Pardes Biosciences (PRDS) 10-Q 5 May 23 2023 Q3 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2023	May 01, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2023
Document Fiscal Year Focus	2023
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		61,716,745

Condensed Balance Sheets

Condensed Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 47,164	$ 59,284
Short-term investments	125,067	138,056
Prepaid expenses and other current assets	3,914	3,062
Total current assets	176,145	200,402
Other assets	0	219
Total assets	176,145	200,621
Current liabilities:
Accounts payable	3,715	4,929
Accrued expenses	7,700	15,496
Total current liabilities	11,415	20,425
Total liabilities	11,415	20,425
Commitments and contingencies (Note 9)
Stockholders' equity:
Preferred stock: $0.0001 par value; 10,000,000 shares authorized as of March 31, 2023 and December 31, 2022; no shares issued and outstanding as of March 31, 2023 and December 31, 2022	0	0
Common stock: $0.0001 par value and 250,000,000 shares authorized; 61,716,745 and 61,734,343 shares issued as of March 31, 2023 and December 31, 2022, respectively; and 59,970,679 and 59,542,714 shares outstanding as of March 31, 2023 and December 31, 2022, respectively	6	6
Additional paid-in capital	330,710	328,372
Accumulated other comprehensive loss	(23)	(24)
Accumulated deficit	(165,963)	(148,158)
Total stockholders' equity	164,730	180,196
Total liabilities and stockholders' equity	$ 176,145	$ 200,621

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parentheticals) - $ / shares	Mar. 31, 2023	Dec. 31, 2022	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	61,716,745	61,734,343
Common stock, shares outstanding	59,970,679	59,542,714

Condensed Statements of Operati

Condensed Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Operating expenses:
Research and development	$ 12,980	$ 13,199
General and administrative	6,829	8,226
Total operating expenses	19,809	21,425
Other income (expense):
Interest and other income (expense), net	2,004	(15)
Net loss	$ (17,805)	$ (21,440)
Net loss per share, basic	$ (0.30)	$ (0.38)
Net loss per share, diluted	$ (0.30)	$ (0.38)
Weighted-average number of common shares used in computing net loss per share, basic	59,766,037	57,039,069
Weighted-average number of common shares used in computing net loss per share, diluted	59,766,037	57,039,069
Unrealized gain on available-for-sale securities	$ 1	$ 0
Comprehensive loss	$ (17,804)	$ (21,440)

Condensed Statements of Stockho

Condensed Statements of Stockholders Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit
Balance at the beginning at Dec. 31, 2021	$ 266,294	$ 6	$ 317,812		$ (51,524)
Balance at the beginning (Shares) at Dec. 31, 2021		56,765,533
Vesting of restricted common stock (Shares)		610,765
Stock-based compensation expense	1,527		1,527
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		57,376,298
Balance at the beginning at Dec. 31, 2022	$ 180,196	$ 6	328,372	$ (24)	(148,158)
Balance at the beginning (Shares) at Dec. 31, 2022	59,542,714	59,542,714
Vesting of restricted common stock (Shares)		427,965
Stock-based compensation expense	$ 2,338		2,338
Other comprehensive income	1			1
Net loss	(17,805)				(17,805)
Balance at the end at Mar. 31, 2023	$ 164,730	$ 6	$ 330,710	$ (23)	$ (165,963)
Balance at the end (Shares) at Mar. 31, 2023	59,970,679	59,970,679

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Operating activities:
Net loss	$ (17,805)	$ (21,440)
Adjustments to reconcile net loss to net cash used in operating activities:
Net accretion of discounts on available-for-sale securities	(1,422)	0
Stock-based compensation expense	2,338	1,527
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	(926)	(645)
Interest receivable	73	0
Accounts payable	(1,214)	216
Accrued expenses	(7,796)	(20)
Other assets	219	0
Net cash used in operating activities	(26,533)	(20,362)
Investing activities:
Purchases of available-for-sale securities	(15,764)	0
Proceeds on sale of available-for-sale securities	1,177	0
Maturities of available-for-sale securities	29,000
Net cash provided by investing activities	14,413	0
Financing activities:
Cash paid for deferred offering costs	0	(397)
Net cash used in financing activities	0	(397)
Decrease in cash and cash equivalents	(12,120)	(20,759)
Cash and cash equivalents at beginning of period	59,284	268,678
Cash and cash equivalents at end of period	$ 47,164	$ 247,919

