Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 06, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | JANX | ||
Security12b Title | Common Stock, $0.001 par value per share | ||
Security Exchange Name | NASDAQ | ||
Entity Registrant Name | Janux Therapeutics, Inc. | ||
Entity Central Index Key | 0001817713 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction | false | ||
Entity Public Float | $ 279.6 | ||
Entity Common Stock, Shares Outstanding | 51,660,060 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 001-40475 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 82-2289112 | ||
Entity Address, Address Line One | 10955 Vista Sorrento Parkway, Suite 200 | ||
Entity Address, City or Town | San Diego | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 92130 | ||
City Area Code | 858 | ||
Local Phone Number | 751-4493 | ||
Documents Incorporated by Reference | Portions of the Registrant’s definitive proxy statement for its 2024 Annual Meeting of Stockholders, which the Registrant intends to file pursuant to Regulation 14A with the Securities and Exchange Commission not later than 120 days after the Registrant’s fiscal year ended December 31, 2023, are incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Firm ID | 42 | ||
Auditor Location | San Diego, California |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 19,205 | $ 51,426 |
Short-term investments | 324,823 | 275,590 |
Prepaid expenses and other current assets | 5,213 | 5,423 |
Total current assets | 349,241 | 332,439 |
Restricted cash | 816 | 816 |
Property and equipment, net | 7,003 | 7,086 |
Operating lease right-of-use assets | 20,838 | 22,279 |
Other long-term assets | 2,509 | 1,390 |
Total assets | 380,407 | 364,010 |
Current liabilities: | ||
Accounts payable | 2,424 | 2,159 |
Accrued expenses | 7,387 | 8,179 |
Current portion of deferred revenue | 1,705 | 5,406 |
Current portion of operating lease liabilities | 1,517 | 763 |
Total current liabilities | 13,033 | 16,507 |
Deferred revenue, net of current portion | 0 | 2,221 |
Operating lease liabilities, net of current portion | 23,025 | 24,542 |
Total liabilities | 36,058 | 43,270 |
Commitments and contingencies (Note 3) | ||
Stockholders’ equity (deficit): | ||
Preferred stock, $0.001 par value; authorized shares - 10,000,000 at December 31, 2023 and 2022, respectively; no shares issued and outstanding at December 31, 2023 and 2022 | ||
Common stock, $0.001 par value; authorized shares - 200,000,000 at December 31, 2023 and 2022, respectively; issued shares - 46,262,759 and 41,684,666 at December 31, 2023 and 2022, respectively; outstanding shares - 46,252,440 and 41,616,260 at December 31, 2023 and 2022, respectively | 46 | 42 |
Additional paid-in capital | 512,401 | 432,703 |
Accumulated other comprehensive income (loss) | 665 | (1,535) |
Accumulated deficit | (168,763) | (110,470) |
Total stockholders' equity | 344,349 | 320,740 |
Total liabilities and stockholders' equity | $ 380,407 | $ 364,010 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 46,262,759 | 41,684,666 |
Common stock, shares outstanding | 46,252,440 | 41,616,260 |
Statements of Operations and Co
Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement [Abstract] | ||
Collaboration revenue | $ 8,083 | $ 8,612 |
Operating expenses: | ||
Research and development | 54,922 | 53,441 |
General and administrative | 26,140 | 22,262 |
Total operating expenses | 81,062 | 75,703 |
Loss from operations | (72,979) | (67,091) |
Other income: | ||
Interest income | 14,686 | 4,032 |
Total other income | 14,686 | 4,032 |
Net loss | (58,293) | (63,059) |
Other comprehensive gain (loss): | ||
Unrealized gain (loss) on available-for-sale securities, net | 2,200 | (1,265) |
Comprehensive loss | $ (56,093) | $ (64,324) |
Net loss per common share, basic | $ (1.32) | $ (1.52) |
Net loss per common share, diluted | $ (1.32) | $ (1.52) |
Weighted-average shares of common stock outstanding, basic | 44,016,283 | 41,469,631 |
Weighted-average shares of common stock outstanding diluted | 44,016,283 | 41,469,631 |
Statements of Stockholders' Equ
Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] |
Beginning balance at Dec. 31, 2021 | $ 366,327 | $ 41 | $ 413,967 | $ (270) | $ (47,411) |
Beginning balance (in shares) at Dec. 31, 2021 | 41,243,137 | ||||
Exercise of common stock options | 1 | 1 | |||
Exercise of common stock options (in shares) | 7,405 | ||||
Shares issued under employee stock purchase plan | 499 | 499 | |||
Shares issued under employee stock purchase plan (in shares) | 54,299 | ||||
Vesting of restricted shares | 1,034 | $ 1 | 1,033 | ||
Vesting of restricted shares (in shares) | 311,419 | ||||
Stock-based compensation | 17,203 | 17,203 | |||
Unrealized gain (loss) on available-for-sale securities, net | (1,265) | (1,265) | |||
Net loss | (63,059) | (63,059) | |||
Ending balance at Dec. 31, 2022 | 320,740 | $ 42 | 432,703 | (1,535) | (110,470) |
Ending balance (in shares) at Dec. 31, 2022 | 41,616,260 | ||||
Issuance of common stock and pre-funded common stock warrants, net of issuance costs | 56,530 | $ 4 | 56,526 | ||
Issuance of common stock and pre-funded common stock warrants, net of issuance costs (in shares) | 4,153,717 | ||||
Exercise of pre-funded common stock warrants (in shares) | 80,257 | ||||
Exercise of common stock options | $ 2,246 | 2,246 | |||
Exercise of common stock options (in shares) | 253,545 | 253,545 | |||
Shares issued under employee stock purchase plan | $ 772 | 772 | |||
Shares issued under employee stock purchase plan (in shares) | 90,574 | ||||
Vesting of restricted shares | 149 | 149 | |||
Vesting of restricted shares (in shares) | 58,087 | ||||
Stock-based compensation | 20,005 | 20,005 | |||
Unrealized gain (loss) on available-for-sale securities, net | 2,200 | 2,200 | |||
Net loss | (58,293) | (58,293) | |||
Ending balance at Dec. 31, 2023 | $ 344,349 | $ 46 | $ 512,401 | $ 665 | $ (168,763) |
Ending balance (in shares) at Dec. 31, 2023 | 46,252,440 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash flows from operating activities | ||
Net loss | $ (58,293) | $ (63,059) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 1,955 | 841 |
Stock-based compensation | 20,005 | 17,203 |
Accretion of discounts on investments, net | (7,688) | (2,183) |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | 210 | (3,369) |
Other long-term assets | (1,119) | (1,270) |
Accounts payable | 277 | (294) |
Accrued expenses | (678) | 4,156 |
Deferred revenue | (5,922) | 1,764 |
Operating lease right-of-use assets and liabilities, net | 678 | 3,289 |
Net cash used in operating activities | (50,575) | (42,922) |
Cash flows from investing activities | ||
Purchases of property and equipment | (1,850) | (6,445) |
Purchases of short-term investments | (317,344) | (294,389) |
Maturities of short-term investments | 278,000 | 359,100 |
Net cash provided by (used in) investing activities | (41,194) | 58,266 |
Cash flows from financing activities | ||
Proceeds from exercise of common stock options and employee stock purchase plan | 3,018 | 500 |
Proceeds from the issuance of common stock and pre-funded common stock warrants, net of issuance costs | 56,530 | 0 |
Net cash provided by financing activities | 59,548 | 500 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (32,221) | 15,844 |
Cash, cash equivalents and restricted cash - beginning of year | 52,242 | 36,398 |
Cash, cash equivalents and restricted cash - end of period | 20,021 | 52,242 |
Supplemental disclosure of noncash investing and financing activities | ||
Unpaid property and equipment | 132 | 109 |
Vesting of restricted common stock | 149 | 1,034 |
Unrealized gain (loss) on available-for-sale securities, net | 2,200 | (1,265) |
Operating lease liabilities arising from right-of-use assets | $ 0 | $ 23,422 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ (58,293) | $ (63,059) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Summary of Significant Accounting Policies | 1. Organization and Summ ary of Significant Accounting Policies Organization Janux Therapeutics, Inc. (the “Company”) was incorporated in the State of Delaware in June 2017 and is based in San Diego, California. The Company is a clinical-stage biopharmaceutical company developing a broad pipeline of novel immunotherapies by applying its proprietary technology to its Tumor Activated T Cell Engager (“TRACTr”) and Tumor Activated Immunomodulator (“TRACIr”) platforms to better treat patients suffering from cancer. Liquidity and Capital Resources From its inception through December 31, 2023, the Company has devoted substantially all its efforts to organizing and staffing, business planning, raising capital and developing its TRACTr and TRACIr therapeutic platforms and assets. The Company has incurred net losses and negative cash flows from operations since inception and had an accumulated deficit of $ 168.8 million as of December 31, 2023. The Company has a limited operating history, has not generated any product revenue, and the sales and income potential of its business is unproven. To date the Company has funded its operations primarily with the net proceeds from the issuance of convertible promissory notes, the issuance of convertible preferred stock, the issuance of common stock in its initial public offering (“IPO”), the issuance of common stock and pre-funded common stock warrants in an underwritten offering, the exercise of common stock options, and amounts received under a collaboration agreement. The Company expects to incur substantial operating losses for the next several years and will need to obtain additional financing in order to continue its research and development activities, initiate and complete clinical trials and launch and commercialize any product candidates for which it receives regulatory approval. The Company plans to continue to fund its losses from operations and capital funding needs through public or private equity or debt financings or other sources. If the Company is not able to secure adequate additional funding, the Company may be forced to make reductions in spending, extend payment terms with suppliers, liquidate assets where possible, or suspend or curtail planned programs. Any of these actions could materially harm the Company’s business, results of operations and future prospects. There can be no assurance that such financing will be available or will be at terms acceptable to the Company, especially in light of COVID-19 and other public health crises, current financial conditions within the banking industry, including the effects of recent failures of financial institutions and liquidity levels, as well as recent or anticipated changes in interest rates and the inflationary macro environment. The accompanying financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business, and do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or amounts and classification of liabilities that may result from the outcome of this uncertainty. Management is required to perform an analysis over its ability to continue as a going concern. Management must first evaluate whether there are conditions and events that raise substantial doubt about the Company’s ability to continue as a going concern (step 1). If management concludes that substantial doubt is raised, management is also required to consider whether its plans alleviate that doubt (step 2). Management’s assessment included the preparation of cash flow forecasts resulting in management’s conclusion that the Company has sufficient capital to fund operations for at least 12 months from the date the financial statements for the year ended December 31, 2023 are issued. Use of Estimates The Company’s financial statements are prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). The preparation of the Company’s financial statements requires it to make estimates and assumptions that impact the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in the Company’s financial statements and accompanying notes. The most significant estimates in the Company’s financial statements relate to estimates to complete the performance obligations and the estimated transaction price for collaboration revenue, accruals for research and development expenses, stock-based compensation and fair value measurements. These estimates and assumptions are based on current facts, historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of revenues and expenses that are not readily apparent from other sources. The Company continues to use the best information available to update its accounting estimates. Actual results may differ materially and adversely from these estimates. Fair Value Measurements The accounting guidance defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or non-recurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the accounting guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets. Level 2: Inputs, other than the quoted prices in active markets that are observable either directly or indirectly. Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, prepaid and other current assets, accounts payable, and accrued expenses, approximate fair value due to the short-term nature of those instruments. The fair value of assets classified within Level 1 is based on quoted prices in active markets as provided by the Company’s investment managers. The fair value of short-term investments classified within Level 2 is based on standard observable inputs, including reported trades, broker/dealer quotes, and bids and/or offers. The Company validates the quoted market prices provided by its investment managers by comparing the investment managers’ assessment of the fair values of the Company’s investment portfolio balance against the fair values of the Company’s investment portfolio balance obtained from an independent source. The Company has no financial liabilities recorded at fair value on a recurring basis. None of the Company’s non-financial assets or liabilities are recorded at fair value on a non-recurring basis. No transfers between levels have occurred during the periods presented. The following tables summarize the Company’s financial instruments measured at fair value on a recurring basis (in thousands): Fair Value Measurements at Total Quoted Prices in Significant Other Significant As of December 31, 2023: Assets: Cash equivalents: Money market funds $ 14,751 $ 14,751 $ — $ — Total cash equivalents 14,751 14,751 — — Short-term investments: U.S. Treasury securities 71,300 71,300 — — U.S. agency bonds 167,103 — 167,103 — Asset-backed securities 5,055 — 5,055 — Corporate debt securities 1,999 — 1,999 — Commercial paper 79,366 — 79,366 — Total short-term investments 324,823 71,300 253,523 — Restricted cash: Money market account 816 816 — — Total restricted cash 816 816 — — Total assets measured at fair value on a recurring basis $ 340,390 $ 86,867 $ 253,523 $ — Fair Value Measurements at Total Quoted Prices in Significant Other Significant As of December 31, 2022: Assets: Cash equivalents: Money market funds $ 12,697 $ 12,697 $ — $ — Total cash equivalents 12,697 12,697 — — Short-term investments: U.S. Treasury securities 63,016 63,016 — — U.S. agency bonds 67,020 — 67,020 — U.S. agency discount notes 4,334 — 4,334 — Corporate debt securities 1,970 — 1,970 — Commercial paper 139,250 — 139,250 — Total short-term investments 275,590 63,016 212,574 — Restricted cash: Money market account 816 816 — — Total restricted cash 816 816 — — Total assets measured at fair value on a recurring basis $ 289,103 $ 76,529 $ 212,574 $ — Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. Cash and cash equivalents include cash in readily available checking accounts and money market funds. Restricted Cash Restricted cash consists of a money market account securing a standby letter of credit issued in connection with the Company’s Torrey Plaza operating lease (as defined and described in Note 3). The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the accompanying balance sheets that sum to the amounts shown in the statements of cash flows (in thousands): December 31, 2023 2022 Cash and cash equivalents $ 19,205 $ 51,426 Restricted cash 816 816 Total cash and cash equivalents and restricted cash $ 20,021 $ 52,242 Short-Term Investments Short-term investments consist of U.S. Treasury securities, U.S. agency bonds, U.S. agency discount notes, asset-backed securities, corporate debt securities and commercial paper, all of which are highly rated by Moody’s, S&P, and Fitch. The Company has classified these investments as available-for-sale, as the sale of such investments may be required prior to maturity to implement management strategies, and therefore has classified all investment securities as current assets. Those investments with maturity dates of three months or less at the date of purchase are presented as cash equivalents in the accompanying balance sheets. Short-term investments are carried at fair value with the unrealized gains and losses included in accumulated other comprehensive income (loss) as a component of stockholders’ equity until realized. Any premium or discount arising at purchase is amortized or accreted to interest income as an adjustment to yield using the straight-line method over the life of the instrument. The Company records an allowance for credit losses when unrealized losses are due to credit-related factors. Realized gains and losses are