Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Apr. 08, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Surrozen, Inc./DE | ||
Entity Central Index Key | 0001824893 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Common Stock, Shares Outstanding | 3,198,786 | ||
Entity Public Float | $ 11.5 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
ICFR Auditor Attestation Flag | false | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity File Number | 001-39635 | ||
Entity Tax Identification Number | 30-1374889 | ||
Entity Address, Address Line One | 171 Oyster Point Blvd | ||
Entity Address, Address Line Two | Suite 400 | ||
Entity Address, City or Town | South San Francisco | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94080 | ||
City Area Code | 650 | ||
Local Phone Number | 489-9000 | ||
Entity Interactive Data Current | Yes | ||
Entity Incorporation, State or Country Code | DE | ||
Document Transition Report | false | ||
Auditor Firm ID | 42 | ||
Auditor Location | San Francisco, California | ||
Auditor Name | Ernst & Young LLP | ||
Documents Incorporated by Reference | None. | ||
Common Stock | |||
Document Information [Line Items] | |||
Trading Symbol | SRZN | ||
Title of 12(b) Security | Common Stock, $0.0001 par value per share | ||
Security Exchange Name | NASDAQ | ||
Redeemable Warrant | |||
Document Information [Line Items] | |||
Trading Symbol | SRZNW | ||
Title of 12(b) Security | Redeemable warrants, each whole warrant exercisable for one-fifteenth of a share of Common Stock | ||
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 36,043 | $ 24,690 |
Accounts receivable | 2,152 | 1,978 |
Short-term marketable securities | 0 | 51,148 |
Prepaid expenses and other current assets | 2,937 | 3,489 |
Total current assets | 41,132 | 81,305 |
Property and equipment, net | 1,969 | 3,630 |
Operating lease right-of-use assets | 1,889 | 3,268 |
Restricted cash | 688 | 405 |
Other assets | 402 | 827 |
Total assets | 46,080 | 89,435 |
Current liabilities: | ||
Accounts payable | 525 | 658 |
Accrued and other liabilities | 4,126 | 6,848 |
Lease liabilities, current portion | 2,497 | 2,226 |
Total current liabilities | 7,148 | 9,732 |
Lease liabilities, noncurrent portion | 882 | 3,376 |
Warrant liability | 115 | 326 |
Total liabilities | 8,145 | 13,434 |
Commitments and contingencies (Note 5 and Note 14) | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value, 10,000 shares authorized; no shares issued and outstanding as of December 31, 2023 and 2022 | 0 | 0 |
Common stock, $0.0001 par value, 500,000 shares authorized as of December 31, 2023 and 2022; 2,063 and 2,006 shares issued and outstanding as of December 31, 2023 and 2022, respectively | 0 | 0 |
Additional paid-in-capital | 259,630 | 254,895 |
Accumulated other comprehensive loss | 0 | (241) |
Accumulated deficit | (221,695) | (178,653) |
Total stockholders’ equity | 37,935 | 76,001 |
Total liabilities and stockholders’ equity | $ 46,080 | $ 89,435 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common shares, par value | $ 0.0001 | $ 0.0001 |
common stock | 500,000,000 | 500,000,000 |
Shares issued | 2,063,000 | 2,006,000 |
Common shares, shares outstanding | 2,063,000 | 2,006,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenues: | ||
Collaboration and license revenue | $ 0 | $ 12,500 |
Operating expenses: | ||
Research and development | 27,230 | 37,013 |
General and administrative | 15,798 | 19,826 |
Restructuring | 2,752 | 0 |
Total operating expenses | 45,780 | 56,839 |
Loss from operations | (45,780) | (44,339) |
Interest income | 2,340 | 781 |
Other income, net | 398 | 7,554 |
Net loss | (43,042) | (36,004) |
Unrealized gain (loss) on marketable securities, net of tax | 241 | (122) |
Comprehensive loss | $ (42,801) | $ (36,126) |
Net loss per share attributable to common stockholders, basic | $ (21.33) | $ (15.56) |
Net loss per share attributable to common Stockholders, diluted | $ (21.33) | $ (15.56) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic | 2,018 | 2,314 |
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted | 2,018 | 2,314 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive loss | Accumulated deficit |
Balance at the beginning at Dec. 31, 2021 | $ 109,700 | $ 252,468 | $ (119) | $ (142,649) | |
Balance at the beginning (in shares) at Dec. 31, 2021 | 2,336 | ||||
Issuance of common stock under Equity Purchase Agreement(Value) | 273 | 273 | |||
Issuance of common stock under Equity Purchase Agreement (Share) | 7 | ||||
Issuance of common stock under employee stock purchase plan | 143 | 143 | |||
Issuance of common stock under employee stock purchase plan (Share) | 23 | ||||
Repurchase of early exercised stock options, shares | (1) | ||||
Repurchase and cancelation of common stock | (2,607) | (2,607) | |||
Repurchase and cancellation of common stock (Share) | (359) | ||||
Vesting of early exercised stock options | 101 | 101 | |||
Stock-based compensation expense | 4,517 | 4,517 | |||
Other comprehensive loss | (122) | (122) | |||
Net loss | (36,004) | (36,004) | |||
Balance at the end at Dec. 31, 2022 | 76,001 | 254,895 | (241) | (178,653) | |
Balance at the end (in shares) at Dec. 31, 2022 | 2,006 | ||||
Issuance of common stock under employee stock purchase plan | 332 | 332 | |||
Issuance of common stock under employee stock purchase plan (Share) | 58 | ||||
Issuance of common stock upon option exercises | 3 | 3 | |||
Redemption of fractional shares due to reverse stock split, value | (4) | (4) | |||
Repurchase of early exercised stock options, shares | (1) | ||||
Repurchase and cancelation of common stock | 0 | ||||
Vesting of early exercised stock options | 32 | 32 | |||
Stock-based compensation expense | 4,372 | 4,372 | |||
Other comprehensive loss | 241 | $ 241 | |||
Net loss | (43,042) | (43,042) | |||
Balance at the end at Dec. 31, 2023 | $ 37,935 | $ 259,630 | $ (221,695) | ||
Balance at the end (in shares) at Dec. 31, 2023 | 2,063 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating activities: | ||
Net loss | $ (43,042) | $ (36,004) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 1,911 | 1,955 |
Stock-based compensation | 4,372 | 4,517 |
Non-cash operating lease expense | 1,273 | 1,314 |
Amortization of (discount) premium on marketable securities, net | (732) | 108 |
Non-cash impairment of long-lived assets | 169 | 0 |
Change in fair value of warrant liabilities | (211) | (7,890) |
Gain on foreign currency remeasurement | (174) | |
Other expense related to the commitment shares issued to Lincoln Park | 0 | 273 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 0 | (1,978) |
Prepaid expenses and other current assets | 915 | (50) |
Other assets | 62 | (379) |
Accounts payable | (133) | (2,038) |
Accrued and other liabilities | (2,550) | (1,782) |
Operating lease liabilities | (2,223) | (2,191) |
Net cash used in operating activities | (40,363) | (44,145) |
Investing activities: | ||
Purchases of property and equipment | (398) | (728) |
Purchases of marketable securities | (28,044) | (29,600) |
Proceeds from maturities of marketable securities | 80,165 | 68,637 |
Net cash provided by investing activities | 51,723 | 38,309 |
Financing activities: | ||
Proceeds from issuance of common stock upon exercise of stock options | 3 | 0 |
Proceeds from issuance of common stock upon employee stock plan purchases | 332 | 143 |
Repurchase and cancelation of common stock | 0 | (2,607) |
Repurchase of warrants | 0 | (85) |
Repurchase of early exercised stock options | (55) | (16) |
Redemption of fractional shares due to reverse stock split | (4) | 0 |
Net cash provided by (used in) financing activities | 276 | (2,565) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 11,636 | (8,401) |
Cash, cash equivalents and restricted cash at beginning of year | 25,095 | 33,496 |
Cash, cash equivalents and restricted cash at end of year | 36,731 | 25,095 |
Supplemental disclosure of noncash investing and financing activities: | ||
Purchases of property and equipment included in accounts payable and accrued expenses | 0 | 85 |
Vesting of early exercises of stock options | 32 | 101 |
Reconciliation Of Cash Cash Equivalents And Restricted Cash To Consolidated Balance Sheets Abstract | ||
Cash and cash equivalents | 36,043 | 24,690 |
Restricted cash | 688 | 405 |
Cash, cash equivalents and restricted cash | $ 36,731 | $ 25,095 |
Organization and Business
Organization and Business | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business | Note 1. Orga nization and Business Organization Surrozen, Inc., or the Company, is a clinical stage biotechnology company committed to discovering and developing drug candidates to selectively modulate the Wnt pathway, a critical mediator of tissue repair, in a broad range of organs and tissues. The Company, a Delaware corporation, is located in South San Francisco, California, and it operates and manages its business as one operating segment. Surrozen Netherlands, B.V. was incorporated in May 2022 and is located in Amsterdam, Netherlands as a wholly-owned subsidiary of the Company. Liquidity The Company has incurred net losses since inception. During the years ended December 31, 2023 and 2022, the Company incurred a net loss of $ 43.0 million and $ 36.0 million, respectively. During the years ended December 31, 2023 and 2022, the Company used $ 40.4 million and $ 44.1 million of cash in operations. As of December 31, 2023, the Company had cash and cash equivalents of $ 36.0 million and an accumulated deficit of approximately $ 221.7 million . The Company expects operating expenses to continue to be significant in connection with its ongoing clinical study and anticipates the need to raise additional capital to continue to execute its long-range business plan. Management believes that the existing cash, cash equivalents and the gross proceeds of approximately $ 17.6 million received in April 2024 from the closing of the private placement (see Note 16), before deducting placement agent fees and other expenses, are sufficient for the Company to continue operating activities for at least the next 12 months from the date of issuance of its consolidated financial statements. However, if the Company’s anticipated cash burn is greater than anticipated, the Company could use its capital resources sooner than expected which may result in the need to reduce future planned expenditures and/or raise additional capital to continue to fund the operations. Reverse Stock Split On December 13, 2023, the Company filed a certificate of amendment to its certificate of incorporation to effect a 1-for-15 reverse stock split of the issued and outstanding common stock, or the Reverse Stock Split. As a result of the Reverse Stock Split, every 15 shares of issued and outstanding common stock was converted into one issued and outstanding share of common stock, without any change in par value per share. The Reverse Stock Split affected all shares of common stock outstanding immediately prior to the effectiveness of the Reverse Stock Split, as well as the number of shares of common stock available for issuance under the equity incentive plans and employee stock purchase plan. In addition, the Reverse Stock Split effected a reduction in the number of shares of common stock issuable upon the exercise of stock options, restricted stock units and warrants outstanding immediately prior to the effectiveness of the Reverse Stock Split with a corresponding increase in the exercise price per share applicable to such stock options and warrants. No fractional shares were issued because of the Reverse Stock Split. Stockholders who would otherwise be entitled to receive a fractional share received a cash payment in lieu thereof. All share and per share amounts in these consolidated financial statements and notes thereto have been retroactively adjusted for all periods presented to give effect to the Reverse Stock Split. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Basis of Presentation The Company’s consolidated financial statements and accompanying notes have been prepared in accordance with generally accepted accounting principles in the United States of America, or U.S. GAAP, as determined by the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, and pursuant to the regulations of the U.S. Securities and Exchange Commission, or SEC. The consolidated financial statements include the accounts of the Company and its subsidiary. All intercompany transactions and balances have been eliminated. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions made in the accompanying consolidated financial statements include, impairment of long-lived assets, revenue recognition and certain accrued expenses for research and development activities. Management bases its estimates on historical experience and on various other market-specific and relevant assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results could materially differ from those estimates. Concentration of Credit Risk Financial instruments, which potentially subject the Company to significant concentration of credit risk, consist of cash, cash equivalents and marketable securities. The Company’s cash is held by financial institutions that may at times exceed federally insured limits. However, the Company’s exposure to credit risk in the event of default by the financial institution is limited to the extent of amounts recorded on the consolidated balance sheets. The Company believes it is not exposed to significant credit risk on cash. The Company's cash equivalents and marketable securities were held in custodial accounts maintained by third party custodians. The Company's policy is to invest cash in institutional money market funds and marketable securities with high credit quality to limit the amount of credit exposure. The Company maintained a portfolio of cash equivalents and marketable securities in a variety of securities. The Company has not experienced any losses on its cash equivalents and marketable securities. Cash and Cash Equivalents Cash equivalents relate to securities having an original maturity of three months or less at the time of purchase. As of December 31, 2023 and 2022 , cash and cash equivalents consisted of bank deposits, money market funds and U.S. government agency debt securities. Restricted Cash As of December 31, 2023, the Company had $ 0.7 million of restricted cash consisting of a letter of credit for the Company’s facility lease and the collateral associated with the Company’s credit card program. As of December 31, 2022, the Company had $ 0.4 million of restricted cash in the form of a letter of credit for the Company’s facility lease. Marketable Securities The Company invested its excess cash in marketable U.S. government bonds, commercial paper and corporate debt securities. All marketable securities were classified as available-for-sale and carried at estimated fair value as determined based upon quoted market prices or pricing models for similar securities. The Company does not buy or hold securities principally for the purpose of selling them in the near future. The Company’s policy is focused on the preservation of capital, liquidity, and return. From time to time, the Company may sell certain securities, but the objectives are generally not to generate profits on short-term differences in price. Short-term marketable securities have maturities less than or equal to one year as of the balance sheet date. These marketable securities were carried at estimated fair value with unrealized holding gains or losses included in accumulated other comprehensive loss in stockholders’ equity until realized. Gains and losses on marketable security transactions are reported on the specific-identification method. Interest income is recognized in the consolidated statements of operations and comprehensive loss when earned. The Company periodically evaluates its available-for-sale marketable securities for credit losses. When the fair value of a marketable security is below its amortized cost basis, the amortized cost is reduced to its fair value if it is more likely than not that the Company is required to sell the security before recovery of its amortized cost, or the Company has the intention to sell the security. If neither of these conditions are met, the Company determines whether the decline in fair value is due to credit losses by comparing the present value of the expected cash flows of the security with its amortized cost basis. The amount of credit losses recognized is limited to the excess of the amortized cost basis over the fair value of the security. An allowance for credit losses for the excess of amortized cost basis over the expected cash flows, if any, is recorded in other income, net on the condensed consolidated statements of operations. Any losses from declines in fair value that are not credit-related are included in accumulated other comprehensive loss in stockholders’ equity. Property and Equipment Property and equipment, including leasehold improvements, are recorded at cost net of accumulated depreciation and amortization. Major replacements and improvements that extend the useful lives of assets are capitalized, while general repairs and maintenance are charged to expense as incurred. Property and equipment are depreciated and amortized using the straight-line method over the estimated useful lives of the assets as follows: Asset Estimated useful life Leasehold improvements Shorter of useful life of asset or lease term Lab equipment 3 years Furniture and office equipment 3 - 8 years Computer equipment and software 3 years When assets are retired or otherwise disposed of, the cost and related accumulated depreciation and amortization are removed from the consolidated balance sheet and the resulting gain or loss is recognized in the period realized. Leases Material leases with a term longer than one year are recognized as right-of-use, or ROU, assets and lease liabilities in the Company's consolidated balance sheets. The Company determines the lease classification and measurement of its ROU assets and lease liabilities at the lease commencement date and thereafter if modified. The Company uses its incremental borrowing rate, based on the information available at the commencement date, to determine the present value of lease payments if the rate implicit in the lease is not readily available. The ROU asset is based on the measurement of the lease liability and is adjusted for lease incentives provided by the landlord. Lease expense for the Company’s operating leases is recognized on a straight-line basis over the lease term. The lease term includes any renewal options and termination options that the Company is reasonably assured to exercise. Impairment of Long-Lived Assets The Company reviews long-lived assets, including property and equipment and operating lease right-of-use assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. Recoverability is measured by comparing the carrying amount to the future net undiscounted cash flows which the assets are expected to generate. