Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 20, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | VERA | ||
Entity Registrant Name | Vera Therapeutics, Inc. | ||
Entity Central Index Key | 0001831828 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Title of 12(b) Security | Class A common stock, $0.001 par value per share | ||
Security Exchange Name | NASDAQ | ||
Entity File Number | 001-40407 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 81-2744449 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Address, Address Line One | 8000 Marina Boulevard | ||
Entity Address, Address Line Two | Suite 120 | ||
Entity Address, City or Town | Brisbane | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94005 | ||
City Area Code | 650 | ||
Local Phone Number | 770-0077 | ||
Entity Public Float | $ 449.2 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the Registrant’s definitive proxy statement for its 2024 Annual Meeting of Stockholders, which the Registrant intends to file pursuant to Regulation 14A with the Securities and Exchange Commission not later than 120 days after the Registrant’s fiscal year ended December 31, 2023, are incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Auditor Location | San Francisco, California | ||
Auditor Name | KPMG LLP | ||
Auditor Firm ID | 185 | ||
Common Class A [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 54,452,029 | ||
Common Class B [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 0 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 45,681 | $ 43,459 |
Marketable securities | 115,035 | 71,194 |
Prepaid expenses and other assets, current | 11,307 | 11,045 |
Total current assets | 172,023 | 125,698 |
Restricted cash, noncurrent | 0 | 293 |
Property and equipment, net | 92 | 51 |
Operating lease right-of-use assets | 2,949 | 5,173 |
Prepaid expenses and other assets, noncurrent | 471 | 162 |
Non-marketable equity securities | 11 | 58 |
Total assets | 175,546 | 131,435 |
Current liabilities: | ||
Accounts payable | 11,118 | 11,991 |
Operating lease liabilities | 2,436 | 2,645 |
Accrued expenses and other liabilities, current | 8,749 | 10,964 |
Total current liabilities | 22,303 | 25,600 |
Long-term debt | 49,877 | 24,810 |
Operating lease liabilities, noncurrent | 1,395 | 3,831 |
Accrued expenses and other liabilities, noncurrent | 286 | 286 |
Total liabilities | 73,861 | 54,527 |
Stockholders' equity | ||
Preferred stock, $0.001 par value; 10,000,000 authorized as of December 31, 2023 and December 31, 2022; no shares issued and outstanding as of December 31, 2023 and December 31, 2022 | 0 | 0 |
Class A common stock, $0.001 par value; 500,000,000 shares authorized as of December 31, 2023 and December 31, 2022; 44,452,161 and 27,800,861 shares issued and outstanding as ofDecember 31, 2023 and December 31, 2022, respectively | 44 | 28 |
Additional paid-in capital | 410,492 | 290,216 |
Accumulated other comprehensive gain (loss) | 251 | (224) |
Accumulated deficit | (309,102) | (213,112) |
Total stockholders' equity | 101,685 | 76,908 |
Total liabilities and stockholders' equity | $ 175,546 | $ 131,435 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Preferred stock par or stated value per share | $ 0.001 | $ 0.001 |
Preferred stock shares authorized | 10,000,000 | 10,000,000 |
Preferred stock shares issued | 0 | 0 |
Preferred stock shares outstanding | 0 | 0 |
Common Class A [Member] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, Shares issued | 44,452,161 | 27,800,861 |
Common stock, Shares outstanding | 44,452,161 | 27,800,861 |
Statements of Operations and Co
Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating expenses: | ||
Research and development | $ 78,225 | $ 68,993 |
General and administrative | 23,787 | 21,910 |
Total operating expenses | 102,012 | 90,903 |
Loss from operations | (102,012) | (90,903) |
Other income (expense): | ||
Interest income | 7,979 | 1,750 |
Interest expense | (3,786) | (992) |
Other income | 1,877 | 1,899 |
Change in fair value of non-marketable equity securities | (47) | (809) |
Total other income | 6,023 | 1,848 |
Loss before provision for income taxes | (95,989) | (89,055) |
Provision for income taxes | (1) | (1) |
Net loss | (95,990) | (89,056) |
Other comprehensive loss: | ||
Change in unrealized gain (loss) on marketable securities | 251 | (224) |
Comprehensive loss | $ (95,739) | $ (89,280) |
Net loss per share attributable to common stockholders, basic | $ (2.25) | $ (3.35) |
Net loss per share attributable to common stockholders, diluted | $ (2.25) | $ (3.35) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic | 42,707,072 | 26,570,676 |
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted | 42,707,072 | 26,570,676 |
Statements of Stockholders' Equ
Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] | Common Stock [Member] | Common Class A [Member] | Common Class A [Member] Common Stock [Member] | Common Class B [Member] |
Beginning balance, shares at Dec. 31, 2021 | 20,968,376 | 309,238 | ||||||
Beginning Balance, Value at Dec. 31, 2021 | $ 69,592 | $ 193,627 | $ (124,056) | $ 21 | ||||
Issuance of Class A common stock from underwritten follow-on offering, net of offering costs | 5,742,026 | |||||||
Issuance of Class A common stock from underwritten follow-on offering, net of offering costs, value | 80,034 | 80,028 | 6 | |||||
Conversion of Class B common stock into Class A common stock, Shares | 309,238 | (309,238) | ||||||
Issuance of Class A common stock pursuant to exercise of options, value | 1,792 | 1,791 | 1 | |||||
Issuance of Class A common stock pursuant to exercise of options | 405,140 | |||||||
Issuance of Class A common stock pursuant to employee stock purchase plan | 15,328 | |||||||
Issuance of Class A common stock pursuant to employee stock purchase plan, value | 291 | 291 | ||||||
Issuance of Class A common stock upon vesting of restricted stock units, shares | 77,719 | |||||||
Issuance of common stock for payment of licensing fees, net of offering costs, shares | 283,034 | |||||||
Issuance of common stock for payment of licensing fees in equity, net of offering cost | 5,592 | 5,592 | ||||||
Stock-based compensation | 8,887 | 8,887 | ||||||
Unrealized gain(loss) on marketable securities | (224) | $ (224) | ||||||
Net Income (Loss) | (89,056) | (89,056) | ||||||
Ending Balance, shares at Dec. 31, 2022 | 27,800,861 | |||||||
Ending Balance, Value at Dec. 31, 2022 | $ 76,908 | 290,216 | (224) | (213,112) | 28 | |||
Issuance of Class A common stock from underwritten follow-on offering, net of offering costs | 16,428,572 | |||||||
Issuance of Class A common stock from underwritten follow-on offering, net of offering costs, value | $ 107,743 | 107,727 | $ 16 | |||||
Issuance of Class A common stock pursuant to exercise of options, value | 781 | 781 | ||||||
