Pardes Biosciences (PRDS) 10-Q 7 Nov 22 2022 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2022	Nov. 01, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Document Quarterly Report	true
Document Transition Report	false
Entity Registrant Name	PARDES BIOSCIENCES, INC.
Entity File Number	001-40067
Entity Tax Identification Number	85-2696306
Entity Address, Address Line One	2173 Salk Avenue
Entity Address, Address Line Two	Suite 250
Entity Address, Address Line Three	PMB#052
Entity Address, City or Town	Carlsbad
Entity Address, Postal Zip Code	92008
City Area Code	415
Local Phone Number	649-8758
Entity Central Index Key	0001822711
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Incorporation, State or Country Code	DE
Entity Address, State or Province	CA
Entity Filer Category	Non-accelerated Filer
Entity Shell Company	false
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Title of 12(b) Security	Common stock, par value $0.0001 per share
Trading Symbol	PRDS
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		62,320,924

Condensed Balance Sheets

Condensed Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 209,055	$ 268,678
Prepaid expenses and other current assets	4,986	6,581
Total current assets	214,041	275,259
Total assets	214,041	275,259
Current liabilities:
Accounts payable	1,569	2,385
Accrued expenses	10,459	6,580
Total current liabilities	12,028	8,965
Total liabilities	12,028	8,965
Commitments and contingencies (Note 9)
Stockholders' equity (deficit):
Preferred stock: $0.0001 par value; 10,000,000 shares authorized at June 30, 2022 and December 31, 2021; no shares issued and outstanding at June 30, 2022 and December 31, 2021	0	0
Common stock: $0.0001 par value at September 30, 2022, and December 31, 2021; 250,000,000 shares authorized at September 30, 2022, and December 31, 2021; 62,320,924 and 62,378,996 shares issued at September 30, 2022, and December 31, 2021 respectively; and 59,113,864 and 56,765,533 shares outstanding at September 30, 2022, and December 31, 2021, respectively	6	6
Additional paid-in capital	325,943	317,812
Accumulated deficit	(123,936)	(51,524)
Total stockholders' equity	202,013	266,294
Total liabilities and stockholders' equity	$ 214,041	$ 275,259

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parentheticals) - $ / shares	Sep. 30, 2022	Dec. 31, 2021	Dec. 23, 2021
Preferred stock, par value (in Dollars per share)	$ 0.0001	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000,000	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	62,320,924	62,378,996
Common stock, shares outstanding	59,113,864	56,765,533

Condensed Statements of Operati

Condensed Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Operating expenses:
Research and development	$ 17,375	$ 8,081	$ 50,918	$ 17,792
General and administrative	6,919	3,434	22,736	6,389
Total operating expenses	24,294	11,515	73,654	24,181
Other income:
Interest and other income, net	959	3	1,242	10
Net loss	(23,335)	(11,512)	(72,412)	(24,171)
Comprehensive loss	$ (23,335)	$ (11,512)	$ (72,412)	$ (24,171)
Net loss per share, basic	$ (0.40)	$ (3.76)	$ (1.25)	$ (11.73)
Net loss per share, diluted	$ (0.40)	$ (3.76)	$ (1.25)	$ (11.73)
Weighted-average number of common shares used in computing net loss per share, basic	58,381,918	3,064,829	57,720,591	2,059,855
Weighted-average number of common shares used in computing net loss per share, diluted	58,381,918	3,064,829	57,720,591	2,059,855