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds their fair value. Warrant Liabilities The Company's warrants are classified as liabilities. A t the end of each reporting period, any changes in fair value during the period are recognized in other income, net within the consolidated statements of operations and comprehensive loss. The Company will continue to adjust the warrant liabilities pertaining to the outstanding warrants for changes in the fair value until the earlier of a) the exercise or expiration of the warrants or b) the redemption of the warrants, at which time such warrants will be reclassified to additional paid-in capital. Revenue Recognition The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers (Topic 606) , when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the Company expects to receive in exchange for these goods or services. To determine revenue recognition for the arrangement that is within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract with the customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when or as the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services transferred to the customer. At contract inception, the Company assesses the goods or services promised within the contract, determines those that are performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes revenue for the amount of the transaction price that is allocated to the respective performance obligations when or as the performance obligations are satisfied. The Company constrains its estimate of the transaction price up to the amount (the variable consideration constraint) that a significant reversal of recognized revenue is not probable. The Company records accounts receivable for amounts billed to the customer for which the Company has an unconditional right to consideration. The Company assesses accounts receivable for credit losses and, to date, no credit losses have been recorded. The Company has a Collaboration and License Agreement, or CLA, with Boehringer Ingelheim International GmbH, or BI, to which the Company licensed certain rights to its intellectual property that is determined within the scope of ASC 606. The terms of the CLA include payments to the Company of a non-refundable upfront payment, development, regulatory and commercial milestone payments and royalties on net sales of licensed products. Licenses of Intellectual Property : If the license to the Company’s intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenue from non-refundable upfront fees allocated to the license when the license is transferred to the licensee and the licensee is able to use and benefit from the license. For licenses that are bundled with other promised goods or services, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable upfront fees. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. Milestone Payments: At contract inception, the Company uses the most likely amount method evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price. If it is probable that a significant reversal of cumulative revenue would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the control of the Company or the licensee, such as regulatory approvals, are not considered probable of being achieved until those approvals are received or the underlying activity has been completed. The transaction price is then allocated to each performance obligation on a relative stand-alone selling price basis, for which the Company recognizes revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, the Company re-evaluates the probability of achievement of such development milestones and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect revenue in the period of adjustment. Royalties: The Company recognizes sales-based royalties as revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalties that have been allocated have been satisfied (or partially satisfied). The incremental costs of obtaining a customer contract are expensed as and when incurred if the amortization period of the asset that would have been recognized is one year or less. Research and Development Expenses Research and development costs are expensed as incurred. Research and development costs consist of external and internal expenses directly attributable to the conduct of research and development programs. The external expenses include the costs of services provided by outside contractors, clinical research organizations and contract manufacturing organizations. The internal expenses include the costs of salaries, bonus, payroll taxes, stock-based compensation, employee benefits, materials, supplies, depreciation on and maintenance of research equipment, and the allocated facility-related costs, such as rent, utilities, insurance, repairs and maintenance, and general support services. The Company has entered into and may continue to enter into licensing or subscription arrangements to access and utilize certain technology. In each case, the Company evaluates if the license agreement results in the acquisition of an asset or a business. To date, none of the Company’s license agreements have been considered an acquisition of a business. For asset acquisitions, the upfront payments to acquire such licenses, as well as any future milestone payments made before product approval that do not meet the definition of a derivative, are immediately recognized as research and development expense when they are paid or become payable, provided there is no alternative future use of the rights in other research and development projects. Accrued Research and Development Expenses The Company records accruals for estimated costs of research, preclinical, clinical, and manufacturing development, which are significant components of research and development expenses, within accrued and other liabilities in the accompanying consolidated balance sheets. A substantial portion of the Company’s preclinical studies, clinical trials and contract manufacturing activities is conducted by third-party service providers. The Company accrues for estimated costs of research and development activities conducted by third-party service providers based upon the estimated services provided but not yet invoiced. We estimate the amounts incurred in each period based on the information available and our knowledge of the nature of the contractual activities generating such costs. Payments made to third parties under these arrangements in advance of the performance of the related services are recorded as prepaid expenses until the services are rendered. If the actual timing of the performance of services or the level of effort varies from the estimate, the Company adjusts accrued expenses or prepaid expenses accordingly, which impacts research and development expenses. For the years ended December 31, 2023 and 2022 , the Company did not have any material differences between accrued costs and actual costs incurred. Although the Company does not expect its estimates to be materially different from amounts actually incurred, its understanding of the status and timing of services performed relative to the actual status and timing of services performed may vary and may result in reporting amounts that are too high or too low in any particular period. Stock-Based Compensation The Company recognizes stock-based compensation expense for all stock-based awards. For stock awards, stock-based compensation cost is estimated on the grant date based on the closing price of the Company's stock, with consideration of whether there is material nonpublic information that could impact the estimated fair value of awards. Stock-Based compensation cost is recognized as expense on a straight-line basis over the requisite service period. Under the Company's employee stock purchase plan, stock-based compensation cost is measured at the beginning of the offering period and recognized on a straight-line basis over the offering period. Forfeitures are accounted for as they occur. The Company has elected to calculate the fair value of awards using the Black-Scholes option pricing model, or the Black-Scholes Model. The Black-Scholes Model requires the use of various assumptions including common stock valuation, expected option life and expected stock price volatility. The Company estimates the expected term for stock options using the simplified method as the midpoint between the vesting date and the contractual expiration date of the award as the Company has limited historical exercise information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior for its stock option grants . Due to the limited trading history of the Company’s stock, the Company estimates the volatility using volatilities of a group of public companies in a comparable industry, stage of life cycle, and size. The interest rate is derived from the U.S. Treasury instruments with maturities similar to the expected term of the options. The Company has not declared nor expects to declare dividends. Therefore, there is no dividend impact on the valuation of options. Comprehensive Loss The Company’s comprehensive loss consists of unrealized losses on available-for-sale securities. Net Loss Per Share Basic net loss per share is calculated by dividing the net loss attributable to common stock by the weighted-average number of shares of common stock outstanding for the period, without consideration for potential dilutive securities. Since the Company was in a loss position for the periods presented, basic net loss per share is the same as diluted net loss per share as the effects of the potentially dilutive securities are antidilutive. The following table presents the potential common stock outstanding that were excluded from the computation of diluted net loss per share of common stock as of the periods presented because including them would have been antidilutive (in thousands): December 31, 2023 2022 Common stock issuable upon exercise of stock options 311 260 Unvested restricted stock awards 4 7 Unvested restricted stock units 90 — Unvested common stock subject to repurchase — 1 Common stock issuable upon exercise of warrants 394 394 Total 799 662 Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement carrying amounts and tax bases of assets and liabilities using enacted tax rates expected to be in effect for the year in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts more likely than not to be realized. The Company assesses all material positions taken in any income tax return, including all significant uncertain positions, in all tax years that are still subject to assessment or challenge by relevant taxing authorities. Assessing an uncertain tax position begins with the initial determination of the position’s sustainability and is measured at the largest amount of benefit that is more likely than not of being realized upon ultimate settlement. As of each balance sheet date, unresolved uncertain tax positions must be reassessed, and the Company will determine whether (i) the factors underlying the sustainability assertion have changed and (ii) the amount of the recognized tax benefit is still appropriate. The recognition and measurement of tax benefits require significant judgment. Judgments concerning the recognition and measurement of a tax benefit might change as new information becomes available. The Company’s policy is to recognize interest and penalties related to the underpayment of income taxes as a component of income tax expense or benefit. To date, there have been no interest or penalties charged in relation to unrecognized tax benefits. Emerging Growth Company Status The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with certain new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it is (i) no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. As a result, these consolidated financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates. Recent Accounting Pronouncements In December 2023, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . The standard requires entities to disclose additional categories about federal, state and foreign income taxes in the effective tax rate reconciliation as well as provide annual income taxes paid disaggregated by federal, state and foreign taxes. The standard is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The Company is evaluating the impact of adopting this standard on its consolidated financial statements and related disclosures. In November 2023, the FASB issued Accounting Standards Update 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . The standard improves reportable segment disclosure requirements through enhanced disclosures about significant segment expenses and information used to assess segment performance. All disclosure requirements of the update are required for entities with a single reportable segment. The standard is effective for annual periods beginning after December 15, 2023, and interim periods beginning thereafter. Early adoption is permitted and requires retrospective application to all prior periods presented in the financial statements. The Company is evaluating the impact of adopting this standard on its consolidated financial statements and related disclosures. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Note 3. Fair Value Measurement The Company records its financial assets and liabilities at fair value. The carrying amount of the Company's financial instruments, including cash and cash equivalents, accounts receivable, restricted cash, accounts payable, and accrued and other liabilities, approximate their fair value due to their short-term maturities. The accounting guidance for fair value establishes a framework for measuring fair value and a fair value hierarchy that prioritizes the inputs used in valuation techniques. The fair value hierarchy is based on three levels of inputs that may be used to measure fair value as follows: Level 1—Observable inputs such as unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2—Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The following tables summarize the Company’s financial assets and liabilities that are measured at fair value on a recurring basis (in thousands): As of December 31, 2023 Level 1 Level 2 Level 3 Total Assets: Money market funds (1) $ 33,014 $ — $ — $ 33,014 Total financial assets measured at fair value $ 33,014 $ — $ — $ 33,014 Liabilities (2) : Public Warrants $ 53 $ — $ — $ 53 PIPE Warrants — 62 — 62 Total financial liabilities measured at fair value $ 53 $ 62 $ — $ 115 As of December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Money market funds (1) $ 9,194 $ — $ — $ 9,194 Commercial paper — 22,549 — 22,549 Corporate bonds — 10,797 — 10,797 Government bonds — 17,802 — 17,802 Government agency debt securities (1) — 3,982 — 3,982 Total financial assets measured at fair value $ 9,194 $ 55,130 $ — $ 64,324 Liabilities (2) : Public Warrants $ 151 $ — $ — $ 151 PIPE Warrants — 175 — 175 Total financial liabilities measured at fair value $ 151 $ 175 $ — $ 326 (1) Included in cash and cash equivalents on the consolidated balance sheets as of December 31, 2023 and 2022 . (2) See the definition and discussion of Public Warrants and PIPE Warra nts in Note 11. Commercial paper, corporate bonds, government bonds and government agency debt securities are classified as Level 2 as they were valued based upon quoted market prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets. The Public Warrants are classified as Level 1 due to the use of an observable market quote in an active market. The PIPE Warrants are classified as Level 2 due to the use of observable market data for identical or similar liabilities. The fair value of each PIPE Warrants is determined to be consistent with that of a Public Warrant because the PIPE Warrants are also subject to the make-whole redemption feature, which allows the Company to redeem both types of warrants on similar terms. There were no changes to the valuation methods utilized, and there were no transfers of financial instruments for the years ended December 31, 2023 and 2022. There were no marketable securities outstanding as of December 31, 2023. The following table provides the Company’s marketable securities by security type as of December 31, 2022 (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Commercial paper $ 22,549 $ — $ — $ 22,549 Corporate bonds 10,817 1 ( 21 ) 10,797 Government bonds 18,023 — ( 221 ) 17,802 Total short-term marketable securities $ 51,389 $ 1 $ ( 242 ) $ 51,148 The following table indicates the length of the time that individual securities have been in a continuous unrealized loss position (dollars in thousands): As of December 31, 2022 Less Than 12 Months Number of Investments Fair Value Unrealized Losses Corporate bonds 4 $ 9,719 $ 21 Government bonds 3 17,802 221 Total 7 $ 27,521 $ 242 All short-term marketable securities had maturities of one year or less. There have been no significant realized gains or losses on the marketable securities during the years ended December 31, 2023 and 2022. The Company periodically reviews the available-for-sale investments for credit losses. All investments with unrealized losses had been in a loss position for less than 12 months. The Company determined that the unrealized loss was primarily attributed to changes in market