Issuance of Class A common stock pursuant to exercise of options | 111,927 | |||||||
Issuance of Class A common stock pursuant to employee stock purchase plan | 44,480 | |||||||
Issuance of Class A common stock pursuant to employee stock purchase plan, value | 275 | 275 | ||||||
Issuance of Class A common stock upon vesting of restricted stock units, shares | 66,321 | |||||||
Stock-based compensation | 11,493 | 11,493 | ||||||
Unrealized gain(loss) on marketable securities | 475 | 475 | ||||||
Net Income (Loss) | (95,990) | (95,990) | ||||||
Ending Balance, shares at Dec. 31, 2023 | 44,452,161 | |||||||
Ending Balance, Value at Dec. 31, 2023 | $ 101,685 | $ 410,492 | $ 251 | $ (309,102) | $ 44 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash flows from operating activities | ||
Net Income (Loss) | $ (95,990) | $ (89,056) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation, amortization and accretion | (4,086) | (846) |
Reduction in the carrying amount of operating lease right-of-use assets | 2,224 | 2,271 |
Stock-based compensation | 11,493 | 8,887 |
Issuance of Class A common stock for licensing payment, net of costs | 0 | 3,592 |
Change in fair value of non-marketable equity securities | 47 | 809 |
Changes in operating assets and liabilities: | ||
Prepaid expense and other current assets | 173 | (8,182) |
Other assets | (309) | (111) |
Accounts payable | (873) | 10,606 |
Accrued and other current liabilities | (2,215) | 7,036 |
Operating lease liabilities | (2,645) | (2,602) |
Net cash used in operating activities | (92,181) | (67,596) |
Cash flows from investing activities | ||
Purchase of property and equipment | (63) | (62) |
Purchase of marketable securities | (224,930) | (148,490) |
Proceeds from maturities of marketable securities | 176,019 | 78,000 |
Proceeds from sale of marketable securities | 9,543 | 0 |
Net cash used in investing activities | (39,431) | (70,552) |
Cash flows from financing activities | ||
Proceeds from exercise of stock options and employee stock purchase plan | 1,056 | 2,083 |
Proceeds from borrowings, net of costs | 24,741 | 19,816 |
Proceeds from issuance of Class A common stock in follow-on offering | 115,000 | 86,131 |
Payment of costs and underwriting discounts and commissions related to follow-on offering | (7,256) | (6,097) |
Net cash provided by financing activities | 133,541 | 101,933 |
Net increase (decrease) in cash and cash equivalents and restricted cash | 1,929 | (36,215) |
Cash, cash equivalents and restricted cash, beginning of year | 43,752 | 79,967 |
Cash, cash equivalents and restricted cash, end of year | 45,681 | 43,752 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | 3,352 | 895 |
Cash paid for operating leases | 3,000 | 2,734 |
Issuance of Class A common stock in payment of licensing fees | 0 | 2,000 |
Cash and cash equivalents [Member] | ||
Cash flows from financing activities | ||
Cash, cash equivalents and restricted cash, beginning of year | 43,459 | |
Cash, cash equivalents and restricted cash, end of year | 45,681 | 43,459 |
Restricted cash [Member] | ||
Cash flows from financing activities | ||
Cash, cash equivalents and restricted cash, beginning of year | 293 | |
Cash, cash equivalents and restricted cash, end of year | $ 0 | $ 293 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ (95,990) | $ (89,056) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | During the quarter ended December 31, 2023, our directors and officers (as defined in Rule 16a-1(f) under the Exchange Act adopted or terminated the contracts, instructions or written plans for the purchase or sale of the Company’s securities set forth in the table below. Type of Trading Arrangement Name and Position Action Adoption/ Termination Date Rule 10b5-1* Non- Rule 10b5-1** Total Shares of Class A Common Stock to be Sold Expiration Date Celia Lin , Chief Medical Officer *** Adoption October 10, 2023 X Up to 134,401 December 19, 2024 **** * Contract, instruction or written plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act. ** “ No n-Rule 10b5-1 trading arrangement” as defined in Item 408(c) of Regulation S-K under the Exchange Act. ***Dr . Lin separated from Vera effective January 3, 2024. ****In connection with her separation from Vera, Dr. Lin terminated this 10b5-1 Plan effective January 19, 2024 . |
Celia Lin [Member] | |
Trading Arrangements, by Individual | |
Name | Celia Lin |
Title | Chief Medical Officer |
Rule 10b5-1 Arrangement Adopted | true |
Non-Rule 10b5-1 Arrangement Adopted | false |
Adoption Date | October 10, 2023 |
Termination Date | January 19, 2024 |
Arrangement Duration | 436 days |
Aggregate Available | 134,401 |
Expiration Date | December 19, 2024 |
Organization and Description of
Organization and Description of the Business | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of the Business | 1. ORGANIZATION AND DESCRIPTION OF THE BUSINESS Description of Business Vera Therapeutics, Inc. (the Company) is a clinical stage biotechnology company focused on developing and commercializing treatments for patients with serious immunological diseases. The Company was incorporated in May 2016 in Delaware. The Company’s headquarters and operations are located in Brisbane, California. The Company operates in one segment. Initial Public Offering On May 13, 2021, the Company’s registration statement on Form S-1 for its initial public offering (the IPO) was declared effective by the Securities and Exchange Commission (the SEC), and the shares of its Class A common stock commenced trading on the Nasdaq Global Select Market on May 14, 2021. The IPO closed on May 18, 2021. Prior to the completion of the IPO, all shares of redeemable convertible preferred stock then outstanding were converted into shares of Class A and Class B common stock. Liquidity S ince inception, the Company devoted substantially all of its resources to its research and development efforts, pre-clinical studies and clinical trials, establishing and maintaining its intellectual property portfolio, hiring personnel, raising capital, and providing general and administrative support for these operations. The Company has incurred recurring net operating losses and has not generated positive cash flow from operations since its inception, and had an accumulated deficit of $ 309.1 million as of December 31, 2023. The Company had cash, cash equivalents and marketable securities of $ 160.7 million as of December 31, 2023. The Company has funded its operations primarily through the issuance of common stock, redeemable convertible preferred stock, debt financing and convertible notes. Management expects to continue to incur losses and negative cash flows from operations for at least the next several years. Management believes that the Company’s cash, cash equivalents and