Condensed Statements of Stockho

Condensed Statements of Stockholders Equity (Deficit) - USD ($) $ in Thousands	Total	Convertible Preferred Stock	Common Stock	Additional Paid-in Capital	Retained Earnings
Balance at the beginning at Dec. 31, 2020	$ (13,006)		$ 0	$ 0	$ (13,006)
Balance at the beginning ,Temporary Equity Shares at Dec. 31, 2020		0
Balance at the beginning, Temporary equity at Dec. 31, 2020		$ 0
Balance at the beginning (Shares) at Dec. 31, 2020			0
Net loss	(4,523)				(4,523)
Balance at the end at Mar. 31, 2021	(17,453)		$ 0	76	(17,529)
Balance at the end (Shares) at Mar. 31, 2021		19,601,193
Balance at the end at Mar. 31, 2021		$ 59,132
Balance at the end (Shares) at Mar. 31, 2021			1,534,646
Stock-based compensation expense	76			76
Issuance of series A convertible preferred stock for cash, net of issuance costs		$ 44,324
Conversion of SAFE agreements into shares of convertible preferred stock (Shares)		5,845,071
Conversion of SAFE agreements into shares of convertible preferred stock		$ 14,808
Vesting of restricted common stock (Shares)			1,534,646
Balance at the beginning at Dec. 31, 2020	(13,006)		$ 0	0	(13,006)
Balance at the beginning ,Temporary Equity Shares at Dec. 31, 2020		0
Balance at the beginning, Temporary equity at Dec. 31, 2020		$ 0
Balance at the beginning (Shares) at Dec. 31, 2020			0
Net loss	(24,171)
Balance at the end at Sep. 30, 2021	(36,523)		$ 0	654	(37,177)
Balance at the end (Shares) at Sep. 30, 2021		19,601,193
Balance at the end at Sep. 30, 2021		$ 59,132
Balance at the end (Shares) at Sep. 30, 2021			3,351,571
Issuance of series A convertible preferred stock for cash, net of issuance costs (Shares)		13,756,122
Balance at the beginning at Mar. 31, 2021	(17,453)		$ 0	76	(17,529)
Balance at the beginning ,Temporary Equity Shares at Mar. 31, 2021		19,601,193
Balance at the beginning, Temporary equity at Mar. 31, 2021		$ 59,132
Balance at the beginning (Shares) at Mar. 31, 2021			1,534,646
Net loss	(8,136)				(8,136)
Balance at the end at Jun. 30, 2021	(25,355)		$ 0	310	(25,665)
Balance at the end (Shares) at Jun. 30, 2021		19,601,193
Balance at the end at Jun. 30, 2021		$ 59,132
Balance at the end (Shares) at Jun. 30, 2021			2,721,451
Exercise of options	4			(4)
Excersise of option share			1,408
Stock-based compensation expense	230			230
Vesting of restricted common stock (Shares)			1,185,397
Net loss	(11,512)				(11,512)
Balance at the end at Sep. 30, 2021	(36,523)		$ 0	654	(37,177)
Balance at the end (Shares) at Sep. 30, 2021		19,601,193
Balance at the end at Sep. 30, 2021		$ 59,132
Balance at the end (Shares) at Sep. 30, 2021			3,351,571
Stock-based compensation expense	344			344
Vesting of restricted common stock (Shares)			630,120
Balance at the beginning at Dec. 31, 2021	$ 266,294		$ 6	317,812	(51,524)
Balance at the beginning ,Temporary Equity Shares at Dec. 31, 2021		0
Balance at the beginning, Temporary equity at Dec. 31, 2021		$ 0
Balance at the beginning (Shares) at Dec. 31, 2021	56,765,533		56,765,533
Net loss	$ (21,440)				(21,440)
Balance at the end at Mar. 31, 2022	246,381		$ 6	319,339	(72,964)
Balance at the end (Shares) at Mar. 31, 2022		0
Balance at the end at Mar. 31, 2022		$ 0
Balance at the end (Shares) at Mar. 31, 2022			57,376,298
Stock-based compensation expense	1,527			1,527
Vesting of restricted common stock (Shares)			610,765
Balance at the beginning at Dec. 31, 2021	$ 266,294		$ 6	317,812	(51,524)
Balance at the beginning ,Temporary Equity Shares at Dec. 31, 2021		0
Balance at the beginning, Temporary equity at Dec. 31, 2021		$ 0
Balance at the beginning (Shares) at Dec. 31, 2021	56,765,533		56,765,533
Net loss	$ (72,412)
Balance at the end at Sep. 30, 2022	$ 202,013		$ 6	325,943	(123,936)
Balance at the end (Shares) at Sep. 30, 2022		0
Balance at the end at Sep. 30, 2022		$ 0
Balance at the end (Shares) at Sep. 30, 2022	59,113,864		59,113,864
Balance at the beginning at Mar. 31, 2022	$ 246,381		$ 6	319,339	(72,964)
Balance at the beginning ,Temporary Equity Shares at Mar. 31, 2022		0
Balance at the beginning, Temporary equity at Mar. 31, 2022		$ 0
Balance at the beginning (Shares) at Mar. 31, 2022			57,376,298
Net loss	(27,637)				(27,637)
Balance at the end at Jun. 30, 2022	222,632		$ 6	323,227	(100,601)
Balance at the end (Shares) at Jun. 30, 2022		0
Balance at the end at Jun. 30, 2022		$ 0
Balance at the end (Shares) at Jun. 30, 2022			57,981,118
Stock-based compensation expense	3,888			3,888
Vesting of restricted common stock (Shares)			604,820
Net loss	(23,335)				(23,335)
Balance at the end at Sep. 30, 2022	$ 202,013		$ 6	325,943	$ (123,936)
Balance at the end (Shares) at Sep. 30, 2022		0
Balance at the end at Sep. 30, 2022		$ 0
Balance at the end (Shares) at Sep. 30, 2022	59,113,864		59,113,864
Stock-based compensation expense	$ 2,716			$ 2,716
Vesting of restricted common stock (Shares)			1,132,746

Condensed Statements of Stock_2

Condensed Statements of Stockholders Equity (Deficit) (Parenthetical) $ in Thousands	3 Months Ended
	Mar. 31, 2021 USD ($)
Convertible Preferred Stock
Net of issuance costs	$ 176

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Operating activities:
Net loss	$ (72,412)	$ (24,171)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense	8,131	650
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	1,594	482
Accounts payable	(581)	1,119
Accrued expenses	4,042	2,747
Net cash used in operating activities	(59,226)	(20,137)
Financing activities:
Proceeds from issuance of convertible preferred stock	0	44,500
Cash paid for deferred offering costs	(397)	(1,218)
Payment of issuance costs for convertible preferred stock	0	(176)
Proceeds from exercise of common stock options	0	4
Net cash (used) provided by financing activities	(397)	43,110
(Decrease) increase in cash and cash equivalents	(59,623)	22,973
Cash and cash equivalents at beginning of period	268,678	3,410
Cash and cash equivalents at end of period	209,055	26,383
Non-cash financing activities:
Conversion of 2020 SAFE agreements into shares of convertible preferred stock	0	14,808
Deferred offering costs included in accounts payable and accrued expenses	$ 0	$ 302

