Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 31, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | VIGIL NEUROSCIENCE, INC. | |
Entity Central Index Key | 0001827087 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
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 | |
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Trading Symbol | VIGL | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 28,268,331 | |
Entity Shell Company | false | |
Entity File Number | 001-41200 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 85-1880494 | |
Entity Address, Address Line One | 1 Broadway, 7th Floor | |
Entity Address, Address Line Two | Suite 07-300 | |
Entity Address, City or Town | Cambridge | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02142 | |
City Area Code | 857 | |
Local Phone Number | 254-4445 | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | |
Current assets: | |||
Cash and cash equivalents | $ 148,912 | $ 91,420 | |
Prepaid expenses and other current assets | 6,829 | 6,063 | |
Total current assets | 155,741 | 97,483 | |
Property and equipment, net | 638 | 301 | |
Operating lease right-of-use assets | 512 | 882 | |
Financing lease right-of-use assets | 81 | 91 | |
Restricted cash | 927 | 927 | |
Other assets | 29 | 2,757 | |
Total assets | 157,928 | 102,441 | |
Current liabilities: | |||
Accounts payable | 1,732 | 3,977 | |
Accrued expenses and other current liabilities | [1] | 5,021 | 5,031 |
Operating lease liabilities | 498 | 830 | |
Financing lease liabilities | 43 | 43 | |
Total current liabilities | 7,294 | 9,881 | |
Operating lease liabilities, net of current portion | 6 | 41 | |
Finance lease liabilities, net of current portion | 2 | 23 | |
Total liabilities | 7,302 | 9,945 | |
Commitments and contingencies (Note 13) | |||
Stockholders' equity (deficit): | |||
Undesignated preferred stock, $0.001 par value, [10,000,000] and 0 shares authorized as of June 30, 2022 and December 31, 2021; [0] share issued and outstanding at June 30, 2022 and December 31, 2021 | |||
Common stock, $0.0001 par value; [150,000,000] shares authorized at June 30, 2022 and 72,000,000 shares authorized at December 31, 2021; [28,311,138] shares issued as of June 30, 2022 and 1,748,879 shares issued as of December 31, 2021; and [28,266,815] shares outstanding as of June 30, 2022 and 1,724,950 shares outstanding as of December 31, 2021 | 3 | ||
Additional paid-in capital | 254,801 | 2,386 | |
Accumulated deficit | (104,178) | (71,829) | |
Total stockholders' equity (deficit) | 150,626 | (69,443) | |
Total liabilities, convertible preferred stock and stockholders' equity (deficit) | $ 157,928 | 102,441 | |
Series A Convertible Preferred Stock | |||
Current liabilities: | |||
Convertible preferred stock | 72,327 | ||
Series B Convertible Preferred Stock | |||
Current liabilities: | |||
Convertible preferred stock | $ 89,612 | ||
[1] Includes related party amounts of $ 75 (accrued expenses and other current liabilities) at June 30, 2022; $ 221 (accrued expenses and other current liabilities) at December 31, 2021 (see Note 12). |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Preferred Stock Par Or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock Shares Authorized | 10,000,000 | 0 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common stock, par or stated value per share | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 150,000,000 | 72,000,000 |
Common stock, shares, issued | 28,311,937 | 1,748,879 |
Common stock, shares, outstanding | 28,267,614 | 1,724,950 |
Series A Convertible Preferred Stock | ||
Temporary equity, par value | $ 0.0001 | $ 0.0001 |
Temporary equity, shares authorized | 0 | 28,522,592 |
Temporary equity, shares issued | 0 | 28,522,592 |
Temporary equity, shares outstanding | 0 | 28,522,592 |
Temporary equity, liquidation preference | $ 0 | $ 72,647 |
Series B Convertible Preferred Stock | ||
Temporary equity, par value | $ 0.0001 | $ 0.0001 |
Temporary equity, shares authorized | 0 | 25,657,096 |
Temporary equity, shares issued | 0 | 25,657,096 |
Temporary equity, shares outstanding | 0 | 25,657,096 |
Temporary equity, liquidation preference | $ 0 | $ 90,000,000 |
Accrued Expenses and Other Current Liabilities | ||
Due to related party amounts | $ 75,000 | $ 221,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Operating expenses: | |||||
Research and development | [1] | $ 12,097 | $ 8,648 | $ 22,462 | $ 15,401 |
General and administrative | 4,945 | 2,128 | 9,912 | 3,293 | |
Total operating expenses | 17,042 | 10,776 | 32,374 | 18,694 | |
Loss from operations | (17,042) | (10,776) | (32,374) | (18,694) | |
Other income (expense): | |||||
Change in fair value of the related party antidilution obligation | (584) | (836) | |||
Change in fair value of Series A preferred stock tranche obligation | (7) | (28) | |||
Interest income, net | 32 | 1 | 34 | 3 | |
Other income (expense), net | (5) | (1) | (9) | (3) | |
Total other expense, net | 27 | (591) | 25 | (864) | |
Net loss and comprehensive loss | $ (17,015) | $ (11,367) | $ (32,349) | $ (19,558) | |
Net loss per share attributable to common stockholders, basic and diluted | $ (0.60) | $ (7.48) | $ (1.18) | $ (12.96) | |
Weighted—average common shares outstanding, basic and diluted | 28,150,051 | 1,518,999 | 27,409,264 | 1,509,474 | |
[1] Includes related party amounts of $ 75 and $ 142 for the three and six months ended June 30, 2022, respectively, and $ 1,782 and $ 2,462 for the three and six months ended June 30, 2021, respectively (see Note 12). |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Research and development expense related party | $ 75 | $ 1,782 | $ 142 | $ 2,462 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) (Unaudited) - USD ($) $ in Thousands | Total | Convertible Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Initial Public Offering (IPO) | Initial Public Offering (IPO) Convertible Preferred Stock | Initial Public Offering (IPO) Common Stock | Initial Public Offering (IPO) Additional Paid-In Capital |
Balance at Dec. 31, 2020 | $ (28,283) | $ 263 | $ (28,546) | ||||||
Temporary equity balance, shares at Dec. 31, 2020 | 18,707,126 | ||||||||
Temporary equity, balance at Dec. 31, 2020 | $ 47,034 | ||||||||
Beginning balance, Shares at Dec. 31, 2020 | 1,748,879 | ||||||||
Stock-based compensation expense | 333 | 333 | |||||||
Net loss | (8,191) | (8,191) | |||||||
Balance at Mar. 31, 2021 | (36,141) | 596 | (36,737) | ||||||
Temporary equity balance, shares at Mar. 31, 2021 | 18,707,126 | ||||||||
Temporary equity, balance at Mar. 31, 2021 | $ 47,034 | ||||||||
Ending balance shares at Mar. 31, 2021 | 1,748,879 | ||||||||
Balance at Dec. 31, 2020 | (28,283) | 263 | (28,546) | ||||||
Temporary equity balance, shares at Dec. 31, 2020 | 18,707,126 | ||||||||
Temporary equity, balance at Dec. 31, 2020 | $ 47,034 | ||||||||
Beginning balance, Shares at Dec. 31, 2020 | 1,748,879 | ||||||||
Net loss | (19,558) | ||||||||
Balance at Jun. 30, 2021 | (47,074) | 1,030 | (48,104) | ||||||
Temporary equity, balance at Jun. 30, 2021 | $ 72,327 | ||||||||
Ending balance shares at Jun. 30, 2021 | 28,522,592 | 1,748,879 | |||||||
Balance at Mar. 31, 2021 | (36,141) | 596 | (36,737) | ||||||
Temporary equity balance, shares at Mar. 31, 2021 | 18,707,126 | ||||||||
Temporary equity, balance at Mar. 31, 2021 | $ 47,034 | ||||||||
Beginning balance, Shares at Mar. 31, 2021 | 1,748,879 | ||||||||
Issuance of convertible preferred stock, net of issuance costs | $ 19,879 | ||||||||
Issuance of convertible preferred stock, net of issuance costs, shares | 7,852,373 | ||||||||
Reclassification of Series A preferred stock tranche obligation upon settlement | $ 331 | ||||||||
Reclassification of the related party antidilution obligation upon settlement | $ 5,083 | ||||||||
Reclassification of the related party antidilution obligation upon settlement, Shares | 1,963,093 | ||||||||
Stock-based compensation expense | 434 | 434 | |||||||
Net loss | (11,367) | (11,367) | |||||||
Balance at Jun. 30, 2021 | (47,074) | 1,030 | (48,104) | ||||||
Temporary equity, balance at Jun. 30, 2021 | $ 72,327 | ||||||||
Ending balance shares at Jun. 30, 2021 | 28,522,592 | 1,748,879 | |||||||
Balance at Dec. 31, 2021 | $ (69,443) | 2,386 | (71,829) | ||||||
Temporary equity balance, shares at Dec. 31, 2021 | 54,179,688 | ||||||||
Temporary equity, balance at Dec. 31, 2021 | $ 161,939 | ||||||||
Beginning balance, Shares at Dec. 31, 2021 | 1,724,950 | 1,724,950 | |||||||
Issuance of convertible preferred stock, net of issuance costs, shares | 7,000,000 | ||||||||
Temporary equity balance, shares at Jan. 31, 2022 | 54,179,688 | ||||||||
Balance at Dec. 31, 2021 | $ (69,443) | 2,386 | (71,829) | ||||||
Temporary equity balance, shares at Dec. 31, 2021 | 54,179,688 | ||||||||
Temporary equity, balance at Dec. 31, 2021 | $ 161,939 | ||||||||
Beginning balance, Shares at Dec. 31, 2021 | 1,724,950 | 1,724,950 | |||||||
Temporary Equity Conversion of convertible preferred stock to common stock upon closing of initial public offering,Shares | (54,179,688) | ||||||||
Conversion of convertible preferred stock to common stock upon closing of initial public offering,shares | 19,536,870 | ||||||||
Temporary equity Conversion of convertible preferred stock to common stock upon closing of initial public offering,Amount | $ (161,939) | ||||||||
Conversion of Convertible Preferred Stock to Common Stock Upon Closing of Initial Public Offering,Amount | $ 161,939 | $ 2 | $ 161,937 | ||||||
Issuance of convertible preferred stock, net of issuance costs | $ 87,986 | $ 1 | $ 87,985 | ||||||
Issuance of convertible preferred stock, net of issuance costs, shares | 7,000,000 | ||||||||
Exercise of stock options | $ 9 | 9 | |||||||
Exercise of stock options, Shares | 4,995 | ||||||||
Stock-based compensation expense | 1,021 | 1,021 | |||||||
Net loss | (15,334) | (15,334) | |||||||
Balance at Mar. 31, 2022 | 166,178 | $ 3 | 253,338 | (87,163) | |||||
Ending balance shares at Mar. 31, 2022 | 28,266,815 | ||||||||
Balance at Dec. 31, 2021 | $ (69,443) | 2,386 | (71,829) | ||||||
Temporary equity balance, shares at Dec. 31, 2021 | 54,179,688 | ||||||||
Temporary equity, balance at Dec. 31, 2021 | $ 161,939 | ||||||||
Beginning balance, Shares at Dec. 31, 2021 | 1,724,950 | 1,724,950 | |||||||
Net loss | $ (32,349) | ||||||||
Balance at Jun. 30, 2022 | $ 150,626 | $ 3 | 254,801 | (104,178) | |||||
Ending balance shares at Jun. 30, 2022 | 28,267,614 | 28,267,614 | |||||||
Balance at Mar. 31, 2022 | $ 166,178 | $ 3 | 253,338 | (87,163) | |||||
Beginning balance, Shares at Mar. 31, 2022 | 28,266,815 | ||||||||
Exercise of stock options | 2 | 2 | |||||||
Exercise of stock options, Shares | 799 | ||||||||
Stock-based compensation expense | 1,461 | 1,461 | |||||||
Net loss | (17,015) | (17,015) | |||||||
Balance at Jun. 30, 2022 | $ 150,626 | $ 3 | $ 254,801 | $ (104,178) | |||||
Ending balance shares at Jun. 30, 2022 | 28,267,614 | 28,267,614 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) (Parenthetical) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Jun. 30, 2021 | |
Common Stock | ||
Stock issuance costs | $ 10,000 | |
Series A Convertible Preferred Stock | ||
Stock issuance costs | $ 121 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (32,349) | $ (19,558) |
Adjustments to reconcile net loss to net cash used by operating activities: | ||
Stock-based compensation expense | 2,482 | 767 |