calculated using the specific identification method and recorded as interest income. The following tables summarize short-term investments (in thousands): As of December 31, 2023 Amortized Unrealized Estimated Cost Gains Losses Fair Value U.S. Treasury securities $ 71,072 $ 242 $ ( 14 ) $ 71,300 U.S. agency bonds 166,699 591 ( 187 ) 167,103 Asset-backed securities 5,078 — ( 23 ) 5,055 Corporate debt securities 1,999 — — 1,999 Commercial paper 79,310 56 — 79,366 Total $ 324,158 $ 889 $ ( 224 ) $ 324,823 As of December 31, 2022 Amortized Unrealized Estimated Cost Gains Losses Fair Value U.S. Treasury securities $ 63,675 $ — $ ( 659 ) $ 63,016 U.S. agency bonds 67,421 — ( 401 ) 67,020 U.S. agency discount notes 4,321 13 — 4,334 Corporate debt securities 1,975 — ( 5 ) 1,970 Commercial paper 139,733 26 ( 509 ) 139,250 Total $ 277,125 $ 39 $ ( 1,574 ) $ 275,590 The amortized cost and estimated fair value in the tables above exclude $ 2.2 million and $ 0.7 million of accrued interest receivable as of December 31, 2023 and 2022, respectively. Accrued interest receivable is included in prepaid expenses and other current assets in the accompanying balance sheets. Contractual maturities of available-for-sale debt securities are as follows (in thousands): As of December 31, 2023 Due in 1 Year or Less Due Between 1 and 3 Years U.S. Treasury securities $ 34,426 $ 36,874 U.S. agency bonds 89,801 77,302 Asset-backed securities 5,055 — Corporate debt securities 1,999 — Commercial paper 79,366 — Total $ 210,647 $ 114,176 As of December 31, 2022 Due in 1 Year or Less Due Between 1 and 3 Years U.S. Treasury securities $ 57,369 $ 5,647 U.S. agency bonds 37,202 29,818 U.S. agency discount notes 4,334 — Corporate debt securities — 1,970 Commercial paper 139,250 — Total $ 238,155 $ 37,435 As of December 31, 2023 , 15 out of 45 of our available-for-sale debt securities were in an aggregate gross unrealized loss position. The Company relies on both qualitative and quantitative factors to determine whether the unrealized loss for each available-for-sale debt security at any balance sheet date is due to a credit loss. Qualitative factors may include a credit downgrade, severity of the decline in fair value below amortized cost and other adverse conditions related specifically to the security, as well as the intent to sell the security, or whether the Company will “more likely than not” be required to sell the security before recovery of its amortized cost basis. The Company considers the decline in market value for the securities to be primarily attributable to current economic conditions and interest rate adjustments, rather than credit-related factors and does not intend to sell any securities prior to maturity. No allowance for credit losses has been recorded as of December 31, 2023 or December 31, 2022. The following tables summarize our available-for-sale debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands): As of December 31, 2023 Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized U.S. Treasury securities $ 5,892 $ ( 14 ) $ — $ — $ 5,892 $ ( 14 ) U.S. agency bonds 63,583 ( 169 ) 9,970 ( 18 ) 73,553 ( 187 ) Asset-backed securities 5,055 ( 23 ) — — 5,055 ( 23 ) Total $ 74,530 $ ( 206 ) $ 9,970 $ ( 18 ) $ 84,500 $ ( 224 ) As of December 31, 2022 Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized U.S. Treasury securities $ 15,566 $ ( 82 ) $ 47,450 $ ( 577 ) $ 63,016 $ ( 659 ) U.S. agency bonds 67,020 ( 401 ) — — 67,020 ( 401 ) Corporate debt securities 1,970 ( 5 ) — — 1,970 ( 5 ) Commercial paper 118,840 ( 509 ) — — 118,840 ( 509 ) Total $ 203,396 $ ( 997 ) $ 47,450 $ ( 577 ) $ 250,846 $ ( 1,574 ) Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents and short-term investments. The Company invests its cash reserves in money market funds or available-for-sale debt securities in accordance with its investment policy. The Company’s investment policy includes guidelines on acceptable investment securities, limits interest-bearing security investments to certain types of debt and money market instruments issued by the U.S. government and institutions with investment grade credit ratings and places restrictions on maturities and concentration by asset class and issuer in order to maintain appropriate diversification. In accordance with the Company’s policies, the Company monitors exposure with its counterparties. The Company also maintains deposits in federally insured financial institutions in excess of federally insured limits. The Company has not experienced any losses in such account and management believes that the Company is not exposed to significant credit risk. The Company is also subject to credit risk from its accounts receivable. The Company generally does not perform evaluations of customers’ financial condition and generally does not require collateral. For the years ended December 31, 2023 and 2022, all of the Company’s revenue related to a single customer. Property and Equipment, Net Property and equipment, net consists of laboratory equipment, furniture and fixtures and computer equipment and software. Property and equipment is stated at cost and depreciated over the estimated useful lives of the assets (generally five years ) using the straight-line method. Repairs and maintenance costs are charged to expense as incurred. An impairment loss is recorded if and when events and circumstances indicate that assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of those assets. The Company has not recognized any impairment losses through December 31, 2023 . Deferred Revenue When the Company is entitled to bill its customers and receive payment from its customers in advance of its obligation to provide services or transfer goods to its customers, the Company includes the amounts in deferred revenue on its balance sheets. For further discussion, refer to the Company’s revenue recognition policy below. Leases The Company determines if a contract contains a lease at the inception of the contract and evaluates each lease agreement to determine whether the lease is an operating or finance lease. For leases where the Company is the lessee, right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent an obligation to make lease payments arising from the lease. Liabilities from operating leases are included in current portion of operating lease liabilities, and operating lease liabilities, net of current portion on the accompanying balance sheets. The Company does not have any financing leases. Short-term leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company does not have material short-term lease costs. Lease liabilities are measured at the present value of the lease payments not yet paid discounted using the discount rate for the lease established at the lease commencement date. To determine the present value, the implicit rate is used when readily determinable. For those leases where the implicit rate is not provided, the Company determines an incremental borrowing rate (“IBR”) based on the information available at the lease commencement date in determining the present value of lease payments. The IBR is the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. ROU assets are measured as the present value of the lease payments and also include any prepaid lease payments made and any other indirect costs incurred, and exclude any lease incentives received. Lease terms may include the impact of options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for operating leases is recognized on a straight-line basis over the lease term. The Company’s operating leases are subject to additional variable charges, including common area maintenance, property taxes, property insurance and other variable costs. Given the variable nature of such costs, they are recognized as expense as incurred. The Company has elected the practical expedient to account for the lease and non-lease components, such as common area maintenance charges, as a single lease component for the Company's facilities leases. The Company has elected to recognize lease incentives, such as tenant improvement allowances, at the lease commencement date as a reduction to the ROU asset and lease liabilities balance until paid to it by the lessor to the extent that the lease provides a specified fixed or maximum level of reimbursement and the Company is reasonably certain to incur reimbursable costs at least equaling such amounts. Revenue Recognition The Company recognizes revenue in a manner that depicts the transfer of control of a product or a service to a customer and reflects the amount of the consideration the Company is entitled to receive in exchange for such product or service. In doing so, the Company follows a five-step approach: (i) identify the contract with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations, and (v) recognize revenue when (or as) the customer obtains control of the product or service. The Company considers the terms of a contract and all relevant facts and circumstances when applying the revenue recognition standard. A customer is a party that has entered into a contract with the Company, where the purpose of the contract is to obtain a product or a service that is an output of the Company’s ordinary activities in exchange for consideration. To be considered a contract, (i) the contract must be approved (in writing, orally, or in accordance with other customary business practices), (ii) each party’s rights regarding the product or the service to be transferred can be identified, (iii) the payment terms for the product or the service to be transferred can be identified, (iv) the contract must have commercial substance (that is, the risk, timing or amount of future cash flows is expected to change as a result of the contract), and (v) it is probable that the Company will collect substantially all of the consideration to which it is entitled to receive in exchange for the transfer of the product or the service. A performance obligation is defined as a promise to transfer a product or a service to a customer. The Company identifies each promise to transfer a product or a service (or a bundle of products or services, or a series of products and services that are substantially the same and have the same pattern of transfer) that is distinct. A product or a service is distinct if both (i) the customer can benefit from the product or the service either on its own or together with other resources that are readily available to the customer and (ii) the Company’s promise to transfer the product or the service to the customer is separately identifiable from other promises in the contract. Each distinct promise to transfer a product or a service is a unit of accounting for revenue recognition. If a promise to transfer a product or a service is not separately identifiable from other promises in the contract, such promises should be combined into a single performance obligation. The transaction price is the amount of consideration the Company is entitled to receive in exchange for the transfer of control of a product or a service to a customer. To determine the transaction price, the Company considers the existence of any significant financing component, the effects of any variable elements, noncash considerations and consideration payable to the customer. If a significant financing component exists, the transaction price is adjusted for the time value of money. If an element of variability exists, the Company must estimate the consideration it expects to receive and uses that amount as the basis for recognizing revenue as the product or the service is transferred to the customer. There are two methods for determining the amount of variable consideration: (i) the expected value method, which is the sum of probability-weighted amounts in a range of possible consideration amounts, and (ii) the mostly likely amount method, which identifies the single most likely amount in a range of possible consideration amounts. With respect to variable consideration relating to development and regulatory milestone payments, if it is probable that a significant revenue reversal would not occur, the associated payment value is included in the transaction price. For development and regulatory milestones that are uncertain in nature and highly dependent on factors outside of our control, the aggregate consideration is determined to be fully constrained and is not included in the transaction price until the underlying events occur or the associated approvals are received. At the end of each reporting period, the Company re-evaluates the probability of achievement of each milestone and any related constraint, and if necessary, adjust our estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect the reported amount of revenues in the period of adjustment. For arrangements that include sales-based royalties, including milestone payments based on a level of sales, and 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). If a contract has multiple performance obligations, the Company allocates the transaction price to each distinct performance obligation in an amount that reflects the consideration the Company is entitled to receive in exchange for satisfying each distinct performance obligation. For each distinct performance obligation, revenue is recognized when (or as) the Company transfers control of the product or the service applicable to such performance obligation. In those instances where the Company first receives consideration in advance of satisfying its performance obligation, the Company classifies such consideration as deferred revenue until (or as) the Company satisfies such performance obligation. In those instances where the Company first satisfies its performance obligation prior to its receipt of consideration, the consideration is recorded as accounts receivable. The Company expenses incremental costs of obtaining and fulfilling a contract as and when incurred if the expected amortization period of the asset that would be recognized is one year or less, or if the amount of the asset is immaterial. Otherwise, such costs are capitalized as contract assets if they are incremental to the contract and amortized to expense proportionate to revenue recognition of the underlying contract. Research and Development Expenses All research and development costs are expensed in the period incurred. Payments for these activities are based on the terms of the individual agreements, which may differ from the pattern of costs incurred, and payments made in advance of performance are reflected in the accompanying balance sheets as prepaid expenses. The Company records accruals for estimated costs incurred for ongoing research and development activities. When evaluating the adequacy of the accrued expenses, the Company analyzes progress of the services, including the phase or completion of events, invoices received and contracted costs. Significant judgments and estimates may be made in determining the prepaid or accrued balances at the end of any reporting period. Actual results could differ from the Company’s estimates. Patent Costs Costs related to filing and pursuing patent applications are recorded as general and administrative expense and expensed as incurred since recoverability of such expenditures is uncertain. Stock-Based Compensation Stock-based compensation expense represents the grant date fair value of equity awards, consisting of stock options and employee stock purchase rights, recognized on a straight-line basis over the requisite service period for stock options and over the respective offering period for employee stock purchase plan rights. The Company estimates the fair value of equity awards using the Black-Scholes option pricing model and recognizes forfeitures as they occur. Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company recognizes net deferred tax assets to the extent that the Company believes these assets are more likely than not to be realized. In making such a determination, management considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If management determines that the Company would be able to realize its deferred tax assets in the future in excess of their net recorded amount, management would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company records uncertain tax positions on the basis of a two-step process whereby (1) management determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, management recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company recognizes interest and penalties related to unrecognized tax benefits within income tax expense. Any accrued interest and penalties are included within the related tax liability. Comprehensive Loss Comprehensive loss is defined as a change in equity during a period from transactions and other events and circumstances from non-owner sources. The only component of other comprehensive loss is unrealized gain (loss) on available-for-sale securities. Comprehensive losses have been reflected in the statements of operations and comprehensive loss and as a separate component in the statements of stockholders’ equity. Segment Reporting Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision-making group, in making decisions on how to allocate resources and assess performance. The Company views its operations and manages its business as one operating segment. No product revenue has been generated since inception and all assets are held in the United States. Net Loss Per Share Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding for the period, including pre-funded common stock warrants that were issued in an underwritten offering in July 2023 (Note 5), without consideration for potentially dilutive securities. The pre-funded common stock warrants are included in the calculation of basic and diluted net loss per share as the exercise price of $ 0.001 per share is non-substantive and the shares are issuable for little or no consideration. The Company has excluded weighted-average unvested shares of 27,458 shares and 182,194 shares from the weighted-average number of shares of common stock outstanding for the years ended December 31, 2023 and 2022, respectively. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock and dilutive common stock equivalents outstanding for the period determined using the treasury-stock and if-converted methods. For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding as inclusion of the potentially dilutive securities would be anti-dilutive. Potentially dilutive securities not included in the calculation of diluted net loss per share, because to do so would be anti-dilutive, are as follows (in common stock equivalent shares): December 31, 2023 2022 Common stock options 7,989,192 7,345,444 Unvested common stock 10,319 68,406 Employee stock purchase plan shares 13,796 10,423 Total potentially dilutive shares 8,013,307 7,424,273 Emerging Growth Company Status The Company is an emerging growth company, as defined in the Ju |