interest rates and not to credit quality. Therefore, there were no allowance for credit losses recognized as of December 31, 2023. Assets that are Measured at Fair Value on a Nonrecurring Basis The Company's non-financial assets such as property and equipment and operating lease right-of-use assets, are adjusted to fair value on a nonrecurring basis when an impairment has occurred. As of December 31, 2023, the Company identified an indicator of impairment of its long-lived assets due to a sustained decline in the trading price of the Company’s common stock over the preceding year, resulting in the Company’s market capitalization being below its net asset value. As a result of the sustained decline in the Company’s stock price, the Company determined an impairment indicator was present. The Company determined all of its long-lived assets represent a single asset group for the purpose of the long-lived asset impairment assessment. The Company concluded that the carrying value of the single asset group was not recoverable as it exceeded the future net undiscounted cash flows that are expected to be generated from the use and eventual disposition of the assets within the asset group. The implied allocated impairment loss to any individual asset within the long-lived asset group shall not reduce the carrying amount of that asset below its fair value. To determine the fair value of the individual assets within the asset group, the Company utilized the discounted cash flow method of the income approach based on market participant assumptions with Level 3 inputs. These represent a Level 3 nonrecurring fair value measurement. Calculating the fair value of the assets involves significant estimates and assumptions. These estimates and assumptions include, among others, projected future cash flows, risk-adjusted discount rates and market conditions. Changes in the factors and assumptions used could materially affect the amount of impairment loss recognized in the period the asset was considered impaired. For the year ended December 31, 2023, the Company recognized an impairment loss of $ 0.2 million, consisting of $ 0.1 million on the operating lease right-of-use asset and $ 0.1 million on the leasehold improvements, which is included in research and development expenses and general and administrative expenses in the accompanying consolidated statements of operations and comprehensive loss. |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | Note 4. Balance Sheet Components Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following (in thousands): December 31, 2023 2022 Prepaid research and development expenses $ 1,751 $ 1,657 Prepaid insurance 606 1,076 Other 580 756 Prepaid expenses and other current assets $ 2,937 $ 3,489 Property and Equipment, Net Property and equipment, net consists of the following (in thousands): December 31, 2023 2022 Leasehold improvements $ 1,116 $ 7,052 Lab equipment 7,703 7,515 Furniture and office equipment 316 299 Computer equipment and software 202 119 Total property and equipment 9,337 14,985 Less: accumulated depreciation and amortization ( 7,368 ) ( 11,355 ) Property and equipment, net $ 1,969 $ 3,630 Depreciation expenses for the years ended December 31, 2023 and 2022 was $ 1.9 million and $ 2.0 million , respectively. For the year ended December 31, 2023, the Company recorded an asset impairment charge of $ 0.1 million on its leasehold improvements. Refer to Note 3, Fair Value Measurement for more information. Accrued and Other Liabilities Accrued and other liabilities consist of the following (in thousands): December 31, 2023 2022 Accrued payroll and related expenses $ 2,508 $ 3,964 Accrued research and development expenses 1,261 1,665 Accrued professional service fees 65 638 Liability for early exercised stock options 3 89 Other 289 492 Accrued and other liabilities $ 4,126 $ 6,848 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Note 5. Leases In August 2016, the Company entered into a lease agreement for office and lab space, which consists of approximately 32,813 square feet of rental space in South San Francisco, California. The office space lease is classified as an operating lease. The initial lease term commenced in May 2017 and ends in April 2025 , with rent payments escalating each year. The Company has options to extend the lease for additional years, but the exercise of the option was not reasonably certain. In connection with the lease, the Company maintains a letter of credit for the benefit of the landlord in the amount of $ 0.4 million, which is recorded as restricted cash in the consolidated balance sheets. On March 10, 2023, Silicon Valley Bank, or SVB, was closed by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation, or FDIC, as a receiver. On March 27, 2023, First-Citizens Bank & Trust Company assumed all of SVB's customer deposits and certain other liabilities and acquired substantially all of SVB's loans and certain other assets from the FDIC. As required by the landlord, the Company replaced the letter of credit issued by SVB with a letter of credit from a different financial institution in 2023. In January 2020, the Company entered into a lease agreement for a term of 18 months commencing June 2020 for approximately 6,478 square feet of office space. This office space lease, which was classified as an operating lease, was amended in September 2021 and expired in June 2022. The operating lease expense for the years ended December 31, 2023 and 2022 was $ 1.6 million and $ 1.9 million, respectively . For the year ended December 31, 2023, the Company recorded an asset impairment charge of $ 0.1 million on its right-of-use assets. Refer to Note 3, Fair Value Measurement for more information. Aggregate future minimum rental payments under the operating leases as of December 31, 2023, were as follows (in thousands): Year ending December 31, 2024 $ 2,670 Year ending December 31, 2025 891 Total lease payments 3,561 Less: Imputed interest ( 182 ) Operating lease liabilities $ 3,379 The following represents supplemental information related to the Company’s operating leases: December 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities (in thousands) $ 2,596 $ 2,743 Weighted-average remaining lease term (in years) 1.33 2.33 Weighted-average discount rate 8.48 % 8.48 % |
Collaboration and License Agree
Collaboration and License Agreement | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Collaboration and License Agreements | Note 6. Collaboration and License Agreements Collaboration and License Agreement with Boehringer Ingelheim International GmbH In October 2022, the Company executed the CLA with BI to research, develop and commercialize Fzd4 bi-specific antibodies designed using the Company’s SWAP technology, including SZN-413. The Company and BI are conducting partnership research focused on SZN-413 during a one-year period, which BI extended for an additional six month period. The Company granted BI an exclusive, royalty-bearing, worldwide, sublicensable license, under the applicable patents and know-how, to develop, manufacture and commercialize, for all uses, one lead and two back-up Fzd4 bi-specific antibodies selected by BI. After an initial period of joint research, BI shall be responsible for all further research, preclinical and clinical development, manufacturing, regulatory approvals, and commercialization of licensed products at its expense. Unless terminated earlier, the CLA will remain effective, on a country-by-country and product-by-product basis, until the expiration of BI's royalty obligations. BI has the right to terminate the CLA for any reason after a specified notice period. Each party has the right to terminate the CLA on account of the other party’s bankruptcy or material, uncured breach. Under the terms of the CLA, BI agreed to pay a non-refundable upfront payment of $ 12.5 million less any applicable withholding tax, success-based milestone payments up to a total of $ 587.0 million and mid-single digit to low-double digit royalties on net sales of the licensed products should any reach commercialization. The royalty payments will be subject to reduction due to patent expiration, generic competition and payments made under certain licenses for third-party intellectual property. The Company received $ 10.5 million of the upfront payment from BI in November 2022. The associated withholding tax of $ 2.2 million is expected to be refunded to the Company in 2024. The Company determined that the CLA is within the scope of ASC 606. The Company evaluated the promised goods and services and determined that the license to the Company's intellectual property granted to BI represented one performance obligation for the purposes of conducting the partnership research and further development on SZN-413. The transaction price was determined to be $ 12.5 million, which is the non-refundable upfront payment. Variable consideration related to future milestones was fully constrained because the Company cannot conclude that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur, given the inherent uncertainty of success with these future milestones. For sales-based royalties, the Company determined that the license is the predominant item to which the royalties relate to. Accordingly, the Company will recognize revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all the royalty has been allocated has been satisfied (or partially satisfied). The Company will re-evaluate the transaction price in each reporting period and as uncertain events are resolved or other changes in circumstances occur. During the year ended December 31, 2022, the Company recognized the non-refundable upfront payment of $ 12.5 million as collaboration and license revenue at a point in time upon delivery of the license . The associated withholding tax of $ 2.2 million to be refunded was recognized as accounts receivable as of December 31, 2023 and 2022. |
License Agreement
License Agreement | 12 Months Ended |
Dec. 31, 2023 | |
License Agreements [Abstract] | |
License Agreements | Note 7. License Agreements Stanford License Agreements In March 2016, the Company entered into a license agreement with Stanford University , or the 2016 Stanford Agreement, which was amended in July 2016, October 2016 and January 2021, pursuant to which the Company obtained from Stanford a worldwide, exclusive, sublicensable license under certain patents, rights, or licensed patents and technology related to its engineered Wnt surrogate molecules to make, use, import, offer to sell and sell products that are claimed by the licensed patents or that use or incorporate such technology, or licensed products, for the treatment, diagnosis and prevention of human and veterinary diseases. The Company agreed to pay Stanford (i) nominal annual license maintenance fees which are creditable against earned royalties owed to Stanford for the same year, (ii) an aggregate of up to $ 0.9 million for the achievement of specified development and regulatory milestones, and (iii) an aggregate of up to $ 5.0 million for achievement of specified sales milestones. Stanford is also entitled to receive royalties from the Company equal to a very low single digit percentage of the Company’s and its sublicensees’ net sales of licensed products that are covered by a valid claim of a licensed patent. Additionally, the Company agreed to pay Stanford a sub-teen double digit percentage of certain consideration the Company receives as a result of granting sublicenses to the licensed patents. However, the Company and Stanford may be able to negotiate a lower non-royalty sublicense percentage based on then-current value of the licensed patents for each sublicense product. If the Company is acquired, it agreed to pay a one-time change of control fee in the low six figures. Stanford retains the right under the 2016 Stanford Agreement, on behalf of itself, Stanford Hospital and Clinics, the University of Washington and all other non-profit research institutions, to practice the licensed patents and technology for any non-profit purpose. The licensed patents and technology are additionally subject to a non-exclusive, irrevocable, worldwide license held by the Howard Hughes Medical Institute to practice the licensed patents and technology for its research purposes, but with no right to assign or sublicense. In June 2018, the Company entered into another license agreement with Stanford, or the 2018 Stanford Agreement, pursuant to which the Company obtained from Stanford a worldwide, exclusive, sublicensable license under certain patent rights related to its surrogate R-spondin proteins, or the licensed patents, to make, use, import, offer to sell and sell products that are claimed by the licensed patents, or licensed products, for the treatment, diagnosis and prevention of human and veterinary diseases, or the exclusive field. Additionally, Stanford granted the Company a worldwide, non-exclusive, sublicensable license under the licensed patents to make and use licensed products for research and development purposes in furtherance of the exclusive field and a worldwide, non-exclusive license to make, use and import, but not to offer to sell or sell licensed products in any other field of use. The Company agreed to pay Stanford an aggregate of up to $ 0.4 million for the achievement of specified development and regulatory milestones. Stanford is also entitled to receive royalties from the Company equal to a sub-single digit percentage of the Company’s and its sublicensees’ net sales of licensed products. Additionally, Stanford is entitled to receive a one-time payment in the low six figures for each sublicense of the licensed patents that the Company grants to a third party and, if the Company is acquired, a one-time nominal change of control fee. For the year ended December 31, 2023, the Company incurred research and development expenses of appro ximately $ 0.1 million und er the Stanford Agreements. For the year ended December 31, 2022, the Company incurred research and development expenses of approximately $ 0.2 million under the Stanford Agreements, pertaining to the sublicense fee in connection with the upfront payment received from BI. No milestones have been achieved as of December 31, 2023. UCSF License and Option Agreements In September and October 2016, the Company entered into two separate license and option agreements with The Regents of the University of California, or the UCSF Agreements, pursuant to which the Company obtained exclusive licenses from UCSF for internal research and antibody discovery purposes and an option to negotiate with UCSF to obtain an exclusive license under UCSF’s rights in the applicable library to make, use, sell, offer for sale and import products incorporating antibodies identified or resulting from the Company’s use of such library, or licensed products. In January 2020, the Company amended and restated the UCSF Agreements to provide non-exclusive licenses to make and use a certain human Fab naïve phage display library and to make and use a certain phage display llama VHH single domain antibody library for internal research and antibody discovery purposes and an option to negotiate with UCSF to obtain a non-exclusive commercial license under UCSF’s rights in the applicable library to make, use, sell, offer for sale and import products incorporating antibodies identified or resulting from the Company’s use of such library, or licensed products. In March 2022, the Company exercised the option under the UCSF Agreements and entered into a non-exclusive commercial license agreement to make and use licensed products derived from the phage display llama VHH single domain antibody library. Under the commercial license agreement, the Company paid UCSF a nominal license issue fee and agreed to pay a nominal annual license maintenance fee, five- to six-digit payments per licensed product upon achievement of a regulatory milestone, nominal minimum annual royalties and earned royalties equal to a sub-single digit percentage of the Company’s and the Company’s sublicensees’ net sales of licensed products. For the year ended December 31, 2023, the Company incurred de minimis research and development expenses under the UCSF Agreements. For the year ended December 31, 2022, the Company incurred research and development expenses o f $ 0.1 million under the UCSF Agreements as a result of the CLA. No milestones have been achieved as of December 31, 2023. Distributed Bio Subscription Agreement In September 2016, the Company entered into, and in January 2019 the Company amended, an antibody library subscription agreement with Charles River Laboratories International, Inc., formerly known as Distributed Bio, Inc., or the Distributed Bio Agreement, in which the Company obtained from Distributed Bio a non-exclusive license to use Distributed Bio’s antibody library to identify antibodies directed to an unlimited number of the Company’s proprietary targets and to make, use, sell, offer for sale, import and exploit products incorporating the antibodies that the Company identifies, or licensed products. In consideration for the rights granted to the Company under the Distributed Bio Agreement, the Company paid Distributed Bio a nominal upfront fee and an additional nominal fee upon entering into the amendment. The Company agreed to pay Distributed Bio an annual fee in the low six figures after the first three years. Additionally, the Company agreed to pay Distributed Bio an aggregate of $ 5.9 million for each licensed product that achieves specified development, regulatory and commercial milestones and royalties equal to a very low single digit percentage of the Company’s and its sublicensees’ net sales of licensed products. The Company’s obligation to pay royalties will end for each licensed product ten years after its first commercial sale. In September 2023, the Company amended the Distributed Bio Agreement to cease its use of Distributed Bio’s antibody library and terminate the Company’s obligation to pay the respective annual fee. The obligations to make milestone and royalty payments for use of each licensed product remain in full force and effect. For the years ended December 31, 2023 and 2022, the Company incurred research and development exp enses of $ 0.2 million under the Distributed Bio Agreement, including the milestone payment of zero and $ 0.1 million, re spectively, as the Company achieved milestones with regard to the Phase 1 clinical trial for SZN-1326. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring Reserve [Abstract] | |