Description of Business

Description of Business	9 Months Ended
	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Note 1. Description of Business Description of Business Unless the context otherwise requires, references in these notes to “Pardes,” “the Company,” “we,” “us,” “our” and any related terms are intended to mean Pardes Biosciences, Inc. Pardes Biosciences, Inc. is a clinical-stage biopharmaceutical company focused on discovering, developing and commercializing novel oral-antiviral therapeutics to improve the lives of patients suffering from life-threatening disease, starting with our lead product candidate, PBI-0451, which is in clinical development and intended to treat and prevent COVID-19 in adult and pediatric patients. COVID-19 is caused by infection with the severe acute respiratory syndrome coronavirus (SARS-CoV-2). PBI-0451 inhibits the main coronaviral cysteine protease, a viral protein essential for replication of all known coronaviruses, including SARS-CoV-2. References in these notes to the unaudited condensed financial statements to “Pardes Biosciences, Inc.,” refer to Pardes Biosciences Sub, Inc., a Delaware corporation incorporated in February 2020 and formerly known as Pardes Biosciences, Inc. (Old Pardes), for the periods prior to its business combination transaction that took place on December 23, 2021 and Pardes Biosciences, Inc., a Delaware corporation incorporated in August 2020 and formerly known as FS Development Corp. II (FSDC II) and its subsidiary for the periods following the Business Combination. Business Combination On December 23, 2021 (Closing Date), Old Pardes and FSDC II completed the transactions contemplated by the Agreement and Plan of Merger, dated as of June 29, 2021, as amended on November 7, 2021 (Merger Agreement), by and among Old Pardes, Shareholder Representative Services LLC, a Colorado limited liability company solely in its capacity as the representative, agent and attorney-in-fact of the Company Securityholders (as defined in the Merger Agreement), FSDC II and Orchard Merger Sub Inc., a Delaware corporation and a wholly-owned subsidiary of FSDC II (Merger Sub). FSDC II was formed in August 2020 for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. On the day prior to the Closing Date, Old Pardes changed its name to “Pardes Biosciences Sub, Inc.” Pursuant to the Merger Agreement, on the Closing Date, (i) FSDC II changed its name to “Pardes Biosciences, Inc.” (together with its consolidated subsidiary, New Pardes) and (ii) Old Pardes merged with and into Merger Sub (Merger), with Old Pardes as the surviving company in the Merger and, after giving effect to such Merger, Old Pardes becoming a wholly-owned subsidiary of New Pardes. On January 31, 2022, Old Pardes merged with and into New Pardes. In connection with the transactions contemplated under the Merger Agreement and described above (collectively, the Business Combination) certain investors purchased an aggregate of $ 75.0 million of our common stock in a private placement of public equity (PIPE Investment). Together with FSDC II’s cash resources and funding of the PIPE Investment, we received net proceeds of approximately $ 257.5 million. For additional information on the Business Combination, please refer to Note 4, Business Combination , to the consolidated financial statements included in Part II, Item 8 of our Form 10-K for the fiscal year ended December 31, 2021. Through September 30, 2022, we have funded our operations primarily with proceeds from the issuance of Simple Agreements for Future Equity (SAFEs), convertible preferred stock financing, the Business Combination and the PIPE Investment. We believe that our $ 209.1 million of cash and cash equivalents as of September 30, 2022 , will enable us to fund our current planned operations for at least 12 months from the issuance date of these unaudited condensed financial statements, though we may raise additional capital through a combination of equity offerings, debt financings, collaborations, strategic alliances and marketing, distribution or licensing arrangements, government funding and grants. Management’s expectations with respect to our ability to fund current planned operations is based on estimates that are subject to risks and uncertainties. Our operating plan may change as a result of many factors currently unknown to management and there can be no assurance that the current operating plan will be achieved in the time frame anticipated by us or at all and we may need to seek additional funds sooner than anticipated. If adequate funds are not available to us on a timely basis, on acceptable terms or at all, management may be required to delay, limit, reduce, or terminate certain of its research, product development or future commercialization efforts, obtain funds through arrangements with collaborators on terms unfavorable to us, or pursue merger or acquisition strategies, all of which could adversely affect the holdings or the rights of our stockholders.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as filed with the Securities and Exchange Commission (SEC) on March 29, 2022, from which we derived our balance sheet as of December 31, 2021. The accompanying unaudited condensed financial statements have been prepared in accordance with United States (U.S.) generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, since they are interim statements, the accompanying unaudited condensed financial statements reflect all adjustments, consisting of normal recurring adjustments, that are, in the opinion of our management, necessary to a fair statement of the results for the interim periods presented. The results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of results to be expected for the year ending December 31, 2022 or for any other future annual or interim period. As a result of the Business Combination, the shares and corresponding capital amounts and loss per share amounts related to Old Pardes’ outstanding redeemable convertible preferred stock and common stock prior to the Business Combination have been retroactively restated to reflect the conversion ratio of 1.4078 (Conversion Ratio) established in the Merger Agreement. For additional information on the Business Combination and the Conversion Ratio, please read Note 4, Business Combination , to the audited consolidated financial statements included in Part II, Item 8 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 . Use of Estimates The preparation of the unaudited condensed financial statements in accordance with GAAP requires our management to make estimates and assumptions that affect the amounts reported on our unaudited condensed financial statements and accompanying notes. The amounts reported could differ under different estimates and assumptions. On an ongoing basis, we evaluate our estimates and judgments, which are based on historical and anticipated results and trends and on various other assumptions that management believes to be reasonable under the circumstances. Though the impact of the COVID-19 pandemic on our business and operating results presents additional uncertainty, we continue to use the best information available to form our critical accounting estimates. By their nature, estimates are subject to an inherent degree of uncertainty and, as such, actual results may differ from management’s estimates. Impact of COVID-19 In December 2019, a novel strain of coronavirus, which causes the disease known as COVID-19, was