Non-cash operating lease expense | 447 | (17) |
Change in fair value of the related party antidilution obligation | 836 | |
Change in fair value of Series A preferred stock tranche obligation | 28 | |
Depreciation and amortization | 36 | 1 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | (235) | 666 |
Other non-current assets | 789 | (37) |
Accounts payable | (2,390) | 3,166 |
Accrued expenses and other current liabilities | (473) | 3,221 |
Operating lease liabilities | (444) | |
Net cash used in operating activities | (32,137) | (10,927) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (233) | (70) |
Net cash used in investing activities | (233) | (70) |
Cash flows from financing activities: | ||
Proceeds from issuance of preferred stock, net of issuance costs | 19,925 | |
Proceeds from issuance of common stock upon initial public offering, net of offering costs | 89,872 | |
Payments of finance lease obligations | (21) | (20) |
Proceeds from stock option exercised | 11 | |
Net cash provided by financing activities | 89,862 | 19,905 |
Net increase in cash and cash equivalents | 57,492 | 8,908 |
Cash, cash equivalents and restricted cash at beginning of period | 92,347 | 24,151 |
Cash, cash equivalents and restricted cash at end of period | 149,839 | 33,059 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Conversion of Series A & Series B Preferred Stock to common stock, net of Issuance costs | 161,939 | |
Deferred offering costs paid in the prior year | 1,887 | |
Purchases of property and equipment included in accounts payable and accrued expenses | 129 | |
Settlement of related party antidilution obligation | 5,083 | |
Settlement of Series A preferred stock tranche obligation | 331 | |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 77 | 534 |
Right-of-use assets obtained in exchange for financing lease liabilities | 104 | |
Offering costs included in accounts payable and accrued expenses | $ 46 |
Nature of the Business and Basi
Nature of the Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of the Business and Basis of Presentation | 1. Nature of the Business and Basis of Presentation Vigil Neuroscience, Inc., together with its consolidated subsidiary, Vigil Neuroscience Securities Corporation (“Vigil” or the “Company”), is a microglia-focused company dedicated to improving the lives of patients, caregivers and families affected by rare and common neurodegenerative diseases by pursuing the development of disease-modifying therapeutics to restore the vigilance of microglia, the sentinel immune cells of the brain. The Company’s initial focus is on developing a pipeline of therapeutic candidates that it believes will activate and restore microglia function, with an initial focus in genetically defined subpopulations. The Company was incorporated in the State of Delaware in June 2020 and is located in Cambridge, Massachusetts. The Company is subject to risks and uncertainties common to early-stage companies in the biopharmaceutical industry, including, but not limited to, completing preclinical studies and clinical trials, the ability to raise additional capital to fund operations, obtaining regulatory approval for therapeutic candidates, market acceptance of products, competition from substitute products, protection of proprietary intellectual property, compliance with government regulations, the impact of the COVID-19 coronavirus, dependence on key personnel, reliance on third-party organizations and the clinical and commercial success of its therapeutic candidates. Even if the Company’s development efforts are successful, it is uncertain when, if ever, the Company will realize significant revenue from product sales. Reverse Stock Split On December 30, 2021, the Company effected a one-for-2.7732 reverse stock split of its issued and outstanding shares of common stock and a proportional adjustment to the existing conversion ratios of each series of the Company’s preferred stock (see Note 7). Accordingly, all share and per share amounts for all periods presented in the accompanying condensed consolidated financial statements and notes thereto have been adjusted retroactively, where applicable, to reflect this stock split and adjustment of the preferred stock conversion ratios. Liquidity The Company has evaluated whether there are certain conditions and events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the condensed consolidated financial statements are issued. As of June 30, 2022, the Company had cash and cash equivalents of $ 148.9 million and an accumulated deficit of $ 104.2 million. In January 2022, the Company completed its initial public offering (“IPO”) of its common stock which resulted in net proceeds of $ 88.0 million. Although the Company has incurred recurring losses and expects to continue to incur losses for the foreseeable future, the Company expects that its cash and cash equivalents will be sufficient to fund current operations for at least the next twelve months from the issuance of these condensed consolidated financial statements. The Company expects to seek additional funding through equity financings, government or private-party grants, debt financings or other capital sources, including collaborations with other companies or other strategic transactions. The Company may not be able to obtain financing on acceptable terms, or at all, and the Company may not be able to enter into collaborations or other arrangements. The terms of any financing may adversely affect the holdings or rights of the Company’s stockholders. If the Company is unable to obtain sufficient capital, the Company will be forced to delay, reduce or eliminate some or all of its research and development programs, product portfolio expansion or future commercialization efforts, which could adversely affect its business prospects, or the Company may be unable to continue operations. Although management continues to pursue these plans, there is no assurance that the Company will be successful in obtaining sufficient funding on terms acceptable to the Company to fund continuing operations, if at all. The condensed consolidated financial statements have been prepared on a basis that assumes the Company will continue as a going concern and which contemplates the realization of assets and satisfaction of liabilities and commitments in the ordinary course of business. Impact of the COVID-19 Coronavirus In March 2020, the World Health Organization declared the outbreak of COVID-19 a global pandemic. The Company is subject to a number of risks associated with the COVID-19 global pandemic, including potential delays associated with the Company’s ongoing preclinical studies and clinical trials. COVID-19 may have an adverse impact on the Company’s operations, supply chains and distribution systems or those of our third-party vendors and collaborators, and increase expenses, including as a result of impacts associated with preventive and precautionary measures that are being taken, such as restrictions on travel and border crossings, quarantine polices and social distancing. The Company and its third-party vendors and collaborators may experience disruptions in supply of items that are essential for its research and development activities. In addition, the spread of COVID-19 has disrupted global healthcare and healthcare regulatory systems, which could divert healthcare resources away from, or materially delay, U.S. Food and Drug Administration approval and approval by other health authorities worldwide with respect to its therapeutic candidates. Furthermore, the Company’s clinical trials may be negatively affected by the COVID-19 outbreak. Site initiation, patient enrollment and patient follow-up visits may be delayed, for example, due to prioritization of hospital resources toward the COVID-19 outbreak, travel restrictions, the inability to access sites for initiation and monitoring, and difficulties recruiting or retaining patients in the Company’s planned clinical trials. The emergence of additional variants, as well as reduced efficacy of vaccines over time and the possibility that a large number of people decline to get vaccinated or receive booster shots, creates inherent uncertainty as to the future of our business, our industry and the economy in general in light of the pandemic. Management cannot at this time predict the specific extent, duration, or full impact that the COVID-19 outbreak will have on the Company’s financial condition, operations, and business plans for the year 2022 and beyond. If the Company does not successfully commercialize any of its therapeutic candidates, it will be unable to generate product revenue or achieve profitability. Basis of Presentation The accompanying condensed consolidated financial statements of Vigil are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) applicable to interim periods and, in the opinion of management, include all normal and recurring adjustments that are necessary to state fairly the results of operations for the reported periods. Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”). Our condensed consolidated financial statements have also been prepared on a basis substantially consistent with, and should be read in conjunction with, our audited consolidated financial statements for the year ended December 31, 2021, which were included in our Annual Report on Form 10-K that was filed with the Securities and Exchange Commission on March 25, 2022. The year-end condensed consolidated balance sheet data was derived from our audited financial statements but does not include all disclosures required by GAAP. The results of our operations for any interim period are not necessarily indicative of the results of our operations for any other interim period or for a full fiscal year. The accompanying condensed consolidated financial statements reflect the operations of the Company and its wholly-owned subsidiary. Intercompany balances and transactions have been eliminated in consolidation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies The Company's significant accounting policies are disclosed in the audited consolidated financial statements for the year ended December 31, 2021, and notes thereto, which are included in the Company’s Annual Report on Form 10-K that was filed with the Securities and Exchange Commission on March 25, 2022, or the 2021 Form 10-K. Since the date of those financial statements, there have been no material changes to Vigil’s significant accounting policies except as noted below. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of expenses during the reporting periods. Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, research and development expenses and related prepaid or accrued costs and the valuation of common stock, Related Party Antidilution Obligation (as defined in Note 11) and Series A Preferred Stock Tranche Obligation. The Company bases its estimates on historical experience, known trends and other market-specific or relevant factors that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates as there are changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results may differ from those estimates or assumptions. Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with a remaining maturity when purchased of three months or less to be cash equivalents. Cash equivalents are reported at fair value. At June 30, 2022 and December 31, 2021, the Company’s cash equivalents were in money market funds. As of each balance sheet date and periodically throughout the year, the Company has maintained balances in various operating accounts in excess of federally insured limits. In connection with the Company’s lease agreement entered into in September 2021 (see Note 13), the Company is required to maintain a certificate of deposit (“CD”) of $ 0.9 million for the benefit of the landlord. The following table provides a reconciliation of cash, cash equivalents and restricted cash in the unaudited condensed consolidated balance sheets that sum to the total of the amounts reported in the unaudited condensed consolidated statement of cash flows (in thousands): June 30, 2022 June 30, 2021 Cash and cash equivalents $ 148,912 $ 33,059 Restricted cash, non-current 927 — Total cash, cash equivalents and restricted cash $ 149,839 $ 33,059 Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is recognized using the straight-line method over the estimated useful life of each asset. Costs for capital assets not yet placed into service are capitalized as construction-in-progress and depreciated once placed into service. Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation and amortization are removed from the accounts and any resulting gain or loss is included in loss from operations. Expenditures for repairs and maintenance that do not improve or extend the life of the respective assets are charged to expense in the period incurred. The following is the summary of property and equipment and related accumulated depreciation as of June 30, 2022 (in thousands): Useful Life June 30, 2022 December 31, 2021 Computer software and equipment 3 years $ 16 $ 16 Furniture and fixtures 5 years 65 9 Lab equipment 5 years 209 192 Leasehold improvements Lesser of (i) useful — — Construction in progress 388 99 Total property and equipment 678 316 Less: accumulated depreciation ( 40 ) ( 15 ) Total property and equipment, net $ 638 $ 301 Depreciation expense was $ 13 thousand and $ 25 thousand for the three and six months ended June 30, 2022, respectively. Depreciation expense was $ 1 thousand for the three and six months ended June 30, 2021. Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by the Company as of the specified effective date. The Company qualifies as an ‘‘emerging growth company’’ as defined in the Jumpstart Our Business Startups Act of 2012 and has elected not to ‘‘opt out’’ of the extended transition related to complying with new or revised accounting standards, which means that when a standard is issued or revised and it has different application dates for public and non-public companies, the Company can adopt the new or revised standard at the time non-public companies adopt the new or revised standard and can do so until such time that the Company either (i) irrevocably elects to ‘‘opt out’’ of such extended transition period or (ii) no longer qualifies as an emerging growth company. The Company may choose to early adopt any new or revised accounting standards whenever such early adoption is permitted for non-public companies. In August 2020, the FASB issued ASU No. 2020-06, Debt , Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity , which, among other things, provides guidance on how to account for contracts on an entity’s own equity. This ASU simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. Specifically, the ASU eliminated the need for the Company to assess whether a contract on the entity’s own equity (1) permits settlement in unregistered shares, (2) whether counterparty rights rank higher than shareholder’s rights, and (3) whether collateral is required. In addition, the ASU requires incremental disclosure related to contracts on the entity’s own equity and clarifies the treatment of certain financial instruments accounted for under this ASU on earnings per share. The ASU also simplifies the accounting for convertible instruments by removing the beneficial conversion feature and cash conversion feature separation models. This ASU may be applied on a full retrospective or modified retrospective basis. This ASU is effective for smaller reporting companies for fiscal years beginning after December 15, 2023 and all other public entities, this ASU is effective for fiscal years beginning after December 15, 2021. Early adoption permitted. The Company expects to adopt this ASU in fiscal year 2023. The Company does not currently expect the adoption to materially impact its financial position and results of operations. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements The following table presents the Company’s fair value hierarchy for its assets and liabilities items that are measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021, by level within the fair value hierarchy (in thousands): Fair Value Measurement at June 30, 2022 Using: Level 1 Level 2 Level 3 Total Assets: Cash equivalents (money market) $ 67,969 $ — $ — $ 67,969 Restricted cash (non-current) 927 $ — $ — $ 927 $ 68,896 $ — $ — $ 68,896 Fair Value Measurement at December 31, 2021 Using: Level 1 Level 2 Level 3 Total Assets: Cash equivalents (money market) $ 67,942 $ — $ — $ 67,942 Restricted cash (non-current) 927 $ — $ — $ 927 $ 68,869 $ — $ — $ 68,869 The Company evaluates transfers between levels at the end of each reporting period. There were no transfers between Level 1, Level 2 or Level 3 for the six months ended June 30, 2 0 22 and for the year ended December 31, 2021, respectively. Related Party Antidilution Obligation The Company was obligated to issue Series A convertible preferred stock with an antidilution provision as part of a license agreement with Amgen (see Note 11). The Related Party Antidilution Obligation was included within the Level 3 fair value hierarchy. The Related Party Antidilution Obligation was valued using a probability-weighted expected return method. The valuation model required a variety of inputs, including the probability of occurrence of events that would trigger the issuance of additional shares, the expected timing of such events, the expected value of the contingently issuable equity upon occurrence of a triggering event and a discount rate. The Related Party Antidilution Obligation was remeasured on May 1, 2021, and December 31, 2020, with changes in fair value recognized within changes in fair value of the Related Party Antidilution Obligation in the consolidated statements of operations and comprehensive loss. At December 31, 2020, the Company had a $ 4.2 million liability related to the Related Party Antidilution Obligation. During the four months prior to settlement on May 1, 2021, the Company recorded a $ 0.8 million increase in fair value of the Related Party Antidilution Obligation. On May 28, 2021, the Company completed the second closing pursuant to the Series A Convertible Preferred Stock Purchase Agreement which resulted in the Company raising net cash proceeds from financing activities in excess of the $ 45.0 million Related Party Antidilution Obligation cap. The second closing triggered the settlement of the remaining Related Party Antidilution Obligation, resulting in the issuance of 1,963,093 shares of Series A convertible preferred stock to Amgen with a fair value of $ 5.1 million. Series A Preferred Stock Tranche Obligation The Series A Preferred Stock Tranche Obligation was valued using a probability-weighted present value model. The valuation model considered the probability of closing the tranche, the estimated future value of the Series A convertible preferred stock to be issued at each closing and the investment required at each closing. Future values were converted to present value using a discount rate appropriate for probability-adjusted cash flows. The Related Party Antidilution Obligation and Series A Preferred Stock Tranche Obligation were settled in May 2021 (see Note 7). The following table sets forth a rollforward of changes in the fair value of financial liabilities classified as Level 3 in the fair valued hierarchy (in thousands): Related Party Series A Total Ending balance at December 31, 2020 $ 4,247 $ 303 $ 4,550 Change in fair value 252 21 273 Issuance of Series A preferred shares in partial settlement of — — — Ending balance at March 31, 2021 $ 4,499 $ 324 $ 4,823 Change in fair value through the settlement date 584 7 591 Reclassification of Series A preferred stock tranche obligation ( 5,083 ) ( 331 ) ( 5,414 ) Ending balance at May 1, 2021 $ — $ — $ — |
Prepaid Expense and Other Curre
Prepaid Expense and Other Current Assets | 6 Months Ended |
Jun. 30, 2022 | |
Prepaid Expense And Other Assets Current [Abstract] | |
Prepaid Expenses and Other Current Assets | 4. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): June 30, December 31, Research and development $ 4,457 $ 5,597 Business insurance 1,151 107 Other 1,221 359 Total $ 6,829 $ 6,063 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 6 Months Ended |
Jun. 30, 2022 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 5. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): June 30, December 31, Research and development $ 2,291 $ 1,422 Payroll and employee related 1,676 2,017 Construction related 456 65 Professional fees 463 933 Deferred IPO — 543 Other 135 51 Total $ 5,021 $ 5,031 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 6. Stock-Based Compensation 2020 Equity Incentive Plan The Company’s 2020 Equity Incentive Plan (the “2020 Plan”) provides for the Company to grant incentive stock options or non-qualified stock options, stock appreciation rights, restricted stock awards, restricted stock units, and other equity awards to employees, directors, and consultants of the Company. The 2020 Plan is administered by the Board or, at the discretion of the Board, by a committee of the Board. The Board may also delegate to one or more officers of the Company the power to grant awards to employees and certain officers of the Company. The exercise prices, vesting and other restrictions are determined at the discretion of the Board, or its committee or any such officer if so delegated. Options under the 2020 Plan may be designated as incentive stock options or non-statutory stock options. The options granted under the 2020 Plan are either service-based options or performance-based options. As of June 30, 2022, 3,083,269 options were issued and outstanding under the 2020 Plan. 2021 Stock Option and Incentive Plan On November 16, 2021, the Company’s board of directors adopted, and on December 3, 2021 its stockholders approved, the 2021 Stock Option and Incentive Plan (the “2021 Plan”), which became effective on January 5, 2022, immediately preceding the date on which the registration statement for the Company’s initial public offering was declared effective by the SEC. The 2021 Plan provides for the grant of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock awards, restricted stock units and other stock-based awards. The number of shares reserved for issuance under the 2021 Plan is initially equal to 3,145,281 . In addition, the number of shares of the Company’s common stock reserved for issuance under the 2021 Plan will automatically increase on the first day of each calendar year, beginning on January 1, 2023 and each January 1 thereafter, by an amount equal to the lesser of (i) five percent ( 5 %) of the cumulative number of shares of common stock issued and outstanding on the immediately preceding December 31, or (ii) such lesser number