Restructuring and Related | Note 8. Restructuring In January 2023, the Company implemented a restructuring plan approved by the board of directors to prioritize and focus its resources on key clinical and discovery programs. The plan included a reduction of the Company’s overall workforce by approximately 25 % in the first quarter of 2023. In connection with the workforce reduction, the Company incurred one-time restructuring charges, including employee severance and other termination benefits, of approximately $ 1.2 million in the first quarter of 2023. In July 2023, the Company implemented a restructuring plan approved by the board of directors to further reduce its overall workforce by approximately 38 % to better align its workforce with the business needs and focus more of its capital resources on its clinical stage programs. The Company substantially completed the workforce reduction by the end of 2023 and incurred one-time restructuring charges, including employee severance and other termination benefits, of approximately $ 1.6 million to be recognized ratably over the requisite service period. The outstanding restructuring liabilities are included in accrued and other liabilities on the consolidated balance sheet. The following table summarizes activity during the year ended December 31, 2023 (in thousands): Employee Severance and Other Benefits Balance, December 31, 2022 $ — Restructuring charges 2,752 Cash payments ( 2,678 ) Balance, December 31, 2023 $ 74 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 9. Related Party Transactions Repurchase of Common Stock and Common Stock Warrants On December 12, 2022, the Company entered into a securities purchase agreement with entities affiliated with Consonance Capital Management LP, collectively the Consonance Entities. Pursuant to the agreement, the Company repurchased 0.4 million shares of common stock and warrants to purchase an aggregate 87,000 shares of common stock from the Consonance Entities for an aggregate purchase price of approximately $ 2.7 million, or the Repurchase. Following the Repurchase, the Consonance Entities no longer hold any shares of common stock or warrants. The shares of common stock repurchased were constructively retired and the common stock warrants repurchased were subsequently cancelled. The total purchase price was allocated to the repurchase of common stock warrants based on the fair value of the warrants remeasured on the repurchase date, resulting in the derecognition of warrant liabilities of $ 0.1 million. The remaining $ 2.6 million allocated to the repurchase of common stock was recorded as a reduction of equity on the consolidated balance sheets. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Note 10. Stockholders’ Equity Equity Purchase Agreement In February 2022, the Company entered into a purchase agreement with Lincoln Park Capital Fund, LLC, or Lincoln Park, or the Equity Purchase Agreement, pursuant to which Lincoln Park is obligated to purchase up to $ 50.0 million shares of the Company’s common stock. Upon execution of the Equity Purchase Agreement, the Company issued nominal shares of common stock to Lincoln Park with the fair value of $ 0.3 million as consideration for Lincoln Park’s commitment to purchase the Company’s common stock, which was included in other income, net on the consolidated statements of operations and comprehensive loss. In the event that the Company sells in an aggregate of $ 30.0 million shares of its common stock under the Equity Purchase Agreement, the Company shall pay an additional commitment fee of $ 0.1 million in cash to Lincoln Park. As contemplated by the Equity Purchase Agreement, and so long as the closing price of the Company’s common stock exceeds $ 15.00 per share, the Company may direct Lincoln Park, at its sole discretion, to purchase the Company's common stock within specific share limits. Any single purchase of the Company’s common stock shall not exceed $ 3.5 million. As of December 31, 2023, the Company has no t sold any shares of common stock under the Equity Purchase Agreement. At-the-Market Sales Agreement In December 2022, the Company entered into a sales agreement with Guggenheim Securities, LLC to issue and sell up to $ 23.0 million shares of the Company’s common stock, or the 2022 ATM. The compensation payable to Guggenheim is equal to 3.0 % of the gross sales price of any shares sold through it pursuant to the sales agreement. As of December 31, 2023 , the Company has no t sold any shares of common stock under the 2022 ATM. |
Common Stock Warrants
Common Stock Warrants | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Common Stock Warrants | Note 11. Common Stock Warrants The following table sets forth the common stock warrants outstanding as of December 31, 2023 and 2022 (in thousands, except exercise price per warrant): Type Classification Expiration Date Exercise Price per Share Number of Warrants Fair Value Public Warrants Liability August 12, 2026 $ 172.50 2,733 $ 53 PIPE Warrants Liability August 12, 2026 172.50 3,174 62 Total 5,907 $ 115 Public Warrants Given the effect of the Reverse Stock Split as described in Note 1, every 15 shares of common stock that may be purchased pursuant to the Company’s outstanding warrants immediately prior to the Reverse Stock Split represents 1 share of common stock that may be purchased pursuant to such warrants immediately following the Reverse Stock Split at a price of $ 172.50 per share, at any time commencing on November 23, 2021 and terminating at the earlier of August 12, 2026 or upon redemption or liquidation. The exercise price and number of shares issuable upon exercise of the Public Warrants may be adjusted in the event of a share dividend, extraordinary dividend or recapitalization, reorganization, merger or consolidation. The Company would not be obligated to deliver any shares of common stock pursuant to the exercise of a Public Warrant and would have no obligation to settle such Public Warrant exercise unless a registration statement under the Securities Act with respect to the common stock underlying the Public Warrants is then effective. If the Company fails to have maintained an effective registration statement, the Public Warrant holders have the right to exercise the Public Warrants on a cashless basis until such time as there is an effective registration statement. The Company may redeem the outstanding Public Warrants at a price of $ 0.01 per warrant if the closing price of common stock equals or exceeds $ 270.00 per share (as adjusted for share sub-divisions, share capitalizations, reorganizations, recapitalizations and similar transaction). Additionally, the Company may redeem the outstanding Public Warrants at a price of $ 0.10 per warrant if the closing price of common stock equals or exceeds $ 150.00 per share (as adjusted for share sub-divisions, share capitalizations, reorganizations, recapitalizations and similar transaction). Notice of redemption shall be mailed to the Public Warrant holders no less than 30 days prior to the redemption date, or the Redemption Period. If the closing price of common stock equals or exceeds $ 150.00 per share and is less than $ 270.00 per share, during the Redemption Period, the Public Warrant holders may elect to exercise their Pu blic Warrants on a cashless basis based on a make-whole table. In no event will the Company be required to net cash settle the Public Warrants. The Public Warrant holders do not have the rights or privileges of common stockholders and any voting rights until they exercise their Public Warrants and receive common stock. PIPE Warrants At December 31, 2023, the PIPE Warrants are the same in all respects as the Public Warrants. On March 31, 2023, the Company entered into an amended and restated warrant agreement with Continental Stock Transfer & Trust Company as warrant agent, or the PIPE Warrant Agreement. PIPE Warrants may be converted into Public Warrants on transfer pursuant to the terms of the PIPE Warrant Agreement. As of December 31, 2023 , no PIPE Warrants were converted into Public Warrants. Classification The Public Warrants and PIPE Warrants are not considered indexed to the Company’s common stock as certain provisions of the warrant agreements could change the settlement amount of these warrants. As a result, they were classified as liabilities and recorded at fair value with subsequent change in their respective fair value recognized in other income, net within the consolidated statements of operations and comprehensive loss. |
Stock Based Compensation Plans
Stock Based Compensation Plans | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans | Note 12. Stock-Based Compensation Plans The Company maintains the 2021 Equity Incentive Plan, or the 2021 Plan, which provides for the granting of stock awards to employees, directors and consultants. Options granted under the 2021 Plan may be either incentive stock options or nonqualified stock options. Options granted under the 2021 Plan expire no later than 10 years from the date of grant. Options and restricted stock awards, or RSAs, under the 2021 Plan generally vest over four years. Restricted stock units, or RSUs, granted under the 2021 Plan generally vest in one year. As of December 31, 2023, there we re 0.2 million shares of common stock available for issuance under the 2021 Plan. The Company maintains the 2021 Employee Stock Purchase Plan, or the ESPP, which allows eligible employees to purchase shares of the Company’s common stock at a discount through payroll deductions of up to 15 % of their eligible compensation, subject to plan limitations. An offering period under the ESPP consists of four six-month purchase periods, unless otherwise determined by the Company. The eligible employees are able to purchase shares at 85% of the lower of the fair market value of the Company’s common stock on the first trading day of the offering period or on the purchase day . As of December 31, 2023 , there were 7,000 shares of common stock available for issuance under the ESPP. During the years ended December 31, 2023 and 2022 , 58,000 shares and 23,000 shares were issued under the ESPP. Option Repricing In October 2022, the Company’s compensation committee authorized and approved a stock option repricing whereby certain outstanding stock options held by 59 employees were repriced to the closing price of the Company’s common stock on the date of such approval. As a result of this repricing, 85,000 outstanding stock options, with a weighted average exercise price of $ 132.15 per share, were repriced to have an exercise price of $ 32.40 per share. The vesting terms and expiration dates of the new stock options remain unchanged from the original stock options. The option repricing was treated as an option modification for accounting purposes and resulted in the incremental expense of $ 0.7 million. $ 0.3 million of the total incremental expense associated with the vested options was recognized on the modification date. The remaining $ 0.4 million associated with the unvested options as of the modification date will be recognized over the remainder of the original requisite service period. Stock Options A summary of stock option activity is set forth below (shares in thousands): Options Outstanding Weighted Average Aggregate Average Remaining Intrinsic Number of Exercise Contractual Life Value Options Price (In years) (In thousands) Outstanding – December 31, 2022 260 $ 36.43 8.44 Granted 120 12.86 Exercised — 8.42 Forfeited ( 44 ) 35.85 Expired ( 25 ) 32.97 Outstanding – December 31, 2023 311 27.70 7.99 $ 28 Exercisable – December 31, 2023 163 28.56 7.42 15 The aggregate intrinsic value of options outstanding and exercisable is the difference between the exercise price of the options and the fair value of the Company’s common stock at December 31, 2023. The intrinsic value of options exercised during the years ended December 31, 2023 and 2022 was de minimis and $ 1.2 million, respectively. During the years ended December 31, 2023 and 2022, the Company granted options with a weighted-average grant-date fair value of $ 9.47 per share and $ 34.20 per share, respectively. Fair Value of Options The fair value of options is estimated at the grant date using the Black-Scholes option-pricing model with the following weighted-average assumptions: Year Ended December 31, 2023 2022 Expected term (in years) 5.85 6.00 Expected volatility 85.86 81.07 % Risk-free rate 3.89 % 2.03 % Dividend yield — — Restricted Stock Awards The following table summarizes the Company’s RSAs activity (shares in thousands): Weighted Average Number of Grant Date Shares Fair Value RSAs, unvested at December 31, 2022 7 $ 146.14 Vested ( 3 ) 145.23 RSAs, unvested at December 31, 2023 4 146.92 The fair value of RSAs vested during the years ended December 31, 2023 and 2022 was de minimis and $ 0.2 mi llion, respectively. Restricted Stock Units The following table summarizes the Company’s RSUs activity (shares in thousands): Weighted Average Number of Grant Date Shares Fair Value RSUs, unvested at December 31, 2022 — $ — Granted 90 7.73 RSUs, unvested at December 31, 2023 90 7.73 Stock-Based Compensation Total stock-based compensation expense recorded in the consolidated statements of operations and comprehensive loss was as follows (in thousands): Year Ended December 31, 2023 2022 Research and development $ 1,272 $ 1,612 General and administrative 3,100 2,905 Total stock-based compensation expense $ 4,372 $ 4,517 As of December 31, 2023 , there was approximately $ 5.6 million of stock-based compensation expense to be recognized over a weighted-average period of approximately 1.67 years. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 13. Income Taxes No provision for income taxes was recorded for th e years ended December 31, 2023 and 2022. The Company has incurred net operating losses for all the periods presented. The Company accounts for income taxes in accordance with the asset and liability method, which requires that the tax benefit of net operating losses, temporary differences and credit carryforwards be recorded as an asset to the extent that management assesses that realization is “more likely than not.” Realization of the future tax benefits is dependent on the Company’s ability to generate sufficient taxable income within the carryforward period. Because of the Company’s recent history of operating losses, management believes that recognition of the deferred tax assets arising from the above-mentioned future tax benefits is not likely to be realized and, accordingly, has provided a full valuation allowance. Significant components of the Company’s net deferred tax assets consist of the following (in thousands): December 31, 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 36,398 $ 32,985 Section 174 capitalized expense 12,047 6,812 Research and development credits 4,000 3,775 Lease liabilities 664 1,096 Accrual and reserves 471 739 Employee retention credits 64 271 Stock-based compensation 322 201 Capitalized intangible costs 160 176 Fixed assets 279 66 Other 6 3 Gross deferred tax assets 54,411 46,124 Less: valuation allowance ( 53,962 ) ( 45,343 ) Deferred tax assets, net of valuation allowance 449 781 Deferred tax liabilities: Right-of-use assets ( 397 ) ( 686 ) Other ( 52 ) ( 95 ) Gross deferred tax liabilities ( 449 ) ( 781 ) Total net deferred tax assets $ — $ — The net valuation allowance increased by $ 8.6 million and $ 9.7 million for the years ended December 31, 2023 and 2022, respectively. As of December 31, 2023 , the Company had net operating loss, or NOL, carryforwards of approximately $ 155.7 million and $ 53.0 million available to reduce future taxable income, if any, for federal and California state income tax purposes, respectively. NOL carryforwards generated after 2018 for federal tax reporting purposes of $ 143.2 million have an indefinite carryforward period. The remaining federal and state net operating loss carryforwards begin expiring in 2036 . As of December 31, 2023 , the Company had research and development credit carryforwards of approximately $ 2.6 million and $ 3.8 million available to reduce future taxable income, if any, for federal and California state income tax purposes, respectively. The federal credit carryforwards begin expiring in 2036 and the state credits carry forward indefinitely . Federal and state laws impose substantial restrictions on the utilization of net operating loss and tax credit carryforwards in the event of an ownership change for tax purposes, as defined in Section 382 of the Internal Revenue Code. As a result of such ownership changes, the Company’s ability to realize the potential future benefit of tax losses and tax credits that existed at the time of the ownership change may be limited and may expire unutilized. Such impairment of tax losses and tax credits would reduce the deferred tax asset and corresponding valuation allowance, as a result of the limitation. The Company completed an assessment of the available NOLs under Section 382 and determined that the Company underwent an ownership change in September 2020. As a result of the annual limitations caused by the ownership change, it was estimated the approximately $ 1.3 million of federal tax credit and $ 27.4 million of California NOL will expire unrealized for income tax purposes, and such amounts are excluded from the carryforward balances as of December 31, 2023. The Company recognizes uncertain income tax positions at the largest amount that is more likely than not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. The unrecognized tax benefits, if recognized, would not have an impact on the Company’s effective tax rate assuming the Company continues to maintain a full valuation allowance position. The Company does not expect