Balance Sheet Details
Balance Sheet Details | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Balance Sheet Details | 2. Balance Sheet Details Property and equipment, net consist of the following (in thousands): December 31, 2023 2022 Laboratory equipment $ 8,454 $ 6,838 Furniture and fixtures 792 752 Computer equipment and software 628 323 Assets not placed in service 43 145 Total property and equipment 9,917 8,058 Less: accumulated depreciation ( 2,914 ) ( 972 ) Property and equipment, net $ 7,003 $ 7,086 Accrued expenses consist of the following (in thousands): December 31, 2023 2022 Accrued compensation $ 3,303 $ 2,671 Accrued research and development 3,535 4,716 Other accrued expenses 529 623 Unvested stock liabilities 20 169 Accrued expenses $ 7,387 $ 8,179 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 3. Commitments and Contingencies License Agreement with WuXi Biologics (Hong Kong) Limited In April 2021, the Company entered into a cell line license agreement (“Cell Line License Agreement”) with WuXi Biologics (Hong Kong) Limited (“WuXi Biologics”), pursuant to which the Company received a non-exclusive, worldwide, sublicensable license under certain of WuXi Biologics’ patent rights, know-how and biological materials (“WuXi Biologics Licensed Technology”), to use the WuXi Biologics Licensed Technology to make, use, sell, offer for sale and import certain therapeutic products produced through the use of the cell line licensed by WuXi Biologics under the Cell Line License Agreement (“WuXi Biologics Licensed Product”). In consideration for the license, the Company paid WuXi Biologics a non-refundable, one-time license fee of $ 0.2 million upon WuXi Biologics’ achievement of a certain technical milestone. This one-time license fee was recognized as research and development expense when incurred since the WuXi Biologics Licensed Technology had no alternative future use. If the Company does not engage WuXi Biologics or its affiliates to manufacture the WuXi Biologics Licensed Products for its commercial supplies, the Company is required to make royalty payments to WuXi Biologics in an amount equal to a low single-digit percentage of specified portions of net sales of WuXi Biologics Licensed Products manufactured by a third-party manufacturer. The Company has the right (but not the obligation) to buy out its remaining royalty obligations with respect to each WuXi Biologics Licensed Product by paying WuXi Biologics a one-time payment in an amount ranging from low single digit million dollars to a maximum of $ 15.0 million depending on the development and commercialization stage of the WuXi Biologics Licensed Product (the “Buyout Option”), and upon such payment, the Company's license with respect to such WuXi Biologics Licensed Product will become fully paid-up, irrevocable, and perpetual. The royalty obligations will remain in effect during the term of the Cell Line License Agreement so long as the Company has not exercised the Buyout Option. The Cell Line License Agreement will continue indefinitely unless terminated (i) by the Company upon three months’ prior written notice and the Company’s payment of all amounts due to WuXi Biologics through the effective date of termination, (ii) by either party for the other party’s material breach that remains uncured for 30 days after written notice, and (iii) by WuXi Biologics if the Company fails to make a payment and such failure continues for 30 days after receiving notice of such failure. Operating Leases In October 2021, the Company entered into a lease agreement (the “Torrey Plaza Lease”) to lease office and laboratory space in San Diego, California. The Company determined this facilities lease was an operating lease at the inception of the lease contract. According to accounting standards, the Torrey Plaza Lease commenced on April 1, 2022 and has a term of 130 months from the commencement date. The Torrey Plaza Lease provides an option to extend the term of the lease for a period of 5 years beyond the initial term, which the Company is not reasonably certain to exercise and therefore was not considered in determining the ROU assets and lease liabilities balance. As required under the terms of the Torrey Plaza Lease, in October 2021 the Company entered into a standby letter of credit, which is secured by a money market account in the amount of $ 0.8 million. The letter of credit is subject to draw down by the landlord upon certain events of breach or default by the Company. The letter of credit amount is subject to a 50 % reduction subject to certain conditions on or following the date that is 54 months following the contractual lease commencement date. Future minimum noncancelable operating lease payments as of December 31, 2023 are as follows (in thousands): 2024 3,403 2025 3,505 2026 3,611 2027 3,719 2028 3,830 Thereafter 16,872 Total minimum lease payments 34,940 Less: Imputed interest ( 10,398 ) Total operating lease liabilities 24,542 Less: Current portion of operating lease liabilities ( 1,517 ) Operating lease liabilities, net of current portion $ 23,025 The Torrey Plaza lease has a remaining lease term of 9.1 years and a discount rate of 8 % as of December 31, 2023. Operating lease expense included in the measurement of lease liabilities for year ended December 31, 2023 was $ 3.4 million. Cash paid for amounts included in the measurement of lease liabilities for the year ended December 31, 2023 was $ 2.8 million. Operating lease expense included in the measurement of lease liabilities for year ended December 31, 2022 was $ 2.8 million. Cash paid for amounts included in the measurement of lease liabilities for the year ended December 31, 2022 was $ 0.2 million. Contingencies From time to time, the Company may be subject to claims or lawsuits arising in the ordinary course of business. The Company accrues a liability for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. As of December 31, 2023, the Company is not currently party to any material legal proceedings. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 4. Related Party Transactions In January 2021, the Company entered into a Support Services Agreement (the “2021 Support Services Agreement”) with Avalon BioVentures, Inc. ("Avalon") that outlines the terms of services provided by Avalon to the Company, as well as the fees charged for such services. Avalon is a shared service company that provides certain back-office and administrative and research and development support services, including facilities support, to the portfolio companies of Avalon Ventures, an entity that beneficially owns greater than 5 % of our outstanding capital stock. The 2021 Support Services Agreement was most recently renewed in January 2024 and will continue to renew for additional one-year renewal periods until terminated by the parties. Either party may terminate the 2021 Support Services Agreement with 30 days written notice. Operating expense recognized by the Company under the 2021 Support Services Agreement for the year ended December 31, 2023 was immateri al. The Company recognized $ 0.5 million of research and development expenses and $ 0.1 million of general and administrative expenses under the 2021 Support Services Agreement for the year ended December 31, 2022. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | 5. Stockholders’ Equity Shelf Registration Statement In August 2022, the Company filed a shelf registration statement (File No. 333-266720), which was declared effective in September 2022. The shelf registration statement provides the Company with the ability to offer up to $ 400.0 million of certain securities, including shares of its common stock, from time to time. The specific terms of any offering under the shelf registration statement are established at the time of such offering. In August 2022, the Company entered into an Open Market Sale Agreement SM (“Sale Agreement”) with Jefferies LLC (“Jefferies”) to sell shares of common stock, from time to time, through an “at the market offering” program having an aggregate offering price of up to $ 100.0 million through which Jefferies would act as sales agent. In May 2023 , the Company terminated the Sale Agreement. In May 2023, the Company entered into an ATM Equity Offering SM Sales Agreement (“New Sale Agreement”) with BofA Securities, Inc. (“BofA”) to sell shares of common stock, from time to time, through an “at the market offering” program having an aggregate offering price of up to $ 150.0 million through which BofA would act as sales agent. There was no activity from the New Sale Agreement during the year ended December 31, 2023. As of December 31, 2023 , $ 150.0 million of common stock remained available for sale under the New Sale Agreement. In February 2024, the Company delivered written notice to BofA that it was suspending and terminating the prospectus related to the shares of its common stock issuable pursuant to the terms of the New Sale Agreement. As a result, the Company will not make any sales of its securities pursuant to the New Sale Agreement, unless and until a new prospectus, prospectus supplement, or a new registration statement relating to the shares of its common stock is filed. Other than the termination of the prospectus, the New Sale Agreement remains in full force and effect. In July 2023, the Company closed an underwritten offering of 4,153,717 shares of its common stock and pre-funded warrants to purchase 583,483 shares of common stock at an exercise price of $ 0.001 per share. The shares of common stock were sold at a price of $ 12.46 per share and the pre-funded common stock warrants were sold at a price of $ 12.459 per pre-funded common stock warrant, resulting in gross proceeds of $ 59.0 million. Fees related to the offering included underwriting discounts, commissions, and offering expenses in the aggregate amount of $ 2.5 million, resulting in net proceeds of $ 56.5 million. The pre-funded common stock warrants will not expire until exercised in full and are exercisable in cash or by means of a cashless exercise. The Company has assessed the pre-funded common stock warrants for appropriate equity or liability classification. The pre-funded common stock warrants are equity classified because they (i) are freestanding financial instruments that are legally detachable and separately exercisable from the equity instruments, (ii) are immediately exercisable, (iii) do not embody an obligation for the Company to repurchase its shares, (iv) permit the holders to receive a fixed number of shares of common stock upon exercise, (v) are indexed to the Company’s common stock and (vi) meet the equity classification criteria. In addition, such pre-funded common stock warrants do not provide any guarantee of value or return and do not provide the warrant holders with the option to settle any unexercised warrants for cash outside of the Company’s control. The pre-funded common stock warrants also include a separate provision whereby the exercisability of the warrants may be limited if, upon exercise, the warrant holder or any of its affiliates would beneficially own more than 19.9 % of the Company’s outstanding common stock. The Company valued the pre-funded common stock warrants at issuance, concluding that their sale price approximated their fair value. Accordingly, the pre-funded common stock warrants are accounted for as a component of additional paid-in capital at the time of issuance. 2017 Equity Incentive Plan In August 2017, the Company adopted the Janux Therapeutics, Inc. 2017 Equity Incentive Plan (the “2017 Plan”), which provided for the grant of incentive stock options, nonstatutory stock options, restricted stock awards and other stock awards to its employees, members of its board of directors and consultants. The maximum term of options granted under the 2017 Plan is ten years and, in general, the options issued under the 2017 Plan vest over a four-year period from the vesting commencement date. The 2017 Plan allows for the early exercise of stock options, which may be subject to repurchase by the Company at the original exercise price. Upon the effectiveness of the 2021 Plan defined and described below, no further grants will be made under the 2017 Plan. Any outstanding awards granted under the 2017 Plan will remain subject to the terms of the 2017 Plan and applicable award agreements. 2021 Equity Incentive Plan In June 2021, the Company adopted the 2021 Equity Incentive Plan (the “2021 Plan,” and together with the 2017 Plan the “Plans”). Under the 2021 Plan, the Company may grant stock options, stock appreciation rights, restricted stock, restricted stock units, performance stock awards, performance cash awards and other forms of stock awards to employees, directors and consultants. The maximum term of options granted under the 2021 Plan is ten years and, in general, the options issued under the 2021 Plan vest over a four-year period from the vesting commencement date. The 2021 Plan does not permit early exercises. A total of 2,775,890 new shares of common stock were initially reserved for issuance under the 2021 Plan. The number of shares reserved that were remaining under the 2017 Plan as of the effective date of the 2021 Plan, or 1,424,110 shares, were added to the shares initially reserved under the 2021 Plan upon its effectiveness and any future cancellations under the 2017 Plan will become available for future issuance under the 2021 Plan. In addition, the number of shares of common stock available for issuance under the 2021 Plan automatically increases on January 1 of each calendar year through January 1, 2031, in an amount equal to 5% of the total number of shares of the Company’s common stock on the last day of the calendar month before the date of each automatic increase, or a lesser number of shares determined by the Company’s board of directors. As of December 31, 2023, there w ere 9,169,849 s hares authorized for issuance under the 2021 Plan, inclusive of shares added from 2017 Plan cancellations. A summary of the Company’s stock option activity under its Plans is as follows (in thousands, except share, per share data and years): Number of Weighted- Weighted- Aggregate Balance at December 31, 2022 7,345,444 $ 11.67 8.3 $ 29,806 Granted 2,019,450 $ 13.80 Exercised ( 253,545 ) $ 8.86 Forfeited or cancelled ( 1,122,157 ) $ 13.25 Balance at December 31, 2023 7,989,192 $ 12.08 7.8 $ 16,733 Vested and expected to vest at December 31, 2023 7,989,192 $ 12.08 7.8 $ 16,733 Exercisable at December 31, 2023 5,226,145 $ 9.89 7.3 $ 16,596 The weighted-average grant date fair value of option grants for the years ended December 31, 2023 and 2022 was $ 10.02 and $ 12.35 , respectively. The total intrinsic value of stock options exercised for the years ended December 31, 2023 and 2022 was $ 1.9 million and $ 0.1 million, respectively. As of December 31, 2023 , total unrecognized stock-based compensation cost associated with option grants was $ 34.1 million, which is expected to be recognized over a remaining weighted-average period of approximately 2.2 years. The assumptions used in the Black-Scholes option pricing model to determine the fair value of stock option grants under the Plans were as follows: Year Ended December 31, 2023 2022 Risk-free interest rate 3.5 % – 4.7 % 1.5 % – 4.2 % Expected volatility 82 % – 87 % 81 % – 85 % Expected term (in years) 5.3 – 6.1 5.3 – 6.1 Expected dividend yield — — Risk-free interest rate . The risk-free interest rate is based on the U.S. Treasury yield in effect at the time of grant for zero coupon U.S. Treasury notes with maturities similar to the expected term of the awards. Expected volatility . Given the Company’s limited historical stock price volatility data, the expected volatility assumption is based on volatilities of a peer group of similar companies whose share prices