of shares of common stock as determined by the compensation committee of the board of directors. The shares of common stock underlying any awards under the 2021 Plan or the 2020 Plan that are forfeited, cancelled, held back upon exercise or settlement of an award to satisfy the exercise price or tax withholding, reacquired by us prior to vesting, satisfied without the issuance of stock, expire or are otherwise terminated will be added back to the shares of common stock available for issuance under the 2021 Plan. In March of 2022, as part of the Company's annual grant of equity, the Company issued 802,145 stock options to employees. As of June 30, 2022, 1,290,029 options were issued and outstanding under the 2021 Plan. 2021 Employee Stock Purchase Plan On November 16, 2021, the Company’s board of directors adopted, and on December 3, 2021 its stockholders approved, the 2021 Employee Stock Purchase Plan (the ‘‘2021 ESPP’’), which became effective on January 5, 2022, immediately preceding the date on which the registration statement for the Company’s initial public offering was declared effective by the SEC. A total of 286,127 shares of common stock were initially reserved for issuance under this plan. The number of shares of common stock that may be issued under the 2021 ESPP shall cumulatively increase beginning on January 1, 2023 and each January 1 thereafter through January 1, 2032, by the least of (A) 286,127 shares of common stock, (B) one percent ( 1 %) of the cumulative number of shares of common stock issued and outstanding on the immediately preceding December 31 or (C) such lesser number of shares of common stock as determined by the administrator of the 2021 ESPP. No stock-based compensation expense was recognized during the three and six months ended June 30, 2022 related to the 2021 ESPP. Stock-Based Compensation Expense The Company recorded stock-based compensation of $ 1.5 million and $ 2.5 million during the three and six months ended June 30, 2022, respectively, and recorded $ 0.4 million and $ 0.8 million during the three and six months ended June 30, 2021, respectively. Stock-based compensation expense was classified as follows in the condensed consolidated statements of operations and comprehensive loss (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Research and development $ 608 $ 149 $ 1,049 $ 270 General and administrative 853 285 1,433 497 Total stock-based compensation $ 1,461 $ 434 $ 2,482 $ 767 At June 30, 2022, there was approximately $ 17.4 million unrecognized stock-based compensation expense related to unvested options, which is expected to be recognized over a weighted-average period of 2.94 years. At June 30, 2022, there was approximately $ 0.3 million unrecognized stock-based compensation expense related to unvested restricted stock, which is expected to be recognized over a weighted-average period of 1.84 years. |
Preferred Stock
Preferred Stock | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Preferred Stock | 7. Preferred Stock Convertible Preferred Stock The Series A preferred stock and Series B preferred stock, described in more detail below, converted into 10,285,077 shares and 9,251,793 shares of common stock in January 2022 as part of our IPO. Series A Convertible Preferred Stock and Series A Preferred Stock Tranche Obligation On September 18, 2020, the Company entered into the Series A Convertible Preferred Stock Purchase Agreement with its initial investors committing to purchase an aggregate of $ 50.0 million in shares of Series A convertible preferred stock. At the initial closing, 9,815,467 shares of Series A convertible preferred stock were issued by the Company at a purchase price of $ 2.547 per share, for gross cash proceeds of $ 25.0 million. The gross proceeds were offset by $ 0.2 million of issuance costs and $ 0.2 million related to the Series A Preferred Stock Tranche Obligation, discussed below. Included in the terms of the September 2020 Series A Convertible Preferred Stock Purchase Agreement were certain rights (“Series A Preferred Stock Tranche Obligation”) granted to the investors who purchased the Series A convertible preferred stock in September 2020. The Series A Preferred Stock Tranche Obligation contingently obligated the investors to purchase, and the Company to sell, up to an aggregate of 7,852,373 shares of Series A convertible preferred stock at $ 2.547 per share upon the satisfaction of specified research and development milestones by the Company. The Company concluded that the Series A Preferred Stock Tranche Obligation met the definition of a freestanding financial instrument, as the Series A Preferred Stock Tranche Obligation was legally detachable and separately exercisable from the Series A convertible preferred stock. Therefore, the Company allocated the proceeds from the September 2020 issuance between the Series A Preferred Stock Tranche Obligation and the Series A convertible preferred stock, including those issued in exchange for the SAFE. As the Series A convertible preferred stock is redeemable upon a deemed liquidation event at the election of the holder-controlled Board, and therefore outside of the control of the Company, the Series A Preferred Stock Tranche Obligation was classified as a liability and recorded at its fair value of $ 0.3 million at both inception and as of December 31, 2020. The Series A Preferred Stock Tranche Obligation was remeasured at fair value at each reporting period, with changes in fair value recorded in change in fair value of the Series A Preferred Stock Tranche Obligation in the condensed consolidated statements of operations and comprehensive loss (see Note 3). On May 28, 2021, the Company issued 7,852,373 shares of its Series A convertible preferred stock at $ 2.547 per share, for which the Company received gross proceeds of $ 20.0 million, offset by issuance costs of $ 0.1 million. As a result of this issuance, the Series A Preferred Stock Tranche Obligation with a then fair value of approximately $ 0.3 million was settled and reclassified to Series A convertible preferred stock in the consolidated balance sheet. Series B Convertible Preferred Stock Financing On August 13, 2021, the Company issued 25,657,096 shares of its Series B convertible preferred stock at $ 3.5078 per share, for which the Company received gross proceeds of $ 90.0 million. Issuance costs were $ 0.4 million. Upon issuance of each class of the Convertible Preferred Stock, the Company assessed the embedded conversion and liquidation features of the securities and determined that such features did not require the Company to separately account for these features. The Company also concluded that no beneficial conversion feature existed upon the issuance date of each class of the Convertible Preferred Stock or as of December 31, 2021 and January 2022, when the Company completed its IPO. The holders of Convertible Preferred Stock had the followings rights and privileges: Conversion The holders of the Convertible Preferred Stock may convert, at any time, each share of the Convertible Preferred Stock into shares of common stock. In addition, upon either (a) the closing of the sale of shares of common stock to the public at a price of at least three times the Series A Original Issue Price (subject to adjustment) in an initial public offering with net proceeds to the Company of at least $ 50.0 million or (b) the written consent of the holders of the outstanding shares of Convertible Preferred Stock, the Convertible Preferred Stock will automatically convert into common stock. The conversion ratio of each series of the Convertible Preferred Stock is determined by dividing the Original Issuance Price of each series by the Conversion Price of each series. The Original Issuance Price per share is $ 2.547 for Series A convertible preferred stock and $ 3.5078 for Series B convertible preferred stock. The Conversion Price per share at issuance was $ 7.063 for Series A convertible preferred stock and $ 9.7278 for Series B convertible preferred stock, each subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization and other adjustments, including adjustment if common stock is issued for less than the Original Issue Price of each series of Convertible Preferred Stock. Accordingly, as of December 31, 2021, each share of each series of Convertible Preferred Stock was convertible into shares of common stock on a one-for-one basis. |
Common Stock
Common Stock | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Common Stock | 8. Common Stock Each share of common stock entitles the holder to one vote for each share of common stock held. Common stockholders are entitled to receive dividends, as may be declared by the Company’s Board. During each of the three and six months ended June 30, 2022 and the three and six months ended June 30, 2021, no dividends have been declared or paid. Initial Public Offering In January 2022, the Company completed its initial public offering (“IPO”) of its common stock. In connection with its IPO, the Company issued and sold 7,000,000 shares of its common stock, at a price to the public of $ 14.00 per share. As a result of the IPO, the Company received $ 88.0 million in net proceeds, after deducting underwriting discounts and commissions and offering costs of $ 10.0 million. Upon the closing of the IPO, 54,179,688 shares of outstanding convertible preferred stock were automatically converted into 19,536,870 shares of common stock, after the effect of the one-for-2.7732 reverse stock split , with the related carrying value of $ 161.9 million reclassified to common stock and additional paid-in capital. In connection with the IPO, the Company amended and restated its certificate of incorporation to change the authorized capital stock to 150,000,000 shares designated as common stock and 10,000,000 shares designated as preferred stock, all with a par value of $ 0.0001 per share. The Company has reserved the following number of shares of common stock for the exercise of outstanding stock options and future issuance of stock-based awards. June 30, December 31, Common stock options 4,373,298 3,089,065 Shares available for issuance under the 2020 Plan — 276,261 Shares available for issuance under the 2021 Plan 1,855,252 3,145,281 Shares available for issuance under the 2021 ESPP 286,127 286,127 Series A convertible preferred stock outstanding — 10,285,087 Series B convertible preferred stock outstanding — 9,251,793 Total common stock reserved for future issuance 6,514,677 26,333,614 |
Net Loss per Share