marketable securities as of December 31, 2023 will be sufficient to fund its operating expenses and capital expenditure requirements for at least 12 months subsequent to the issuance date of these financial statements. The Company intends to raise additional capital through public or private equity offerings or debt financing or other capital sources, which may include strategic collaborations or other arrangements with third parties in order to achieve its long-term business objectives. If the Company fails to obtain necessary capital when needed on acceptable terms, or at all, it could force the Company to delay, limit, reduce or terminate its product development programs, commercialization efforts or other operations . |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) and applicable rules and regulations of the SEC regarding financial reporting. The U.S. dollar is the Company’s functional and reporting currency. Emerging Growth Company Status T he Company is an emerging growth company as defined in the Jumpstart Our Business Startups Act of 2012 (JOBS Act). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with certain new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it (1) is no longer an emerging growth company or (2) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, these financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates. Use of Estimates The preparation of the Company’s financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Management estimates that affect the reported amounts of assets and liabilities include the research contract costs and accruals, stock-based compensation expense, and the valuation allowance for deferred tax assets. The Company evaluates and adjusts its estimates and assumptions on an ongoing basis using historical experience and other factors. Actual results could differ materially from those estimates. Concentrations of Credit Risk and Other Risks and Uncertainties Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents and marketable securities. The Company maintains bank deposits in a federally insured financial institution and these deposits may exceed federally insured limits. The Company is exposed to credit risk in the event of default by the financial institution holding its cash, cash equivalents, and marketable securities to the extent recorded in the balance sheet. The Company has not experienced any losses to date related to these concentrations. The Company’s future results of operations involve a number of other risks and uncertainties. Factors that could affect the Company’s future operating results and cause actual results to vary materially from expectations include, but are not limited to, uncertainty of results of clinical trials and reaching milestones, uncertainty of regulatory approval of the Company’s current and potential future product candidates, uncertainty of market acceptance of the Company’s product candidates, competition from substitute products and larger companies, securing and protecting proprietary technology, strategic relationships and dependence on key individuals or sole-source suppliers. The Company relies on one supply chain for each of its product candidates. If any of the single source suppliers in any of the supply chains fails to satisfy the Company’s requirements on a timely basis, it could suffer delays in its clinical development programs and activities, which could adversely affect operating results. The Company’s product candidates require approvals from the U.S. Food and Drug Administration and comparable foreign regulatory authorities prior to commercial sales in their respective jurisdictions. There can be no assurance that any product candidates will receive the necessary approvals. If the Company was denied approval, approval was delayed, or the Company was unable to maintain approval for any product candidate, it could have a materially adverse impact on the Company. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Cash equivalents consist of money market funds and are stated at fair value. Restricted Cash Restricted cash represents cash held by a financial institution as collateral for a letter of credit securing its operating lease for office and laboratory space, which is classified as a non-current asset on the balance sheets based on the maturity of the lease. Marketable Securities The Company holds investments in marketable securities, consisting of U.S. government securities. Marketable debt securities with stated maturities of three months or less from the date of purchase are classified as cash equivalents and those with stated maturities of greater than three months as marketable securities on the balance sheet. The Company determines the appropriate classification of marketable debt securities at the time of purchase. The Company has the ability, if necessary, to liquidate its investments to meet its liquidity needs in the next 12 months, without significant penalty. Accordingly, those investments with contractual maturities greater than one year from the date of purchase are classified as current assets on the accompanying balance sheets. All marketable debt securities are classified as available-for-sale and are reported at estimated fair value, with unrealized gains and losses recorded in accumulated other comprehensive loss within stockholders’ equity. Interest, amortization and accretion of purchase premiums and discounts on marketable debt securities are included in other income (expense), net, in the statements of operations and comprehensive loss. The cost of available-for-sale marketable securities sold is based on the specific identification method. Realized gains and losses on the sale of available-for-sale marketable securities are recorded in other income, net in the statements of operations and comprehensive loss. The Company regularly reviews all of the marketable securities for decline in fair value to determine whether unrealized losses have resulted from credit loss or other factors. The review includes considerations for the cause of the impairment but is not limited to (i) the consideration of the cause of the decline, (ii) any currently recorded expected credit losses and (iii) the creditworthiness of the respective security issuers. A decline of fair value below cost basis is considered an other-than-temporary impairment if the Company has the intent to sell the security or it is more likely than not that the company will be required to sell the security before recovery of the entire cost basis. Regardless of the Company’s intent or requirement to sell the security, an impairment is considered other-than-temporary if the Company does not expect to recover the entire cost basis. In those instances, an impairment charge equal to the difference between