57,000) | |
Accrual for uncertain tax positions | $ 0 | ||
Federal | |||
Income Tax Contingency [Line Items] | |||
Operating loss carryforwards expiration year | 2041 | ||
State | |||
Income Tax Contingency [Line Items] | |||
Operating loss carryforwards expiration year | 2041 | ||
Gosselies, Belgium | |||
Income Tax Contingency [Line Items] | |||
Foreign | $ 56,300,000 | ||
Income tax expense benefit | $ 400,000 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Income Tax Expense (Benefit) Computed at the Statutory Federal Income Tax Rate (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
U.S. statutory federal income tax rate | 21.00% | 21.00% |
State income taxes | (0.50%) | 4.80% |
Foreign tax differential | 4.70% | 0.80% |
Non-deductible/non-taxable permanent differences | 0.10% | 3.40% |
Innovation income deduction tax exemption | (28.20%) | |
Net GILTI Inclusion Income | 15.20% | |
Unrecognized tax benefits | 6.60% | |
Change in local tax rate | (8.60%) | |
Other | (1.10%) | 0.90% |
Change in valuation allowance | (1.40%) | (22.10%) |
Effective income tax rate | 16.40% | 0.20% |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Domestic | $ 41,535 | $ (60) |
Foreign | 408 | 3 |
Deferred | 0 | 0 |
Total income tax expense (benefit) | $ 41,943 | $ (57) |
Income Taxes - Schedule of Sign
Income Taxes - Schedule of Significant Components of the Company Deferred Tax Assets and Lliabilities (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets : | ||
Net operating loss carryforward | $ 17,097,000 | $ 25,206,000 |
Foreign research and development expenses | 7,884,000 | 6,219,000 |
Stock-based compensation | 1,784,000 | 758,000 |
Operating lease liabilities | 1,374,000 | |
Accrued bonus | 390,000 | 0 |
Other | 17,000 | 313,000 |
Total deferred tax assets | 28,546,000 | 32,496,000 |
Valuation allowance | (26,647,000) | (32,029,000) |
Deferred tax assets, net of valuation allowance | 1,899 | 467 |
Deferred tax liabilities: | ||
Operating lease right of use assets | (1,371,000) | 0 |
Prepaid expenses | (497,000) | (445,000) |
Depreciation and amortization | 31,000 | 22,000 |
Total deferred tax liabilities | (1,899,000) | (467,000) |
Deferred tax assets and liabilities, net of valuation allowance | $ 0 | $ 0 |
Income Taxes - Schedule of Chan
Income Taxes - Schedule of Changes to the Unrecognized Tax Benefits (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Unrecognized Tax Benefits, Beginning Balance | $ 0 |
Increase related to current year tax positions | 17,000 |
Unrecognized Tax Benefits, Ending Balance | $ 17,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2021USD ($)ft²m² | Dec. 31, 2020USD ($) | Nov. 30, 2021USD ($) | Mar. 31, 2019USD ($) | |
Other Commitments [Line Items] | ||||
Land Subject to Ground Leases | m² | 1,577 | |||
Operating leases, rent expense | $ 700,000 | $ 600,000 | ||
Extension of office lease | In January 2021, the Company entered into an amendment to extend the lease, effective February 2021 with a termination date of January 2030, and increase the office and laboratory space | |||
Gosselies, Belgium | ||||
Other Commitments [Line Items] | ||||
Operating lease, Hand serving to secure lease obligation | $ 99,000 | 71,000 | ||
Cambridge, Massachusetts | ||||
Other Commitments [Line Items] | ||||
Land Subject to Ground Leases | ft² | 2,479 | |||
Lease expiration date | May 31, 2022 | |||
Operating lease, Letter of credit to secure lease obligation | $ 57,000 | |||
Watertown Massachusetts [Member] | ||||
Other Commitments [Line Items] | ||||
Land Subject to Ground Leases | ft² | 9,068 | |||
Operating lease, Letter of credit to secure lease obligation | $ 142,000 | |||
Office and Laboratory Space | Gosselies, Belgium | ||||
Other Commitments [Line Items] | ||||
Lease Commencement Date | May 31, 2016 | |||
Lease expiration date | Dec. 31, 2021 | |||
Office and Laboratory Space | Amendment To Extend Lease [Member] | Gosselies, Belgium | ||||
Other Commitments [Line Items] | ||||
Increase Land Subject To Leases | m² | 201 | |||
Office and Laboratory Space | Agreement to Extend Lease [Member] | Gosselies, Belgium | ||||
Other Commitments [Line Items] | ||||
Lease Commencement Date | Feb. 28, 2021 | |||
Increase Land Subject To Leases | m² | 453 | |||
Lease expiration date | Jan. 31, 2030 | |||