Net Loss per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | 9. Net Loss per Share Basic and diluted net loss per common share attributable to common stockholders was calculated as follows (in thousands, except share and per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Numerator: Net loss attributable to common stockholders $ ( 17,015 ) $ ( 11,367 ) $ ( 32,349 ) $ ( 19,558 ) Denominator: Weighted-average common shares outstanding, basic and diluted 28,150,051 1,518,999 27,409,264 1,509,474 Net loss per share attributable to common stockholders, basic and diluted $ ( 0.60 ) $ ( 7.48 ) $ ( 1.18 ) $ ( 12.96 ) The Company’s potentially dilutive securities have been excluded from the computation of diluted net loss per common share as the effect would be to reduce the net loss per common share. Therefore, the weighted-average number of common shares outstanding used to calculate both basic and diluted net loss per common share is the same. The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per common share for the periods indicated because including them would have had an anti-dilutive effect: As of June 30, 2022 2021 Series A convertible preferred stock — 9,577,197 Related party antidilution obligation — 707,880 Options to purchase common stock – service based 4,162,669 1,569,077 Options to purchase common stock – performance based 210,629 229,019 Unvested restricted common stock 112,311 223,496 Total 4,485,609 12,306,669 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Leases | 10. Leases In February 2021, the Company entered into an equipment lease with lease term of 24 months commencing in April 2021 . The lease includes an option to purchase the equipment at fair market value at the end of the lease term. In July 2021, the Company entered into a lease for laboratory space in Cambridge, Massachusetts, with an initial term of one year commencing in April 2021 , with a month-to-month option to renew at the end of the initial lease term (see Note 12). At inception, the Company determined that it was reasonably certain that it would elect options to renew the lease through September 2022 and have included these renewal options into the initial determination of the lease term . In March 2021, the Company revised its estimated lease term with an estimated termination date of December 31, 2022 . In September 2021, the Company entered into a lease for laboratory and office space in Watertown, Massachusetts with an initial term of ten years , and a five-year renewal option at the end of the initial lease term . The monthly lease payment is approximately $ 0.2 million with annual escalation of approximately 3 %. The lease includes a $ 3.7 million construction allowance. As of June 30, 2022, the Company recorded $ 0.6 million in Landlord assets, net of $ 0.2 million received pursuant to the construction allowance, within Prepaid expenses and other current assets. The lease is expected to commence in the first quarter of 2023 when the leased space is expected to be made available for the Company’s use. In October 2021, the Company entered into a lease for its corporate headquarters in Cambridge, Massachusetts with an initial term of 14 months . The monthly lease payment and security deposit are each approximately $ 49 thousand. At June 30, 2022, the weighted-average remaining lease terms related to the finance and operating leases are 1.0 year and 0.6 year, respectively. As the Company’s operating leases did not provide an implicit rate, the Company used its incremental borrowing rate based on the information available in determining the present value of lease payments. The Company’s incremental borrowing rate was based on the term of the lease, the economic environment of the lease and reflect the rate the Company would have had to pay to borrow on a secured basis. The weighted-average discount rates used at the time that the leases were evaluated were 5.20 % for the finance leases and 6.32 % for the operating leases. |
Related Party License Agreement
Related Party License Agreement | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party License Agreement | 11. Related Party License Agreement Amgen, Inc. In July 2020, the Company entered into an Exclusive License Agreement and Letter Agreement (collectively, the “Amgen Agreement”) with Amgen, pursuant to which the Company has been granted an exclusive, royalty-bearing sublicensable license to certain intellectual property rights owned or controlled by Amgen, to commercially develop, manufacture, use, distribute and sell therapeutic products containing compounds that bind to Triggering Receptor Expressed on Myeloid Cells 2 (“TREM2”). As initial consideration for the license, the Company made a one-time, non-creditable, non-refundable upfront payment of $ 0.5 million. As additional consideration for the license, the Company is required to pay Amgen up to $ 80.0 million in the aggregate upon the achievement of specified regulatory milestones for the first monoclonal antibody agonist of TREM2 agonist (“mAb”) product and the first small molecule TREM2 agonist product and aggregate milestone payments of up to $ 350.0 million upon the achievement of specific commercial milestones across all mAb products and small molecule products. No regulatory or commercial milestones have been achieved to date under the Amgen Agreement. The Company is also required to pay tiered royalties of low to mid single-digit percentages on annual net sales of the products covered by the license. In the event that the exploitation of a product is not covered by a valid claim within the licensed patent rights, then the royalty rate with respect to the net sales shall be subject to a customary reduction by a certain percentage. The royalty term will terminate on a country-by-country basis on the later of (i) the expiration date of the last valid claim within the licensed patent rights, and (ii) the tenth (10th) anniversary of the first commercial sale of such product in such country. Further, the Company was required to reimburse Amgen for amounts it paid to its contract manufacturers on the Company’s behalf. During the six months ended June 30, 2021, the Company incurred $ 2.4 million in contract manufacturing costs. No additional costs were incurred during the six months ended June 30, 2022. These costs are recognized as research and development expense over the period that the goods are provided, as applicable. In addition to the cash consideration described above, the Company agreed to issue Series A convertible preferred stock to Amgen in an amount equal to 25 % of the Company’s capital stock on a fully diluted basis (the “Related Party Antidilution Obligation”) until the Company has raised an aggregate of $ 45.0 million net cash proceeds from equity financings. The Company determined that the Related Party Antidilution Obligation was required to be recorded as a liability because it was a freestanding instrument that would require the Company to transfer assets to settle the obligation and it is indexed to an obligation to contingently redeem the Company’s equity shares. Accordingly, the Company recognized the liability at fair value on the acquisition date and recognizes changes in the fair value of the anti-dilution rights at each subsequent reporting period in the change in fair value of the Related Party Antidilution Obligation in the consolidated statements of operations and comprehensive loss (see Note 3). On September 18, 2020, the Company completed the first closing pursuant to the Series A Convertible Preferred Stock Purchase Agreement which triggered the Related Party Antidilution Obligation resulting in the issuance of 6,928,566 Series A convertible preferred stock to Amgen with a fair value of $ 17.5 million. On May 28, 2021, the Company completed the second closing pursuant to the Series A Convertible Preferred Stock Purchase Agreement which resulted in the Company raising net cash proceeds from financing activities in excess of the $ 45.0 million Related Party Antidilution Obligation cap. Amgen received an additional 1,963,093 Series A convertible preferred stock with a fair value of $ 5.1 million. As of June 30, 2022, Amgen owned approximatel y 11.34 % of the Company’s outstanding shares of capital stock. Amounts paid with respect to goods provided by Amgen on the Company’s behalf under the Amgen Agreement are recognized as research and development expense as such amounts are incurred. For the six months ended June 30, 2022 and 2021, the Company recognized $ 0 and $ 2.4 million, respectively, of expense in connection with goods provided by Amgen. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 12. Related Party Transactions Atlas The Company entered into various lease agreements with Atlas Venture Fund XII, L.P., a principal stockholder of the Company, and incurred lease costs of $ 142 thousand for the six months ended June 30, 2022, and $ 0.1 million for the six months ended June 30, 2021. The lease payments are included in general and administrative expenses for office space and research and development expenses for lab space in the condensed consolidated statements of operations and comprehensive loss. The Company recorded an operating lease right-of-use asset and a lease liability for $ 0.1 million as of June 30, 2022. The right-of-use asset is included in operating lease right-of-use assets and the lease liability is included as an operating lease liability in the Company’s condensed consolidated balance sheet as of June 30, 2022. As of June 30, 2022, the Company recognized $ 75 thousand in accrued expenses associated with the leases. In September 2021, the Company terminated its short-term related party leases with Atlas Venture Fund XII, L.P. The effective termination date of the leases was in the fourth quarter of 2021. Amgen, Inc. Under the Amgen Agreement, the Company was obligated to issue shares of Series A convertible preferred stock to Amgen, a principal stockholder of the Company. Additionally, in consideration for the rights assigned and license conveyed under the Amgen Agreement, Amgen received upfront consideration in the form of Series A convertible preferred stock, and is entitled to receive milestone and royalty payments upon specified conditions and received payments from the Company for providing ongoing services under the agreement (see Note 11). Expenses to reimburse Amgen’s contract manufacturers incurred by the Company were $ 0 and $ 2.4 million during the six months ended June 30, 2022 and June 30, 2021, respectively. These costs are included in research and development expenses in the condensed consolidated statements of operations and comprehensive loss. The Company did no t have any amounts in accrued expenses and other current liabilities in the Company’s condensed consolidated balance sheet as of June 30, 2022. As of December 31, 2021, $ 0.2 million was due to Amgen by the Company and was included in accruals in the consolidated balance sheet. The Company did no t have any amounts in prepaids as of June 30, 2022 and December 31, 2021, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. Commitments and Contingencies License Agreement The Company entered into a license agreement with Amgen (see Note 11). Letter of Credit In September 2021, in connection with the Watertown, Massachusetts lease, the Company entered into a $ 0.9 million standby letter of credit which initially expires on September 10, 2022 . The standby letter of credit will automatically renew for subsequent annual periods through December 2032 . Remittance of funds from the letter of credit was not probable and the full amount was available as of June 30, 2022. The Company did not recognize a liability in the condensed consolidated balance sheet. Purchase Commitment In November 2021, the Company entered into a statement of work ("SOW") with FUJIFILM Diosynth Biotechnologies Texas, LLC for $ 3.8 million under our existing master services agreement for the manufacturing of VGL101. If the Company terminates the SOW before completion, it may be required to pay fees ranging from 0 % to 100 %. The amount due upon an early termination depends on the length of time prior to the commencement of specific stages of the SOW. As of June 30, 2022, no significant work had begun. The SOW is expected to be incurred over approximately 2 years . Contingencies From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of business. The Company accrues a liability for such matters when it is probable that future expenses will be incurred and can be reasonably estimated. As of June 30, 2022, the Company does not have any significant legal disputes that require a loss liability to be recorded. 