fair value and the cost basis is recorded in other income (expense), on the statements of operations and comprehensive loss. No impairment loss was recognized for the fiscal years ended December 31, 2023 and 2022. The amortized or accreted cost basis of the marketable securities approximates its fair value. Deferred Offering Costs Deferred offering costs consisting of legal, accounting and filing fees relating to equity offerings. Deferred offering costs are included in other long-term assets on the Company’s balance sheets. Upon completion of the offering, these amounts are offset against the proceeds of the offering. Leases The Company leases office space under operating leases and determines if the arrangement is a lease at inception. These leases contain lease and non-lease components. Non-lease components include payments for maintenance, utilities, real estate taxes, and management fees. The lease and non-lease components are combined and accounted as a single lease component. Payments made under operating leases (net of any incentive received from the lessors) are recorded on a straight-line basis over the term of the lease. These leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on information available at commencement date in determining the present value of lease payments. The incremental borrowing rate is a hypothetical rate based on the Company’s understanding of what the credit rating would be in a similar economic environment. Operating leases are included in operating lease right-of-use assets and operating lease liabilities, current and non-current, on the balance sheets. Leases may include one or more options to renew. The Company does not assume renewals in determination of the lease term unless the renewals are deemed to be reasonably assured. The lease agreements generally do not contain any material residual value guarantees or material restrictive covenants. Foreign Currency Translations Transactions denominated in foreign currencies are initially measured in U.S. dollars using the exchange rate on the date of the transaction. Foreign currency denominated monetary assets and liabilities are subsequently re-measured at the end of each reporting period using the exchange rate at that date, with the corresponding foreign currency transaction gain or loss recorded in the statements of operations and statements of cash flows. Nonmonetary assets and liabilities are not subsequently re-measured. Fair Value Measurements Fair value is defined as the exchange price to sell an asset or transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Fair value should be based on the assumptions market participants would use when pricing the asset or liability. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Fair value measurements are classified and disclosed in one of the following three categories: Level 1 – Quoted unadjusted prices for identical instruments in active markets. Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all observable inputs and significant value drivers are observable in active markets. Level 3 – Model derived valuations in which one or more significant inputs or significant value drivers are unobservable, including assumptions developed by the Company. Fair value accounting is applied to all financial assets and liabilities that are recognized or disclosed in the financial statements on a recurring basis. The Company’s financial instruments consist of cash and cash equivalents, restricted cash, marketable securities, prepaid expenses and other current assets, non-marketable equity securities, accounts payable and accrued expenses and long-term debt. Cash, restricted cash, and marketable securities and non-marketable securities are reported at their respective fair values on the Company’s balance sheets. The remaining financial instruments are reported on the Company’s balance sheets at cost, which approximate their fair value due to their short-term nature. Money market funds are highly liquid investments that are actively traded. The pricing information for the Company’s money market funds are readily available and can be independently validated as of the measurement date. This approach results in the classification of these securities as Level 2 of the fair value hierarchy. The Company’s non-marketable equity securities (see Note 5) are measured at fair value using an option pricing valuation methodology. The option pricing methodology relies on risk-neutral valuation which calculates the value of an asset by discounting the expected value of its future payoffs at the risk-free rate of return. The fair value of the non-marketable equity securities is derived from quoted prices for similar instruments and observable inputs in active markets. This approach results in the classification of these securities as Level 2 of the fair value hierarchy. There were no transfers between Levels 1, 2, or 3 for any of the periods presented. As of December 31, 2023, and December 31, 2022 , the Company held $ 44.7 million and $ 42.5 million, respectively, in money market funds. Comprehensive Loss Comprehensive loss consists of two components: net loss and other comprehensive loss. Other comprehensive loss refers to unrealized gains and losses that are recorded as an element of stockholders’ equity and are excluded from net loss. For the year ended December 31, 2023, other comprehensive loss consists of unrealized gains and losses on marketable securities. Research and Development Costs Research and development costs are expensed as incurred and consist primarily of employees’ salaries and related benefits, including stock-based compensation and termination expenses for employees engaged in research and development efforts, allocated overhead including rent, depreciation, information technology and utilities, contracted services, license fees, and external expenses to conduct and support the Company’s operations that are directly attributable to the Company’s research and development efforts. Payments made to third parties under these arrangements in advance of the performance of the related services by the third parties are recorded as prepaid expenses until the services are rendered. Costs incurred in obtaining technology licenses including upfront and milestone payments incurred under the Company’s licensing agreements are recorded as expense in the period in which they are incurred, provided that the licensed technology, method or process has no alternative future uses other than for the Company’s research and development activities. Where contingent milestone payments are due to third parties under license or other agreements, the milestone payment obligations are recognized as expense when achievement of the contingent milestone is probable, which is generally upon achievement