Description of Business

Description of Business	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Note 1. Description of Business Description of Business Pardes Biosciences, Inc., a Delaware corporation, is a biopharmaceutical company that has been focused on discovering, developing and commercializing novel oral-antiviral therapeutics to improve the lives of patients suffering from life-threatening disease. 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. On April 3, 2023, we announced topline results from our Phase 2 clinical trial to evaluate pomotrelvir (formerly known as PBI-0451) for the treatment of mild-to-moderate COVID-19 in test-positive, symptomatic, otherwise healthy, vaccinated adults without risk factors for developing severe disease. COVID-19 is caused by infection with the severe acute respiratory syndrome coronavirus (SARS-CoV-2). Pomotrelvir did not achieve the primary endpoint as measured by the proportion of participants below the limit of detection for infectious SARS-CoV-2 by infectious virus assay (IVA) on day three of treatment with pomotrelvir versus with placebo. Pomotrelvir did not demonstrate meaningful improvement over placebo in reduction from baseline of SARS-CoV-2 infectious virus titer by IVA or in the reduction from baseline or proportion achieving undetectable viral load by quantitative reverse transcriptase polymerase chain reaction measured from mid-turbinate swabs. Based upon the topline results from the Phase 2 clinical trial, the Company decided to suspend further clinical development of pomotrelvir and the Board of the Directors of the Company (the Board) has initiated a review of a range of strategic alternatives that may include, but are not limited to, an acquisition, merger, business combination, or other transaction. There can be no assurance that this review process will result in the Company pursuing a transaction or that any transaction, if pursued, will be completed on attractive terms or at all. The Company does not intend to comment further unless or until the Board has approved a definitive course of action, the review process is concluded, or it is determined that other disclosure is appropriate. Business Combination On December 23, 2021 (Closing Date), Pardes Biosciences, Inc., a private company (Old Pardes) and FS Development Corp. II (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. Pursuant to the Merger Agreement, on the Closing Date, FSDC II changed its name to “Pardes Biosciences, Inc.” 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 5, Business Combination , to the consolidated financial statements included in Part II, Item 8 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, as filed with the Securities and Exchange Commission (SEC) on March 14, 2023 (2022 Form 10-K). Liquidity Through March 31, 2023 , we have funded our operations primarily with proceeds from the sale of preferred stock, the Business Combination and the PIPE Investment. On January 12, 2023, we filed a shelf registration statement on Form S-3, which was declared effective by the U.S. Securities and Exchange Commission on January 20, 2023 (2023 Shelf). In connection with the 2023 Shelf, we entered into a Sales Agreement, dated January 11, 2023, with SVB Securities LLC (Sales Agent), pursuant to which we may offer and sell up to $ 50.0 million of our common stock, from time to time at our sole discretion, through the Sales Agent, in “at-the-market” offerings under the 2023 Shelf. However, we believe that our $ 172.2 million of cash, cash equivalents and short-term investments as of March 31, 2023, will enable us to fund our current planned operations for at least 12 months from the issuance date of these unaudited condensed financial statements. We have cash deposits with regulated financial institutions, which may from time to time exceed insurance provided on such deposits.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2023
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 financial statements and notes thereto in our 2022 Form 10-K, from which we derived our balance sheet as of December 31, 2022. 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 months ended March 31, 2023 are not necessarily indicative of results to be expected for the year ending December 31, 2023 or for any other future annual or interim period. 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. By their nature, estimates are subject to an inherent degree of uncertainty and, as such, actual results may differ from management’s estimates. Significant Accounting Policies The accounting policies we follow are set forth in our audited financial statements for the fiscal year ended December 31, 2022. For further information, please refer to the audited financial statements and footnotes thereto included in Part II, Item 8 of our 2022 Form 10-K. 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. 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): March 31, 2023 March 31, 2022 Outstanding stock options 11,646,009 6,380,596 Restricted common stock subject to repurchase or forfeiture 1,746,066 4,944,626 Total 13,392,075 11,325,222 New Accounting Pronouncements Adopted and Not Yet Adopted The Company has not adopted any significant accounting policies since December 31, 2022. 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.