401(k) Plan The Company has a defined-contribution plan under Section 401(k) of the Internal Revenue Code of 1986 (the “401(k) Plan”). The 401(k) Plan covers all employees who meet defined minimum age and service requirements and allows participants to defer a portion of their annual compensation on a pre-tax basis. Company contributions are discretionary and contributions in the amount of $ 0.1 million were made during the six months ended June 30,2022. Indemnification Agreements In the ordinary course of business, the Company may provide indemnification of varying scope and terms to vendors, lessors, contract research organizations, business partners, and other parties with respect to certain matters including, but not limited to, losses arising out of breach of such agreements or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with members of its Board and certain of its executive officers that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is, in many cases, unlimited. The Company has not incurred any material costs as a result of such indemnifications and is not currently aware of any indemnification claims. Legal Proceedings The Company is not currently party to any material legal proceedings. At each reporting date, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. The Company expenses as incurred the costs related to such legal proceedings. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of expenses during the reporting periods. Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, research and development expenses and related prepaid or accrued costs and the valuation of common stock, Related Party Antidilution Obligation (as defined in Note 11) and Series A Preferred Stock Tranche Obligation. The Company bases its estimates on historical experience, known trends and other market-specific or relevant factors that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates as there are changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results may differ from those estimates or assumptions. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with a remaining maturity when purchased of three months or less to be cash equivalents. Cash equivalents are reported at fair value. At June 30, 2022 and December 31, 2021, the Company’s cash equivalents were in money market funds. As of each balance sheet date and periodically throughout the year, the Company has maintained balances in various operating accounts in excess of federally insured limits. In connection with the Company’s lease agreement entered into in September 2021 (see Note 13), the Company is required to maintain a certificate of deposit (“CD”) of $ 0.9 million for the benefit of the landlord. The following table provides a reconciliation of cash, cash equivalents and restricted cash in the unaudited condensed consolidated balance sheets that sum to the total of the amounts reported in the unaudited condensed consolidated statement of cash flows (in thousands): June 30, 2022 June 30, 2021 Cash and cash equivalents $ 148,912 $ 33,059 Restricted cash, non-current 927 — Total cash, cash equivalents and restricted cash $ 149,839 $ 33,059 |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is recognized using the straight-line method over the estimated useful life of each asset. Costs for capital assets not yet placed into service are capitalized as construction-in-progress and depreciated once placed into service. Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation and amortization are removed from the accounts and any resulting gain or loss is included in loss from operations. Expenditures for repairs and maintenance that do not improve or extend the life of the respective assets are charged to expense in the period incurred. The following is the summary of property and equipment and related accumulated depreciation as of June 30, 2022 (in thousands): Useful Life June 30, 2022 December 31, 2021 Computer software and equipment 3 years $ 16 $ 16 Furniture and fixtures 5 years 65 9 Lab equipment 5 years 209 192 Leasehold improvements Lesser of (i) useful — — Construction in progress 388 99 Total property and equipment 678 316 Less: accumulated depreciation ( 40 ) ( 15 ) Total property and equipment, net $ 638 $ 301 Depreciation expense was $ 13 thousand and $ 25 thousand for the three and six months ended June 30, 2022, respectively. Depreciation expense was $ 1 thousand for the three and six months ended June 30, 2021. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by the Company as of the specified effective date. The Company qualifies as an ‘‘emerging growth company’’ as defined in the Jumpstart Our Business Startups Act of 2012 and has elected not to ‘‘opt out’’ of the extended transition related to complying with new or revised accounting standards, which means that when a standard is issued or revised and it has different application dates for public and non-public companies, the Company can adopt the new or revised standard at the time non-public companies adopt the new or revised standard and can do so until such time that the Company either (i) irrevocably elects to ‘‘opt out’’ of such extended transition period or (ii) no longer qualifies as an emerging growth company. The Company may choose to early adopt any new or revised accounting standards whenever such early adoption is permitted for non-public companies. In August 2020, the FASB issued ASU No. 2020-06, Debt , Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity , which, among other things, provides guidance on how to account for contracts on an entity’s own equity. This ASU simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. Specifically, the ASU eliminated the need for the Company to assess whether a contract on the entity’s own equity (1) permits settlement in unregistered shares, (2) whether counterparty rights rank higher than shareholder’s rights, and (3) whether collateral is required. In addition, the ASU requires incremental disclosure related to contracts on the entity’s own equity and clarifies the treatment of certain financial instruments accounted for under this ASU on earnings per share. The ASU also simplifies the accounting for convertible instruments by removing the beneficial conversion feature and cash conversion feature separation models. This ASU may be applied on a full retrospective or modified retrospective basis. This ASU is effective for smaller reporting companies for fiscal years beginning after December 15, 2023 and all other public entities, this ASU is effective for fiscal years beginning after December 15, 2021. Early adoption permitted. The Company expects to adopt this ASU in fiscal year 2023. The Company does not currently expect the adoption to materially impact its financial position and results of operations. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash in the unaudited condensed consolidated balance sheets that sum to the total of the amounts reported in the unaudited condensed consolidated statement of cash flows (in thousands): June 30, 2022 June 30, 2021 Cash and cash equivalents $ 148,912 $ 33,059 Restricted cash, non-current 927 — Total cash, cash equivalents and restricted cash $ 149,839 $ 33,059 |
Summary of Property and Equipment and Related Accumulated Depreciation | The following is the summary of property and equipment and related accumulated depreciation as of June 30, 2022 (in thousands): Useful Life June 30, 2022 December 31, 2021 Computer software and equipment 3 years $ 16 $ 16 Furniture and fixtures 5 years 65 9 Lab equipment 5 years 209 192 Leasehold improvements Lesser of (i) useful — — Construction in progress 388 99 Total property and equipment 678 316 Less: accumulated depreciation ( 40 ) ( 15 ) Total property and equipment, net $ 638 $ 301 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Schedule of Fair Value Hierarchy for Assets and Liabilities | The following table presents the Company’s fair value hierarchy for its assets and liabilities items that are measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021, by level within the fair value hierarchy (in thousands): Fair Value Measurement at June 30, 2022 Using: Level 1 Level 2 Level 3 Total Assets: Cash equivalents (money market) $ 67,969 $ — $ — $ 67,969 Restricted cash (non-current) 927 $ — $ — $ 927 $ 68,896 $ — $ — $ 68,896 Fair Value Measurement at December 31, 2021 Using: Level 1 Level 2 Level 3 Total Assets: Cash equivalents (money market) $ 67,942 $ — $ — $ 67,942 Restricted cash (non-current) 927 $ — $ — $ 927 $ 68,869 $ — $ — $ 68,869 |
Rollforward of Changes in Fair Value of Financial Liabilities | The following table sets forth a rollforward of changes in the fair value of financial liabilities classified as Level 3 in the fair valued hierarchy (in thousands): Related Party Series A Total Ending balance at December 31, 2020 $ 4,247 $ 303 $ 4,550 Change in fair value 252 21 273 Issuance of Series A preferred shares in partial settlement of — — — Ending balance at March 31, 2021 $ 4,499 $ 324 $ 4,823 Change in fair value through the settlement date 584 7 591 Reclassification of Series A preferred stock tranche obligation ( 5,083 ) ( 331 ) ( 5,414 ) Ending balance at May 1, 2021 $ — $ — $ — |
Prepaid Expense and Other Cur_2
Prepaid Expense and Other Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Prepaid Expense And Other Assets Current [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands): June 30, December 31, Research and development $ 4,457 $ 5,597 Business insurance 1,151 107 Other 1,221 359 Total $ 6,829 $ 6,063 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): June 30, December 31, Research and development $ 2,291 $ 1,422 Payroll and employee related 1,676 2,017 Construction related 456 65 Professional fees 463 933 Deferred IPO — 543 Other 135 51 Total $ 5,021 $ 5,031 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Stock-based Compensation Expense | Stock-based compensation expense was classified as follows in the condensed consolidated statements of operations and comprehensive loss (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Research and development $ 608 $ 149 $ 1,049 $ 270 General and administrative 853 285 1,433 497 Total stock-based compensation $ 1,461 $ 434 $ 2,482 $ 767 |
Common Stock (Tables)
Common Stock (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Schedule of Reserved Number of Shares of Common Stock for Exercise of Outstanding Stock Options and Future Issuance of Stock-Based Awards | The Company has reserved the following number of shares of common stock for the exercise of outstanding stock options and future issuance of stock-based awards. June 30, December 31, Common stock options 4,373,298 3,089,065 Shares available for issuance under the 2020 Plan — 276,261 Shares available for issuance under the 2021 Plan 1,855,252 3,145,281 Shares available for issuance under the 2021 ESPP 286,127 286,127 Series A convertible preferred stock outstanding — 10,285,087 Series B convertible preferred stock outstanding — 9,251,793 Total common stock reserved for future issuance 6,514,677 26,333,614 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Summary of Basic and Diluted Net Loss Per Common Share Attributable to Common Stockholders | Basic and diluted net loss per common share attributable to common stockholders was calculated as follows (in thousands, except share and per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Numerator: Net loss attributable to common stockholders $ ( 17,015 ) $ ( 11,367 ) $ ( 32,349 ) $ ( 19,558 ) Denominator: Weighted-average common shares outstanding, basic and diluted 28,150,051 1,518,999 27,409,264 1,509,474 Net loss per share attributable to common stockholders, basic and diluted $ ( 0.60 ) $ ( 7.48 ) $ ( 1.18 ) $ ( 12.96 ) |