its unrecognized tax benefits to change significantly over the next 12 months. A reconciliation of the Company’s unrecognized tax benefits is as follows (in thousands): December 31, 2023 2022 Balance at beginning of the year $ 1,628 $ 974 Additions based on tax positions related to current year — 654 Additions based on tax positions of prior years 97 — Balance at end of the year $ 1,725 $ 1,628 The Company files income tax returns in the U.S. federal and California tax jurisdictions. As of the date these financial statements were issued, the Company is not under examination by any income tax authority. The federal and state income tax returns from December 31, 2016 to December 31, 2022 remain subject to examination. A reconciliation of the statutory U.S. federal tax rate to the Company’s effective tax rate is as follows: December 31, 2023 2022 Statutory rate 21.00 % 21.00 % State tax — 2.12 Tax credits 0.64 1.72 Stock-based compensation ( 1.74 ) ( 2.26 ) Change in valuation allowance ( 19.95 ) ( 26.88 ) Gain on warrant liabilities 0.10 4.60 Other ( 0.05 ) ( 0.30 ) Total 0.00 % 0.00 % |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 14. Commitments and Contingencies Indemnification From time to time, the Company enters into certain types of contracts that contingently require the Company to indemnify various parties against claims from third parties. These contracts primarily relate to (i) the Company’s bylaws, under which the Company must indemnify directors and executive officers, and may indemnify other officers and employees, for liabilities arising out of their relationship with the Company, (ii) contracts under which the Company must indemnify directors and certain officers for liabilities arising out of their relationship with the Company, (iii) contracts under which the Company may be required to indemnify customers or partners against certain claims, including claims from third parties asserting, among other things, infringement of their intellectual property rights and (iv) procurement, consulting, or license agreements under which the Company may be required to indemnify vendors, consultants or licensors for certain claims, including claims that may be brought against them arising from acts or omissions with respect to the supplied products, technology or services. From time to time, the Company may receive indemnification claims under these contracts in the normal course of business. In addition, under these contracts the Company may have to modify the accused infringing intellectual property and/or refund amounts received. In the event that one or more of these matters were to result in a claim against the Company, an adverse outcome, including a judgment or settlement, may cause a material adverse effect on the Company’s future business, operating results or financial condition. It is not possible to determine the maximum potential amount under these contracts due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. The Company maintains director and officer insurance, which may cover certain liabilities arising from the Company’s obligation to indemnify its directors and certain officers. To the date of the consolidated financial statements were issued, the Company has not incurred any material costs or accrued any liabilities related to indemnification obligations. Litigation The Company’s industry is characterized by frequent claims and litigation, including claims regarding intellectual property. As a result, the Company may be subject to various legal proceedings from time to time. The results of any future litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors. Management is not aware of any pending or threatened litigation. |
401(K) Plan
401(K) Plan | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
401(K) Plan | Note 15. 401(k) Plan The Company adopted a 401(k) retirement savings plan, or the 401(k) Plan for all eligible employees. Each participant may contribute pre- or post-tax compensation, up to annual statutory limits. The 401(k) Plan also permits the Company to make discretionary and matching contributions, subject to established limits and a vesting schedule. Each year, the Company may, at its sole discretion, make contributions to the plan. For the years ended December 31, 2023 and 2022 , the Company's contributions were $ 0.1 million and $ 0.2 million, respectively. Note 16. Subsequent Event In April 2024, the Company entered into a securities purchase agreement with certain institutional investors (the “Investors”) and management (together with the Investors, the “Purchasers”) whereby the Company issued and sold in a private placement : (i) shares of common stock, (ii) pre-funded warrants to purchase shares of common stock, and (iii) warrants to purchase shares of common stock. Pursuant to the agreement, the Company issued and sold to the Investors 1.1 million shares of common stock and pre-funded warrants to purchase up to 40,000 shares of common stock, at a purchase price of $ 15.50 and $ 15.4999 , respectively, for aggregate gross proceeds of approximately $ 17.6 million, before deducting placement agent fees and other expenses. Each pre-funded warrant has an exercise price of $ 0.0001 per share, is exercisable immediately and will not expire until exercised in full. The purchase price per share and per pre-funded warrant includes $ 1.25 for the following accompanying common stock warrants: • Series A common stock warrants to purchase up to 1.1 million shares of common stock with an exercise price of $ 15.50 per share, for aggregate gross proceeds of up to approximately $ 17.5 million, exercisable immediately upon issuance for five years. • Series B common stock warrants to purchase up to 1.2 million shares of common stock with an exercise price of $ 14.25 per share, for aggregate gross proceeds of up to approximately $ 17.5 million, exercisable immediately upon issuance until the fifth trading day following the Company’s announcement that (i) it has completed the enrollment of at least 15 patients with a 30-day mortality rate less than 30% in the Company’s SZN-043 Phase 1b clinical trial for the treatment of severe alcohol-associated hepatitis, with no recommended changes by the safety review committee to the study design, including changes related to dose or schedule, and (ii) safety review committee approval for the Company to advance to a higher dose cohort. • Series C common stock warrants to purchase up to 4.4 million shares of common stock with an exercise price of $ 16.00 per share, for aggregate gross proceeds of up to approximately $ 70 million, exercisable for 30 days following the Company’s announcement of final data from the SZN-043 phase 1b clinical trial for the treatment of severe alcohol-associated hepatitis. The Series C common stock warrants will also become exercisable in the event of a fundamental transaction. • Series D common stock warrants to purchase up to 4.4 million shares of common stock with an exercise price of $ 16.00 per share, for aggregate gross proceeds of up to approximately $ 70 million, exercisable for 30 days following the Company’s announcement of the enrollment of at least 50 patients in the SZN-043 Phase 2/3 clinical trial for the treatment of severe alcohol-associated hepatitis. The Series D common stock warrants will also become exercisable in the event of a fundamental transaction. The Company issued and sold to members of management an additional 2,948 shares of common stock at a purchase price of $ 16.96 per share. The purchase price per share includes $ 1.25 for the following accompanying common stock warrants: • Series A common stock warrants to purchase up to 2,948 shares of common stock with an exercise price of $ 16.96 per share. • Series B common stock warrants to purchase up to 3,206 shares of common stock with an exercise price of $ 15.71 per share. • Series C common stock warrants to purchase up to 11,424 shares of common stock with an exercise purchase price of $ 16.00 per share. • Series D common stock warrants to purchase up to 11,424 shares of common stock with an exercise price of $ 16.00 per share. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 16. Subsequent Event In April 2024, the Company entered into a securities purchase agreement with certain institutional investors (the “Investors”) and management (together with the Investors, the “Purchasers”) whereby the Company issued and sold in a private placement : (i) shares of common stock, (ii) pre-funded warrants to purchase shares of common stock, and (iii) warrants to purchase shares of common stock. Pursuant to the agreement, the Company issued and sold to the Investors 1.1 million shares of common stock and pre-funded warrants to purchase up to 40,000 shares of common stock, at a purchase price of $ 15.50 and $ 15.4999 , respectively, for aggregate gross proceeds of approximately $ 17.6 million, before deducting placement agent fees and other expenses. Each pre-funded warrant has an exercise price of $ 0.0001 per share, is exercisable immediately and will not expire until exercised in full. The purchase price per share and per pre-funded warrant includes $ 1.25 for the following accompanying common stock warrants: • Series A common stock warrants to purchase up to 1.1 million shares of common stock with an exercise price of $ 15.50 per share, for aggregate gross proceeds of up to approximately $ 17.5 million, exercisable immediately upon issuance for five years. • Series B common stock warrants to purchase up to 1.2 million shares of common stock with an exercise price of $ 14.25 per share, for aggregate gross proceeds of up to approximately $ 17.5 million, exercisable immediately upon issuance until the fifth trading day following the Company’s announcement that (i) it has completed the enrollment of at least 15 patients with a 30-day mortality rate less than 30% in the Company’s SZN-043 Phase 1b clinical trial for the treatment of severe alcohol-associated hepatitis, with no recommended changes by the safety review committee to the study design, including changes related to dose or schedule, and (ii) safety review committee approval for the Company to advance to a higher dose cohort. • Series C common stock warrants to purchase up to 4.4 million shares of common stock with an exercise price of $ 16.00 per share, for aggregate gross proceeds of up to approximately $ 70 million, exercisable for 30 days following the Company’s announcement of final data from the SZN-043 phase 1b clinical trial for the treatment of severe alcohol-associated hepatitis. The Series C common stock warrants will also become exercisable in the event of a fundamental transaction. • Series D common stock warrants to purchase up to 4.4 million shares of common stock with an exercise price of $ 16.00 per share, for aggregate gross proceeds of up to approximately $ 70 million, exercisable for 30 days following the Company’s announcement of the enrollment of at least 50 patients in the SZN-043 Phase 2/3 clinical trial for the treatment of severe alcohol-associated hepatitis. The Series D common stock warrants will also become exercisable in the event of a fundamental transaction. The Company issued and sold to members of management an additional 2,948 shares of common stock at a purchase price of $ 16.96 per share. The purchase price per share includes $ 1.25 for the following accompanying common stock warrants: • Series A common stock warrants to purchase up to 2,948 shares of common stock with an exercise price of $ 16.96 per share. • Series B common stock warrants to purchase up to 3,206 shares of common stock with an exercise price of $ 15.71 per share. • Series C common stock warrants to purchase up to 11,424 shares of common stock with an exercise purchase price of $ 16.00 per share. • Series D common stock warrants to purchase up to 11,424 shares of common stock with an exercise price of $ 16.00 per share. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company’s consolidated financial statements and accompanying notes have been prepared in accordance with generally accepted accounting principles in the United States of America, or U.S. GAAP, as determined by the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, and pursuant to the regulations of the U.S. Securities and Exchange Commission, or SEC. The consolidated financial statements include the accounts of the Company and its subsidiary. All intercompany transactions and balances have been eliminated. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions made in the accompanying consolidated financial statements include, impairment of long-lived assets, revenue recognition and certain accrued expenses for research and development activities. Management bases its estimates on historical experience and on various other market-specific and relevant assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results could materially differ from those estimates. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments, which potentially subject the Company to significant concentration of credit risk, consist of cash, cash equivalents and marketable securities. The Company’s cash is held by financial institutions that may at times exceed federally insured limits. However, the Company’s exposure to credit risk in the event of default by the financial institution is limited to the extent of amounts recorded on the consolidated balance sheets. The Company believes it is not exposed to significant credit risk on cash. The Company's cash equivalents and marketable securities were held in custodial accounts maintained by third party custodians. The Company's policy is to invest cash in institutional money market funds and marketable securities with high credit quality to limit the amount of credit exposure. The Company maintained a portfolio of cash equivalents and marketable securities in a variety of securities. The Company has not experienced any losses on its cash equivalents and marketable securities. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents relate to securities having an original maturity of three months or less at the time of purchase. As of December 31, 2023 and 2022 , cash and cash equivalents consisted of bank deposits, money market funds and U.S. government agency debt securities. |
Restricted Cash | Restricted Cash As of December 31, 2023, the Company had $ 0.7 million of restricted cash consisting of a letter of credit for the Company’s facility lease and the collateral associated with the Company’s credit card program. As of December 31, 2022, the Company had $ 0.4 million of restricted cash in the form of a letter of credit for the Company’s facility lease. |
Marketable Securities | Marketable Securities The Company invested its excess cash in marketable U.S. government bonds, commercial paper and corporate debt securities. All marketable securities were classified as available-for-sale and carried at estimated fair value as determined based upon quoted market prices or pricing models for similar securities. The Company does not buy or hold securities principally for the purpose of selling them in the near future. The Company’s policy is focused on the preservation of capital, liquidity, and return. From time to time, the Company may sell certain securities, but the objectives are generally not to generate profits on short-term differences in price. Short-term marketable securities have maturities less than or equal to one year as of the balance sheet date. These marketable securities were carried at estimated fair value with unrealized holding gains or losses included in accumulated other comprehensive loss in stockholders’ equity until realized. Gains and losses on marketable security transactions are reported on the specific-identification method. Interest income is recognized in the consolidated statements of operations and comprehensive loss when earned. The Company periodically evaluates its available-for-sale marketable securities for credit losses. When the fair value of a marketable security is below its amortized cost basis, the amortized cost is reduced to its fair value if it is more likely than not that the Company is required to sell the security before recovery of its amortized cost, or the Company has the intention to sell the security. If neither of these conditions are met, the Company determines whether the decline in fair value is due to credit losses by comparing the present value of the expected cash flows of the security with its amortized cost basis. The amount of credit losses recognized is limited to the excess of the amortized cost basis over the fair value of the security. An allowance for credit losses for the excess of amortized cost basis over the expected cash flows, if any, is recorded in other income, net on the condensed consolidated statements of operations. Any losses from declines in fair value that are not credit-related are included in accumulated other comprehensive loss in stockholders’ equity. |
Property and Equipment | Property and Equipment Property and equipment, including leasehold improvements, are recorded at cost net of accumulated depreciation and amortization. Major replacements and improvements that extend the useful lives of assets are capitalized, while general repairs and maintenance are charged to expense as incurred. Property and equipment are depreciated and amortized using the straight-line method over the estimated useful lives of the assets as follows: Asset Estimated useful life Leasehold improvements Shorter of useful life of asset or lease term Lab equipment 3 years Furniture and office equipment 3 - 8 years Computer equipment and software 3 years When assets are retired or otherwise disposed of, the cost and related accumulated depreciation and amortization are removed from the consolidated balance sheet and the resulting gain or loss is recognized in the period realized. |