are publicly available, including the Company's historical volatility, weighted by years of available trading data within the expected term. The peer group was developed based on companies in the biotechnology industry. The Company will continue to apply this process until a sufficient amount of historical information regarding the volatility of its own stock price becomes available. Expected term . The expected term represents the period of time that options are expected to be outstanding. Because the Company does not have sufficient historical exercise behavior to provide a reasonable basis upon which to estimate the expected term, it determines the expected life assumption using the simplified method, for employees, which is an average of the contractual term of the option and its vesting period. The expected term for nonemployee options is generally the contractual term. Expected dividend yield . The Company bases the expected dividend yield assumption on the fact that it has never paid cash dividends and has no present intention to pay cash dividends and, therefore, used an expected dividend yield of zero. 2021 Employee Stock Purchase Plan In June 2021, the Company adopted the 2021 Employee Stock Purchase Plan (the “ESPP”), which became effective on June 10, 2021. The ESPP permits eligible employees who elect to participate in an offering under the ESPP to have up to 15 % of their eligible earnings withheld, subject to certain limitations, to purchase shares of common stock pursuant to the ESPP. The price of common stock purchased under the ESPP is equal to 85 % of the lower of the fair market value of the common stock at the commencement date of each offering period or the relevant date of purchase. A total o f 466,000 shares of common stock were approved to be initially reserved for issuance under the ESPP. In addition, the number of shares of common stock available for issuance under the ESPP automatically increases on January 1 of each calendar year through January 1, 2031, in an amount equal to the lesser of (i) 1 % of the total number of shares of the Company’s common stock on the last day of the calendar month before the date of each automatic increase and (ii) 932,000 shares; provided that before the date of any such increase, the Company’s board of directors may determine that such increase will be less than the amount set forth in clauses (i) and (ii). In June 2021, employees began to enroll in the ESPP and the Company’s first offering period commenced. Stock-based compensation expense related to the ESPP was $ 0.9 million and $ 0.6 million for the years ended December 31, 2023 and 2022, respectively. As of December 31, 2023 , total unrecognized stock-based compensation expense related to the ESPP was $ 0.7 million, which is expected to be recognized over a remaining weighted-average period of approximately 1.6 years. Stock-Based Compensation Expense Stock-based compensation expense has been reported in the statements of operations and comprehensive loss as follows (in thousands): Year Ended December 31, 2023 2022 Research and development $ 7,873 $ 7,235 General and administrative 12,132 9,968 Total $ 20,005 $ 17,203 Unvested Stock Liabilities A summary of the Company’s unvested shares and unvested stock liabilities is as follows (in thousands, except share data): Number of Weighted-Average Grant Date Fair Value Unvested Balance at December 31, 2022 68,406 $ 1.94 $ 169 Vested shares ( 58,087 ) $ 2.00 ( 149 ) Balance at December 31, 2023 10,319 $ 1.57 $ 20 Common Stock Reserved for Future Issuance Common stock reserved for future issuance consists of the following: December 31, 2023 2022 Common stock options outstanding 7,989,192 7,345,444 Shares available for issuance under the Plans 5,198,941 4,012,001 Shares available for issuance under the ESPP 1,142,750 816,478 Pre-funded common stock warrants 503,226 — Total 14,834,109 12,173,923 |
Research Collaboration and Excl
Research Collaboration and Exclusive License Agreement | 12 Months Ended |
Dec. 31, 2023 | |
Research Collaboration And Exclusive License Agreement [Abstract] | |
Research Collaboration and Exclusive License Agreement | 6. Research Collaboration and Exclusive License Agreement In December 2020, the Company entered into a research collaboration and exclusive license agreement (the “Merck Agreement”), pursuant to which the Company granted Merck Sharp & Dohme Corp. (“Merck”) an exclusive, worldwide, royalty-bearing, sublicensable license to certain of its patent rights and know-how for up to two collaboration targets (“First Collaboration Target” and “Second Collaboration Target”, together the “Collaboration Targets”) related to next generation T cell engager immunotherapies for the treatment of cancer. In each case, once the Collaboration Targets are designated by Merck, they have the right to research, develop, make, have made, use, import, offer to sell, and sell compounds and any licensed products related thereto. Merck selected the First Collaboration Target upon execution of the Merck Agreement and selected the Second Collaboration Target in May 2022. Following the research term, Merck will have the sole right to research, develop, manufacture, and commercialize the licensed compounds and products directed against the Collaboration Targets. Consideration in the Merck Agreement consists of (i) an $ 8.0 million non-refundable and non-creditable upfront fee, (ii) $ 8.0 million paid upon the selection of the Second Collaboration Target, (iii) research program funding (iv) development and regulatory milestones, (v) commercial milestones, and (vi) royalty payments. Under the Merck Agreement, the Company is eligible to receive up to an aggregate of $ 142.5 million per Collaboration Target in milestone payments ($ 285.0 million collectively for both Collaboration Targets), contingent on the achievement of certain regulatory and development milestones. Merck is also required to make milestone payments to the Company upon the successful completion of certain commercial milestones, in an aggregate amount not to exceed $ 350.0 million for each licensed product under either of the Collaboration Targets. The Merck Agreement provides that Merck is obligated to pay to the Company tiered royalty payments on a product-by-product and country-by-country basis, ranging from low single-digit to low teens percentage royalty rates on specified portions of annual net sales for licensed products under either of the Collaboration Targets that are commercialized. Such royalties are subject to reduction, on a product-by-product and country-by-country basis, for licensed products not covered by patent claims, or that require Merck to obtain a license to obtain a license to third-party intellectual property in order to commercialize the licensed products, or that are subject to compulsory licensing. The Merck Agreement will terminate at the end of the calendar year in which the expiration of all royalty obligations occurs for all licensed products under the agreement. Merck has the unilateral right to terminate the Merck Agreement in its entirety or on a Collaboration Target by Collaboration Target basis at any time and for any reason upon prior written notice to the Company. Both parties have the right to terminate the agreement for an uncured material breach, certain illegal or unethical activities, and insolvency of the other party. Upon expiration of the agreement but not early termination thereof, and provided all payments due under the agreement have been made, Merck’s exclusive licenses under the agreement will become fully paid-up and perpetual. The Company concluded that Merck represented a customer and has accounted for the initial units of account in accordance with FASB’s Accounting Standards Codification 606, Revenue from Contracts with Customers (“ASC 606”). As it relates to Merck's option to select a Second Collaboration Target, which was exercised in May 2022, the Company concluded that this option represented a customer option to purchase additional goods or services that is not a material right and, therefore, is accounted for as a separate contract and separate performance obligation to purchase the additional goods or services. The Company identified its performance obligations under the Merck Agreement and each Collaboration Target as the grant to Merck of an exclusive license to certain of its intellectual property subject to certain conditions, its conduct of research services and the Company’s participation in a joint research committee. The Company determined that these performance obligations should be accounted for as one combined performance obligation for each Collaboration Target since they are not distinct. The Company also determined that the combined performance obligation for each Collaboration Target is transferred over the expected term of the conduct of the research services. In accordance with ASC 606, the Company determined that the initial transaction price under the Merck Agreement for the First Collaboration Target is $ 11.4 million, consisting of the upfront, non-refundable and non-creditable payment of $ 8.0 million and the aggregate estimated reimbursable research program funding of $ 3.4 million. The Company determined that the initial transaction price under the Merck Agreement for the Second Collaboration Target is $ 12.0 million, consisting of the upfront, non-refundable and non-creditable payment of $ 8.0 million and the aggregate estimated reimbursable research program funding of $ 4.0 million. The performance obligations related to the First Collaboration Target were completed as of December 31, 2023. The aggregate amount of the transaction price allocated to the performance obligations that were unsatisfied (or partially unsatisfied) as of December 31, 2023 was $ 3.1 million for the Second Collaboration Target. The Company concluded that there was not a significant financing component under the Merck Agreement. With respect to the remaining variable consideration within the Merck Agreement, including milestone and royalty payments, the Company determined that as of December 31, 2023 these payments were probable of significant revenue reversal as their achievement is highly dependent on factors outside the Company’s control. Therefore, this aggregate consideration has been fully constrained and is not included in the transaction price at December 31, 2023. At the end of each subsequent reporting period, the Company will re-evaluate the probability of achievement of each milestone and any related constraint, and if necessary, adjust its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect the reported amount of revenues in the period of adjustment. Consideration received for each Collaboration Target is recorded as deferred revenue and recognized as revenue over time in conjunction with the Company’s conduct of research services as the research services are the primary component of the combined performance obligations for each Collaboration Target. Revenue associated with the upfront payment and research program funding for each Collaboration Target is recognized based on actual total full-time equivalent employees (“FTEs”) utilized as a percentage of total FTEs expected to be utilized over the expected term of conduct of the research services performed for each respective Collaboration Target. The Company estimates the remaining term of these research services, over which revenue will be recognized, t o be 0.7 years for th e Second Collaboration Target as of December 31, 2023. The Company recognized $ 8.1 million and $ 8.6 million of revenue under the Merck Agreement for the years ended December 31, 2023 and 2022, respectively. As of December 31, 2023 , aggregate deferred revenue related to the Merck Agreement was $ 1.7 million, all of which was classified as current. The Company did no t have an accounts receivable balance outstanding as of December 31, 2023 and 2022. The remaining performance obligations under the Merck Agreement relate to the Company’s conduct of research services for the Second Collaboration Target and the Company’s participation in a joint research committee. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes The Company has no t recorded a current or deferred tax expense or benefit for the years ended December 31, 2023 or 2022. The net losses for the years ended December 31, 2023 and 2022 were generated solely in the United States. A reconciliation of the Company’s income tax expense (benefit) to the amount computed by applying the federal statutory income tax rate is summarized as follows (in thousands): Year Ended December 31, 2023 2022 Expected tax benefit computed at federal statutory rate $ ( 12,242 ) $ ( 13,242 ) State income taxes, net of federal tax benefit ( 2,827 ) ( 3,754 ) Permanent differences 3,567 1,899 Research and development credits ( 4,300 ) ( 2,930 ) Reserve for uncertain tax positions 1,058 715 Other 124 80 Change in valuation allowance 14,620 17,232 Income tax expense (benefit) $ — $ — Significant components of the Company’s net deferred tax assets (liabilities) are summarized as follows (in thousands): December 31, 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 18,745 $ 16,261 Capitalized research and development 15,698 8,310 Lease liability 6,868 7,081 Research and development credit carryforwards 6,597 3,377 Stock-based compensation 4,005 3,453 Other 713 430 Total deferred tax assets 52,626 38,912 Valuation allowance ( 44,981 ) ( 30,976 ) Net deferred tax assets 7,645 7,936 Deferred tax liabilities: ROU asset ( 5,831 ) ( 6,235 ) Property and equipment ( 1,498 ) ( 1,519 ) Other ( 316 ) ( 182 ) Total gross deferred tax liabilities ( 7,645 ) ( 7,936 ) Net deferred tax assets $ — $ — Deferred income tax assets and liabilities are recorded for differences between the financial statement and tax basis of the assets and liabilities that will result in taxable or deductible amounts in the future based on enacted laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The Company has evaluated the available evidence supporting the realization of its gross deferred tax assets, including the amount and timing of future taxable income, and has determined it is more likely than not that the assets will not be realized. Due to uncertainties surrounding the realizability of the deferred tax assets, the Company maintains a full valuation allowance against its deferred tax assets at December 31, 2023 and 2022. At December 31, 2023 , the Company had federal and state net operating loss ("NOL") carryforwards of $ 49.9 million and $ 117.6 million, respectively. Federal NOL carryforwards totaling $ 0.5 million begin to expire in 2037 , unless previously utilized, and federal NOL carryforwards of $ 49.4 million generated after 2017, may be carried forward indefinitely but can only be utilized to offset 80 % of future taxable income. State NOL carryforwards totaling $ 117.6 million begin to expire in 2037 , unless previously utilized. In addition, the Company also has federal and state research and development ("R&D") credit carryforwards totaling $ 6.4 million and $ 3.1 million respectively. The federal R&D credit carryforwards will begin to expire in 2037 unless previously utilized. The state R&D credit carryforwards do not expire. Utilization of the Company's NOL and R&D credit carryforwards may be subject to substantial annual limitations in the event a cumulative ownership change has occurred, or that could occur in the future, as required by Section 382 of the Internal Revenue Code of 1986, as amended (the "Code"). In general, an "ownership change," as defined by Section 382 of the Code, results from a transaction, or series of transactions over a three-year period, resulting in an ownership change of more than 50% of the outstanding stock of a company by certain stockholders or public groups. Such an ownership change may limit the amount of NOL and R&D credit carryforwards that can be utilized annually to offset future taxable income and tax, respectively. The Company has not completed such an ownership change analysis pursuant to Section 382 of the Code. If ownership changes have occurred or occur in the future, the amount of remaining tax attribute carryforwards available to offset taxable income and income tax expense in future years may be restricted or eliminated. If eliminated, the related asset would be removed from deferred tax assets with a corresponding reduction in the valuation allowance. Due to the existence of the valuation allowance, limitations created by future ownership changes, if any, will not impact the Company's effective tax rate. The Company recognizes a tax benefit from an uncertain tax position when it is more likely than not that the position will be sustained upon examination by tax authorities. Further, due to the existence of the valuation allowance, future changes in the Company's unrecognized tax benefits will not impact the effective tax rate. The following table summarizes the changes to the Company’s gross unrecognized tax benefits for the years ended December 31, 2023 and 2022 (in thousands): Year Ended December 31, 2023 2022 Balance at beginning of year $ 1,273 $ 510 Increases related to prior year tax positions 126 — Increases related to current year tax positions 990 763 Balance at end of year $ 2,389 $ 1,273 The Company had no accrual for interest or penalties on the Company's balance sheets at December 31, 2023 or 2022, and has not recognized interest and/or penalties in the statement of operations and comprehensive loss for the years ended December 31, 2023 and 2022. As of December 31, 2023 and 2022, the Company had unrecognized tax benefits of $ 2.4 million an d $ 1.3 mil lion, respectively, which if recognized currently, should not impact the effective tax rate due to the Company maintaining a full valuation allowance. The Company does not expect that there will be a significant change in the unrecognized tax benefit over the next twelve months. The Company is subject to taxation in the United States and various state jurisdictions. All of the Company's tax years are subject to examination by federal and state tax authorities due to the carryforward of unutilized net operating losses and research and development credits. Further, the Company is not currently under examination by any federal, state or local tax authority. |