Investments

Investments	3 Months Ended
	Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Investments	Note 3. Investments Available-for-sale securities consisted of U.S. Treasury securities, U.S. Agency bonds, commercial paper, corporate debt securities and asset-backed securities. Our cash equivalents consisted of the following (in thousands): March 31, 2023 December 31, 2022 Cash equivalents Money market fund $ 38,466 $ 32,426 U.S. government and government agencies 2,701 19,869 Commercial paper — 2,997 Corporate debt securities — 2,993 Total cash equivalents $ 41,167 $ 58,285 Short-term investments are classified as available-for-sale, which reflects management’s intention to use proceeds from sales of these securities to fund our operations as necessary and, as such, are carried at fair value. Our short-term investments that are measured at fair value on a recurring basis consisted of the following: March 31, 2023 Maturities Amortized Cost Unrealized Gains Unrealized Losses Estimated Short-term investments U.S. government and government agencies Within one year $ 56,038 $ 8 $ ( 22 ) $ 56,024 Commercial paper Within one year 62,276 12 ( 23 ) 62,265 Asset-backed securities After one year through five years 6,761 17 — 6,778 Total short-term investments $ 125,075 $ 37 $ ( 45 ) $ 125,067 December 31, 2022 Maturities Amortized Cost Unrealized Gains Unrealized Losses Estimated Short-term investments U.S. government and government agencies Within one year $ 75,409 $ 15 $ ( 48 ) $ 75,376 Commercial paper Within one year 59,405 — — 59,405 Asset-backed securities Within one year 3,267 8 — 3,275 Total short-term investments $ 138,081 $ 23 $ ( 48 ) $ 138,056 The amortized cost and the fair value of short-term investments were $ 125.1 million at March 31, 2023 and $ 138.1 million at December 31, 2022. As of March 31, 2023 , there were 19 short-term investments with fair value totaling $ 52.2 million that were in a gross unrealized loss position for less than 12 months, and no ne were in a gross unrealized loss position for 12 months or more. Based on our analysis of available-for-sale securities, we determined the unrealized losses were primarily due to changes in interest rates and not due to credit risks. As such, we did no t record a credit allowance as of March 31, 2023 and December 31, 2022. As of March 31, 2023 and December 31, 2022, the accrued interest receivable on our available-for-sale securities was $ 0.2 million and $ 0.3 million, respectively. For the three months ended March 31, 2023 and 2022 , we did no t write off any accrued interest receivables. There were no realized gains or losses.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 4. Fair Value Measurements 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 Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets with insufficient volume or infrequent transactions (less active markets), or model-driven valuations in which all significant inputs are observable or can be derived principally from, or corroborated with, observable market data; and Level 3 — Unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Below are summaries of our cash equivalents and short-term investments that were measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands): March 31, 2023 December 31, 2022 Level 1 Level 2 Estimated Fair Value Level 1 Level 2 Estimated Fair Value Cash equivalents Money market fund $ 38,466 $ — $ 38,466 $ 32,426 $ — $ 32,426 U.S. government and government agencies — 2,701 2,701 — 19,869 19,869 Commercial paper — — — — 2,997 2,997 Corporate debt securities — — — — 2,993 2,993 Total cash equivalents $ 38,466 $ 2,701 $ 41,167 $ 32,426 $ 25,859 $ 58,285 March 31, 2023 December 31, 2022 Level 2 Estimated Fair Value Level 2 Estimated Fair Value Short-term investments U.S. government and government agencies $ 56,024 $ 56,024 $ 75,376 $ 75,376 Commercial paper 62,265 62,265 59,405 59,405 Asset-backed securities 6,778 6,778 3,275 3,275 Total short-term investments $ 125,067 $ 125,067 $ 138,056 $ 138,056