of the milestone. Research Contract Costs and Accruals The Company enters into various research and development and other agreements with commercial firms, researchers, and others for provisions of goods and services from time to time. These agreements are generally cancellable, and the related costs are recorded as research and development expenses as incurred. The Company records accruals for estimated ongoing research and development costs. When evaluating the adequacy of the accrued liabilities, the Company analyzes progress of the studies or clinical trials, including the phase or completion of events, invoices received and contracted costs. Significant judgments and estimates are made in determining the accrued balances at the end of any reporting period. Actual results could differ materially from the Company’s estimates. Stock-Based Compensation The Company recognizes compensation expense based on estimated fair values for all stock-based payment awards made to the Company’s employees, nonemployee directors and consultants that are expected to vest. The valuation of stock option awards is determined at the date of grant using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the Company to make assumptions and judgments about the inputs used in the calculations, such as the fair value of the common stock, expected term, expected volatility of the Company’s common stock, risk-free interest rate and expected dividend yield. The valuation of restricted stock awards is measured by the fair value of the Company’s Class A common stock on the date of the grant. For all stock options granted, the Company calculated the expected term using the simplified method (derived from the average midpoint between the weighted average vesting period and the contractual term of the award) for “plain vanilla” stock option awards, as the Company has limited historical information to develop expectations about future exercise patterns and post vesting employment termination behavior. The estimate of expected volatility is based on comparative companies’ volatility. The risk-free rate is based on the yield available on United States Treasury zero-coupon issues corresponding to the expected term of the award. The Company records forfeitures when they occur. The Company determines the fair value of its Class A common stock using the market closing price on the date of grant. The Company records compensation expense for service-based awards on a straight-line basis over the requisite service period, which is generally the vesting period of the award. The amount of stock-based compensation expense recognized during a period is based on the value of the portion of the awards that are ultimately expected to vest. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred income taxes are recorded for temporary differences between financial statement carrying amounts and the tax basis of assets and liabilities. Deferred tax assets and liabilities reflect tax rates expected to be in effect for the years in which the differences are expected to be reversed. A valuation allowance is provided if it is more likely than not that some or all of the deferred tax assets will not be realized. Net Loss Per Share Attributable to Common Stockholders Net loss per share of common stock is computed using the two-class method required for multiple classes of common stock and participating securities based upon their respective rights to receive dividends as if all income for the period has been distributed. The rights, including the liquidation and dividend rights and sharing of losses, of the Class A and Class B common stock are identical, other than voting rights. As the liquidation and dividend rights and sharing of losses are identical, the undistributed earnings are allocated on a proportionate basis and the resulting net loss per share attributed to common stockholders is therefore the same for Class A and Class B common stock on an individual or combined basis. Basic net loss per share attributable to common stockholders is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, adjusted for outstanding shares that are subject to repurchase. Diluted net loss per share is computed by giving effect to all potentially dilutive securities outstanding for the period using the treasury stock method or the if-converted method based on the nature of such securities. For periods in which the Company reports net losses, diluted net loss per share attributable to common stockholders is the same as basic net loss per share attributable to common stockholders, because potentially dilutive shares are not assumed to have been issued if their effect is anti-dilutive. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. This standard clarifies the guidance in Topic 210, when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security and introduces new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. The guidance is effective for annual periods beginning after December 15, 2023, with early adoption permitted. The Company does not expect that the adoption of this standard will have a material impact on its financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures (Topic 740). The ASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid. The ASU is effective on a prospective basis for annual periods beginning after December 15, 2024. Early adoption is also permitted for annual financial statements that have not yet been issued or made available for issuance. This ASU will result in the required additional disclosures being included in the Company’s financial statements upon adoption. |
Other Financial Statement Infor
Other Financial Statement Information | 12 Months Ended |
Dec. 31, 2023 | |
Other Financial Statement Information [Abstract] | |
Other Financial Statement Information | 3. OTHER FINANCIAL STATEMENT INFORMATION Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following (in thousands) . December 31, December 31, Prepaid clinical trial and drug manufacturing costs $ 6,480 $ 8,487 Prepaid insurance 597 998 Prepaid equity financing costs 410 490 Prepaid rent 257 247 Prepaid software costs 237 104 Prepaid recruiting fees 109 — Other 3,217 719 Total prepaid expenses and other current assets $ 11,307 $ 11,045 Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following (in thousands) . December 31, December 31, Accrued payroll $ 3,932 $ 3,217 Accrued clinical and drug manufacturing expenses 2,213 4,334 Related party payable 1,926 2,780 Accrued legal fees 59 338 Accrued expenses and other 619 295 Total accrued expenses and other current liabilities $ 8,749 $ 10,964 Related party payable represents amounts due to Ares Trading S.A. (Ares), an affiliate of Merck KGaA, Darmstadt, Germany, related to manufacturing technology and know-how transfer services performed for atacicept pursuant to the license agreement between the Company and Ares (see Note 11). |