Leases | Leases Material leases with a term longer than one year are recognized as right-of-use, or ROU, assets and lease liabilities in the Company's consolidated balance sheets. The Company determines the lease classification and measurement of its ROU assets and lease liabilities at the lease commencement date and thereafter if modified. The Company uses its incremental borrowing rate, based on the information available at the commencement date, to determine the present value of lease payments if the rate implicit in the lease is not readily available. The ROU asset is based on the measurement of the lease liability and is adjusted for lease incentives provided by the landlord. Lease expense for the Company’s operating leases is recognized on a straight-line basis over the lease term. The lease term includes any renewal options and termination options that the Company is reasonably assured to exercise. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews long-lived assets, including property and equipment and operating lease right-of-use assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. Recoverability is measured by comparing the carrying amount to the future net undiscounted cash flows which the assets are expected to generate. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds their fair value. |
Warrant Liabilities | Warrant Liabilities The Company's warrants are classified as liabilities. A t the end of each reporting period, any changes in fair value during the period are recognized in other income, net within the consolidated statements of operations and comprehensive loss. The Company will continue to adjust the warrant liabilities pertaining to the outstanding warrants for changes in the fair value until the earlier of a) the exercise or expiration of the warrants or b) the redemption of the warrants, at which time such warrants will be reclassified to additional paid-in capital. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers (Topic 606) , when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the Company expects to receive in exchange for these goods or services. To determine revenue recognition for the arrangement that is within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract with the customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when or as the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services transferred to the customer. At contract inception, the Company assesses the goods or services promised within the contract, determines those that are performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes revenue for the amount of the transaction price that is allocated to the respective performance obligations when or as the performance obligations are satisfied. The Company constrains its estimate of the transaction price up to the amount (the variable consideration constraint) that a significant reversal of recognized revenue is not probable. The Company records accounts receivable for amounts billed to the customer for which the Company has an unconditional right to consideration. The Company assesses accounts receivable for credit losses and, to date, no credit losses have been recorded. The Company has a Collaboration and License Agreement, or CLA, with Boehringer Ingelheim International GmbH, or BI, to which the Company licensed certain rights to its intellectual property that is determined within the scope of ASC 606. The terms of the CLA include payments to the Company of a non-refundable upfront payment, development, regulatory and commercial milestone payments and royalties on net sales of licensed products. Licenses of Intellectual Property : If the license to the Company’s intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenue from non-refundable upfront fees allocated to the license when the license is transferred to the licensee and the licensee is able to use and benefit from the license. For licenses that are bundled with other promised goods or services, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable upfront fees. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. Milestone Payments: At contract inception, the Company uses the most likely amount method evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price. If it is probable that a significant reversal of cumulative revenue would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the control of the Company or the licensee, such as regulatory approvals, are not considered probable of being achieved until those approvals are received or the underlying activity has been completed. The transaction price is then allocated to each performance obligation on a relative stand-alone selling price basis, for which the Company recognizes revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, the Company re-evaluates the probability of achievement of such development milestones and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect revenue in the period of adjustment. Royalties: The Company recognizes sales-based royalties as revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalties that have been allocated have been satisfied (or partially satisfied). The incremental costs of obtaining a customer contract are expensed as and when incurred if the amortization period of the asset that would have been recognized is one year or less. |
Research and Development Expenses | Research and Development Expenses Research and development costs are expensed as incurred. Research and development costs consist of external and internal expenses directly attributable to the conduct of research and development programs. The external expenses include the costs of services provided by outside contractors, clinical research organizations and contract manufacturing organizations. The internal expenses include the costs of salaries, bonus, payroll taxes, stock-based compensation, employee benefits, materials, supplies, depreciation on and maintenance of research equipment, and the allocated facility-related costs, such as rent, utilities, insurance, repairs and maintenance, and general support services. The Company has entered into and may continue to enter into licensing or subscription arrangements to access and utilize certain technology. In each case, the Company evaluates if the license agreement results in the acquisition of an asset or a business. To date, none of the Company’s license agreements have been considered an acquisition of a business. For asset acquisitions, the upfront payments to acquire such licenses, as well as any future milestone payments made before product approval that do not meet the definition of a derivative, are immediately recognized as research and development expense when they are paid or become payable, provided there is no alternative future use of the rights in other research and development projects. |
Accrued Research and Development Expenses | Accrued Research and Development Expenses The Company records accruals for estimated costs of research, preclinical, clinical, and manufacturing development, which are significant components of research and development expenses, within accrued and other liabilities in the accompanying consolidated balance sheets. A substantial portion of the Company’s preclinical studies, clinical trials and contract manufacturing activities is conducted by third-party service providers. The Company accrues for estimated costs of research and development activities conducted by third-party service providers based upon the estimated services provided but not yet invoiced. We estimate the amounts incurred in each period based on the information available and our knowledge of the nature of the contractual activities generating such costs. Payments made to third parties under these arrangements in advance of the performance of the related services are recorded as prepaid expenses until the services are rendered. If the actual timing of the performance of services or the level of effort varies from the estimate, the Company adjusts accrued expenses or prepaid expenses accordingly, which impacts research and development expenses. For the years ended December 31, 2023 and 2022 , the Company did not have any material differences between accrued costs and actual costs incurred. Although the Company does not expect its estimates to be materially different from amounts actually incurred, its understanding of the status and timing of services performed relative to the actual status and timing of services performed may vary and may result in reporting amounts that are too high or too low in any particular period. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes stock-based compensation expense for all stock-based awards. For stock awards, stock-based compensation cost is estimated on the grant date based on the closing price of the Company's stock, with consideration of whether there is material nonpublic information that could impact the estimated fair value of awards. Stock-Based compensation cost is recognized as expense on a straight-line basis over the requisite service period. Under the Company's employee stock purchase plan, stock-based compensation cost is measured at the beginning of the offering period and recognized on a straight-line basis over the offering period. Forfeitures are accounted for as they occur. The Company has elected to calculate the fair value of awards using the Black-Scholes option pricing model, or the Black-Scholes Model. The Black-Scholes Model requires the use of various assumptions including common stock valuation, expected option life and expected stock price volatility. The Company estimates the expected term for stock options using the simplified method as the midpoint between the vesting date and the contractual expiration date of the award as the Company has limited historical exercise information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior for its stock option grants . Due to the limited trading history of the Company’s stock, the Company estimates the volatility using volatilities of a group of public companies in a comparable industry, stage of life cycle, and size. The interest rate is derived from the U.S. Treasury instruments with maturities similar to the expected term of the options. The Company has not declared nor expects to declare dividends. Therefore, there is no dividend impact on the valuation of options. |
Comprehensive Loss | Comprehensive Loss The Company’s comprehensive loss consists of unrealized losses on available-for-sale securities. |
Net Loss Per Share | Net Loss Per Share Basic net loss per share is calculated by dividing the net loss attributable to common stock by the weighted-average number of shares of common stock outstanding for the period, without consideration for potential dilutive securities. Since the Company was in a loss position for the periods presented, basic net loss per share is the same as diluted net loss per share as the effects of the potentially dilutive securities are antidilutive. The following table presents the potential common stock outstanding that were excluded from the computation of diluted net loss per share of common stock as of the periods presented because including them would have been antidilutive (in thousands): December 31, 2023 2022 Common stock issuable upon exercise of stock options 311 260 Unvested restricted stock awards 4 7 Unvested restricted stock units 90 — Unvested common stock subject to repurchase — 1 Common stock issuable upon exercise of warrants 394 394 Total 799 662 |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement carrying amounts and tax bases of assets and liabilities using enacted tax rates expected to be in effect for the year in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts more likely than not to be realized. The Company assesses all material positions taken in any income tax return, including all significant uncertain positions, in all tax years that are still subject to assessment or challenge by relevant taxing authorities. Assessing an uncertain tax position begins with the initial determination of the position’s sustainability and is measured at the largest amount of benefit that is more likely than not of being realized upon ultimate settlement. As of each balance sheet date, unresolved uncertain tax positions must be reassessed, and the Company will determine whether (i) the factors underlying the sustainability assertion have changed and (ii) the amount of the recognized tax benefit is still appropriate. The recognition and measurement of tax benefits require significant judgment. Judgments concerning the recognition and measurement of a tax benefit might change as new information becomes available. The Company’s policy is to recognize interest and penalties related to the underpayment of income taxes as a component of income tax expense or benefit. To date, there have been no interest or penalties charged in relation to unrecognized tax benefits. |
Emerging Growth Company Status | Emerging Growth Company Status The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with certain new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it is (i) no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. As a result, these consolidated financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In December 2023, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . The standard requires entities to disclose additional categories about federal, state and foreign income taxes in the effective tax rate reconciliation as well as provide annual income taxes paid disaggregated by federal, state and foreign taxes. The standard is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The Company is evaluating the impact of adopting this standard on its consolidated financial statements and related disclosures. In November 2023, the FASB issued Accounting Standards Update 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . The standard improves reportable segment disclosure requirements through enhanced disclosures about significant segment expenses and information used to assess segment performance. All disclosure requirements of the update are required for entities with a single reportable segment. The standard is effective for annual periods beginning after December 15, 2023, and interim periods beginning thereafter. Early adoption is permitted and requires retrospective application to all prior periods presented in the financial statements. The Company is evaluating the impact of adopting this standard on its consolidated financial statements and related disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Property and Equipment Useful Lives | Property and equipment, including leasehold improvements, are recorded at cost net of accumulated depreciation and amortization. Major replacements and improvements that extend the useful lives of assets are capitalized, while general repairs and maintenance are charged to expense as incurred. Property and equipment are depreciated and amortized using the straight-line method over the estimated useful lives of the assets as follows: Asset Estimated useful life Leasehold improvements Shorter of useful life of asset or lease term Lab equipment 3 years Furniture and office equipment 3 - 8 years Computer equipment and software 3 years |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table presents the potential common stock outstanding that were excluded from the computation of diluted net loss per share of common stock as of the periods presented because including them would have been antidilutive (in thousands): December 31, 2023 2022 Common stock issuable upon exercise of stock options 311 260 Unvested restricted stock awards 4 7 Unvested restricted stock units 90 — Unvested common stock subject to repurchase — 1 Common stock issuable upon exercise of warrants 394 394 Total 799 662 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables summarize the Company’s financial assets and liabilities that are measured at fair value on a recurring basis (in thousands): As of December 31, 2023 Level 1 Level 2 Level 3 Total Assets: Money market funds (1) $ 33,014 $ — $ — $ 33,014 Total financial assets measured at fair value $ 33,014 $ — $ — $ 33,014 Liabilities (2) : Public Warrants $ 53 $ — $ — $ 53 PIPE Warrants — 62 — 62 Total financial liabilities measured at fair value $ 53 $ 62 $ — $ 115 As of December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Money market funds (1) $ 9,194 $ — $ — $ 9,194 Commercial paper — 22,549 — 22,549 Corporate bonds — 10,797 — 10,797 Government bonds — 17,802 — 17,802 Government agency debt securities (1) — 3,982 — 3,982 Total financial assets measured at fair value $ 9,194 $ 55,130 $ — $ 64,324 Liabilities (2) : Public Warrants $ 151 $ — $ — $ 151 PIPE Warrants — 175 — 175 Total financial liabilities measured at fair value $ 151 $ 175 $ — $ 326 (1) Included in cash and cash equivalents on the consolidated balance sheets as of December 31, 2023 and 2022 . (2) See the definition and discussion of Public Warrants and PIPE Warra nts in Note 11. |
Schedule of Marketable Securities by Security Type | The following table provides the Company’s marketable securities by security type as of December 31, 2022 (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Commercial paper $ 22,549 $ — $ — $ 22,549 Corporate bonds 10,817 1 ( 21 ) 10,797 Government bonds 18,023 — ( 221 ) 17,802 Total short-term marketable securities $ 51,389 $ 1 $ ( 242 ) $ 51,148 |
Schedule Of Unrealized Loss On Investments | The following table indicates the length of the time that individual securities have been in a continuous unrealized loss position (dollars in thousands): As of December 31, 2022 Less Than 12 Months Number of Investments Fair Value Unrealized Losses Corporate bonds 4 $ 9,719 $ 21 Government bonds 3 17,802 221 Total 7 $ 27,521 $ 242 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Prepaid Expense and Other Current Assets | Prepaid expenses and other current assets consist of the following (in thousands): December 31, 2023 2022 Prepaid research and development expenses $ 1,751 $ 1,657 Prepaid insurance 606 1,076 Other 580 756 Prepaid expenses and other current assets $ 2,937 $ 3,489 |
Schedule of Property and Equipment, Net | Property and equipment, net consists of the following (in thousands): December 31, 2023 2022 Leasehold improvements $ 1,116 $ 7,052 Lab equipment 7,703 7,515 Furniture and office equipment 316 299 Computer equipment and software 202 119 Total property and equipment 9,337 14,985 Less: accumulated depreciation and amortization ( 7,368 ) ( 11,355 ) Property and equipment, net $ 1,969 $ 3,630 |