Summary of Dilutive Securities Excluded from Computation of Diluted Net Loss Per Common Share | The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per common share for the periods indicated because including them would have had an anti-dilutive effect: As of June 30, 2022 2021 Series A convertible preferred stock — 9,577,197 Related party antidilution obligation — 707,880 Options to purchase common stock – service based 4,162,669 1,569,077 Options to purchase common stock – performance based 210,629 229,019 Unvested restricted common stock 112,311 223,496 Total 4,485,609 12,306,669 |
Nature of the Business and Ba_2
Nature of the Business and Basis of Presentation - Additional Information (Details) $ in Thousands | 6 Months Ended | |||
Dec. 30, 2021 | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jun. 30, 2021 USD ($) | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||||
Reverse stock split | one-for-2.7732 | |||
Conversion ratio | 0.003605 | |||
Cash and cash equivalents | $ 148,912 | $ 91,420 | $ 33,059 | |
Accumulated deficit | 104,178 | $ 71,829 | ||
Net proceeds from issuance initial public offering | $ 88,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2021 | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Depreciation expense on property and equipment | $ 13 | $ 1 | $ 25 | $ 1 | |
Certificate of Deposit | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Lease security deposit | $ 900 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 148,912 | $ 91,420 | $ 33,059 | |
Restricted cash | 927 | 927 | ||
Total cash, cash equivalents and restricted cash | $ 149,839 | $ 92,347 | $ 33,059 | $ 24,151 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Property and Equipment and Related Accumulated Depreciation (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 678 | $ 316 |
Less: accumulated depreciation | (40) | (15) |
Total property and equipment, net | $ 638 | $ 301 |
Computer Software and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful life | 3 years | 3 years |
Total property and equipment | $ 16 | $ 16 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful life | 5 years | 5 years |
Total property and equipment | $ 65 | $ 9 |
Lab Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful life | 5 years | 5 years |
Total property and equipment | $ 209 | $ 192 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful life | Lesser of (i) usefullife or (ii) lease term | Lesser of (i) usefullife or (ii) lease term |
Construction in Progress | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 388 | $ 99 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Hierarchy for Assets and Liabilities (Details) - Recurring Basis - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets: | ||
Assets, fair value | $ 68,896 | $ 68,869 |
Level 1 | ||
Assets: | ||
Assets, fair value | 68,896 | 68,869 |
Cash Equivalents (Money Market) | ||
Assets: | ||
Assets, fair value | 67,969 | 67,942 |
Cash Equivalents (Money Market) | Level 1 | ||
Assets: | ||
Assets, fair value | 67,969 | 67,942 |
Restricted Cash (Non-Current) | ||
Assets: | ||
Assets, fair value | 927 | 927 |
Restricted Cash (Non-Current) | Level 1 | ||
Assets: | ||
Assets, fair value | $ 927 | $ 927 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |||
May 28, 2021 | May 01, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value, assets, level 1 to level 2 transfers, amount | $ 0 | $ 0 | |||
Fair value, assets, level 2 to level 1 transfers, amount | 0 | 0 | |||
Liability related to the related party antidilution obligation | $ 4,200,000 | ||||
Fair value, assets, transfers into (out of) level 3 | $ 0 | $ 0 | |||
Increase in fair value of related party antidilution obligations | $ 800,000 | ||||
Related Party Antidilution Obligation | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Excess of net cash proceeds from financing activities based on liability cap | $ 45,000,000 | ||||
Related Party Antidilution Obligation | Series A Convertible Preferred Stock | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Issuance of convertible preferred stock, net of issuance costs, shares | 1,963,093 | ||||
Issuance of convertible preferred stock, fair value | $ 5,100,000 |
Fair Value Measurements - Rollf
Fair Value Measurements - Rollforward of Changes in Fair Value of Financial Liabilities (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended |
May 01, 2021 | Mar. 31, 2021 | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | $ 4,823 | $ 4,550 |
Change in fair value through the settlement date | 591 | 273 |
Reclassification of Series A preferred stock tranche obligation and related party antidilution obligation upon settlement | (5,414) | |
Ending balance | 4,823 | |
Related Party Antidilution Obligation | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | 4,499 | 4,247 |
Change in fair value through the settlement date | 584 | 252 |
Reclassification of Series A preferred stock tranche obligation and related party antidilution obligation upon settlement | (5,083) | |
Ending balance | 4,499 | |
Series A Preferred Stock Tranche Obligation | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | 324 | 303 |
Change in fair value through the settlement date | 7 | 21 |
Reclassification of Series A preferred stock tranche obligation and related party antidilution obligation upon settlement | $ (331) | |
Ending balance | $ 324 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Research and development | $ 4,457 | $ 5,597 |
Business insurance | 1,151 | 107 |
Other | 1,221 | 359 |
Total | $ 6,829 | $ 6,063 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | |
Payables And Accruals [Abstract] | |||
Research and development | $ 2,291 | $ 1,422 | |
Payroll and employee related | 1,676 | 2,017 | |
Construction related | 456 | 65 | |
Professional fees | 463 | 933 | |
Deferred IPO | 543 | ||
Other | 135 | 51 | |
Total | [1] | $ 5,021 | $ 5,031 |
[1] Includes related party amounts of $ 75 (accrued expenses and other current liabilities) at June 30, 2022; $ 221 (accrued expenses and other current liabilities) at December 31, 2021 (see Note 12). |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jan. 05, 2022 | Mar. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Aggregate number of shares of common stock reserved for issuance | 6,514,677 | 6,514,677 | 26,333,614 | ||||
Stock-based compensation | $ 1,461,000 | $ 434,000 | $ 2,482,000 | $ 767,000 | |||
Options | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Aggregate number of shares of common stock reserved for issuance | 4,373,298 | 4,373,298 | 3,089,065 | ||||
Unrecognized stock-based compensation expense related to unvested stock options not recognized | $ 17,400,000 | $ 17,400,000 | |||||
Unrecognized stock-based compensation expense period of recognition | 2 years 11 months 8 days | ||||||
Restricted Stock | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Unrecognized stock-based compensation expense related to unvested restricted stock not recognized | $ 300,000 | $ 300,000 | |||||
Unrecognized stock-based compensation expense period of recognition | 1 year 10 months 2 days | ||||||
2020 Equity Incentive Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Aggregate number of shares of common stock reserved for issuance | 276,261 | ||||||
Number of options issued and outstanding | 3,083,269 | 3,083,269 | |||||
2021 Stock Option and Incentive Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Aggregate number of shares of common stock reserved for issuance | 3,145,281 | 1,855,252 | 1,855,252 | 3,145,281 | |||
Number of shares issued | 802,145 | ||||||
Percentage of cumulative number of shares issued and outstanding | 5% | ||||||
Number of options issued and outstanding | 1,290,029 | 1,290,029 | |||||
2021 Employee Stock Purchase Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Aggregate number of shares of common stock reserved for issuance | 286,127 | 286,127 | 286,127 | 286,127 | |||
Number of shares issued | 286,127 | ||||||
Percentage of cumulative number of shares issued and outstanding | 1% | ||||||
Stock-based compensation | $ 0 | $ 0 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 1,461 | $ 434 | $ 2,482 | $ 767 |
Research and Development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 608 | 149 | 1,049 | 270 |
General and Administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 853 | $ 285 | $ 1,433 | $ 497 |
Preferred Stock - Additional In
Preferred Stock - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 6 Months Ended | ||||||
Dec. 31, 2021 | Aug. 13, 2021 | May 28, 2021 | Sep. 18, 2020 | Jan. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2020 | Sep. 30, 2020 | |
Class Of Stock [Line Items] | ||||||||
Gross proceeds from issuance of preferred stock | $ 89,872 | |||||||
Net proceeds from issuance initial public offering | $ 88,000 | |||||||
Initial Public Offering (IPO) | ||||||||
Class Of Stock [Line Items] | ||||||||
Issuance Price per share | $ 14 | |||||||
Common Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Convertible preferred stock basis | one-for-one | |||||||
Common Stock | Initial Public Offering (IPO) | ||||||||
Class Of Stock [Line Items] | ||||||||
Convertible Preferred stock converted to common stock | 19,536,870 | |||||||
Series A Convertible Preferred Stock Purchase Agreement | Maximum | ||||||||
Class Of Stock [Line Items] | ||||||||
Temporary equity, shares issued | 7,852,373 | |||||||
Series A Convertible Preferred Stock Purchase Agreement | Research and Development | ||||||||
Class Of Stock [Line Items] | ||||||||
Purchase price per share | $ 2.547 | |||||||
Series A Convertible Preferred Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Purchase an aggregate shares | $ 50,000 | |||||||
Temporary equity, shares issued | 7,852,373 | 9,815,467 | ||||||
Purchase price per share | $ 2.547 | $ 2.547 | ||||||
Issuance Price per share | $ 2.547 | |||||||
Gross proceeds from issuance of preferred stock | $ 20,000 | $ 25,000 | ||||||
Issuance costs | 100 | |||||||
Preferred stock conversion price per share | 7.063 | |||||||
Series A Preferred Stock Tranche Obligation | ||||||||
Class Of Stock [Line Items] | ||||||||
Issuance costs | 200 | |||||||
Preferred stock tranche obligation classified as liability and recorded at fair value | $ 300 | $ 300 | ||||||
Series B Convertible Preferred Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Temporary equity, shares issued | 25,657,096 | |||||||
Purchase price per share | $ 3.5078 | |||||||
Issuance Price per share | 3.5078 | |||||||
Gross proceeds from issuance of preferred stock | $ 90,000 | |||||||
Issuance costs | $ 400 | |||||||
Preferred stock conversion price per share | $ 9.7278 | |||||||