Cash Equivalents And Marketable
Cash Equivalents And Marketable Securities | 12 Months Ended |
Dec. 31, 2023 | |
Cash Equivalents And Marketable Securities [Abstract] | |
Cash Equivalents and Marketable Securities | 4. CASH EQUIVALENTS AND MARKETABLE SECURITIES Cash equivalents are classified within Level 1 in the fair value hierarchy because the Company uses quoted market prices to the extent available or alternative pricing sources to determine fair value. Marketable debt securities are classified as Level 2 because they are valued using fair value from an independent pricing service, which may use quoted market prices for identical or comparable instruments or valuations using observable market data. The Company’s debt securities are accounted for as available-for-sale securities. Unrealized gains and losses are reported as a component of other comprehensive loss. Fair value of the debt securities were $ 115.0 million and $ 71.2 million as of December 31, 2023 and December 31, 2022, respectively. The following table presents the Company’s financial assets measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands) : December 31, 2023 Fair Value Hierarchy Level Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Money market funds Level 1 $ 44,650 $ - $ - $ 44,650 U.S. Government bonds Level 2 63,619 70 ( 6 ) 63,683 U.S. Government agency securities Level 2 19,665 7 ( 14 ) 19,658 Corporate debt securities Level 2 31,500 194 - 31,694 Total cash equivalents and marketable securities $ 159,434 $ 271 $ ( 20 ) $ 159,685 December 31, 2022 Fair Value Hierarchy Level Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Money market funds Level 1 $ 42,495 $ - $ - $ 42,495 U.S. Government bonds Level 2 71,418 1 ( 225 ) 71,194 Total cash equivalents and marketable securities $ 113,913 $ 1 $ ( 225 ) $ 113,689 Marketable debt securities that had been in unrealized loss positions as of December 31, 2023 and December 31, 2022 were in an unrealized loss position for less than 12 months. Unrealized losses from marketable debt securities are primarily attributable to changes in interest rates. Management does not believe any remaining unrealized losses represent impairments based on evaluation of available evidence. The following table classifies the estimated fair value of investments in available-for-sale marketable debt securities by effective contractual maturity dates (in thousands) : December 31, 2023 Due within one year $ 93,845 Due after one year to two years 21,190 Total marketable securities $ 115,035 |
Non-Marketable Equity Securitie
Non-Marketable Equity Securities | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Non-Marketable Equity Securities | 5. NON-MARKETABLE EQUITY SECURITIES Fair value of non-marketable equity securities is determined using alternative pricing sources and models utilizing market observable inputs. The Company reports the restricted equity securities as non-marketable equity securities on the balance sheet and determines current or non-current classification based on the expected duration of the restriction. The carrying value is measured as the total initial cost, less the cumulative net unrealized loss. The following table summarizes the value of non-marketable equity securities using the measurement alternative (in thousands) : December 31, December 31, Initial cost $ 1,759 $ 1,759 Cumulative net fair value loss ( 1,748 ) ( 1,701 ) Carrying value of non-marketable equity securities $ 11 $ 58 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
LEASES | 6. LEASES Net lease cost recognized for 2023 is summarized as follows (in thousands) : Year Ended December 31, 2023 Year Ended December 31, 2022 Operating lease cost $ 2,577 $ 2,378 Sublease income ( 1,928 ) ( 1,928 ) Net lease cost $ 649 $ 450 As of December 31, 2023, the maturities of the lease liabilities based on minimum lease commitment amount are as follows (in thousands) : 2024 $ 3,022 2025 1,880 2026 - 2027 - Total minimum lease payments 4,902 Less: Imputed interest ( 1,071 ) Present value of operating lease liabilities 3,831 Less: Current portion of operating lease liabilities ( 2,436 ) Non-current operating lease liabilities $ 1,395 In November 2020, the Company entered into a non-cancellable sublease agreement for the leased facilities in South San Francisco, California, which ends concurrently with the original lease in September 2025. As of December 31, 2023, under the terms of the sublease agreement, the Company is entitled to receive future annual sublease payments as follows (in thousands) : 2024 $ 1,954 2025 1,496 Total sublease payments $ 3,450 The subtenant of the leased facilities in South San Francisco, California, has disclosed in public filings that there is substantial doubt regarding its ability to continue as a going concern. As tenant, the Company remains responsible for minimum lease commitments of $ 4.3 million as of December 31, 2023, on the South San Francisco facilities. In November 2021, the Company entered into a lease agreement that was amended in July 2022 for its headquarters office space in Brisbane, California. The lease term is through November 2024 with renewal options for the Company. As of December 31, 2023, the Company had not executed any finance leases that were yet to commence. As of December 31, 2023, the weighted-average remaining operating lease term was 1.5 years and the weighted-average discount rate was 9.1 % for operating leases recognized in the financial statements. |
Note Payable
Note Payable | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Note Payable | 7. NOTE PAYABLE Note payable consists of the following ($ in thousands) : December 31, December 31, Maturity Effective Interest Rate Amount Effective Interest Rate Amount Collateralized note 2021-12 2027 14.73 % $ 5,000 13.57 % $ 5,000 Collateralized note 2022-11 2027 14.87 % 20,000 13.74 % 20,000 Collateralized note 2023-12 2027 15.37 % 25,000 — Total borrowings 50,000 25,000 Less: Debt issuance costs ( 123 ) ( 190 ) Net carrying amount of debt $ 49,877 $ 24,810 The carrying amount of debt approximates fair value due to its variable interest rate. In December 2021, the Company entered into a non-revolving loan and security agreement (the Loan Agreement) with borrowing capacity of up to $ 50.0 million, which was scheduled to expire in December 2022. In November 2022, the Company entered into an amendment of the Loan Agreement. Among other changes, the amendment extended the scheduled expiration of the Loan Agreement to December 2023 and modified the reference rate from the London Interbank Offered Rate (LIBOR) to the Secured Overnight Financial Rate (SOFR). In conjunction with the amendment, the Company