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	3 Months Ended
	Mar. 31, 2023
Prepaid Expense, Current [Abstract]
Prepaid Expenses and Other Current Assets	Note 5. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): March 31, 2023 December 31, 2022 Prepaid insurance $ 2,768 $ 1,582 Prepaid research and development costs 490 495 Other prepaid expenses and current assets 656 985 Total $ 3,914 $ 3,062

Accrued Expenses

Accrued Expenses	3 Months Ended
	Mar. 31, 2023
Accrued Liabilities [Abstract]
Accrued Expenses	Note 6. Accrued Expenses Accrued expenses consisted of the following (in thousands): March 31, 2023 December 31, 2022 Research and development accruals $ 5,681 $ 10,784 Accrued compensation 1,612 3,878 Other accrued expenses 407 834 Total $ 7,700 $ 15,496

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2023
Stockholders' Equity Note [Abstract]
Stockholders' Equity	Note 7. Stockholders’ Equity Preferred Stock 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 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 March 31, 2023 and December 31, 2022 , there were no shares of preferred stock outstanding. Common Stock Pursuant to the Certificate of Incorporation, as of March 31, 2023 and December 31, 2022 , there were 250,000,000 shares of common stock, par value $ 0.0001 per share, authorized. There were 61,716,745 and 61,734,343 shares issued as of March 31, 2023 and December 31, 2022, respectively.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2023
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 March 31, 2023 2022 Research and development $ 705 $ 463 General and administrative 1,633 1,064 Total stock-based compensation $ 2,338 $ 1,527

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 9. Commitments and Contingencies Commitments On March 31, 2023, the Board made the strategic decision to suspend further clinical development of pomotrelvir, winddown the research and development activities of the Company and initiate a review of a range of strategic alternatives that may include, but are not limited to, an acquisition, merger, business combination, or other transaction (the Restructuring Plan). To better align operations with the change in the Company’s corporate strategy under the Restructuring Plan and reduce operating expenses while we review strategic alternatives, the Board approved a reduction in workforce (RIF). Under the RIF, we are reducing headcount by approximately 89 %. On April 3, 2023, we notified our employees about the results of the Phase 2 clinical trial, the Restructuring Plan and the RIF. The RIF will take place in phases. Approximately 55 % of our employees were terminated in April 2023 and the remainder of the workforce reductions will occur throughout the remainder of second quarter of 2023 as research and development activities winddown. The total cost related to the RIF is approximately $ 5.4 million, all of which is cash-based expenditures primarily related to personnel expenses such as salaries, one-time severance payments and other benefits. The foregoing estimated amount does not include any non-cash charges associated with stock-based compensation. We recognized $ 1.1 million of the total costs related to the RIF in the first quarter of 2023 and expect to recognize substantially all the remaining RIF charges in the second quarter of 2023. 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 clinical manufacturing organizations (CMOs) and development services with clinical research organizations (CROs). In connection with the suspension of the Phase 2 clinical trial and the winding down of the Company’s research and development activities, we are terminating or modifying substantially all of our agreements with CMOs and CROs. 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 and are not capable of being estimated in good faith at this time. 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, 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 March 31, 2023 and December 31, 2022 , we were not a party to any material legal proceedings.

Restructuring and Related Activ

Restructuring and Related Activities	3 Months Ended
	Mar. 31, 2023
Restructuring and Related Activities [Abstract]
Restructuring and Related Activities	Note 10. Restructuring and Related Activities On March 31, 2023, the Board approved the Restructuring Plan and the RIF. Restructuring charges are reported as a component of operating expenses in our condensed statement of operations. The following table details the accruals for the restructuring charges (in thousands): Three Months Ended March 31, 2023 Beginning balance $ — Severance expense 1,125 Ending balance $ 1,125