reported to have surfaced. Since then, COVID-19 has spread globally. In March 2020, the World Health Organization declared the COVID-19 outbreak a pandemic and the U.S. government-imposed travel restrictions on travel between the U.S., Europe and certain other countries. The outbreak and government measures taken in response thereto have had a significant impact, both direct and indirect, on businesses and commerce, as certain worker shortages have occurred, supply chains have been disrupted and facilities and production have been suspended. The future progression of the pandemic and its effects on our business and operations are uncertain. We are monitoring the potential impact of COVID-19 on our business and our unaudited condensed financial statements. The effects of the public health directives and our work-from-home policies may negatively impact productivity, disrupt our business and delay clinical programs and timelines and future clinical trials, the magnitude of which will depend, in part, on the length and severity of the restrictions and other limitations on our ability to conduct business in the ordinary course. The ultimate extent of the impact of the COVID-19 pandemic on our business, financial condition, prospects, operations and product development timelines and plans remains highly uncertain and will depend on future developments, and the duration and intensity of those developments, including as a result of new information that may emerge concerning COVID-19, actions taken to contain the pandemic, the duration and spread of outbreaks and the continued emergence of variants, the availability of emergency use authorizations, the availability of effective alternative treatments, the ability to design and initiate clinical trials with approvable endpoints that are financially feasible, the pandemic’s impact on patient enrollment, trial sites, contract research organizations (CROs), contract manufacturing organizations (CMOs) and other third parties with which we do business, as well as its impact on regulatory authorities and our key scientific and management personnel. These and similar, and perhaps more severe, disruptions in our operations could negatively impact our business, results of operations and financial condition, including our ability to obtain financing. To date, we have not incurred impairment losses in the carrying values of our assets as a result of the COVID-19 pandemic and are not aware of any specific related event or circumstance that would require us to revise our estimates reflected in the unaudited condensed financial statements. Significant Accounting Policies The accounting policies we follow are set forth in our audited consolidated financial statements for the fiscal year ended December 31, 2021. For further information, please refer to the audited consolidated financial statements and footnotes thereto included in Part II, Item 8 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021. There have been no material changes to these accounting policies. Net Loss Per Share Basic net loss per share is calculated by dividing the net loss by the weighted-average number of common shares outstanding for the period. Diluted net loss per share is computed by dividing the net loss by the weighted average number of common shares and common stock equivalents outstanding for the period determined using the treasury-stock method. Common stock equivalents are only included in the calculation of diluted earnings per common share when net income is reported and their effect is dilutive. For the periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding due to our net loss position. Basic and diluted net loss attributable to common stockholders per share is presented in conformity with the two-class method required for participating securities as shares of unvested restricted stock are considered participating securities. Our participating securities do not have a contractual obligation to share in our losses. As such, the net loss was attributed entirely to common stockholders for all periods presented. As a result of the Business Combination, we have retroactively restated the weighted-average number of common shares and common stock equivalent outstanding prior to December 23, 2021 to give effect to the Conversion Ratio. The following outstanding shares of potentially dilutive securities were excluded from the calculation of diluted net loss per share attributable to common stockholders for the periods presented because including them would be anti-dilutive (in common stock equivalent shares): September 30, 2022 September 30, 2021 Conversion of outstanding convertible preferred stock — 19,601,193 Outstanding stock options 9,810,627 2,259,425 Restricted common stock subject to repurchase or forfeiture 3,207,060 6,411,522 Total 13,017,687 28,272,140 New Accounting Pronouncements Adopted and Not Yet Adopted The Company has not adopted any significant accounting policies since December 31, 2021. Upon evaluation of recently issued accounting pronouncements, the Company does not believe any will have a material impact on its unaudited condensed financial statements or related financial statement disclosures.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 3. Fair Value Measurements The accounting guidance for fair value measurements 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 nonrecurring 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 quoted prices in active markets that are either directly or indirectly observable; and Level 3 — Unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. At September 30, 2022 and December 31, 2021, we did not have financial assets that are measured at fair value on a recurring basis. As further described in Note 6, Simple Agreements for Future Equity , between April 2020 and December 2020, we entered into several SAFEs, (collectively the 2020 SAFEs) with certain investors. We recorded the liability related to the 2020 SAFEs at fair value and subsequently remeasured the instruments to fair value using Level 3 fair value measurements. The fair value of the 2020 SAFEs was determined based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy. We determined the fair value of the 2020 SAFEs based on the amount of proceeds received from new third-party investors for the 2020 SAFEs, the terms of the 2020 SAFEs, including the rate at which the 2020 SAFEs convert into qualified equity financing securities, the probability and timing of a qualified equity financing and the fair value of the underlying preferred stock. Estimates and assumptions impacting the fair value measurement include the probability of a qualified equity financing as defined in the 2020 SAFEs agreements, the expected timing of such event and the fair value of our Series A preferred stock (Series A Preferred). We estimated the probability and timing of the qualified equity financing based on management’s assumptions and knowledge of specified events at issuance and as of each reporting date. The following table provides a reconciliation of all liabilities measured at fair value using Level 3 significant unobservable inputs (in thousands): Balance as of January 1, 2021 $ 14,808 Conversion into shares of convertible preferred stock ( 14,808 ) Balance as of March 31, 2021 — Conversion into shares of convertible preferred stock — Balance as of June 30, 2021 — Conversion into shares of convertible preferred stock — Balance as of September 30, 2021 $ —