borrowed an additional $ 20.0 million from the Loan Agreement. In December 2023, the Company borrowed the remaining $ 25.0 million from the Loan Agreement. As of December 31, 2023, the Company’s outstanding borrowing under the Loan Agreement was $ 50.0 million. In March 2023, upon achievement of a clinical data milestone, the Company elected to exercise a borrower option to extend the maturity of the outstanding loan by 12 months, from December 2026 to December 2027. The interest-only payment period was also extended by 12 months to December 2026. The Company is permitted to prepay the loan, subject to certain conditions. Upon the maturity date or prepayment of the loan, the Company is required to make a final payment equal to 7 % of the aggregate principal amount of the loan. The variable interest rate on the drawn amount is adjusted SOFR plus 825 basis points, subject to a per annum floor rate of 8.25 %. The Loan Agreement contains a subjective acceleration clause in the case of an event of default. If such a matter occurs and is continuing, the lender may legally demand the outstanding principal and interest immediately due and payable. There are no financial covenants associated with the Loan Agreement and the loan is secured by the Company’s assets. The Loan Agreement is available for working capital, capital expenditures, and other general corporate purposes. Principal installments due on the notes are as follows (in thousands) : 2024 $ — 2025 — 2026 — 2027 50,000 Total long-term debt $ 50,000 |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Common Stock | 8. COMMON STOCK As of December 31, 2023 , the Company’s amended and restated certificate of incorporation authorized the Company to issue 500,000,000 shares of Class A common stock and 14,600,000 shares of Class B common stock, each with a par value of $ 0.001 per share. Each share of Class A common stock entitles the holder to one vote on all matters submitted to a vote of the Company’s stockholders. Class B common stock is non-voting. Class A common stockholders and holders of Class B common stock are entitled to receive dividends, as may be declared by the board of directors. Through December 31, 2023 , no cash dividends have been declared or paid. In February 2022, the Company completed a follow-on public offering pursuant to which the Company issued and sold 5,742,026 shares of its Class A common stock at a public offering price of $ 15.00 per share, including 748,959 shares of Class A common stock pursuant to the full exercise of the underwriters’ option to purchase additional shares. In May 2022, 210,000 shares of Class B common stock were converted into 210,000 shares of Class A common stock. In September 2022, the remaining 99,238 shares of Class B common stock were converted into 99,238 shares of Class A common stock. The shares of Class B common stock that were converted into shares of Class A common stock have been retired and cancelled, and therefore will not be available for reissuance. In June 2022, the Company filed a shelf registration statement on Form S-3 (File No. 333-265408) with the Securities and Exchange Commission, which permits the offering, issuance, and sale of up to a maximum aggregate offering price of $ 400.0 million of the Company’s common stock, preferred stock, debt securities and warrants. Up to a maximum of $ 150.0 million of the maximum aggregate offering price of $ 400.0 million may be issued and sold pursuant to an at-the-market financing facility under a sales agreement dated June 3, 2022, between the Company and Cowen and Company, LLC (Sales Agreement). As of December 31, 2023 , all $ 150.0 million remains available for issuance and sale under the Sales Agreement. In September 2022, the Company issued 283,034 shares of Class A common stock to Novartis Pharma AG pursuant to an amendment to a license agreement between the two parties (see Note 11). In February 2023, the Company completed a follow-on public offering pursuant to which the Company issued and sold 16,428,572 shares of its Class A common stock at a public offering price of $ 7.00 per share, including 2,142,857 shares of Class A common stock pursuant to the full exercise of the underwriters’ option to purchase additional shares. |
Stock Compensation
Stock Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Compensation | 9. STOCK COMPENSATION In April 2021, the Company adopted the 2021 Employee Stock Purchase Plan (ESPP) and the 2021 Equity Incentive Plan (2021 EIP), each of which became effective in connection with the IPO. The Company has reserved 707,942 and 4,650,796 shares of Class A common stock for issuance under the ESPP and 2021 EIP, respectively. The Company may not grant any additional awards under the 2017 Equity Incentive Plan (2017 EIP). The 2017 EIP will continue to govern outstanding equity awards granted thereunder. As of December 31, 2023 , there were 288,775 shares available for issuance under the 2021 EIP. 2017 EIP and 2021 EIP Stock option activity under the 2017 EIP and 2021 EIP was as follows: NUMBER OF WEIGHTED- WEIGHTED- AGGREGATE Outstanding as of December 31, 2022 3,821,787 $ 10.30 8.51 $ 35,872 Granted 2,291,000 Exercised ( 111,927 ) Cancelled and forfeited ( 238,624 ) Outstanding as of December 31, 2023 5,762,236 $ 9.42 7.66 $ 39,197 Options exercisable as of December 31, 2023 2,611,696 $ 8.45 7.10 $ 20,112 Vested and expected to vest as of December 31, 2023 5,762,236 $ 9.42 7.66 $ 39,197 The aggregate intrinsic value of stock options exercised during the year ended December 31, 2023 was $ 1.0 million. The weighted-average grant date fair value of options granted during the years ended December 31, 2023 and 2022, was $ 5.92 per share and $ 13.63 per share, respectively. ESPP The ESPP enables eligible employees to purchase shares of the Company’s Class A common stock at the end of each offering period at a price equal to 85 % of the fair market value of the shares on the first trading day or the last trading day of the offering period, whichever is lower. Eligible employees generally include all employees. Share purchases are funded through payroll deductions of at least 1 % and up to 15 % of an employee’s eligible compensation for each payroll period. The number of shares reserved for issuance under the ESPP increase automatically on the first day of each fiscal year, beginning on January 1, 2022, by a number equal to the lesser of 440,502 shares, 1 % of the total number of shares of the Company’s capital stock (including all classes of the Company’s common stock) outstanding on the last day of the calendar month prior to the date of the increase, or such lower number of shares (including no shares) approved by the Company’s board of directors. As of December 31, 2023 , 59,808 shares have been issued pursuant to the