401 (k) Plan
401 (k) Plan | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
401 (k) Plan | 8. 401(k) Plan Effective April 2021, the Company adopted a defined contribution retirement savings plan under Section 401(k) of the Internal Revenue Code available to eligible employees. Employee contributions are voluntary and determined on an individual basis, limited to the maximum amount allowable under federal tax regulations. Under the plan, the Company makes a mandatory annual contribution of up to 3 % of eligible employees’ compensation. Employer contributions for the years ended December 31, 2023 and 2022 were $ 0.4 million and $ 0.2 million, respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 9. Subsequent Events In March 2024, the Company closed an underwritten offering of 5,397,301 shares of its common stock and pre-funded warrants to purchase 1,935,483 shares of common stock. The shares of common stock were sold at a price of $ 46.50 per share and the pre-funded common stock warrants were sold at a price of $ 46.499 per pre-funded common stock warrant, resulting in gross proceeds of $ 341.0 million. Fees related to the offering included underwriting discounts, commissions, and estimated offering expenses in the aggregate amount of $ 20.8 million, resulting in estimated net proceeds of $ 320.2 million. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Janux Therapeutics, Inc. (the “Company”) was incorporated in the State of Delaware in June 2017 and is based in San Diego, California. The Company is a clinical-stage biopharmaceutical company developing a broad pipeline of novel immunotherapies by applying its proprietary technology to its Tumor Activated T Cell Engager (“TRACTr”) and Tumor Activated Immunomodulator (“TRACIr”) platforms to better treat patients suffering from cancer. |
Liquidity and Capital Resources | Liquidity and Capital Resources From its inception through December 31, 2023, the Company has devoted substantially all its efforts to organizing and staffing, business planning, raising capital and developing its TRACTr and TRACIr therapeutic platforms and assets. The Company has incurred net losses and negative cash flows from operations since inception and had an accumulated deficit of $ 168.8 million as of December 31, 2023. The Company has a limited operating history, has not generated any product revenue, and the sales and income potential of its business is unproven. To date the Company has funded its operations primarily with the net proceeds from the issuance of convertible promissory notes, the issuance of convertible preferred stock, the issuance of common stock in its initial public offering (“IPO”), the issuance of common stock and pre-funded common stock warrants in an underwritten offering, the exercise of common stock options, and amounts received under a collaboration agreement. The Company expects to incur substantial operating losses for the next several years and will need to obtain additional financing in order to continue its research and development activities, initiate and complete clinical trials and launch and commercialize any product candidates for which it receives regulatory approval. The Company plans to continue to fund its losses from operations and capital funding needs through public or private equity or debt financings or other sources. If the Company is not able to secure adequate additional funding, the Company may be forced to make reductions in spending, extend payment terms with suppliers, liquidate assets where possible, or suspend or curtail planned programs. Any of these actions could materially harm the Company’s business, results of operations and future prospects. There can be no assurance that such financing will be available or will be at terms acceptable to the Company, especially in light of COVID-19 and other public health crises, current financial conditions within the banking industry, including the effects of recent failures of financial institutions and liquidity levels, as well as recent or anticipated changes in interest rates and the inflationary macro environment. The accompanying financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business, and do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or amounts and classification of liabilities that may result from the outcome of this uncertainty. Management is required to perform an analysis over its ability to continue as a going concern. Management must first evaluate whether there are conditions and events that raise substantial doubt about the Company’s ability to continue as a going concern (step 1). If management concludes that substantial doubt is raised, management is also required to consider whether its plans alleviate that doubt (step 2). Management’s assessment included the preparation of cash flow forecasts resulting in management’s conclusion that the Company has sufficient capital to fund operations for at least 12 months from the date the financial statements for the year ended December 31, 2023 are issued. |
Use of Estimates | Use of Estimates The Company’s financial statements are prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). The preparation of the Company’s financial statements requires it to make estimates and assumptions that impact the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in the Company’s financial statements and accompanying notes. The most significant estimates in the Company’s financial statements relate to estimates to complete the performance obligations and the estimated transaction price for collaboration revenue, accruals for research and development expenses, stock-based compensation and fair value measurements. These estimates and assumptions are based on current facts, historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of revenues and expenses that are not readily apparent from other sources. The Company continues to use the best information available to update its accounting estimates. Actual results may differ materially and adversely from these estimates. |
Fair Value Measurement | Fair Value Measurements The accounting guidance defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or non-recurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the accounting guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets. Level 2: Inputs, other than the quoted prices in active markets that are observable either directly or indirectly. Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, prepaid and other current assets, accounts payable, and accrued expenses, approximate fair value due to the short-term nature of those instruments. The fair value of assets classified within Level 1 is based on quoted prices in active markets as provided by the Company’s investment managers. The fair value of short-term investments classified within Level 2 is based on standard observable inputs, including reported trades, broker/dealer quotes, and bids and/or offers. The Company validates the quoted market prices provided by its investment managers by comparing the investment managers’ assessment of the fair values of the Company’s investment portfolio balance against the fair values of the Company’s investment portfolio balance obtained from an independent source. The Company has no financial liabilities recorded at fair value on a recurring basis. None of the Company’s non-financial assets or liabilities are recorded at fair value on a non-recurring basis. No transfers between levels have occurred during the periods presented. The following tables summarize the Company’s financial instruments measured at fair value on a recurring basis (in thousands): Fair Value Measurements at Total Quoted Prices in Significant Other Significant As of December 31, 2023: Assets: Cash equivalents: Money market funds $ 14,751 $ 14,751 $ — $ — Total cash equivalents 14,751 14,751 — — Short-term investments: U.S. Treasury securities 71,300 71,300 — — U.S. agency bonds 167,103 — 167,103 — Asset-backed securities 5,055 — 5,055 — Corporate debt securities 1,999 — 1,999 — Commercial paper 79,366 — 79,366 — Total short-term investments 324,823 71,300 253,523 — Restricted cash: Money market account 816 816 — — Total restricted cash 816 816 — — Total assets measured at fair value on a recurring basis $ 340,390 $ 86,867 $ 253,523 $ — Fair Value Measurements at Total Quoted Prices in Significant Other Significant As of December 31, 2022: Assets: Cash equivalents: Money market funds $ 12,697 $ 12,697 $ — $ — Total cash equivalents 12,697 12,697 — — Short-term investments: U.S. Treasury securities 63,016 63,016 — — U.S. agency bonds 67,020 — 67,020 — U.S. agency discount notes 4,334 — 4,334 — Corporate debt securities 1,970 — 1,970 — Commercial paper 139,250 — 139,250 — Total short-term investments 275,590 63,016 212,574 — Restricted cash: Money market account 816 816 — — Total restricted cash 816 816 — — Total assets measured at fair value on a recurring basis $ 289,103 $ 76,529 $ 212,574 $ — |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. Cash and cash equivalents include cash in readily available checking accounts and money market funds. |
Restricted Cash | Restricted Cash Restricted cash consists of a money market account securing a standby letter of credit issued in connection with the Company’s Torrey Plaza operating lease (as defined and described in Note 3). The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the accompanying balance sheets that sum to the amounts shown in the statements of cash flows (in thousands): December 31, 2023 2022 Cash and cash equivalents $ 19,205 $ 51,426 Restricted cash 816 816 Total cash and cash equivalents and restricted cash $ 20,021 $ 52,242 |
Short-Term Investments | Short-Term Investments Short-term investments consist of U.S. Treasury securities, U.S. agency bonds, U.S. agency discount notes, asset-backed securities, corporate debt securities and commercial paper, all of which are highly rated by Moody’s, S&P, and Fitch. The Company has classified these investments as available-for-sale, as the sale of such investments may be required prior to maturity to implement management strategies, and therefore has classified all investment securities as current assets. Those investments with maturity dates of three months or less at the date of purchase are presented as cash equivalents in the accompanying balance sheets. Short-term investments are carried at fair value with the unrealized gains and losses included in accumulated other comprehensive income (loss) as a component of stockholders’ equity until realized. Any premium or discount arising at purchase is amortized or accreted to interest income as an adjustment to yield using the straight-line method over the life of the instrument. The Company records an allowance for credit losses when unrealized losses are due to credit-related factors. Realized gains and losses are calculated using the specific identification method and recorded as interest income. The following tables summarize short-term investments (in thousands): As of December 31, 2023 Amortized Unrealized Estimated Cost Gains Losses Fair Value U.S. Treasury securities $ 71,072 $ 242 $ ( 14 ) $ 71,300 U.S. agency bonds 166,699 591 ( 187 ) 167,103 Asset-backed securities 5,078 — ( 23 ) 5,055 Corporate debt securities 1,999 — — 1,999 Commercial paper 79,310 56 — 79,366 Total $ 324,158 $ 889 $ ( 224 ) $ 324,823 As of December 31, 2022 Amortized Unrealized Estimated Cost Gains Losses Fair Value U.S. Treasury securities $ 63,675 $ — $ ( 659 ) $ 63,016 U.S. agency bonds 67,421 — ( 401 ) 67,020 U.S. agency discount notes 4,321 13 — 4,334 Corporate debt securities 1,975 — ( 5 ) 1,970 Commercial paper 139,733 26 ( 509 ) 139,250 Total $ 277,125 $ 39 $ ( 1,574 ) $ 275,590 The amortized cost and estimated fair value in the tables above exclude $ 2.2 million and $ 0.7 million of accrued interest receivable as of December 31, 2023 and 2022, respectively. Accrued interest receivable is included in prepaid expenses and other current assets in the accompanying balance sheets. Contractual maturities of available-for-sale debt securities are as follows (in thousands): As of December 31, 2023 Due in 1 Year or Less Due Between 1 and 3 Years U.S. Treasury securities $ 34,426 $ 36,874 U.S. agency bonds 89,801 77,302 Asset-backed securities 5,055 — Corporate debt securities 1,999 — Commercial paper 79,366 — Total $ 210,647 $ 114,176 As of December 31, 2022 Due in 1 Year or Less Due Between 1 and 3 Years U.S. Treasury securities $ 57,369 $ 5,647 U.S. agency bonds 37,202 29,818 U.S. agency discount notes 4,334 — Corporate debt securities — 1,970 Commercial paper 139,250 — Total $ 238,155 $ 37,435 As of December 31, 2023 , 15 out of 45 of our available-for-sale debt securities were in an aggregate gross unrealized loss position. The Company relies on both qualitative and quantitative factors to determine whether the unrealized loss for each available-for-sale debt security at any balance sheet date is due to a credit loss. Qualitative factors may include a credit downgrade, severity of the decline in fair value below amortized cost and other adverse conditions related specifically to the security, as well as the intent to sell the security, or whether the Company will “more likely than not” be required to sell the security before recovery of its amortized cost basis. The Company considers the decline in market value for the securities to be primarily attributable to current economic conditions and interest rate adjustments, rather than credit-related factors and does not intend to sell any securities prior to maturity. No allowance for credit losses has been recorded as of December 31, 2023 or December 31, 2022. The following tables summarize our available-for-sale debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands): As of December 31, 2023 Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized U.S. Treasury securities $ 5,892 $ ( 14 ) $ — $ — $ 5,892 $ ( 14 ) U.S. agency bonds 63,583 ( 169 ) 9,970 ( 18 ) 73,553 ( 187 ) Asset-backed securities 5,055 ( 23 ) — — 5,055 ( 23 ) Total $ 74,530 $ ( 206 ) $ 9,970 $ ( 18 ) $ 84,500 $ ( 224 ) As of December 31, 2022 Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized U.S. Treasury securities $ 15,566 $ ( 82 ) $ 47,450 $ ( 577 ) $ 63,016 $ ( 659 ) U.S. agency bonds 67,020 ( 401 ) — — 67,020 ( 401 ) Corporate debt securities 1,970 ( 5 ) — — 1,970 ( 5 ) Commercial paper 118,840 ( 509 ) — — 118,840 ( 509 ) Total $ 203,396 $ ( 997 ) $ 47,450 $ ( 577 ) $ 250,846 $ ( 1,574 ) |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents and short-term investments. The Company invests its cash reserves in money market funds or available-for-sale debt securities in accordance with its investment policy. The Company’s investment policy includes guidelines on acceptable investment securities, limits interest-bearing security investments to certain types of debt and money market instruments issued by the U.S. government and institutions with investment grade credit ratings and places restrictions on maturities and concentration by asset class and issuer in order to maintain appropriate diversification. In accordance with the Company’s policies, the Company monitors exposure with its counterparties. The Company also maintains deposits in federally insured financial institutions in excess of federally insured limits. The Company has not experienced any losses in such account and management believes that the Company is not exposed to significant credit risk. The Company is also subject to credit risk from its accounts receivable. The Company generally does not perform evaluations of customers’ financial condition and generally does not require collateral. For the years ended December 31, 2023 and 2022, all of the Company’s revenue related to a single customer. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net consists of laboratory equipment, furniture and fixtures and computer equipment and software. Property and equipment is stated at cost and depreciated over the estimated useful lives of the assets (generally five years ) using the straight-line method. Repairs and maintenance costs are charged to expense as incurred. An impairment loss is recorded if and when events and circumstances indicate that assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of those assets. The Company has not recognized any impairment losses through December 31, 2023 . |