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	9 Months Ended
	Sep. 30, 2022
Prepaid Expense, Current [Abstract]
Prepaid Expenses and Other Current Assets	Note 4. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): September 30, 2022 December 31, 2021 Prepaid insurance $ 2,429 $ 5,286 Prepaid research and development costs 2,034 639 Other prepaid expenses and current assets 523 656 Total $ 4,986 $ 6,581

Accrued Expenses

Accrued Expenses	9 Months Ended
	Sep. 30, 2022
Accrued Liabilities [Abstract]
Accrued Expenses	Note 5. Accrued Expenses Accrued expenses consisted of the following (in thousands): September 30, 2022 December 31, 2021 Research and development accruals $ 6,593 $ 4,050 Accrued compensation 3,313 1,659 Other accrued expenses 553 871 Total $ 10,459 $ 6,580

Simple Agreements for Future Eq

Simple Agreements for Future Equity	9 Months Ended
	Sep. 30, 2022
Simple Agreements For Future Equity [Abstract]
Simple Agreements for Future Equity	Note 6. Simple Agreements for Future Equity Between April 2020 and December 2020, we entered into the 2020 SAFEs, pursuant to which we received funding of $ 7.1 million in cash in exchange for SAFEs providing the investors the right to receive shares of our capital stock. The 2020 SAFEs contained a number of conversion and redemption provisions, including settlement upon liquidity or dissolution events. The 2020 SAFEs required that we issue equity to the SAFE holders in exchange for their investment upon an equity financing. An equity financing was defined as a transaction or series of transactions with the principal purpose of raising capital, pursuant to which we issued and sold preferred stock at a fixed valuation. The number of shares to be received by the 2020 SAFE investors was determined as the greater of the SAFE purchase amount divided by (i) the lowest price per share of the Series A Preferred or (ii) the SAFE purchase amount divided by the SAFE price per share. A liquidity event meant a change in control, a direct listing, or an initial public offering. In a liquidity or dissolution event, the investors’ right to receive cash out was junior to payment of outstanding indebtedness and creditor claims, on par for other SAFEs and preferred stock and senior to common stock. The 2020 SAFEs had no interest rate or maturity date, and the 2020 SAFE investors had no voting right prior to conversion. The 2020 SAFEs were automatically converted on January 19, 2021, into 3,967,207 shares ( 2,818,034 shares as originally issued) of Series A-1 Preferred Stock, 852,908 shares ( 605,850 shares as originally issued) of Series A-2 Preferred Stock and 1,024,956 shares ( 728,058 shares as originally issued) of Series A-3 Preferred Stock with an aggregate fair value of $ 14.8 million based on the conversion ratio described in each respective SAFE agreement. The conversion price was $ 1.2420 for the Series A-1 Preferred Stock, $ 2.4841 for the Series A-2 Preferred Stock and $ 2.8981 for the Series A-3 Preferred Stock.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2022
Stockholders' Equity Note [Abstract]
Stockholders' Equity	Note 7. Stockholders’ Equity The unaudited condensed statements of stockholders’ equity have been retroactively adjusted for all periods presented to reflect the Business Combination and reverse capitalization as defined in Note 4, Business Combination, to the audited consolidated financial statements included in Part II, Item 8 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021. Convertible Preferred Stock In January 2021, we sold 13,756,122 shares ( 9,771,414 shares as originally issued) of Series A Preferred Stock for gross proceeds of $ 44.5 million and issued a total of 5,845,071 shares ( 4,151,942 shares as originally issued) of Series A-1, A-2 and A-3 Preferred Stock in satisfaction of our obligation under the 2020 SAFEs. On December 23, 2021, in connection with the closing of the Business Combination and pursuant to the Merger Agreement, all previously issued and outstanding Series A and Series A-1, A-2 and A-3 Preferred Stock were exchanged for shares of our common stock, respectively, pursuant to the Conversion Ratio. All fractional shares were rounded down. Upon the closing of the Business Combination, pursuant to the terms of the Second Amended and Restated Certificate of Incorporation dated December 23, 2021 (Certificate of Incorporation), we authorized 10,000,000 shares of preferred stock, par value $ 0.0001 per share, all of which shares of preferred stock are undesignated. Our board of directors (Board) has the authority, without further action by the stockholders, to issue such shares of preferred stock in one or more series, to establish from time to time the number of shares to be included in each such series and to fix the designations, powers, voting and other rights, preferences and privileges of the shares. As of September 30, 2022 and December 31, 2021 , there were no shares of preferred stock outstanding. Common Stock In January 2021, we sold 105,585 shares ( 75,000 shares as originally issued) of restricted common stock to two directors of our Board for their Board services. The proceeds from the restricted common stock sale were immaterial to the unaudited condensed consolidated financial statements. The stock is subject to vesting ratably each month over 48 months . Pursuant to the Certificate of Incorporation, as of September 30, 2022 and December 31, 2021 , there were 250,000,000 shares of common stock, par value $ 0.0001 per share, authorized. There were 62,320,924 and 62,378,996 shares issued as of September 30, 2022 and December 31, 2021, respectively. In March 2022, in connection with the departure of a former employee, we repurchased 58,072 unvested shares of common stock for an aggregate purchase price of $ 0.41 and held those shares in treasury. In September 2022, we cancelled 58,072 shares of common stock held in treasury. For accounting purposes, unvested restricted stock and the unvested shares repurchased by us and held in treasury are not deemed to be outstanding.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Note 8. Stock-Based Compensation The following table summarizes stock-based compensation expense for all stock-based compensation arrangements (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Research and development $ 1,220 $ 115 $ 4,255 $ 246 General and administrative 1,496 229 3,876 404 Total stock-based compensation $ 2,716 $ 344 $ 8,131 $ 650 On March 25, 2022, our former Chief Executive Officer and President, Dr. Lopatin entered into a Transition and Separation Agreement and General Release of Claims (Separation Agreement) and Consulting Agreement (Consulting Agreement) with us, according to which Dr. Lopatin continued as our full-time employee in the role of Chief Scientific and Strategic Advisor until April 30, 2022. For the period of May 1, 2022 through July 31, 2022, Dr. Lopatin’s hours were reduced, and his annualized base salary was reduced proportionately with the reduction in hours. Starting August 1, 2022, Dr. Lopatin performs consulting services for us. As a result, Dr. Lopatin’s status as an employee has changed. We considered Dr. Lopatin’s continued employment through July 31, 2022 as substantive for accounting purposes; however, his consulting service beginning on August 1, 2022 is not considered by us to be substantive for accounting purposes. This resulted in the recognition of the remaining unrecognized stock compensation expense related to Dr. Lopatin’s stock options in the amount of $ 2.6 million as of March 25, 2022 over the remaining vesting period of March 25, 2022 through July 31, 2022. Stock-based compensation expense related to Dr. Lopatin’s stock options for the three and nine months ended September 30, 2022 was $ 0.6 million and $ 2.7 million, respectively.