Office Building [Member] | Cambridge, Massachusetts | ||||
Other Commitments [Line Items] | ||||
Lease Commencement Date | May 31, 2019 | |||
Lease expiration date | Feb. 28, 2027 | |||
Office Building [Member] | Watertown Massachusetts [Member] | ||||
Other Commitments [Line Items] | ||||
Lease Commencement Date | Nov. 30, 2021 | |||
Wu Xi Agreement | ||||
Other Commitments [Line Items] | ||||
Minimum commitments | $ 0 | 0 | ||
Payments for Royalties | 0 | 0 | ||
Contract Termination | ||||
Other Commitments [Line Items] | ||||
Restructuring charges | $ 0 | $ 0 | ||
Minimum | ||||
Other Commitments [Line Items] | ||||
Contractual Agreement Cancelation Notice period | 30 days | |||
Operating lease term | 48 days | |||
Maximum | ||||
Other Commitments [Line Items] | ||||
Contractual Agreement Cancelation Notice period | 60 days | |||
Operating lease term | 60 months |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule Of Lease Terms And Discount Rate (Details) | Dec. 31, 2021 |
Lease, Cost [Abstract] | |
Weighted-average remaining lease term (years) | 5 years 10 months 24 days |
Weighted-average discount rate | 4.76% |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule Of Cash Flow And Other Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Lease, Cost [Abstract] | |
Operating lease liabilities arising from obtaining right-of-use assets (non-cash) | $ 5,877 |
Operating cash flows used in operating leases | $ 767 |
Commitments and Contingencies_4
Commitments and Contingencies - Schedule of Future Minimum Lease Payments Under Non-cancelable Operating Leases (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Leases [Abstract] | |
2022 | $ 920 |
2023 | 1,001 |
2024 | 997 |
2025 | 990 |
2026 | 917 |
Thereafter | 1,418 |
Total lease payments | 6,243 |
Interest | (902) |
Total lease liability | 5,341 |
Lease liabilities - current | 770 |
Lease liabilities, net of current portion | $ 4,571 |
Employee benefit plan - Additio
Employee benefit plan - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined contribution plan, employer contribution, percent | 5.00% | |
Defined contribution plan,contributions by employer | $ 254,000 | $ 167,000 |
401(k) defined contribution plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined contribution plan,contributions by employer | $ 82,000 | $ 28,000 |
Defined contribution plan, maximum annual contributions per employee, percent | 100.00% |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) $ in Thousands | Jun. 11, 2018Investor | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Related Party Transaction [Line Items] | |||
Net product sales | $ 344,775 | ||
Royalty Transfer Agreement | |||
Related Party Transaction [Line Items] | |||
Royalty owed to charitable foundation | $ 0 | $ 0 | |
Royalty Transfer Agreement | MPM Oncology Charitable Foundation, Inc. and UBS Optimus Foundation | |||
Related Party Transaction [Line Items] | |||
Number of investors | Investor | 2 | ||
Obligation to pay royalties | royalty equal to 1% of its net product sales on any product developed or owned by iTeos Therapeutics, Inc. or iTeos Belgium S.A., each year within 120 days following each year end. | ||
Percentage of royalty required to pay | 1.00% | ||
Royalty Transfer Agreement | Product | |||
Related Party Transaction [Line Items] | |||
Net product sales | $ 0 | $ 0 |
Net Loss Per Share Attributab_3
Net Loss Per Share Attributable to Common Stock - Schedule of Net Income (loss) Per Shares By Treasury Stock Method (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator | ||
Net income (loss) attributable to common stockholders | $ 214,521 | $ (43,402) |
Denominator | ||
Weighted-average common shares outstanding - basic | 35,181,383 | 15,080,266 |
Effect of dilutive securities | 2,593,407 | |
Weighted-average common shares outstanding - diluted | 37,774,790 | 15,080,266 |
Net income (loss) per share: | ||
Basic net income (loss) per common share | $ 6.10 | $ (2.88) |
Diluted net income (loss) per common share | $ 5.68 | $ (2.88) |
Net Loss Per Share Attributab_4
Net Loss Per Share Attributable to Common Stock - Additional Informatiion (Details) | 12 Months Ended |
Dec. 31, 2020shares | |
EmployeeStockOptionMember | |
stock options outstanding | 4,552,396 |