Deferred Revenue | Deferred Revenue When the Company is entitled to bill its customers and receive payment from its customers in advance of its obligation to provide services or transfer goods to its customers, the Company includes the amounts in deferred revenue on its balance sheets. For further discussion, refer to the Company’s revenue recognition policy below. |
Leases | Leases The Company determines if a contract contains a lease at the inception of the contract and evaluates each lease agreement to determine whether the lease is an operating or finance lease. For leases where the Company is the lessee, right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent an obligation to make lease payments arising from the lease. Liabilities from operating leases are included in current portion of operating lease liabilities, and operating lease liabilities, net of current portion on the accompanying balance sheets. The Company does not have any financing leases. Short-term leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company does not have material short-term lease costs. Lease liabilities are measured at the present value of the lease payments not yet paid discounted using the discount rate for the lease established at the lease commencement date. To determine the present value, the implicit rate is used when readily determinable. For those leases where the implicit rate is not provided, the Company determines an incremental borrowing rate (“IBR”) based on the information available at the lease commencement date in determining the present value of lease payments. The IBR is the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. ROU assets are measured as the present value of the lease payments and also include any prepaid lease payments made and any other indirect costs incurred, and exclude any lease incentives received. Lease terms may include the impact of options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for operating leases is recognized on a straight-line basis over the lease term. The Company’s operating leases are subject to additional variable charges, including common area maintenance, property taxes, property insurance and other variable costs. Given the variable nature of such costs, they are recognized as expense as incurred. The Company has elected the practical expedient to account for the lease and non-lease components, such as common area maintenance charges, as a single lease component for the Company's facilities leases. The Company has elected to recognize lease incentives, such as tenant improvement allowances, at the lease commencement date as a reduction to the ROU asset and lease liabilities balance until paid to it by the lessor to the extent that the lease provides a specified fixed or maximum level of reimbursement and the Company is reasonably certain to incur reimbursable costs at least equaling such amounts. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue in a manner that depicts the transfer of control of a product or a service to a customer and reflects the amount of the consideration the Company is entitled to receive in exchange for such product or service. In doing so, the Company follows a five-step approach: (i) identify the contract with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations, and (v) recognize revenue when (or as) the customer obtains control of the product or service. The Company considers the terms of a contract and all relevant facts and circumstances when applying the revenue recognition standard. A customer is a party that has entered into a contract with the Company, where the purpose of the contract is to obtain a product or a service that is an output of the Company’s ordinary activities in exchange for consideration. To be considered a contract, (i) the contract must be approved (in writing, orally, or in accordance with other customary business practices), (ii) each party’s rights regarding the product or the service to be transferred can be identified, (iii) the payment terms for the product or the service to be transferred can be identified, (iv) the contract must have commercial substance (that is, the risk, timing or amount of future cash flows is expected to change as a result of the contract), and (v) it is probable that the Company will collect substantially all of the consideration to which it is entitled to receive in exchange for the transfer of the product or the service. A performance obligation is defined as a promise to transfer a product or a service to a customer. The Company identifies each promise to transfer a product or a service (or a bundle of products or services, or a series of products and services that are substantially the same and have the same pattern of transfer) that is distinct. A product or a service is distinct if both (i) the customer can benefit from the product or the service either on its own or together with other resources that are readily available to the customer and (ii) the Company’s promise to transfer the product or the service to the customer is separately identifiable from other promises in the contract. Each distinct promise to transfer a product or a service is a unit of accounting for revenue recognition. If a promise to transfer a product or a service is not separately identifiable from other promises in the contract, such promises should be combined into a single performance obligation. The transaction price is the amount of consideration the Company is entitled to receive in exchange for the transfer of control of a product or a service to a customer. To determine the transaction price, the Company considers the existence of any significant financing component, the effects of any variable elements, noncash considerations and consideration payable to the customer. If a significant financing component exists, the transaction price is adjusted for the time value of money. If an element of variability exists, the Company must estimate the consideration it expects to receive and uses that amount as the basis for recognizing revenue as the product or the service is transferred to the customer. There are two methods for determining the amount of variable consideration: (i) the expected value method, which is the sum of probability-weighted amounts in a range of possible consideration amounts, and (ii) the mostly likely amount method, which identifies the single most likely amount in a range of possible consideration amounts. With respect to variable consideration relating to development and regulatory milestone payments, if it is probable that a significant revenue reversal would not occur, the associated payment value is included in the transaction price. For development and regulatory milestones that are uncertain in nature and highly dependent on factors outside of our control, the aggregate consideration is determined to be fully constrained and is not included in the transaction price until the underlying events occur or the associated approvals are received. At the end of each reporting period, the Company re-evaluates the probability of achievement of each milestone and any related constraint, and if necessary, adjust our estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect the reported amount of revenues in the period of adjustment. For arrangements that include sales-based royalties, including milestone payments based on a level of sales, and 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). If a contract has multiple performance obligations, the Company allocates the transaction price to each distinct performance obligation in an amount that reflects the consideration the Company is entitled to receive in exchange for satisfying each distinct performance obligation. For each distinct performance obligation, revenue is recognized when (or as) the Company transfers control of the product or the service applicable to such performance obligation. In those instances where the Company first receives consideration in advance of satisfying its performance obligation, the Company classifies such consideration as deferred revenue until (or as) the Company satisfies such performance obligation. In those instances where the Company first satisfies its performance obligation prior to its receipt of consideration, the consideration is recorded as accounts receivable. The Company expenses incremental costs of obtaining and fulfilling a contract as and when incurred if the expected amortization period of the asset that would be recognized is one year or less, or if the amount of the asset is immaterial. Otherwise, such costs are capitalized as contract assets if they are incremental to the contract and amortized to expense proportionate to revenue recognition of the underlying contract. |
Research and Development Expenses | Research and Development Expenses All research and development costs are expensed in the period incurred. Payments for these activities are based on the terms of the individual agreements, which may differ from the pattern of costs incurred, and payments made in advance of performance are reflected in the accompanying balance sheets as prepaid expenses. The Company records accruals for estimated costs incurred for ongoing research and development activities. When evaluating the adequacy of the accrued expenses, the Company analyzes progress of the services, including the phase or completion of events, invoices received and contracted costs. Significant judgments and estimates may be made in determining the prepaid or accrued balances at the end of any reporting period. Actual results could differ from the Company’s estimates. |
Patent Costs | Patent Costs Costs related to filing and pursuing patent applications are recorded as general and administrative expense and expensed as incurred since recoverability of such expenditures is uncertain. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense represents the grant date fair value of equity awards, consisting of stock options and employee stock purchase rights, recognized on a straight-line basis over the requisite service period for stock options and over the respective offering period for employee stock purchase plan rights. The Company estimates the fair value of equity awards using the Black-Scholes option pricing model and recognizes forfeitures as they occur. |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company recognizes net deferred tax assets to the extent that the Company believes these assets are more likely than not to be realized. In making such a determination, management considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If management determines that the Company would be able to realize its deferred tax assets in the future in excess of their net recorded amount, management would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company records uncertain tax positions on the basis of a two-step process whereby (1) management determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, management recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company recognizes interest and penalties related to unrecognized tax benefits within income tax expense. Any accrued interest and penalties are included within the related tax liability. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss is defined as a change in equity during a period from transactions and other events and circumstances from non-owner sources. The only component of other comprehensive loss is unrealized gain (loss) on available-for-sale securities. Comprehensive losses have been reflected in the statements of operations and comprehensive loss and as a separate component in the statements of stockholders’ equity. |
Segment Reporting | Segment Reporting Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision-making group, in making decisions on how to allocate resources and assess performance. The Company views its operations and manages its business as one operating segment. No product revenue has been generated since inception and all assets are held in the United States. |
Net Loss Per Share | Net Loss Per Share Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding for the period, including pre-funded common stock warrants that were issued in an underwritten offering in July 2023 (Note 5), without consideration for potentially dilutive securities. The pre-funded common stock warrants are included in the calculation of basic and diluted net loss per share as the exercise price of $ 0.001 per share is non-substantive and the shares are issuable for little or no consideration. The Company has excluded weighted-average unvested shares of 27,458 shares and 182,194 shares from the weighted-average number of shares of common stock outstanding for the years ended December 31, 2023 and 2022, respectively. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock and dilutive common stock equivalents outstanding for the period determined using the treasury-stock and if-converted methods. For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding as inclusion of the potentially dilutive securities would be anti-dilutive. Potentially dilutive securities not included in the calculation of diluted net loss per share, because to do so would be anti-dilutive, are as follows (in common stock equivalent shares): December 31, 2023 2022 Common stock options 7,989,192 7,345,444 Unvested common stock 10,319 68,406 Employee stock purchase plan shares 13,796 10,423 Total potentially dilutive shares 8,013,307 7,424,273 |
Emerging Growth Company Status | Emerging Growth Company Status The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (“JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has irrevocably elected not to avail itself of this exemption from new or revised accounting standards and, therefore, will be subject to the same new or revised accounting standards as other public companies that are not emerging growth companies. |
Accounting Pronouncements Pending Adoption | Accounting Pronouncements Pending Adoption In December 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures. The new standard requires a company to disclose incremental segment information on an annual and interim basis, including significant segment expenses and measures of profit or loss that are regularly provided to the chief operating decision maker (CODM). The standard is effective for the Company beginning in fiscal year 2024 and interim periods within fiscal year 2025, with early adoption permitted. The Company does not expect to early adopt the new standard. The Company is currently evaluating the impact of ASU 2023-07 on the financial statements and related disclosures and will adopt the new standard using a retrospective approach. In December 2023, the FASB also issued ASU 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures. The new standard requires a company to expand its existing income tax disclosures, specifically related to the rate reconciliation and income taxes paid. The standard is effective for the Company beginning in fiscal year 2025, with early adoption permitted. The Company does not expect to early adopt the new standard. The new standard is expected to be applied prospectively, but retrospective application is permitted. The Company is currently evaluating the impact of ASU 2023-09 on the financial statements and related disclosures. |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Financial Instruments Measured at Fair Value on Recurring Basis | The following tables summarize the Company’s financial instruments measured at fair value on a recurring basis (in thousands): Fair Value Measurements at Total Quoted Prices in Significant Other Significant As of December 31, 2023: Assets: Cash equivalents: Money market funds $ 14,751 $ 14,751 $ — $ — Total cash equivalents 14,751 14,751 — — Short-term investments: U.S. Treasury securities 71,300 71,300 — — U.S. agency bonds 167,103 — 167,103 — Asset-backed securities 5,055 — 5,055 — Corporate debt securities 1,999 — 1,999 — Commercial paper 79,366 — 79,366 — Total short-term investments 324,823 71,300 253,523 — Restricted cash: Money market account 816 816 — — Total restricted cash 816 816 — — Total assets measured at fair value on a recurring basis $ 340,390 $ 86,867 $ 253,523 $ — Fair Value Measurements at Total Quoted Prices in Significant Other Significant As of December 31, 2022: Assets: Cash equivalents: Money market funds $ 12,697 $ 12,697 $ — $ — Total cash equivalents 12,697 12,697 — — Short-term investments: U.S. Treasury securities 63,016 63,016 — — U.S. agency bonds 67,020 — 67,020 — U.S. agency discount notes 4,334 — 4,334 — Corporate debt securities 1,970 — 1,970 — Commercial paper 139,250 — 139,250 — Total short-term investments 275,590 63,016 212,574 — Restricted cash: Money market account 816 816 — — Total restricted cash 816 816 — — Total assets measured at fair value on a recurring basis $ 289,103 $ 76,529 $ 212,574 $ — |
Reconciliation of Cash and Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the accompanying balance sheets that sum to the amounts shown in the statements of cash flows (in thousands): December 31, 2023 2022 Cash and cash equivalents $ 19,205 $ 51,426 Restricted cash 816 816 Total cash and cash equivalents and restricted cash $ 20,021 $ 52,242 |