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed financial statements should be read in conjunction with the audited financial statements and notes thereto in our 2022 Form 10-K, from which we derived our balance sheet as of December 31, 2022. 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 months ended March 31, 2023 are not necessarily indicative of results to be expected for the year ending December 31, 2023 or for any other future annual or interim period.
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. 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.
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, 2022. 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)	3 Months Ended
	Mar. 31, 2023
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): March 31, 2023 March 31, 2022 Outstanding stock options 11,646,009 6,380,596 Restricted common stock subject to repurchase or forfeiture 1,746,066 4,944,626 Total 13,392,075 11,325,222

Investments (Tables)

Investments (Tables)	3 Months Ended
	Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Schedule of Cash Equivalents and Short-Term Investments at Fair Value	Our cash equivalents consisted of the following (in thousands): March 31, 2023 December 31, 2022 Cash equivalents Money market fund $ 38,466 $ 32,426 U.S. government and government agencies 2,701 19,869 Commercial paper — 2,997 Corporate debt securities — 2,993 Total cash equivalents $ 41,167 $ 58,285 Our short-term investments that are measured at fair value on a recurring basis consisted of the following: March 31, 2023 Maturities Amortized Cost Unrealized Gains Unrealized Losses Estimated Short-term investments U.S. government and government agencies Within one year $ 56,038 $ 8 $ ( 22 ) $ 56,024 Commercial paper Within one year 62,276 12 ( 23 ) 62,265 Asset-backed securities After one year through five years 6,761 17 — 6,778 Total short-term investments $ 125,075 $ 37 $ ( 45 ) $ 125,067 December 31, 2022 Maturities Amortized Cost Unrealized Gains Unrealized Losses Estimated Short-term investments U.S. government and government agencies Within one year $ 75,409 $ 15 $ ( 48 ) $ 75,376 Commercial paper Within one year 59,405 — — 59,405 Asset-backed securities Within one year 3,267 8 — 3,275 Total short-term investments $ 138,081 $ 23 $ ( 48 ) $ 138,056

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Summary of Cash Equivalents and Short-Term Investments at Fair Value on a Recurring Basis	Below are summaries of our cash equivalents and short-term investments that were measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands): March 31, 2023 December 31, 2022 Level 1 Level 2 Estimated Fair Value Level 1 Level 2 Estimated Fair Value Cash equivalents Money market fund $ 38,466 $ — $ 38,466 $ 32,426 $ — $ 32,426 U.S. government and government agencies — 2,701 2,701 — 19,869 19,869 Commercial paper — — — — 2,997 2,997 Corporate debt securities — — — — 2,993 2,993 Total cash equivalents $ 38,466 $ 2,701 $ 41,167 $ 32,426 $ 25,859 $ 58,285 March 31, 2023 December 31, 2022 Level 2 Estimated Fair Value Level 2 Estimated Fair Value Short-term investments U.S. government and government agencies $ 56,024 $ 56,024 $ 75,376 $ 75,376 Commercial paper 62,265 62,265 59,405 59,405 Asset-backed securities 6,778 6,778 3,275 3,275 Total short-term investments $ 125,067 $ 125,067 $ 138,056 $ 138,056

Prepaid Expenses and Other Cu_2

Prepaid Expenses and Other Current Assets (Tables)	3 Months Ended
	Mar. 31, 2023
Prepaid Expense, Current [Abstract]
Schedule of Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets consisted of the following (in thousands): March 31, 2023 December 31, 2022 Prepaid insurance $ 2,768 $ 1,582 Prepaid research and development costs 490 495 Other prepaid expenses and current assets 656 985 Total $ 3,914 $ 3,062

Accrued Expenses (Tables)

Accrued Expenses (Tables)	3 Months Ended
	Mar. 31, 2023
Accrued Liabilities [Abstract]
Summary of Accrued Expenses	Accrued expenses consisted of the following (in thousands): March 31, 2023 December 31, 2022 Research and development accruals $ 5,681 $ 10,784 Accrued compensation 1,612 3,878 Other accrued expenses 407 834 Total $ 7,700 $ 15,496

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2023
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 March 31, 2023 2022 Research and development $ 705 $ 463 General and administrative 1,633 1,064 Total stock-based compensation $ 2,338 $ 1,527