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 9. Commitments and Contingencies Commitments We have entered into agreements in the normal course of business with certain vendors for the provision of goods and services, which include manufacturing services with CMOs and development services with CROs. These agreements may include certain provisions for purchase obligations and termination obligations that could require payments for the cancellation of committed purchase obligations or for early termination of the agreements. The amount of the cancellation or termination payments vary and are based on the timing of the cancellation or termination and the specific terms of the agreement. In the normal course of business, we are a party to a variety of agreements pursuant to which we may be obligated to indemnify the other party. It is not possible to predict the maximum potential amount of future payments under these types of agreements due to the conditional nature of our obligations and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these types of agreements have not had a material effect on our business, consolidated results of operations or financial condition. Contingencies From time to time, we may become subject to claims or suits arising in the ordinary course of business. We accrue a liability for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. As of September 30, 2022 and December 31, 2021 , we were not a party to any material legal proceedings.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as filed with the Securities and Exchange Commission (SEC) on March 29, 2022, from which we derived our balance sheet as of December 31, 2021. The accompanying unaudited condensed financial statements have been prepared in accordance with United States (U.S.) generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, since they are interim statements, the accompanying unaudited condensed financial statements reflect all adjustments, consisting of normal recurring adjustments, that are, in the opinion of our management, necessary to a fair statement of the results for the interim periods presented. The results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of results to be expected for the year ending December 31, 2022 or for any other future annual or interim period. As a result of the Business Combination, the shares and corresponding capital amounts and loss per share amounts related to Old Pardes’ outstanding redeemable convertible preferred stock and common stock prior to the Business Combination have been retroactively restated to reflect the conversion ratio of 1.4078 (Conversion Ratio) established in the Merger Agreement. For additional information on the Business Combination and the Conversion Ratio, please read Note 4, Business Combination , to the audited consolidated financial statements included in Part II, Item 8 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 .
Use of Estimates	Use of Estimates The preparation of the unaudited condensed financial statements in accordance with GAAP requires our management to make estimates and assumptions that affect the amounts reported on our unaudited condensed financial statements and accompanying notes. The amounts reported could differ under different estimates and assumptions. On an ongoing basis, we evaluate our estimates and judgments, which are based on historical and anticipated results and trends and on various other assumptions that management believes to be reasonable under the circumstances. Though the impact of the COVID-19 pandemic on our business and operating results presents additional uncertainty, we continue to use the best information available to form our critical accounting estimates. By their nature, estimates are subject to an inherent degree of uncertainty and, as such, actual results may differ from management’s estimates.
Net Loss Per Share	Net Loss Per Share Basic net loss per share is calculated by dividing the net loss by the weighted-average number of common shares outstanding for the period. Diluted net loss per share is computed by dividing the net loss by the weighted average number of common shares and common stock equivalents outstanding for the period determined using the treasury-stock method. Common stock equivalents are only included in the calculation of diluted earnings per common share when net income is reported and their effect is dilutive. For the periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding due to our net loss position. Basic and diluted net loss attributable to common stockholders per share is presented in conformity with the two-class method required for participating securities as shares of unvested restricted stock are considered participating securities. Our participating securities do not have a contractual obligation to share in our losses. As such, the net loss was attributed entirely to common stockholders for all periods presented. As a result of the Business Combination, we have retroactively restated the weighted-average number of common shares and common stock equivalent outstanding prior to December 23, 2021 to give effect to the Conversion Ratio.
New Accounting Pronouncements Not Yet Adopted	New Accounting Pronouncements Adopted and Not Yet Adopted The Company has not adopted any significant accounting policies since December 31, 2021. Upon evaluation of recently issued accounting pronouncements, the Company does not believe any will have a material impact on its unaudited condensed financial statements or related financial statement disclosures.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Schedule of Potentially Dilutive Securities not Included in Calculation of Diluted Net Loss per Share would be Anti-dilutive	The following outstanding shares of potentially dilutive securities were excluded from the calculation of diluted net loss per share attributable to common stockholders for the periods presented because including them would be anti-dilutive (in common stock equivalent shares): September 30, 2022 September 30, 2021 Conversion of outstanding convertible preferred stock — 19,601,193 Outstanding stock options 9,810,627 2,259,425 Restricted common stock subject to repurchase or forfeiture 3,207,060 6,411,522 Total 13,017,687 28,272,140