Convertible Preferred Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Net proceeds from issuance initial public offering | $ 50,000 | |||||||
Series A Preferred Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Temporary equity, shares issued | 28,522,592 | 0 | ||||||
Purchase price per share | $ 0.0001 | $ 0.0001 | ||||||
Issuance costs | $ 200 | |||||||
Series A Preferred Stock | Common Stock | Initial Public Offering (IPO) | ||||||||
Class Of Stock [Line Items] | ||||||||
Convertible Preferred stock converted to common stock | 10,285,077 | |||||||
Series B Preferred stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Temporary equity, shares issued | 25,657,096 | 0 | ||||||
Purchase price per share | $ 0.0001 | $ 0.0001 | ||||||
Series B Preferred stock | Common Stock | Initial Public Offering (IPO) | ||||||||
Class Of Stock [Line Items] | ||||||||
Convertible Preferred stock converted to common stock | 9,251,793 |
Common Stock - Additional Infor
Common Stock - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
Dec. 30, 2021 | Jan. 31, 2022 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) $ / shares shares | Mar. 31, 2022 shares | Jun. 30, 2021 USD ($) shares | Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) $ / shares shares | Mar. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) shares | |
Class Of Stock [Line Items] | ||||||||||
Common stock, voting rights | Each share of common stock entitles the holder to one vote for each share of common stock held. | |||||||||
Common stock dividend declared | $ | $ 0 | $ 0 | $ 0 | $ 0 | ||||||
Reverse stock split | one-for-2.7732 | |||||||||
Conversion ratio | 0.003605 | |||||||||
Common stock, shares authorized | 150,000,000 | 150,000,000 | 150,000,000 | 72,000,000 | ||||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | 0 | ||||||
Common stock, par or stated value per share | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||
Preferred stock, par or stated value per share | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||||||
Convertible Preferred Stock | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Common stock issued | 7,852,373 | |||||||||
Temporary equity, shares outstanding | 54,179,688 | 18,707,126 | 18,707,126 | |||||||
Convertible preferred stock | $ | $ 72,327,000 | $ 72,327,000 | $ 161,939,000 | $ 47,034,000 | $ 47,034,000 | |||||
Initial Public Offering (IPO) | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Common stock issued | 7,000,000 | |||||||||
Common stock issued, price per share | $ / shares | $ 14 | |||||||||
Net proceeds from issuance of common stock | $ | $ 88,000,000 | |||||||||
Underwriting discounts and commissions and offering costs | $ | $ 10,000,000 | |||||||||
Common stock, par or stated value per share | $ / shares | $ 0.0001 | |||||||||
Preferred stock, par or stated value per share | $ / shares | $ 0.0001 | |||||||||
Initial Public Offering (IPO) | Common Stock | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Common stock issued | 7,000,000 | |||||||||
Convertible Preferred stock converted to common stock | 19,536,870 | |||||||||
Reverse stock split | one-for-2.7732 | |||||||||
Conversion ratio | 0.003605 | |||||||||
Initial Public Offering (IPO) | Common Stock and Additional Paid-in Capital | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Convertible preferred stock | $ | $ 161,900,000 | |||||||||
Initial Public Offering (IPO) | Convertible Preferred Stock | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Temporary equity, shares outstanding | 54,179,688 |
Common Stock - Schedule of Rese
Common Stock - Schedule of Reserved Number of Shares of Common Stock for Exercise of Outstanding Stock Options and Future Issuance of Stock-Based Awards (Details) - shares | Jun. 30, 2022 | Jan. 05, 2022 | Dec. 31, 2021 |
Class Of Stock [Line Items] | |||
Total common stock reserved for future issuance | 6,514,677 | 26,333,614 | |
Series A Convertible Preferred Stock | |||
Class Of Stock [Line Items] | |||
Total common stock reserved for future issuance | 10,285,087 | ||
Series B Convertible Preferred Stock | |||
Class Of Stock [Line Items] | |||
Total common stock reserved for future issuance | 9,251,793 | ||
Shares Available for Issuance Under the 2020 Plan | |||
Class Of Stock [Line Items] | |||
Total common stock reserved for future issuance | 276,261 | ||
Shares Available for Issuance Under the 2021 Plan | |||
Class Of Stock [Line Items] | |||
Total common stock reserved for future issuance | 1,855,252 | 3,145,281 | 3,145,281 |
Shares Available for Issuance Under the 2021 ESPP | |||
Class Of Stock [Line Items] | |||
Total common stock reserved for future issuance | 286,127 | 286,127 | 286,127 |
Common Stock Options | |||
Class Of Stock [Line Items] | |||
Total common stock reserved for future issuance | 4,373,298 | 3,089,065 |
Net Loss per Share - Summary of
Net Loss per Share - Summary of Basic and Diluted Net Loss Per Common Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Numerator: | ||||||
Net loss | $ (17,015) | $ (15,334) | $ (11,367) | $ (8,191) | $ (32,349) | $ (19,558) |
Denominator: | ||||||
Weighted—average common shares outstanding, basic and diluted | 28,150,051 | 1,518,999 | 27,409,264 | 1,509,474 | ||
Net loss per share attributable to common stockholders, basic and diluted | $ (0.60) | $ (7.48) | $ (1.18) | $ (12.96) |
Net Loss per Share - Summary _2
Net Loss per Share - Summary of Dilutive Securities Excluded from Computation of Diluted Net Loss Per Common Share (Details) - shares | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 4,485,609 | 12,306,669 |
Series A Convertible Preferred Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 9,577,197 | |
Related Party Antidilution Obligation | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 707,880 | |
Options to Purchase Common Stock – Service Based | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 4,162,669 | 1,569,077 |
Options to Purchase Common Stock – Performance Based | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 210,629 | 229,019 |
Unvested Restricted Common Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 112,311 | 223,496 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | ||||
Oct. 31, 2021 | Sep. 30, 2021 | Jul. 31, 2021 | Mar. 31, 2021 | Feb. 28, 2021 | Jun. 30, 2022 | |
Lessee Lease Description [Line Items] | ||||||
Finance lease, weighted-average remaining lease term | 1 year | |||||
Operating lease, weighted-average remaining lease term | 7 months 6 days | |||||
Finance lease, weighted-average discount rate | 5.20% | |||||
Operating lease, weighted-average discount rate | 6.32% | |||||
Equipment Lease | ||||||
Lessee Lease Description [Line Items] | ||||||
Operating lease term | 24 months | |||||
Operating lease commencement month and year | 2021-04 | |||||
Laboratory Space | ||||||
Lessee Lease Description [Line Items] | ||||||
Operating lease term | 1 year | |||||
Operating lease commencement month and year | 2021-04 | |||||
Operating lease, option to extend | At inception, the Company determined that it was reasonably certain that it would elect options to renew the lease through September 2022 and have included these renewal options into the initial determination of the lease term. | |||||
Operating lease, existence of option to extend [true false] | true | |||||
Lease termination date | Dec. 31, 2022 | |||||
Laboratory and Office Space | ||||||
Lessee Lease Description [Line Items] | ||||||
Operating lease term | 10 years | |||||
Operating lease, option to extend | five-year renewal option at the end of the initial lease term | |||||
Operating lease, existence of option to extend [true false] | true | |||||
Operating lease renewal term | 5 years | |||||
Operating lease monthly payment | $ 200 | |||||
Percentage of annual escalation | 3% | |||||
Lease construction allowance | $ 3,700 | |||||
Landlord Assets | Prepaid Expenses and Other Current Assets | ||||||
Lessee Lease Description [Line Items] | ||||||
Payment of construction allowance net amount | $ 600 | |||||
Received from construction allowance amount | $ 200 | |||||
Corporate Headquarters | ||||||
Lessee Lease Description [Line Items] | ||||||
Operating lease term | 14 months | |||||
Operating lease monthly payment | $ 49 | |||||
Lease security deposit | $ 49 |
Related Party License Agreeme_2
Related Party License Agreement - Additional Information (Details) - USD ($) | 1 Months Ended | 6 Months Ended | |||
May 28, 2021 | Sep. 18, 2020 | Jul. 31, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | |
Related Party Transaction [Line Items] | |||||
Net cash proceeds from financing activities | $ 89,862,000 | $ 19,905,000 | |||
Amgen Agreement | |||||
Related Party Transaction [Line Items] | |||||
Contract manufacturing costs | $ 0 | 2,400,000 | |||
Amgen, Inc. | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage of outstanding shares of capital stock | 11.34% | ||||
Amgen, Inc. | Research and Development | |||||
Related Party Transaction [Line Items] | |||||
Expense in connection with goods provided | $ 0 | $ 2,400,000 | |||
Amgen, Inc. | Series A Convertible Preferred Stock | |||||
Related Party Transaction [Line Items] | |||||
Percentage of capital stock to issue temporary equity | 25% | ||||
Proceeds from equity financings | $ 45,000,000 | ||||
Issuance of convertible preference shares | 1,963,093 | 6,928,566 | |||
Issuance of convertible preferred stock with fair value | $ 5,100,000 | $ 17,500,000 | |||
Net cash proceeds from financing activities | $ 45,000,000 | ||||
Amgen, Inc. | Amgen Agreement | |||||
Related Party Transaction [Line Items] | |||||
Upfront consideration for license arrangement | 500,000 | ||||
Additional maximum consideration for license agreement upon achievement of specified regulatory milestones | 80,000,000 | ||||
Maximum aggregate milestone payments upon achievement of specific commercial milestones across all mab products | $ 350,000,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Operating lease right-of-use assets | $ 512,000 | $ 882,000 | |
Operating lease liabilities | 498,000 | 830,000 | |
Prepaid reservation fees | 0 | 0 | |
Atlas Venture Fund XII, LP | |||
Related Party Transaction [Line Items] | |||
Lease, Cost | 142,000 | $ 100,000 | |
Operating lease right-of-use assets | 100,000 | ||
Operating lease liabilities | 100,000 | ||
Accrued expenses, related parties | 75,000 | ||
Amgen, Inc. | |||
Related Party Transaction [Line Items] | |||
Accrued expenses and other current liabilities | 0 | ||
Related party transactions, expenses incurred | $ 0 | $ 2,400,000 | |
Due to related party amounts | $ 200,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | |
Nov. 30, 2021 | Sep. 30, 2021 | Jun. 30, 2022 | |
Loss Contingencies [Line Items] | |||
Discretionary and contributions amount | $ 0.1 | ||
Standby Letter of Credit | |||
Loss Contingencies [Line Items] | |||
Letter of credit | $ 0.9 | ||
Letter of credit expiration date | Sep. 10, 2022 | ||
Letter of credit renewal period | 2032-12 | ||
FUJIFILM Diosynth Biotechnologies Texas, LLC | |||
Loss Contingencies [Line Items] | |||
Purchase commitment fee | $ 3.8 | ||
Purchase commitment period | 2 years | ||
FUJIFILM Diosynth Biotechnologies Texas, LLC | Minimum | |||
Loss Contingencies [Line Items] | |||
Purchase commitment fee percentage | 0% | ||
FUJIFILM Diosynth Biotechnologies Texas, LLC | Maximum | |||
Loss Contingencies [Line Items] | |||
Purchase commitment fee percentage | 100% |