Schedule of Accrued and Other Liabilities | Accrued and other liabilities consist of the following (in thousands): December 31, 2023 2022 Accrued payroll and related expenses $ 2,508 $ 3,964 Accrued research and development expenses 1,261 1,665 Accrued professional service fees 65 638 Liability for early exercised stock options 3 89 Other 289 492 Accrued and other liabilities $ 4,126 $ 6,848 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Summary of Lessee, Operating Lease, Liability, Maturity | Aggregate future minimum rental payments under the operating leases as of December 31, 2023, were as follows (in thousands): Year ending December 31, 2024 $ 2,670 Year ending December 31, 2025 891 Total lease payments 3,561 Less: Imputed interest ( 182 ) Operating lease liabilities $ 3,379 |
Schedule of Supplemental Information Related to Operating Leases | The following represents supplemental information related to the Company’s operating leases: December 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities (in thousands) $ 2,596 $ 2,743 Weighted-average remaining lease term (in years) 1.33 2.33 Weighted-average discount rate 8.48 % 8.48 % |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring Reserve [Abstract] | |
Schedule Of Restructuring And Related Cost | The outstanding restructuring liabilities are included in accrued and other liabilities on the consolidated balance sheet. The following table summarizes activity during the year ended December 31, 2023 (in thousands): Employee Severance and Other Benefits Balance, December 31, 2022 $ — Restructuring charges 2,752 Cash payments ( 2,678 ) Balance, December 31, 2023 $ 74 |
Common Stock Warrants (Tables)
Common Stock Warrants (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Common Stock Warrants Outstanding | Type Classification Expiration Date Exercise Price per Share Number of Warrants Fair Value Public Warrants Liability August 12, 2026 $ 172.50 2,733 $ 53 PIPE Warrants Liability August 12, 2026 172.50 3,174 62 Total 5,907 $ 115 |
Stock Based Compensation Plans
Stock Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of stock option activity | A summary of stock option activity is set forth below (shares in thousands): Options Outstanding Weighted Average Aggregate Average Remaining Intrinsic Number of Exercise Contractual Life Value Options Price (In years) (In thousands) Outstanding – December 31, 2022 260 $ 36.43 8.44 Granted 120 12.86 Exercised — 8.42 Forfeited ( 44 ) 35.85 Expired ( 25 ) 32.97 Outstanding – December 31, 2023 311 27.70 7.99 $ 28 Exercisable – December 31, 2023 163 28.56 7.42 15 |
Summary of RSU Activity | The following table summarizes the Company’s RSUs activity (shares in thousands): Weighted Average Number of Grant Date Shares Fair Value RSUs, unvested at December 31, 2022 — $ — Granted 90 7.73 RSUs, unvested at December 31, 2023 90 7.73 |
Summary of RSA Activity | The following table summarizes the Company’s RSAs activity (shares in thousands): Weighted Average Number of Grant Date Shares Fair Value RSAs, unvested at December 31, 2022 7 $ 146.14 Vested ( 3 ) 145.23 RSAs, unvested at December 31, 2023 4 146.92 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of options is estimated at the grant date using the Black-Scholes option-pricing model with the following weighted-average assumptions: Year Ended December 31, 2023 2022 Expected term (in years) 5.85 6.00 Expected volatility 85.86 81.07 % Risk-free rate 3.89 % 2.03 % Dividend yield — — |
Schedule of Stock-Based Compensation Expense | Total stock-based compensation expense recorded in the consolidated statements of operations and comprehensive loss was as follows (in thousands): Year Ended December 31, 2023 2022 Research and development $ 1,272 $ 1,612 General and administrative 3,100 2,905 Total stock-based compensation expense $ 4,372 $ 4,517 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Summary of Net Deferred Tax Assets | Significant components of the Company’s net deferred tax assets consist of the following (in thousands): December 31, 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 36,398 $ 32,985 Section 174 capitalized expense 12,047 6,812 Research and development credits 4,000 3,775 Lease liabilities 664 1,096 Accrual and reserves 471 739 Employee retention credits 64 271 Stock-based compensation 322 201 Capitalized intangible costs 160 176 Fixed assets 279 66 Other 6 3 Gross deferred tax assets 54,411 46,124 Less: valuation allowance ( 53,962 ) ( 45,343 ) Deferred tax assets, net of valuation allowance 449 781 Deferred tax liabilities: Right-of-use assets ( 397 ) ( 686 ) Other ( 52 ) ( 95 ) Gross deferred tax liabilities ( 449 ) ( 781 ) Total net deferred tax assets $ — $ — |
Summary of Unrecognized Tax Benefits | A reconciliation of the Company’s unrecognized tax benefits is as follows (in thousands): December 31, 2023 2022 Balance at beginning of the year $ 1,628 $ 974 Additions based on tax positions related to current year — 654 Additions based on tax positions of prior years 97 — Balance at end of the year $ 1,725 $ 1,628 |
Schedule of Reconciliation of U.S. Federal Statutory Income Tax Rate TO Effective Income Tax Rate | A reconciliation of the statutory U.S. federal tax rate to the Company’s effective tax rate is as follows: December 31, 2023 2022 Statutory rate 21.00 % 21.00 % State tax — 2.12 Tax credits 0.64 1.72 Stock-based compensation ( 1.74 ) ( 2.26 ) Change in valuation allowance ( 19.95 ) ( 26.88 ) Gain on warrant liabilities 0.10 4.60 Other ( 0.05 ) ( 0.30 ) Total 0.00 % 0.00 % |
Organization and Business - Add
Organization and Business - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Apr. 30, 2024 | |
Subsidiary Sale Of Stock [Line Items] | |||
Net loss | $ (43,042) | $ (36,004) | |
Net cash used in Operation | 40,363 | 44,145 | |
Cash and cash equivalents | 36,043 | 24,690 | |
Accumulated deficit | $ (221,695) | $ (178,653) | |
Reverse stock split, description | On December 13, 2023, the Company filed a certificate of amendment to its certificate of incorporation to effect a 1-for-15 reverse stock split of the issued and outstanding common stock, or the Reverse Stock Split. As a result of the Reverse Stock Split, every 15 shares of issued and outstanding common stock was converted into one issued and outstanding share of common stock, without any change in par value per share. | ||
Subsequent Events | Private Placement | |||
Subsidiary Sale Of Stock [Line Items] | |||
Cash and cash equivalents | $ 17,600 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Restricted cash | $ 36,731 | $ 25,095 |
Letter of Credit | ||
Restricted cash | $ 700 | $ 400 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Property and Equipment Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Leasehold Improvements [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | Shorter of useful life of asset or lease term |
Lab Equipment [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 3 years |
Furniture and Office Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 3 years |
Furniture and Office Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 8 years |
Computer equipment and software | |
Property, Plant and Equipment, Estimated Useful Lives | 3 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounting Policies [Line Items] | ||
Antidilutive securities excluded from computation of diluted net loss per share | 799 | 662 |
Common Stock Issuable Upon Exercise of Stock Options [Member] | ||
Accounting Policies [Line Items] | ||
Antidilutive securities excluded from computation of diluted net loss per share | 311 | 260 |
Unvested Restricted Stock Awards [Member] | ||
Accounting Policies [Line Items] | ||
Antidilutive securities excluded from computation of diluted net loss per share | 4 | 7 |
Unvested Restricted Stock Units [Member] | ||
Accounting Policies [Line Items] | ||
Antidilutive securities excluded from computation of diluted net loss per share | 90 | |
Unvested Common Stock Subject to Repurchase [Member] | ||
Accounting Policies [Line Items] | ||
Antidilutive securities excluded from computation of diluted net loss per share | 1 | |
Common Stock Issuable Upon Exercise of Warrants [Member] | ||
Accounting Policies [Line Items] | ||
Antidilutive securities excluded from computation of diluted net loss per share | 394 | 394 |
Recapitalization - Additional I
Recapitalization - Additional Information (Details) - shares | Dec. 31, 2023 | Dec. 31, 2022 |
Subsidiary Sale Of Stock [Line Items] | ||
Common shares, shares outstanding | 2,063,000 | 2,006,000 |
Shares issued | 2,063,000 | 2,006,000 |
Fair Value Measurement - Schedu
Fair Value Measurement - Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details)) - Fair Value, Recurring - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Assets: | |||
Assets | $ 33,014 | $ 64,324 | |
Liabilities(2): | |||
Liabilities | [1] | 115 | 326 |
Money Market Funds | |||
Assets: | |||
Assets | [2] | 33,014 | 9,194 |
Commercial Paper | |||
Assets: | |||
Assets | 22,549 | ||
Corporate Bond | |||
Assets: | |||
Assets | 10,797 | ||
Government Bonds | |||
Assets: | |||
Assets | 17,802 | ||
Foreign Bonds | |||
Assets: | |||
Assets | [2] | 3,982 | |
Public Warrants | |||
Liabilities(2): | |||
Liabilities | [1] | 53 | 151 |
P I P E Warrants | |||
Liabilities(2): | |||
Liabilities | [1] | 62 | 175 |
Level 1 | |||
Assets: | |||
Assets | 33,014 | 9,194 | |
Liabilities(2): | |||
Liabilities | [1] | 53 | 151 |
Level 1 | Money Market Funds | |||
Assets: | |||
Assets | [2] | 33,014 | 9,194 |
Level 1 | Commercial Paper | |||
Assets: | |||
Assets | 0 | ||
Level 1 | Corporate Bond | |||
Assets: | |||
Assets | 0 | ||
Level 1 | Government Bonds | |||
Assets: | |||
Assets | 0 | ||
Level 1 | Foreign Bonds | |||
Assets: | |||
Assets | [2] | 0 | |
Level 1 | Public Warrants | |||
Liabilities(2): | |||
Liabilities | [1] | 53 | 151 |
Level 1 | P I P E Warrants | |||
Liabilities(2): | |||
Liabilities | [1] | 0 | 0 |
Level 2 | |||
Assets: | |||
Assets | 0 | 55,130 | |
Liabilities(2): | |||
Liabilities | [1] | 62 | 175 |
Level 2 | Money Market Funds | |||
Assets: | |||
Assets | [2] | 0 | 0 |
Level 2 | Commercial Paper | |||
Assets: | |||
Assets | 22,549 | ||
Level 2 | Corporate Bond | |||
Assets: | |||
Assets | 10,797 | ||
Level 2 | Government Bonds | |||
Assets: | |||
Assets | 17,802 | ||
Level 2 | Foreign Bonds | |||
Assets: | |||
Assets | [2] | 3,982 | |
Level 2 | Public Warrants | |||
Liabilities(2): | |||
Liabilities | [1] | 0 | 0 |
Level 2 | P I P E Warrants | |||
Liabilities(2): | |||
Liabilities | [1] | 62 | 175 |
Level 3 | |||
Assets: | |||
Assets | 0 | 0 | |
Liabilities(2): | |||
Liabilities | [1] | 0 | 0 |
Level 3 | Money Market Funds | |||
Assets: | |||
Assets | [2] | 0 | 0 |
Level 3 | Commercial Paper | |||
Assets: | |||
Assets | 0 | ||
Level 3 | Corporate Bond | |||
Assets: | |||
Assets | 0 | ||
Level 3 | Government Bonds | |||
Assets: | |||
Assets | 0 | ||
Level 3 | Foreign Bonds | |||
Assets: | |||
Assets | [2] | 0 | |
Level 3 | Public Warrants | |||
Liabilities(2): | |||
Liabilities | [1] | 0 | 0 |
Level 3 | P I P E Warrants | |||
Liabilities(2): | |||
Liabilities | [1] | $ 0 | $ 0 |
[1] See the definition and discussion of Public Warrants and PIPE Warra nts in Note 11. Included in cash and cash equivalents on the consolidated balance sheets as of December 31, 2023 and 2022 . |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Transfers of financial instruments | $ 0 | $ 0 |
Debt Securities, Available-for-Sale, Total | 0 | |
Operating lease right-of-use assets | 1,889 | $ 3,268 |
Fair Value on a Nonrecurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impairment of Long-Lived Assets | 200 | |
Operating lease right-of-use assets | 100 | |
Leasehold Improvements | $ 100 | |
P I P E Warrants | Measurement Input, Expected Dividend Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Alternative Investment, Measurement Input | 0 | 0 |
Fair Value Measurement - Sche_2
Fair Value Measurement - Schedule of Marketable Securities by Security Type (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Amortized Cost Current | $ 51,389 |
Gross Unrealized Gains, Current | 1 |
Gross Unrealized Losses, Current | (242) |
Debt Securities, Available-for-sale, Current, Total | 51,148 |
Commercial Paper | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Amortized Cost Current | 22,549 |
Gross Unrealized Gains, Current | 0 |
Gross Unrealized Losses, Current | 0 |
Debt Securities, Available-for-sale, Current, Total | 22,549 |
Corporate Bond | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Amortized Cost Current | 10,817 |
Gross Unrealized Gains, Current | 1 |
Gross Unrealized Losses, Current | (21) |
Debt Securities, Available-for-sale, Current, Total | 10,797 |
Government Bonds | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Amortized Cost Current | 18,023 |
Gross Unrealized Gains, Current | 0 |
Gross Unrealized Losses, Non-current | (221) |
Debt Securities, Available-for-sale, Current, Total | $ 17,802 |
Fair Value Measurement - Sche_3
Fair Value Measurement - Schedule of Individual Securities Unrealized Loss Position (Details) $ in Thousands | Dec. 31, 2022 USD ($) Investments |
Debt Securities, Available-for-Sale [Line Items] | |
Number Of Positions | Investments | 7 |
Less then 12 Months, Fair Value | $ 27,521 |
Less then 12 Months, Unrealized Losses | $ 242 |
Corporate Bond | |
Debt Securities, Available-for-Sale [Line Items] | |
Number Of Positions | Investments | 4 |
Less then 12 Months, Fair Value | $ 9,719 |
Less then 12 Months, Unrealized Losses | $ 21 |
Government Bonds | |
Debt Securities, Available-for-Sale [Line Items] | |
Number Of Positions | Investments | 3 |
Less then 12 Months, Fair Value | $ 17,802 |
Less then 12 Months, Unrealized Losses | $ 221 |
Balance Sheet Components - Prep
Balance Sheet Components - Prepaid expenses and other current assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid research and development expenses | $ 1,751 | $ 1,657 |
Prepaid insurance | 606 | 1,076 |
Other | 580 | 756 |
Prepaid expenses and other current assets | $ 2,937 | $ 3,489 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property Plant And Equipment [Line Items] | ||
Total Property and equipment | $ 9,337 | $ 14,985 |
Less: accumulated depreciation and amortization | (7,368) | (11,355) |
Property and equipment, net | 1,969 | 3,630 |
Leasehold Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total Property and equipment | 1,116 | 7,052 |
Lab Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total Property and equipment | 7,703 | 7,515 |
Furniture and office equipment | ||
Property Plant And Equipment [Line Items] | ||
Total Property and equipment | 316 | 299 |
Computer equipment and software | ||
Property Plant And Equipment [Line Items] | ||
Total Property and equipment | $ 202 | $ 119 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Balance Sheet Related Disclosures [Abstract] | ||
Depreciation and amortization | $ 1,911 | $ 1,955 |
Asset impairment charge | $ 100 |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued payroll and related expenses | $ 2,508 | $ 3,964 |
Accrued research and development expenses | 1,261 | 1,665 |
Accrued professional service fees | 65 | 638 |
Liability for early exercised stock options | 3 | 89 |
Other | 289 | 492 |
Accrued and other liabilities | $ 4,126 | $ 6,848 |
Leases - Additional Information
Leases - Additional Information (Details) m² in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jan. 31, 2020 m² | Aug. 31, 2016 ft² | |
Lessee Lease Description [Line Items] | ||||
Area of real estate property | m² | 6,478 | |||
Restricted cash | $ 688 | $ 405 | ||
Operating lease term | 18 months | |||
Operating Lease, Expense | 1,600 | $ 1,900 | ||
Assets Impairment Charges on right-of-use assets | $ 100 | |||
CALIFORNIA | Eight Years [Member] | ||||
Lessee Lease Description [Line Items] | ||||
Area of real estate property | ft² | 32,813 | |||
Operating lease month of expiry of lease | 2025-04 | |||
Restricted cash | $ 400 |
Leases - Summary Of Lessee, Ope
Leases - Summary Of Lessee, Operating Lease, Liability, Maturity (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Leases [Abstract] | |
Year ending December 31, 2024 | $ 2,670 |
Year ending December 31, 2025 | 891 |
Total lease payments | 3,561 |
Less: Imputed interest | (182) |
Operating lease liabilities | $ 3,379 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Information Related to Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities (in thousands) | $ 2,596 | $ 2,743 |
Weighted-average remaining lease term (in years) | 1 year 3 months 29 days | 2 years 3 months 29 days |
Weighted-average discount rate | 8.48% | 8.48% |
Collaboration and License Agr_2
Collaboration and License Agreements - (Additional Information) (Details) - Collaboration and License Agreement with BI [Member] - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2022 | Oct. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Non-refundable upfront payment received | $ 12.5 | $ 12.5 | ||
Success-based milestone payments | 587 | |||
Upfront Payment | $ 10.5 | |||
Associated withholding tax | 2.2 | |||
Transaction price | $ 12.5 | |||
Accounts Receivable [Member] | ||||
Associated withholding tax | $ 2.2 | $ 2.2 |
License Agreements - Additional
License Agreements - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Sep. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2023 | Dec. 31, 2022 | |
Research and development | $ 27,230 | $ 37,013 | |||
Stanford License Agreements [Member] | Stanford [Member] | |||||
Payments for milestone agreement or earned royalties on achievement of milestones | $ 5,000 | ||||
Payments for achievement of specified development and regulatory milestones | $ 400 | ||||
Research and development | 100 | 200 | |||
Payments for milestone agreement on achievement of milestones | 0 | ||||
U C S F License And Option Agreements [Member] | Stanford [Member] | |||||
Research and development | 100 | ||||