Summary of Short-Term Investments | The following tables summarize short-term investments (in thousands): As of December 31, 2023 Amortized Unrealized Estimated Cost Gains Losses Fair Value U.S. Treasury securities $ 71,072 $ 242 $ ( 14 ) $ 71,300 U.S. agency bonds 166,699 591 ( 187 ) 167,103 Asset-backed securities 5,078 — ( 23 ) 5,055 Corporate debt securities 1,999 — — 1,999 Commercial paper 79,310 56 — 79,366 Total $ 324,158 $ 889 $ ( 224 ) $ 324,823 As of December 31, 2022 Amortized Unrealized Estimated Cost Gains Losses Fair Value U.S. Treasury securities $ 63,675 $ — $ ( 659 ) $ 63,016 U.S. agency bonds 67,421 — ( 401 ) 67,020 U.S. agency discount notes 4,321 13 — 4,334 Corporate debt securities 1,975 — ( 5 ) 1,970 Commercial paper 139,733 26 ( 509 ) 139,250 Total $ 277,125 $ 39 $ ( 1,574 ) $ 275,590 The amortized cost and estimated fair value in the tables above exclude $ 2.2 million and $ 0.7 million of accrued interest receivable as of December 31, 2023 and 2022, respectively. Accrued interest receivable is included in prepaid expenses and other current assets in the accompanying balance sheets. |
Schedule of Contractual Maturities of Available-for-sale Debt Securities | Contractual maturities of available-for-sale debt securities are as follows (in thousands): As of December 31, 2023 Due in 1 Year or Less Due Between 1 and 3 Years U.S. Treasury securities $ 34,426 $ 36,874 U.S. agency bonds 89,801 77,302 Asset-backed securities 5,055 — Corporate debt securities 1,999 — Commercial paper 79,366 — Total $ 210,647 $ 114,176 As of December 31, 2022 Due in 1 Year or Less Due Between 1 and 3 Years U.S. Treasury securities $ 57,369 $ 5,647 U.S. agency bonds 37,202 29,818 U.S. agency discount notes 4,334 — Corporate debt securities — 1,970 Commercial paper 139,250 — Total $ 238,155 $ 37,435 |
Schedule of Available-for-Sale Debt Securities in an Unrealized Loss Position | The following tables summarize our available-for-sale debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands): As of December 31, 2023 Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized U.S. Treasury securities $ 5,892 $ ( 14 ) $ — $ — $ 5,892 $ ( 14 ) U.S. agency bonds 63,583 ( 169 ) 9,970 ( 18 ) 73,553 ( 187 ) Asset-backed securities 5,055 ( 23 ) — — 5,055 ( 23 ) Total $ 74,530 $ ( 206 ) $ 9,970 $ ( 18 ) $ 84,500 $ ( 224 ) As of December 31, 2022 Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized U.S. Treasury securities $ 15,566 $ ( 82 ) $ 47,450 $ ( 577 ) $ 63,016 $ ( 659 ) U.S. agency bonds 67,020 ( 401 ) — — 67,020 ( 401 ) Corporate debt securities 1,970 ( 5 ) — — 1,970 ( 5 ) Commercial paper 118,840 ( 509 ) — — 118,840 ( 509 ) Total $ 203,396 $ ( 997 ) $ 47,450 $ ( 577 ) $ 250,846 $ ( 1,574 ) |
Summary of Potentially Dilutive Shares Not Included in the Calculation of Net Loss Per Share | Potentially dilutive securities not included in the calculation of diluted net loss per share, because to do so would be anti-dilutive, are as follows (in common stock equivalent shares): December 31, 2023 2022 Common stock options 7,989,192 7,345,444 Unvested common stock 10,319 68,406 Employee stock purchase plan shares 13,796 10,423 Total potentially dilutive shares 8,013,307 7,424,273 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consist of the following (in thousands): December 31, 2023 2022 Laboratory equipment $ 8,454 $ 6,838 Furniture and fixtures 792 752 Computer equipment and software 628 323 Assets not placed in service 43 145 Total property and equipment 9,917 8,058 Less: accumulated depreciation ( 2,914 ) ( 972 ) Property and equipment, net $ 7,003 $ 7,086 |
Schedule of Accrued Expenses | Accrued expenses consist of the following (in thousands): December 31, 2023 2022 Accrued compensation $ 3,303 $ 2,671 Accrued research and development 3,535 4,716 Other accrued expenses 529 623 Unvested stock liabilities 20 169 Accrued expenses $ 7,387 $ 8,179 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Noncancelable Operating Lease Payments | Future minimum noncancelable operating lease payments as of December 31, 2023 are as follows (in thousands): 2024 3,403 2025 3,505 2026 3,611 2027 3,719 2028 3,830 Thereafter 16,872 Total minimum lease payments 34,940 Less: Imputed interest ( 10,398 ) Total operating lease liabilities 24,542 Less: Current portion of operating lease liabilities ( 1,517 ) Operating lease liabilities, net of current portion $ 23,025 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Summary of Stock Option Activity | A summary of the Company’s stock option activity under its Plans is as follows (in thousands, except share, per share data and years): Number of Weighted- Weighted- Aggregate Balance at December 31, 2022 7,345,444 $ 11.67 8.3 $ 29,806 Granted 2,019,450 $ 13.80 Exercised ( 253,545 ) $ 8.86 Forfeited or cancelled ( 1,122,157 ) $ 13.25 Balance at December 31, 2023 7,989,192 $ 12.08 7.8 $ 16,733 Vested and expected to vest at December 31, 2023 7,989,192 $ 12.08 7.8 $ 16,733 Exercisable at December 31, 2023 5,226,145 $ 9.89 7.3 $ 16,596 |
Summary of Fair Value of Stock Option Grants | The assumptions used in the Black-Scholes option pricing model to determine the fair value of stock option grants under the Plans were as follows: Year Ended December 31, 2023 2022 Risk-free interest rate 3.5 % – 4.7 % 1.5 % – 4.2 % Expected volatility 82 % – 87 % 81 % – 85 % Expected term (in years) 5.3 – 6.1 5.3 – 6.1 Expected dividend yield — — |
Summary of Stock-Based Compensation Expense | Stock-based compensation expense has been reported in the statements of operations and comprehensive loss as follows (in thousands): Year Ended December 31, 2023 2022 Research and development $ 7,873 $ 7,235 General and administrative 12,132 9,968 Total $ 20,005 $ 17,203 |
Summary of Unvested Shares and Unvested Stock Liabilities | A summary of the Company’s unvested shares and unvested stock liabilities is as follows (in thousands, except share data): Number of Weighted-Average Grant Date Fair Value Unvested Balance at December 31, 2022 68,406 $ 1.94 $ 169 Vested shares ( 58,087 ) $ 2.00 ( 149 ) Balance at December 31, 2023 10,319 $ 1.57 $ 20 |
Summary of Common Stock Reserved for Future Issuance | Common stock reserved for future issuance consists of the following: December 31, 2023 2022 Common stock options outstanding 7,989,192 7,345,444 Shares available for issuance under the Plans 5,198,941 4,012,001 Shares available for issuance under the ESPP 1,142,750 816,478 Pre-funded common stock warrants 503,226 — Total 14,834,109 12,173,923 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Reconciliation of Income Tax Expense (Benefit) | A reconciliation of the Company’s income tax expense (benefit) to the amount computed by applying the federal statutory income tax rate is summarized as follows (in thousands): Year Ended December 31, 2023 2022 Expected tax benefit computed at federal statutory rate $ ( 12,242 ) $ ( 13,242 ) State income taxes, net of federal tax benefit ( 2,827 ) ( 3,754 ) Permanent differences 3,567 1,899 Research and development credits ( 4,300 ) ( 2,930 ) Reserve for uncertain tax positions 1,058 715 Other 124 80 Change in valuation allowance 14,620 17,232 Income tax expense (benefit) $ — $ — |
Schedule of Components of Net Deferred Tax Assets (Liabilities) | Significant components of the Company’s net deferred tax assets (liabilities) are summarized as follows (in thousands): December 31, 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 18,745 $ 16,261 Capitalized research and development 15,698 8,310 Lease liability 6,868 7,081 Research and development credit carryforwards 6,597 3,377 Stock-based compensation 4,005 3,453 Other 713 430 Total deferred tax assets 52,626 38,912 Valuation allowance ( 44,981 ) ( 30,976 ) Net deferred tax assets 7,645 7,936 Deferred tax liabilities: ROU asset ( 5,831 ) ( 6,235 ) Property and equipment ( 1,498 ) ( 1,519 ) Other ( 316 ) ( 182 ) Total gross deferred tax liabilities ( 7,645 ) ( 7,936 ) Net deferred tax assets $ — $ — |
Summary of Changes to GrossUnrecognized Tax Benefits | The following table summarizes the changes to the Company’s gross unrecognized tax benefits for the years ended December 31, 2023 and 2022 (in thousands): Year Ended December 31, 2023 2022 Balance at beginning of year $ 1,273 $ 510 Increases related to prior year tax positions 126 — Increases related to current year tax positions 990 763 Balance at end of year $ 2,389 $ 1,273 |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2023 USD ($) Security Segment $ / shares shares | Dec. 31, 2022 USD ($) shares | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Accumulated deficit | $ (168,763,000) | $ (110,470,000) |
Accrued interest receivable | $ 2,200,000 | 700,000 |
Available-for-sale debt securities number of position gross unrealized loss | Security | 15 | |
Number of available-for-sale debt securities | Security | 45 | |
Allowance for credit losses | $ 0 | $ 0 |
Weighted-average unvested shares | shares | 27,458 | 182,194 |
Pre funded common stock warrants exercise price | $ / shares | $ 0.001 | |
Property and equipment estimated useful life | 5 years | |
Number of operating segments | Segment | 1 | |
Product revenue | $ 8,083,000 | $ 8,612,000 |
Product Revenue | United States | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Product revenue | $ 0 |
Organization and Summary of S_5
Organization and Summary of Significant Accounting Policies - Summary of Financial Instruments Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents | $ 14,751 | $ 12,697 |
Total short-term investments | 324,823 | 275,590 |
Total restricted cash | 816 | 816 |
Total assets measured at fair value on a recurring basis | 340,390 | 289,103 |
U.S. Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 71,300 | 63,016 |
U.S. Agency Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 167,103 | 67,020 |
Asset-Backed Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 5,055 | |
U.S. Agency Discount Notes | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 4,334 | |
Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 1,999 | 1,970 |
Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 79,366 | 139,250 |
Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 14,751 | 12,697 |
Total restricted cash | 816 | 816 |
Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 14,751 | 12,697 |
Total short-term investments | 71,300 | 63,016 |
Total restricted cash | 816 | 816 |
Total assets measured at fair value on a recurring basis | 86,867 | 76,529 |
Level 1 | U.S. Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 71,300 | 63,016 |
Level 1 | U.S. Agency Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | 0 |
Level 1 | Asset-Backed Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | |
Level 1 | U.S. Agency Discount Notes | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | |
Level 1 | Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | 0 |
Level 1 | Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | 0 |
Level 1 | Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 14,751 | 12,697 |
Total restricted cash | 816 | 816 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 0 | 0 |
Total short-term investments | 253,523 | 212,574 |
Total restricted cash | 0 | 0 |
Total assets measured at fair value on a recurring basis | 253,523 | 212,574 |
Level 2 | U.S. Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | 0 |
Level 2 | U.S. Agency Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 167,103 | 67,020 |
Level 2 | Asset-Backed Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 5,055 | |
Level 2 | U.S. Agency Discount Notes | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 4,334 | |
Level 2 | Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 1,999 | 1,970 |
Level 2 | Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 79,366 | 139,250 |
Level 2 | Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 0 | 0 |
Total restricted cash | 0 | 0 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 0 | 0 |
Total short-term investments | 0 | 0 |
Total restricted cash | 0 | 0 |
Total assets measured at fair value on a recurring basis | 0 | 0 |
Level 3 | U.S. Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | 0 |
Level 3 | U.S. Agency Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | 0 |
Level 3 | Asset-Backed Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | |
Level 3 | U.S. Agency Discount Notes | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | |
Level 3 | Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | 0 |
Level 3 | Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | 0 |
Level 3 | Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 0 | 0 |
Total restricted cash | $ 0 | $ 0 |
Organization and Summary of S_6
Organization and Summary of Significant Accounting Policies - Reconciliation of Cash and Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Restricted Cash and Cash Equivalents [Abstract] | |||
Cash and cash equivalents | $ 19,205 | $ 51,426 | |
Restricted cash | 816 | 816 | |
Total cash and cash equivalents and restricted cash | $ 20,021 | $ 52,242 | $ 36,398 |
Organization and Summary of S_7
Organization and Summary of Significant Accounting Policies - Summary of Short-Term Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 324,158 | $ 277,125 |
Unrealized Gains | 889 | 39 |
Unrealized Losses | (224) | (1,574) |
Estimated Fair Value | 324,823 | 275,590 |
U.S. Treasury Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 71,072 | 63,675 |
Unrealized Gains | 242 | 0 |
Unrealized Losses | (14) | (659) |
Estimated Fair Value | 71,300 | 63,016 |
U.S. Agency Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 166,699 | 67,421 |
Unrealized Gains | 591 | 0 |
Unrealized Losses | (187) | (401) |
Estimated Fair Value | 167,103 | 67,020 |
Asset-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 5,078 | |
Unrealized Gains | 0 | |
Unrealized Losses | (23) | |
Estimated Fair Value | 5,055 | |
U.S. Agency Discount Notes | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 4,321 | |
Unrealized Gains | 13 | |
Unrealized Losses | 0 | |
Estimated Fair Value | 4,334 | |
Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 1,999 | 1,975 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | (5) |
Estimated Fair Value | 1,999 | 1,970 |
Commercial Paper | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 79,310 | 139,733 |
Unrealized Gains | 56 | 26 |
Unrealized Losses | 0 | (509) |
Estimated Fair Value | $ 79,366 | $ 139,250 |
Organization and Summary of S_8
Organization and Summary of Significant Accounting Policies - Schedule of Contractual Maturities of Available-for-sale Debt Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule Of Available For Sale Securities [Line Items] | ||
Due in 1 Year or Less | $ 210,647 | $ 238,155 |
Due Between 1 and 2 Years | 114,176 | 37,435 |
U.S. Treasury Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Due in 1 Year or Less | 34,426 | 57,369 |
Due Between 1 and 2 Years | 36,874 | 5,647 |
U.S. Agency Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Due in 1 Year or Less | 89,801 | 37,202 |
Due Between 1 and 2 Years | 77,302 | 29,818 |
U.S. Agency Discount Notes | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Due in 1 Year or Less | 4,334 | |
Due Between 1 and 2 Years | 0 | |
Asset-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Due in 1 Year or Less | 5,055 | |
Due Between 1 and 2 Years | 0 | |
Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Due in 1 Year or Less | 1,999 | 0 |
Due Between 1 and 2 Years | 0 | 1,970 |
Commercial Paper | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Due in 1 Year or Less | 79,366 | 139,250 |
Due Between 1 and 2 Years | $ 0 | $ 0 |
Organization and Summary of S_9
Organization and Summary of Significant Accounting Policies - Schedule of Available-for-Sale Debt Securities in an Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-Sale [Line Items] | ||
Less than 12 Months, Fair Value | $ 74,530 | $ 203,396 |
Less than 12 Months, Unrealized Losses | (206) | (997) |
12 Months or Longer, Fair Value | 9,970 | 47,450 |
12 Months or Longer, Unrealized Losses | (18) | (577) |
Total, Fair Value | 84,500 | 250,846 |
Total, Unrealized Losses | (224) | (1,574) |
U.S. Treasury Securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Less than 12 Months, Fair Value | 5,892 | 15,566 |
Less than 12 Months, Unrealized Losses | (14) | (82) |
12 Months or Longer, Fair Value | 0 | 47,450 |
12 Months or Longer, Unrealized Losses | 0 | (577) |
Total, Fair Value | 5,892 | 63,016 |
Total, Unrealized Losses | (14) | (659) |
U.S. Agency Bonds | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Less than 12 Months, Fair Value | 63,583 | 67,020 |
Less than 12 Months, Unrealized Losses | (169) | (401) |
12 Months or Longer, Fair Value | 9,970 | 0 |
12 Months or Longer, Unrealized Losses | (18) | 0 |
Total, Fair Value | 73,553 | 67,020 |
Total, Unrealized Losses | (187) | (401) |
Asset-Backed Securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Less than 12 Months, Fair Value | 5,055 | |
Less than 12 Months, Unrealized Losses | (23) | |
12 Months or Longer, Fair Value | 0 | |
12 Months or Longer, Unrealized Losses | 0 | |
Total, Fair Value | 5,055 | |
Total, Unrealized Losses | $ (23) | |
Corporate Debt Securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Less than 12 Months, Fair Value | 1,970 | |
Less than 12 Months, Unrealized Losses | (5) | |
12 Months or Longer, Fair Value | 0 | |
12 Months or Longer, Unrealized Losses | 0 | |
Total, Fair Value | 1,970 | |
Total, Unrealized Losses | (5) | |