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Schedule of Reconciliation of Liabilities Measured at Fair Value	The following table provides a reconciliation of all liabilities measured at fair value using Level 3 significant unobservable inputs (in thousands): Balance as of January 1, 2021 $ 14,808 Conversion into shares of convertible preferred stock ( 14,808 ) Balance as of March 31, 2021 — Conversion into shares of convertible preferred stock — Balance as of June 30, 2021 — Conversion into shares of convertible preferred stock — Balance as of September 30, 2021 $ —

Prepaid Expenses and Other Cu_2

Prepaid Expenses and Other Current Assets (Tables)	9 Months Ended
	Sep. 30, 2022
Prepaid Expense, Current [Abstract]
Schedule of Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets consisted of the following (in thousands): September 30, 2022 December 31, 2021 Prepaid insurance $ 2,429 $ 5,286 Prepaid research and development costs 2,034 639 Other prepaid expenses and current assets 523 656 Total $ 4,986 $ 6,581

Accrued Expenses (Tables)

Accrued Expenses (Tables)	9 Months Ended
	Sep. 30, 2022
Accrued Liabilities [Abstract]
Summary of Accrued Expenses	Accrued expenses consisted of the following (in thousands): September 30, 2022 December 31, 2021 Research and development accruals $ 6,593 $ 4,050 Accrued compensation 3,313 1,659 Other accrued expenses 553 871 Total $ 10,459 $ 6,580

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Schedule Allocation of Stock-Based Compensation Expense	The following table summarizes stock-based compensation expense for all stock-based compensation arrangements (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Research and development $ 1,220 $ 115 $ 4,255 $ 246 General and administrative 1,496 229 3,876 404 Total stock-based compensation $ 2,716 $ 344 $ 8,131 $ 650

Description of Business - Addit

Description of Business - Additional Information (Detail) - USD ($) $ in Thousands	Dec. 23, 2021	Sep. 30, 2022	Dec. 31, 2021
Description of Business and Summary of Significant Accounting Policies [Line Items]
Common stock value issued		$ 6	$ 6
Cash and cash equivalents		$ 209,055	$ 268,678
PIPE Investment
Description of Business and Summary of Significant Accounting Policies [Line Items]
Common stock value issued	$ 75,000
The Business Combination and PIPE Investment
Description of Business and Summary of Significant Accounting Policies [Line Items]
Proceeds from issuance of common stock in connection with the Business Combination	$ 257,500

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Additional Information (Details)	Dec. 23, 2021
Accounting Policies [Abstract]
Conversion ratio	1.4078

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Schedule of Potentially Dilutive Securities not Included in Calculation of Diluted Net Loss per Share would be Anti-dilutive (Details) - shares	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Potentially dilutive securities not included in calculation of diluted net loss per share because to do so would be anti-dilutive	13,017,687	28,272,140
Conversion of Outstanding Convertible Preferred Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Potentially dilutive securities not included in calculation of diluted net loss per share because to do so would be anti-dilutive	0	19,601,193
Outstanding Stock Options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Potentially dilutive securities not included in calculation of diluted net loss per share because to do so would be anti-dilutive	9,810,627	2,259,425
Restricted Common Stock Subject to Repurchase or Forfeiture
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Potentially dilutive securities not included in calculation of diluted net loss per share because to do so would be anti-dilutive	3,207,060	6,411,522