Payments for milestone agreement on achievement of milestones | 0 | ||||
Distributed Bio Subscription Agreement [Member] | |||||
Payments for milestone agreement or earned royalties on achievement of milestones | 100 | ||||
Payments for achievement of specified development and regulatory milestones | $ 5,900 | ||||
Distributed Bio Subscription Agreement [Member] | Stanford [Member] | |||||
Research and development | $ 200 | $ 200 | |||
Maximum [Member] | Stanford License Agreements [Member] | Stanford [Member] | |||||
Payments for milestone agreement or earned royalties on achievement of milestones | $ 900 |
Restructuring (Additional Infor
Restructuring (Additional Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2023 | |
Restructuring Reserve [Abstract] | ||
Reduction in workforce | 25% | 38% |
Restructuring Charges | $ 1.2 | |
Other Restructuring Costs | $ 1.6 |
Restructuring - Schedule of out
Restructuring - Schedule of outstanding restructuring liabilities on the condensed consolidated balance sheets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | $ 1,200 | |
Employee Severance and Other Benefits [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring begining balance | $ 0 | $ 0 |
Restructuring Charges | 2,752 | |
Cash payments | (2,678) | |
Restructuring ending balance | $ 74 |
Related Party Transactions (Add
Related Party Transactions (Additional Information) (Details) - USD ($) $ in Thousands | Dec. 12, 2022 | Dec. 31, 2023 | Dec. 31, 2022 |
Related Party Transaction [Line Items] | |||
Share repurchased, shares | 400,000 | ||
Class of warrants repurchased | 87,000 | ||
Shares issued | 2,063,000 | 2,006,000 | |
Repurchase of warrants or repurchase price | $ 2,600 | ||
Common stock purchase price | 2,700 | ||
Warrant liability | $ 100 | $ 115 | $ 326 |
Stockholders' Equity (Additiona
Stockholders' Equity (Additional Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Dec. 12, 2022 | Apr. 30, 2024 | Feb. 28, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Shares issued | 2,063,000 | 2,006,000 | |||
Number shares sold and issued | 1,100,000 | ||||
Common stock issued | $ 0 | $ 0 | |||
Share repurchased, shares | 400,000 | ||||
Purchase of common stock | 0 | 2,607 | |||
Warrant liability | $ 100 | $ 115 | $ 326 | ||
Lincoln Park [Member] | |||||
Shares issued | 0 | ||||
Common stock with the fair value | $ 300 | ||||
Common stock purchase commitment | $ 100 | ||||
Common stock per share | $ 15 | ||||
Description of common stock closing sale transaction | Any single purchase of the Company’s common stock shall not exceed $3.5 million. | ||||
Share issued, shares | 0 | ||||
Guggenheim Securities, LLC [Member] | |||||
Common stock issued | $ 23,000 | ||||
Compensation payable | 3% | ||||
Maximum [Member] | |||||
Sale of stock, consideration received on transaction | $ 3,500 | ||||
Maximum [Member] | Lincoln Park [Member] | |||||
Sale of stock, consideration received on transaction | 50,000 | ||||
Minimum [Member] | Lincoln Park [Member] | |||||
Sale of stock, consideration received on transaction | $ 30,000 |
Common Stock Warrants - Additio
Common Stock Warrants - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 12, 2022 | |
Common Stock Warrants Outstanding | 5,907,000 | ||
Common Stock Warrants Expiration Date | Aug. 12, 2026 | ||
Class of warrants repurchased | 87,000 | ||
Repurchased Outstanding Warrants | $ 115 | ||
Common Stock, Shares, Issued | 2,063,000 | 2,006,000 | |
Warrant Redemption Condition Minimum Share Price Scenario Two | $ 270 | ||
Class Of Warrant Or Right Exercise Price Of Warrants Or Rights1 | $ 172.5 | ||
Public Warrants | |||
Common Stock Warrants Outstanding | 2,733,000 | ||
Common Stock Warrants Expiration Date | Aug. 12, 2026 | ||
Warrant Redemption Period | 30 days | ||
Repurchased Outstanding Warrants | $ 53 | ||
Warrant Redemption Condition Minimum Share Price Scenario One | $ 150 | ||
Common Stock, Shares, Issued | 1 | ||
Class Of Warrant Or Right Exercise Price Of Warrants Or Rights1 | $ 172.5 | ||
Public Warrants | Common Stock | |||
Common Stock Warrants Outstanding | 15 | ||
Public Warrants | Common Stock, Closing Price equals or Exceeds $18 Per Share [Member] | |||
Redemption Price Per Public Warrant | $ 0.01 | ||
Issuance of common stock Per Share | 270 | ||
Public Warrants | Common Stock, Closing Price equals or Exceeds $10 Per Share [Member] | |||
Redemption Price Per Public Warrant | 0.1 | ||
Issuance of common stock Per Share | $ 150 | ||
P I P E Warrants | |||
Common Stock Warrants Outstanding | 3,174,000 | ||
Common Stock Warrants Expiration Date | Aug. 12, 2026 | ||
Repurchased Outstanding Warrants | $ 62 | ||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 0 | ||
Class Of Warrant Or Right Exercise Price Of Warrants Or Rights1 | $ 172.5 |
Common Stock Warrants - (Detail
Common Stock Warrants - (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) $ / shares shares | |
Class Of Warrant Or Right [Line Items] | |
Common Stock Warrants Expiration Date | Aug. 12, 2026 |
Common stock warrants exercise price per share | $ / shares | $ 172.5 |
Common Stock Warrants Outstanding | shares | 5,907,000 |
Common Stock Warrants Fair Value | $ | $ 115 |
Public Warrants | |
Class Of Warrant Or Right [Line Items] | |
Common Stock Warrant Classification | Liability |
Common Stock Warrants Expiration Date | Aug. 12, 2026 |
Common stock warrants exercise price per share | $ / shares | $ 172.5 |
Common Stock Warrants Outstanding | shares | 2,733,000 |
Common Stock Warrants Fair Value | $ | $ 53 |
P I P E Warrants | |
Class Of Warrant Or Right [Line Items] | |
Common Stock Warrant Classification | Liability |
Common Stock Warrants Expiration Date | Aug. 12, 2026 |
Common stock warrants exercise price per share | $ / shares | $ 172.5 |
Common Stock Warrants Outstanding | shares | 3,174,000 |
Common Stock Warrants Fair Value | $ | $ 62 |
Stock Based Compensation Plan_2
Stock Based Compensation Plans - Additional Information (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2022 Employees $ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Intrinsic value of options exercised | $ 1.2 | $ 1.2 | |
Weighted average grant date fair value/shares | $ / shares | $ 9.47 | $ 34.2 | |
Unrecognized stock based compensation expense | $ 5.6 | ||
Weighted-average period | 1 year 8 months 1 day | ||
Shares issued | shares | 2,063,000 | 2,006,000 | |
Stock options outstanding | shares | 85,000 | 311 | 260 |
Number of employees held stock options | Employees | 59 | ||
Weighted average exercise price | $ / shares | $ 132.15 | ||
Incremental expense | $ 0.7 | ||
vested member | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Incremental expense | 0.3 | ||
unvested member | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Incremental expense | 0.4 | ||
RSA [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Fair value of RSAs vested | $ 0.2 | $ 0.2 | |
Employee stock purchase plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares reserved for future issuance | shares | 7,000 | ||
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture, Total | shares | 58,000 | 23,000 | |
Percentage of discount payroll deductions | 15% | ||
Common stock trading description | The eligible employees are able to purchase shares at 85% of the lower of the fair market value of the Company’s common stock on the first trading day of the offering period or on the purchase day | ||
2021 Stock Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares reserved for future issuance | shares | 200,000 | ||
Weighted average exercise price | $ / shares | $ 32.4 | ||
2021 Stock Plan [Member] | Employee Stock | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Description of modification of options | Options and restricted stock awards, or RSAs, under the 2021 Plan generally vest over four years. Restricted stock units, or RSUs, granted under the 2021 Plan generally vest in one year. | ||
2021 Stock Plan [Member] | Employee Stock | Maximum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expiration period | 10 years |
Stock Based Compensation Plan_3
Stock Based Compensation Plans - Summary of Stock Option Activity for Company's Stock Option Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Options Outstanding Beginning Balance | 260 | |
Number of Options Granted | 120 | |
Number of options Forfeited | (44) | |
Number of Options Exercised | 0 | |
Number of Options Cancelled | (25) | |
Number of Options Outstanding Ending Balance | 311 | 260 |
Number of Options outstanding and exercisable | 163 | |
Weighted Average Exercise Price Outstanding, Beginning Balance | $ / shares | $ 36.43 | |
Weighted Average Exercise Price Granted | 12.86 | |
Weighted Average Exercise Price Forfeited | 35.85 | |
Weighted Average Exercise Price Exercised | 8.42 | |
Weighted Average Exercise Price Cancelled | 32.97 | |
Weighted Average Exercise Price Outstanding, Ending Balance | 27.7 | $ 36.43 |
Weighted Average Exercise Price Options outstanding and exercisable | $ 28.56 | |
Weighted Average Remaining Contractual Life (In Years) | 7 years 11 months 26 days | 8 years 5 months 8 days |
Weighted Average Remaining Contractual Life, exercisable (In Years) | 7 years 5 months 1 day | |
Aggregate Intrinsic Value | $ 28 | |
Aggregate Intrinsic Value Options outstanding and exercisable | $ 15 |
Stock Based Compensation Plan_4
Stock Based Compensation Plans - Summary of RSA Activity (Details) - RSA [Member] shares in Thousands | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Beginning Balance | shares | 7 |
Number of Shares RSAs, Vested | shares | (3) |
Number of Shares RSAs, unvested, Ending Balance | shares | 4 |
Weighted Average Grant Date Fair Value RSAs, Unvested Beginning Balance | $ / shares | $ 146.14 |
Weighted Average Grant Date Fair Value RSAs, Vested | $ / shares | 145.23 |
Weighted Average Grant Date Fair Value RSAs, Unvested Ending Balance | $ / shares | $ 146.92 |
Share-Based Compensation plans
Share-Based Compensation plans - Summary of RSU Activity (Details) - Restricted Stock Units (RSUs) [Member] shares in Thousands | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Beginning Balance | shares | 0 |
Number of Shares RSAs, Granted | shares | 90 |
Number of Shares RSAs, unvested, Ending Balance | shares | 90 |
Weighted Average Grant Date Fair Value RSAs, Unvested Beginning Balance | $ / shares | $ 0 |
Weighted Average Grant Date Fair Value RSU Granted | $ / shares | 7.73 |
Weighted Average Grant Date Fair Value RSAs, Unvested Ending Balance | $ / shares | $ 7.73 |
Stock Based Compensation Plans-
Stock Based Compensation Plans- Schedule of Weighted Average Assumptions Used to Estimate Fair Value of Options (Details) - Stock Option | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term (in years) | 5 years 10 months 6 days | 6 years |
Expected volatility | 85.86% | 81.07% |
Risk-free rate | 3.89% | 2.03% |
Dividend yield | 0% | 0% |
Stock Based Compensation Plan_5
Stock Based Compensation Plans - Schedule of Stock-Based Compensation Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
General and administrative | $ 15,798 | $ 19,826 |
Total stock-based compensation expense | 4,372 | 4,517 |
Research and Development Expense | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Research and development | 1,272 | 1,612 |
General and Administrative Expense | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
General and administrative | $ 3,100 | $ 2,905 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating Loss Carryforwards [Line Items] | ||
Tax credit carry forwards expiration start year | 2036 | |
Research and development credits | $ 4,000,000 | $ 3,775,000 |
Uncertain income tax position, Description | An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. | |
Income tax expense (benefit) | $ 0 | 0 |
Net valuation allowance increased | 8,600,000 | $ 9,700,000 |
Domestic Tax Authority [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carry forward | 1,300,000 | |
Net operating loss carryforwards | $ 155,700,000 | |
Domestic Tax Authority [Member] | Research Tax Credit Carryforward [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carry forwards expiration start year | 2036 | |
Research and development credits | $ 2,600,000 | |
Domestic Tax Authority [Member] | Indefinite Tax Year [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 143,200,000 | |
State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carry forward | 27,400,000 | |
Research and development credits | 3,800,000 | |
Net operating loss carryforwards | $ 53,000,000 | |
State and Local Jurisdiction [Member] | Research Tax Credit Carryforward [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carry forwards expiration start year | indefinitely |
Income Taxes - Summary of Net D
Income Taxes - Summary of Net Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets | ||
Net operating loss carryforwards | $ 36,398 | $ 32,985 |
Section 174 capitalized expense | 12,047 | 6,812 |
Research and development credits | 4,000 | 3,775 |
Lease liabilities | 664 | 1,096 |
Accrual and reserves | 471 | 739 |
Employee retention credits | 64 | 271 |
Stock-based compensation | 322 | 201 |
Capitalized intangible costs | 160 | 176 |
Fixed assets | 279 | 66 |
Other | 6 | 3 |
Gross deferred tax assets | 54,411 | 46,124 |
Less valuation allowance | (53,962) | (45,343) |
Deferred tax assets, net of valuation allowance | 449 | 781 |
Deferred tax liabilities | ||
Right-of-use assets | (397) | (686) |
Other | (52) | (95) |
Gross deferred tax liabilities | (449) | (781) |
Total net deferred tax assets | $ 0 | $ 0 |
Income Taxes - Summary of Tax B
Income Taxes - Summary of Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Balance at beginning of the year | $ 1,628 | $ 974 |
Additions based on tax positions related to current year | 0 | 654 |
Additions based on tax positions of prior years | (97) | 0 |
Balance at end of the year | $ 1,725 | $ 1,628 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of U.S. Federal Statutory Income Tax Rate TO Effective Income Tax Rate (Detail) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Statutory rate | 21% | 21% |
State tax | 0% | (2.12%) |
Tax credits | 0.64% | 1.72% |
Stock-based compensation | (1.74%) | 2.26% |
Change in valuation allowance | (19.95%) | (26.88%) |
Gain on warrant liabilities | 0.10% | 4.60% |
Other | (0.05%) | (0.30%) |
Effective Income Tax Rate Reconciliation, Percent, Total | 0% | 0% |
401(k) Plan - Additional Inform
401(k) Plan - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Retirement Benefits [Abstract] | ||
Company's Contributions | $ 0.1 | $ 0.2 |
Subsequent Events (Additional I
Subsequent Events (Additional Information) (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2024 | Dec. 31, 2023 | |
Subsequent Event [Line Items] | |||
Number shares sold and issued | 1,100,000 | ||
Common stock warrants exercise price per share | $ 172.5 | ||
Maximum [Member] | Investors | |||
Subsequent Event [Line Items] | |||
Purchase Price | $ 15.5 | $ 15.5 | |
Minimum [Member] | Investors | |||
Subsequent Event [Line Items] | |||
Purchase Price | $ 15.4999 | 15.4999 | |
Subsequent Events | Members Of Management | |||
Subsequent Event [Line Items] | |||
Number shares sold and issued | 2,948,000,000 | ||
Purchase Price | $ 16.96 | 16.96 | |
purchase price per share accompanying common stock warrants | 1.25 | $ 1.25 | |
Subsequent Events | Investors | |||
Subsequent Event [Line Items] | |||
Gross proceed | $ 17.6 | ||
Common stock warrants exercise price per share | 0.0001 | $ 0.0001 | |
purchase price per share accompanying common stock warrants | $ 1.25 | $ 1.25 | |
Subsequent Events | Maximum [Member] | Investors | |||
Subsequent Event [Line Items] | |||
Warrants to purchase common stock | 40,000 | 40,000 | |
Subsequent Events | Common Class A [Member] | Members Of Management | |||
Subsequent Event [Line Items] | |||
Purchase price per share | $ 16.96 | $ 16.96 | |
Subsequent Events | Common Class A [Member] | Investors | |||
Subsequent Event [Line Items] | |||
Purchase price per share | $ 15.5 | $ 15.5 | |
Subsequent Events | Common Class A [Member] | Maximum [Member] | Members Of Management | |||
Subsequent Event [Line Items] | |||
Warrants to purchase common stock | 2,948,000,000 | 2,948,000,000 | |
Subsequent Events | Common Class A [Member] | Maximum [Member] | Investors | |||
Subsequent Event [Line Items] | |||
Warrants to purchase common stock | 1,100,000 | 1,100,000 | |
Proceeds from warrants exercised | $ 17.5 | ||
Subsequent Events | Common Class B [Member] | Members Of Management | |||
Subsequent Event [Line Items] | |||
Warrants to purchase common stock | 3,206,000,000 | 3,206,000,000 | |
Purchase price per share | $ 15.71 | $ 15.71 | |
Subsequent Events | Common Class B [Member] | Investors | |||
Subsequent Event [Line Items] | |||
Purchase price per share | $ 14.25 | $ 14.25 | |
Subsequent Events | Common Class B [Member] | Maximum [Member] | Investors | |||
Subsequent Event [Line Items] | |||
Warrants to purchase common stock | 1,200,000 | 1,200,000 | |
Proceeds from warrants exercised | $ 17.5 | ||
Subsequent Events | Common Class C [Member] | Members Of Management | |||
Subsequent Event [Line Items] | |||
Warrants to purchase common stock | 11,424,000,000 | 11,424,000,000 | |
Purchase price per share | $ 16 | $ 16 | |
Subsequent Events | Common Class C [Member] | Investors | |||
Subsequent Event [Line Items] | |||
Purchase price per share | $ 16 | $ 16 | |
Subsequent Events | Common Class C [Member] | Maximum [Member] | Investors | |||
Subsequent Event [Line Items] | |||
Warrants to purchase common stock | 4,400,000 | 4,400,000 | |
Proceeds from warrants exercised | $ 70 | ||
Subsequent Events | Common Class D Member | Members Of Management | |||
Subsequent Event [Line Items] | |||
Warrants to purchase common stock | 11,424,000,000 | 11,424,000,000 | |
Purchase price per share | $ 16 | $ 16 | |
Subsequent Events | Common Class D Member | Investors | |||
Subsequent Event [Line Items] | |||
Purchase price per share | $ 16 | $ 16 | |
Subsequent Events | Common Class D Member | Maximum [Member] | Investors | |||
Subsequent Event [Line Items] | |||
Warrants to purchase common stock | 4,400,000 | 4,400,000 | |
Proceeds from warrants exercised | $ 70 |