Restructuring and Related Act_2

Restructuring and Related Activities (Tables)	3 Months Ended
	Mar. 31, 2023
Restructuring and Related Activities [Abstract]
Schedule of accruals for the restructuring charges	The following table details the accruals for the restructuring charges (in thousands): Three Months Ended March 31, 2023 Beginning balance $ — Severance expense 1,125 Ending balance $ 1,125

Description of Business - Addit

Description of Business - Additional Information (Detail) - USD ($) $ in Thousands	Dec. 23, 2021	Mar. 31, 2023	Jan. 12, 2023	Dec. 31, 2022
Description of Business and Summary of Significant Accounting Policies [Line Items]
Common stock value issued		$ 6		$ 6
Cash, cash equivalents and short-term investments		$ 172,200
At the Market Offering
Description of Business and Summary of Significant Accounting Policies [Line Items]
Equity securities shares authorized value			$ 50,000
PIPE Investment | Private Placement
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 - Schedule of Potentially Dilutive Securities not Included in Calculation of Diluted Net Loss per Share would be Anti-dilutive (Details) - shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
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	13,392,075	11,325,222
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	11,646,009	6,380,596
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	1,746,066	4,944,626

Investments - Schedule of Cash

Investments - Schedule of Cash Equivalents and Short-Term Investments at Fair Value (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Debt Securities, Available-for-Sale [Line Items]
Money market fund	$ 38,466		$ 32,426
U.S. government and government agencies	2,701		19,869
Commercial paper	0		2,997
Corporate debt securities	0		2,993
Total cash equivalents	41,167		58,285
Short-term investments
Debt Securities, Available-for-Sale [Line Items]
Available For Sale Securities, Amortized Cost	125,075		138,081
Available-for-Sale Securities, Unrealized Gains	37		23
Available-for-Sale Securities, Unrealized Losses	(45)		(48)
Available-for-Sale Securities, Estimated Fair Value	$ 125,067		138,056
Short-term investments | U.S. government and government agencies
Debt Securities, Available-for-Sale [Line Items]
Available-for-Sale Securities, Maturities	Within one year	Within one year
Available For Sale Securities, Amortized Cost	$ 56,038		75,409
Available-for-Sale Securities, Unrealized Gains	8		15
Available-for-Sale Securities, Unrealized Losses	(22)		(48)
Available-for-Sale Securities, Estimated Fair Value	$ 56,024		75,376
Short-term investments | Commercial paper
Debt Securities, Available-for-Sale [Line Items]
Available-for-Sale Securities, Maturities	Within one year	Within one year
Available For Sale Securities, Amortized Cost	$ 62,276		59,405
Available-for-Sale Securities, Unrealized Gains	12		0
Available-for-Sale Securities, Unrealized Losses	(23)		0
Available-for-Sale Securities, Estimated Fair Value	$ 62,265		59,405
Short-term investments | Asset Backed Securities
Debt Securities, Available-for-Sale [Line Items]
Available-for-Sale Securities, Maturities	After one year through five years	Within one year
Available For Sale Securities, Amortized Cost	$ 6,761		3,267
Available-for-Sale Securities, Unrealized Gains	17		8
Available-for-Sale Securities, Unrealized Losses	0		0
Available-for-Sale Securities, Estimated Fair Value	$ 6,778		$ 3,275

Investments - Additional Inform

Investments - Additional Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) InvestmentSecurity	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)
Schedule of Available-for-Sale Securities [Table]
Number of short-term investments in gross unrealized loss position less than 12 months | InvestmentSecurity	19
Number of short-term investments in gross unrealized loss position more than 12 months | InvestmentSecurity	0
Short-term investments in gross unrealized loss position less than 12 months ,Fair value	$ 52,200
Available-for sale securities, allowance for credit loss	$ 0		$ 0
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Current, Statement of Financial Position [Extensible Enumeration]	Accrued Liabilities, Current		Accrued Liabilities, Current
Available-for sale securities, accrued interest after allowance for credit loss	$ 200		$ 300
Available-for sale securities, accrued interest writeoff	0	$ 0
Short-term investments
Schedule of Available-for-Sale Securities [Table]
Amortized cost	125,075		138,081
Fair value	$ 125,067		$ 138,056