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Reconciliation of Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract]
Balance	$ 0	$ 0	$ 14,808
Conversion into shares of convertible preferred stock	0	0	(14,808)
Balance	$ 0	$ 0	$ 0

Business Combination - Addition

Business Combination - Additional Information (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Business Acquisition [Line Items]
Common stock: $0.0001 par value at September 30, 2022, and December 31, 2021; 250,000,000 shares authorized at September 30, 2022, and December 31, 2021; 62,320,924 and 62,378,996 shares issued at September 30, 2022, and December 31, 2021 respectively; and 59,113,864 and 56,765,533 shares outstanding at September 30, 2022, and December 31, 2021, respectively	$ 6	$ 6
Common stock, shares issued	62,320,924	62,378,996
Common stock, shares authorized	250,000,000	250,000,000

Prepaid Expenses and Other Cu_3

Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Prepaid Expense, Current [Abstract]
Prepaid insurance	$ 2,429	$ 5,286
Prepaid research and development costs	2,034	639
Other prepaid expenses and current assets	523	656
Total	$ 4,986	$ 6,581

Accrued Expenses - Summary of A

Accrued Expenses - Summary of Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Schedule Of Accrued Expenses [Abstract]
Research and development accruals	$ 6,593	$ 4,050
Accrued compensation	3,313	1,659
Other accrued expenses	553	871
Total	$ 10,459	$ 6,580

Simple Agreements for Future _2

Simple Agreements for Future Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions		9 Months Ended
	Jan. 19, 2021	Sep. 30, 2022
Simple Agreements For Future Equity [Line Items]
Gross proceeds from issuance of common stock		$ 7.1
Aggregate fair value	$ 14.8
Series A-1 Preferred Stock
Simple Agreements For Future Equity [Line Items]
Number of SAFE shares issued	2,818,034
Conversion of SAFE agreements into shares of convertible preferred stock (Shares)	3,967,207
Conversion price	$ 1.2420
Series A-2 Preferred Stock
Simple Agreements For Future Equity [Line Items]
Number of SAFE shares issued	605,850
Conversion of SAFE agreements into shares of convertible preferred stock (Shares)	852,908
Conversion price	$ 2.4841
Series A-3 Preferred Stock
Simple Agreements For Future Equity [Line Items]
Number of SAFE shares issued	728,058
Conversion of SAFE agreements into shares of convertible preferred stock (Shares)	1,024,956
Conversion price	$ 2.8981

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details) - USD ($)	1 Months Ended			9 Months Ended
	Sep. 30, 2022	Mar. 31, 2022	Jan. 31, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021	Dec. 23, 2021
Stockholders Equity [Line Items]
Common stock, shares authorized	250,000,000			250,000,000		250,000,000
Series A Preferred Stock, shares authorized	10,000,000			10,000,000		10,000,000	10,000,000
Issuance of series A convertible preferred stock for cash, net of issuance costs (Shares)	0			0		0
Proceeds from issuance of convertible preferred stock into common stock, net of issuance costs				$ 0	$ 44,500,000
Common stock, par value (in dollars per share)	$ 0.0001			$ 0.0001		$ 0.0001
Preferred stock, par value (in Dollars per share)	$ 0.0001			$ 0.0001		$ 0.0001	$ 0.0001
Preferred stock, shares outstanding	0			0		0
Common stock, shares issued	62,320,924			62,320,924		62,378,996
Common Stock
Stockholders Equity [Line Items]
Aggregate purchase price		$ 0.41
Shares subjected to repurchase		58,072
Treasury Stock, Shares, Retired	58,072
Restricted Stock | Director
Stockholders Equity [Line Items]
Award vesting rights			The stock is subject to vesting ratably each month over 48 months
Award vesting period			48 months
Common stock, shares issued			75,000
Post Exchange Ratio | Restricted Stock | Director
Stockholders Equity [Line Items]
Common stock, shares issued			105,585
Series A Convertible Preferred Stock
Stockholders Equity [Line Items]
Issuance of series A convertible preferred stock for cash, net of issuance costs (Shares)			9,771,414
Proceeds from issuance of convertible preferred stock into common stock, net of issuance costs			$ 44,500,000
Series A Convertible Preferred Stock | 2020 SAFEs
Stockholders Equity [Line Items]
Issuance of series A convertible preferred stock for cash, net of issuance costs (Shares)			13,756,122
Series A-1, A-2 and A-3 Preferred Stock
Stockholders Equity [Line Items]
Issuance of series A convertible preferred stock for cash, net of issuance costs (Shares)			4,151,942
Series A-1, A-2 and A-3 Preferred Stock | 2020 SAFEs
Stockholders Equity [Line Items]
Issuance of series A convertible preferred stock for cash, net of issuance costs (Shares)			5,845,071

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Mar. 25, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation expense					$ 2,600
Stock-based compensation expense	$ 2,716	$ 344	$ 8,131	$ 650
Chief Executive Officer [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation expense	$ 600		$ 2,700

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule Allocation of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-Based Payment Arrangement, Expense	$ 2,716	$ 344	$ 8,131	$ 650
Research and Development Expense
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-Based Payment Arrangement, Expense	1,220	115	4,255	246
General and Administrative Expense
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-Based Payment Arrangement, Expense	$ (1,496)	$ 229	$ (3,876)	$ 404