Commercial Paper | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Less than 12 Months, Fair Value | 118,840 | |
Less than 12 Months, Unrealized Losses | (509) | |
12 Months or Longer, Fair Value | 0 | |
12 Months or Longer, Unrealized Losses | 0 | |
Total, Fair Value | 118,840 | |
Total, Unrealized Losses | $ (509) |
Organization and Summary of _10
Organization and Summary of Significant Accounting Policies - Summary of Potentially Dilutive Shares Not Included in the Calculation of Net Loss Per Share (Details) - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total potentially dilutive shares | 8,013,307 | 7,424,273 |
Common Stock Outstanding | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total potentially dilutive shares | 7,989,192 | 7,345,444 |
Unvested Common Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total potentially dilutive shares | 10,319 | 68,406 |
Employee Stock Purchase Plan Shares | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total potentially dilutive shares | 13,796 | 10,423 |
Balance Sheet Details - Schedul
Balance Sheet Details - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 9,917 | $ 8,058 |
Less: accumulated depreciation | (2,914) | (972) |
Property and equipment, net | 7,003 | 7,086 |
Laboratory Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 8,454 | 6,838 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 792 | 752 |
Computer Equipment and Software | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 628 | 323 |
Assets not placed in service | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 43 | $ 145 |
Balance Sheet Details - Sched_2
Balance Sheet Details - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accrued compensation | $ 3,303 | $ 2,671 |
Accrued research and development | 3,535 | 4,716 |
Other accrued expenses | 529 | 623 |
Unvested stock liabilities | 20 | 169 |
Accrued expenses | $ 7,387 | $ 8,179 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Commitments And Contingencies [Line Items] | |||
Operating lease expense | $ 3.4 | $ 2.8 | |
Cash paid | $ 2.8 | $ 0.2 | |
Torrey Plaza | |||
Commitments And Contingencies [Line Items] | |||
Operating lease commencement date | Apr. 01, 2022 | ||
Operating lease term of contract | 130 months | ||
Operating lease, option to extend | option to extend | ||
Operating lease, existence of option to extend | true | ||
Operating lease, renewal term | 5 years | ||
Operating lease, weighted average remaining lease term | 9 years 1 month 6 days | ||
Operating lease, weighted average discount rate | 8% | ||
Letter of credit | $ 0.8 | ||
Torrey Plaza | Letter of Credit [Member] | |||
Commitments And Contingencies [Line Items] | |||
Percentage of letter of credit subject to certain conditions | 50% | ||
Cell Line License Agreement | Wu Xi Biologics | |||
Commitments And Contingencies [Line Items] | |||
Non-refundable license fee paid | $ 0.2 | ||
Maximum payment to buy out royalty obligation | $ 15 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Noncancelable Operating Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Commitments And Contingencies [Line Items] | ||
2024 | $ 3,403 | |
2025 | 3,505 | |
2026 | 3,611 | |
2027 | 3,719 | |
2028 | 3,830 | |
Thereafter | 16,872 | |
Total minimum lease payments | 34,940 | |
Less: Imputed interest | (10,398) | |
Total operating lease liabilities | 24,542 | |
Less: Current portion of operating lease liabilities | (1,517) | $ (763) |
Operating lease liabilities, net of current portion | $ 23,025 | $ 24,542 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | ||
Minimum beneficial ownership percentage of outstanding capital stock | 5% | |
Research and development expense | $ 54,922 | $ 53,441 |
General and administrative expenses | $ 26,140 | 22,262 |
Support Services Agreement | Avalon BioVentures, Inc. | ||
Related Party Transaction [Line Items] | ||
Research and development expense | 500 | |
General and administrative expenses | $ 100 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Jun. 10, 2021 | Jul. 31, 2023 | May 31, 2023 | Aug. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2021 | |
Class Of Stock [Line Items] | |||||||
Common stock, shares issued | 46,262,759 | 41,684,666 | |||||
Pre funded common stock warrants exercise price | $ 0.001 | ||||||
Maximum exercisable prefunded warrants percentage with common stock | 19.90% | ||||||
Common stock reserved for issuance | 14,834,109 | 12,173,923 | |||||
Weighted average grant date fair value per share of option grants | $ 10.02 | $ 12.35 | |||||
Total Intrinsic value of stock options exercised | $ 1,900 | $ 100 | |||||
Unrecognized stock-based compensation cost | $ 34,100 | ||||||
Unrecognized stock-based compensation cost, weighted-average period of recognition | 2 years 2 months 12 days | ||||||
Percentage of number of common stock shares | 1% | ||||||
Aggregate offering price of common stock | $ 46 | 42 | |||||
Termination of sale agreement month and year | 2023-05 | ||||||
BofA Securities, Inc [Member] | |||||||
Class Of Stock [Line Items] | |||||||
Aggregate offering price of common stock | $ 150,000 | ||||||
2017 Equity Incentive Plan | |||||||
Class Of Stock [Line Items] | |||||||
Common stock reserved for issuance | 1,424,110 | ||||||
2021 Equity Incentive Plan | |||||||
Class Of Stock [Line Items] | |||||||
Shares authorized for issuance | 9,169,849 | ||||||
Common stock initially reserved for issuance | 2,775,890 | ||||||
2021 Employee Stock Purchase Plan | |||||||
Class Of Stock [Line Items] | |||||||
Common stock initially reserved for issuance | 466,000 | ||||||
Unrecognized stock-based compensation cost | $ 700 | ||||||
Unrecognized stock-based compensation cost, weighted-average period of recognition | 1 year 7 months 6 days | ||||||
Percentage of eligible earnings withheld to purchase shares of common stock | 15% | ||||||
Fair market value percentage price of common stock purchased | 85% | ||||||
Minimum increase in shares reserved for issuance | 932,000 | ||||||
Stock-based compensation expense | $ 900 | $ 600 | |||||
Maximum | |||||||
Class Of Stock [Line Items] | |||||||
Securities issuable | $ 400,000 | ||||||
Maximum | Jefferies Group LLC [Member] | |||||||
Class Of Stock [Line Items] | |||||||
Aggregate offering price of common stock | $ 100,000 | ||||||
Maximum | BofA Securities, Inc [Member] | |||||||
Class Of Stock [Line Items] | |||||||
Aggregate offering price of common stock | $ 150,000 | ||||||
Underwritten Offering | |||||||
Class Of Stock [Line Items] | |||||||
Common stock, shares issued | 4,153,717 | ||||||
Price of common stock sold per share | $ 12.46 | ||||||
Pre funded common stock warrants exercise price | $ 0.001 | ||||||
Underwritten Offering | Pre-funded Warrants | |||||||
Class Of Stock [Line Items] | |||||||
Warrants to purchase shares of common stock | 583,483 | ||||||
Price of warrants sold per share | $ 12.459 | ||||||
Gross proceeds from issuance of common stock | $ 59,000 | ||||||
Aggregate fees amount related to offering included in underwriting discounts commissions and offering expenses | 2,500 | ||||||
Net proceeds after deducting underwriting discounts and commissions, and offering expenses | $ 56,500 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Outstanding Options, Beginning balance | 7,345,444 | |
Number of Outstanding Options, Granted | 2,019,450 | |
Number of Outstanding Options, Exercised | (253,545) | |
Number of Outstanding Options, Forfeited or cancelled | (1,122,157) | |
Number of Outstanding Options, Ending balance | 7,989,192 | 7,345,444 |
Number of Outstanding Options, Vested and expected to vest | 7,989,192 | |
Number of Outstanding Options, Exercisable | 5,226,145 | |
Weighted- Average Exercise Price, Beginning balance | $ 11.67 | |
Weighted- Average Exercise Price, Granted | 13.80 | |
Weighted- Average Exercise Price, Exercised | 8.86 | |
Weighted- Average Exercise Price, Forfeited or cancelled | 13.25 | |
Weighted- Average Exercise Price, Ending balance | 12.08 | $ 11.67 |
Weighted- Average Exercise Price, Vested and expected to vest | 12.08 | |
Weighted- Average Exercise Price, Exercisable | $ 9.89 | |
Weighted- Average Remaining Contractual Term | 7 years 9 months 18 days | 8 years 3 months 18 days |
Weighted- Average Remaining Contractual Term, Vested and expected to vest | 7 years 9 months 18 days | |
Weighted- Average Remaining Contractual Term, Exercisable | 7 years 3 months 18 days | |
Aggregate Intrinsic Value | $ 16,733 | $ 29,806 |
Aggregate Intrinsic Value, Vested and expected to vest | 16,733 | |
Aggregate Intrinsic Value, Exercisable | $ 16,596 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Fair Value of Stock Option Grants (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Class Of Stock [Line Items] | ||
Expected dividend yield | 0% | 0% |
Minimum | ||
Class Of Stock [Line Items] | ||
Risk-free interest rate | 3.50% | 1.50% |
Expected volatility | 82% | 81% |
Expected term (in years) | 5 years 3 months 18 days | 5 years 3 months 18 days |
Maximum | ||
Class Of Stock [Line Items] | ||
Risk-free interest rate | 4.70% | 4.20% |
Expected volatility | 87% | 85% |
Expected term (in years) | 6 years 1 month 6 days | 6 years 1 month 6 days |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation | $ 20,005 | $ 17,203 |
Research and Development | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation | 7,873 | 7,235 |
General and Administrative | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation | $ 12,132 | $ 9,968 |
Stockholders' Equity - Summar_4
Stockholders' Equity - Summary of Unvested Shares and Unvested Stock Liabilities (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) $ / shares shares | |
Number of Unvested Shares | |
Number of Unvested Shares, Beginning balance | shares | 68,406 |
Vested shares | shares | (58,087) |
Number of Unvested Shares, Ending balance | shares | 10,319 |
Weighted-Average Grant Date Fair Value | |
Weighted-Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 1.94 |
Vested shares | $ / shares | 2 |
Weighted-Average Grant Date Fair Value, Ending Balance | $ / shares | $ 1.57 |
Unvested Stock Liabilities | |
Unvested Stock Liabilities, Beginning balance | $ | $ 169 |
Vested shares | $ | (149) |
Unvested Stock Liabilities, Ending balance | $ | $ 20 |
Stockholders' Equity - Summar_5
Stockholders' Equity - Summary of Common Stock Reserved for Future Issuance (Details) - shares | Dec. 31, 2023 | Dec. 31, 2022 |
Common Stock Reserved For Future Issuance [Line Items] | ||
Common stock reserved for issuance | 14,834,109 | 12,173,923 |
Common Stock Options Outstanding | ||
Common Stock Reserved For Future Issuance [Line Items] | ||
Common stock reserved for issuance | 7,989,192 | 7,345,444 |
Shares Available for Issuance Under Plans | ||
Common Stock Reserved For Future Issuance [Line Items] | ||
Common stock reserved for issuance | 5,198,941 | 4,012,001 |
Shares Available for Issuance Under ESPP | ||
Common Stock Reserved For Future Issuance [Line Items] | ||
Common stock reserved for issuance | 1,142,750 | 816,478 |
Pre-funded Common Stock Warrants | ||
Common Stock Reserved For Future Issuance [Line Items] | ||
Common stock reserved for issuance | 503,226 | 0 |
Research Collaboration and Ex_2
Research Collaboration and Exclusive License Agreement - Additional Information (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) Target | Dec. 31, 2022 USD ($) | |
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||
Deferred revenue current | $ 1,705 | $ 5,406 |
Accounts receivable balance outstanding | 0 | 0 |
Merck Agreement First Collaboration Target | ||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||
Non-refundable and non-creditable upfront fee | 8,000 | |
Initial Transaction Price | 11,400 | |
Reimbursable research program funding for collaboration target | 3,400 | |
Merck Agreement Second Collaboration Target | ||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||
Non-refundable and non-creditable upfront fee | 8,000 | |
Initial Transaction Price | 12,000 | |
Reimbursable research program funding for collaboration target | 4,000 | |
Aggregate transaction price allocated to unsatisfied performance obligation | $ 3,100 | |
Merck Agreement | ||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||
Number of collaboration targets | Target | 2 | |
Non-refundable and non-creditable upfront fee | $ 8,000 | |
Payable upon selection of second collaboration target | 8,000 | |
Milestone payments | 285,000 | |
Revenue recognized | 8,100 | $ 8,600 |
Deferred revenue current | 1,700 | |
Merck Agreement | Maximum | ||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||
Milestone payments per collaboration target | 142,500 | |
Milestone payments upon successful completion of certain commercial milestones | $ 350,000 |
Research Collaboration and Ex_3
Research Collaboration and Exclusive License Agreement - Additional Information 1 (Detail) | Dec. 31, 2023 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | Second Collaboration Target | |
Research And Development Arrangement Contract To Perform For Others [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 8 months 12 days |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Loss Carryforwards [Line Items] | |||
Deferred tax expense or benefit | $ 0 | $ 0 | |
Accrual for interest or penalties | 0 | 0 | |
Unrecognized tax benefits | 2,389,000 | $ 1,273,000 | $ 510,000 |
Federal | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | 49,900,000 | ||
Operating loss carryforwards subject to expiration | 500,000 | ||
Operating loss carryforwards indefinite period | $ 49,400,000 | ||
Percentage to be utilized to offset future taxable income. | 80% | ||
Net operating loss carryforwards expiration starting period | 2037 | ||
Federal | Research | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credits | $ 6,400,000 | ||
Tax credits expiration starting year | 2037 | ||
State | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | $ 117,600,000 | ||
Net operating loss carryforwards expiration starting period | 2037 | ||
State | Research | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credits | $ 3,100,000 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Expected tax benefit computed at federal statutory rate | $ (12,242) | $ (13,242) |
State income taxes, net of federal tax benefit | (2,827) | (3,754) |
Permanent differences | 3,567 | 1,899 |
Research and development credits | (4,300) | (2,930) |
Reserve for uncertain tax positions | 1,058 | 715 |
Other | 124 | 80 |
Change in valuation allowance | $ 14,620 | $ 17,232 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Net Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 18,745 | $ 16,261 |
Capitalized research and development | 15,698 | 8,310 |
Lease liability | 6,868 | 7,081 |
Research and development credit carryforwards | 6,597 | 3,377 |
Stock-based compensation | 4,005 | 3,453 |
Other | 713 | 430 |
Total deferred tax assets | 52,626 | 38,912 |
Valuation allowance | (44,981) | (30,976) |
Net deferred tax assets | 7,645 | 7,936 |
Deferred tax liabilities: | ||
ROU asset | (5,831) | (6,235) |
Property and equipment | (1,498) | (1,519) |
Other | (316) | (182) |
Total gross deferred tax liabilities | $ (7,645) | $ (7,936) |
Income Taxes - Summary of Chang
Income Taxes - Summary of Changes to Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Balance at beginning of year | $ 1,273 | $ 510 |
Increases related to prior year tax positions | 126 | 0 |
Increases related to current year tax positions | 990 | 763 |
Balance at end of year | $ 2,389 | $ 1,273 |
401 (k) Plan - Additional Infor
401 (k) Plan - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plan, employer contribution amount | $ 0.4 | $ 0.2 |
Maximum | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plan, employers matching contribution, annual vesting percentage | 3% |
Subsequent Events (Additional I
Subsequent Events (Additional Information) (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | |||
Mar. 08, 2024 | Jul. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Subsequent Event [Line Items] | ||||
Common stock, shares issued | 46,262,759 | 41,684,666 | ||
Underwritten Offering | ||||
Subsequent Event [Line Items] | ||||
Common stock, shares issued | 4,153,717 | |||
Price of common stock sold per share | $ 12.46 | |||
Pre-funded Warrants | Underwritten Offering | ||||
Subsequent Event [Line Items] | ||||
Warrants to purchase shares of common stock | 583,483 | |||
Price of warrants sold per share | $ 12.459 | |||
Gross proceeds from issuance of common stock | $ 59 | |||
Aggregate fees amount related to offering included in underwriting discounts commissions and offering expenses | 2.5 | |||
Net proceeds after deducting underwriting discounts and commissions, and offering expenses | $ 56.5 | |||
Subsequent Event | Underwritten Offering | ||||
Subsequent Event [Line Items] | ||||
Common stock, shares issued | 5,397,301 | |||
Price of common stock sold per share | $ 46.5 | |||
Subsequent Event | Pre-funded Warrants | Underwritten Offering | ||||
Subsequent Event [Line Items] | ||||
Warrants to purchase shares of common stock | 1,935,483 | |||
Price of warrants sold per share | $ 46.499 | |||
Gross proceeds from issuance of common stock | $ 341 | |||
Aggregate fees amount related to offering included in underwriting discounts commissions and offering expenses | 20.8 | |||
Net proceeds after deducting underwriting discounts and commissions, and offering expenses | $ 320.2 |