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Cash Equivalents and Short-Term Investments at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	$ 41,167	$ 58,285
Estimated fair value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	41,167	58,285
Available-for-Sale Securities, Estimated Fair Value	125,067	138,056
Estimated fair value | U.S. government and government agencies
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	2,701	19,869
Available-for-Sale Securities, Estimated Fair Value	56,024	75,376
Estimated fair value | Corporate debt securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents		2,993
Estimated fair value | Asset-backed securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-Sale Securities, Estimated Fair Value	6,778	3,275
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	38,466	32,426
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	2,701	25,859
Available-for-Sale Securities, Estimated Fair Value	125,067	138,056
Level 2 | U.S. government and government agencies
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	2,701	19,869
Available-for-Sale Securities, Estimated Fair Value	56,024	75,376
Level 2 | Corporate debt securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents		2,993
Level 2 | Asset-backed securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-Sale Securities, Estimated Fair Value	6,778	3,275
Money market fund | Estimated fair value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	38,466	32,426
Money market fund | Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	38,466	32,426
Commercial paper | Estimated fair value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents		2,997
Available-for-Sale Securities, Estimated Fair Value	62,265	59,405
Commercial paper | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents		2,997
Available-for-Sale Securities, Estimated Fair Value	$ 62,265	$ 59,405

Business Combination - Addition

Business Combination - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Common stock: $0.0001 par value and 250,000,000 shares authorized; 61,716,745 and 61,734,343 shares issued as of March 31, 2023 and December 31, 2022, respectively; and 59,970,679 and 59,542,714 shares outstanding as of March 31, 2023 and December 31, 2022, respectively	$ 6	$ 6
Common stock, shares issued	61,716,745	61,734,343
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	Mar. 31, 2023	Dec. 31, 2022
Prepaid Expense, Current [Abstract]
Prepaid insurance	$ 2,768	$ 1,582
Prepaid research and development costs	490	495
Other prepaid expenses and current assets	656	985
Total	$ 3,914	$ 3,062

Accrued Expenses - Summary of A

Accrued Expenses - Summary of Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Schedule Of Accrued Expenses [Abstract]
Research and development accruals	$ 5,681	$ 10,784
Accrued compensation	1,612	3,878
Other accrued expenses	407	834
Total	$ 7,700	$ 15,496

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details) - $ / shares	Mar. 31, 2023	Dec. 31, 2022	Dec. 23, 2021
Stockholders Equity [Line Items]
Common stock, shares authorized	250,000,000	250,000,000
Series A Preferred Stock, shares authorized	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
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, par value (in Dollars per share)	$ 0.0001	$ 0.0001	$ 0.0001
Preferred stock, shares outstanding	0	0
Common stock, shares issued	61,716,745	61,734,343

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule Allocation of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-Based Payment Arrangement, Expense	$ 2,338	$ 1,527
Research and Development Expense
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-Based Payment Arrangement, Expense	705	463
General and Administrative Expense
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-Based Payment Arrangement, Expense	$ 1,633	$ 1,064

Commitments and Contingencies (

Commitments and Contingencies (Additional Information) (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended
	Apr. 30, 2023	Mar. 31, 2023
Loss Contingencies [Line Items]
Estimated workforce reduction percentage		89%
Reduction In Workforce [Member]
Loss Contingencies [Line Items]
Severance costs		$ 1.1
Reduction In Workforce [Member] | Subsequent Event [Member]
Loss Contingencies [Line Items]
Estimated workforce reduction percentage	55%
Severance costs	$ 5.4

Restructuring and Related Act_3

Restructuring and Related Activities - Schedule of the Accruals for the Restructuring Charges (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Restructuring Reserve [Abstract]
Beginning Balance	$ 0
Severance expense	1,125
Ending Balance	$ 1,125