ESPP. The ESPP generally provides for six-month consecutive offering periods beginning on September 14, 2021. The ESPP is a compensatory plan as defined by the authoritative guidance for stock compensation. Stock-based compensation expense for the year ended December 31, 2023, was $ 0.2 million. Stock-Based Compensation Expense The following tables summarize the stock-based compensation expense for stock options, restricted stock awards, and restricted stock units granted to employees and nonemployees and for ESPP stock-based compensation that was recorded in the Company’s statements of operations and comprehensive loss for the years ended December 31, 2023 and 2022 (in thousands) . Year Ended December 31, 2023 2022 Research and development $ 4,845 $ 4,592 General and administrative 6,648 4,295 Total stock-based compensation expense $ 11,493 $ 8,887 Year Ended December 31, 2023 2022 Employees $ 10,494 $ 5,975 Nonemployees 999 2,912 Total stock-based compensation expense $ 11,493 $ 8,887 As of December 31, 2023 , the Company had $ 22.0 million of unrecognized stock-based compensation expense related to unvested stock options, which is expected to be recognized over a weighted-average period of approximately 2.5 years. The fair value of stock options granted during the years ended December 31, 2023 and 2022, was estimated using the Black-Scholes option pricing model based on the following weighted average assumptions. Year Ended December 31, 2023 2022 Expected term (in years) 5.5 – 6.1 5.5 – 6.1 Expected volatility 79.5 % – 80.5 % 75.8 % – 77.6 % Risk-free rate 3.4 % – 4.7 % 1.76 % – 4.2 % Dividend yield — — Restricted Stock Units The Company grants restricted stock units (RSU) pursuant to the 2021 EIP and satisfies such grants through the issuance of the Company’s Class A common stock. The following table shows RSU activity for the period ending December 31, 2023. NUMBER OF WEIGHTED- Unvested balance at December 31, 2022 204,000 $ 18.37 Granted — — Vested ( 66,321 ) 18.36 Cancelled and forfeited ( 6,000 ) 18.60 Unvested balance at December 31, 2023 131,679 $ 18.36 For the year ended December 31, 2023, the Company recognize d $ 1.6 million o f stock-based compensation for RSUs. As of December 31, 2023 , the Company had $ 1.5 million of unrecognized stock-based compensation expense related to unvested RSUs, which is expected to be recognized over a weighted-average period of approximately 0.8 years. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | 10. EMPLOYEE BENEFIT PLANS The Company sponsors a qualified 401(k) defined contribution plan covering eligible employees. Participants may contribute a portion of their annual compensation limited to a maximum annual amount set by the Internal Revenue Service. The Company contributed $ 142,000 and $ 95,000 to the plan for the years ended December 31, 2023 and 2022, respectively. |
Licenses and Collaborations
Licenses and Collaborations | 12 Months Ended |
Dec. 31, 2023 | |
Licenses And Collaborations [Abstract] | |
Licenses and Collaborations | 11. LICENSES AND COLLABORATIONS Ares Trading S.A. In October 2020, the Company entered into a license agreement with Ares (the Ares Agreement), pursuant to which the Company obtained an exclusive worldwide license to certain patents and related know-how to research, develop, manufacture, use and commercialize therapeutic products containing atacicept, a recombinant fusion protein used to inhibit B cell growth and differentiation, which could potentially treat some autoimmune diseases. As consideration for the Ares Agreement, the Company paid a non-refundable license issue fee to Ares in the form of shares of redeemable convertible preferred stock valued at $ 13.1 million, resulting in Ares becoming a related party to the Company. The redeemable convertible preferred stock subsequently converted into 1,913,501 shares of Class A common stock in connection with the IPO. In December 2020, the Company paid Ares a milestone payment of $ 25.0 million upon delivery and initiation of the transfer of specified information and materials. The Company is obligated to pay Ares aggregate milestone payments of up to $ 176.5 million upon the achievement of specified BLA filing or regulatory approval milestones and up to $ 515.0 million upon the achievement of specified commercial milestones. The non-refundable license issue fee and milestone payment were recorded to research and development expense in the period incurred. Subsequent to the effective date of the Ares Agreement, Ares is performing manufacturing technology and know-how transfer to the Company. The Company recorded related party expense of $ 2.8 million and $ 4.5 million to Ares for these services during the years ended December 31, 2023 and 2022, respectively. These amounts are included in research and development expenses on the statements of operations and comprehensive loss. Commencing on the first commercial sale of licensed products, the Company is obligated to pay Ares tiered royalties of low double-digit to mid-teen percentages on annual net sales of the licensed products covered by the license. The Company is obligated to pay royalties on a licensed product-by-licensed product and country-by-country basis from the first commercial sale of a product in a country until the latest of (i) 15 years after the first commercial sale of such licensed product in such country; (ii) the expiration of the last valid claim of a licensed patent that covers such licensed product in, or its use, importation or manufacture with respect to, such country; and (iii) expiration of all applicable regulatory exclusivity periods, including data exclusivity, in such country with respect to such product. If the Company were to sublicense its rights under the Ares Agreement, the Company would be obligated to pay Ares a percentage ranging from the mid-single-digit to the low double-digits of specified sublicensing income received. Amplyx Pharmaceuticals, Inc. In December 2021, the Company entered into an asset purchase agreement (the Amplyx Agreement) with Amplyx Pharmaceuticals, Inc. (Amplyx), a wholly owned subsidiary of Pfizer Inc. Pursuant to the terms of the Amplyx Agreement, the Company paid $ 5.0 million to Amplyx to purchase assets relating to an anti-BKV monoclonal antibody referred to as MAU868 for the treatment of BKV infection pursuant to a License Agreement between Amplyx and Novartis International Pharmaceutical AG (Novartis). In addition, the Company recognized a $ 2.0 million contingent milestone obligation as an assumed liability related to the asset purchase. The acquisition cost of $ 7.0 million was recorded as research and development expense in the statement of operations and comprehensive loss on the acquisition date. In connection with the Amplyx asset purchase, Amplyx assigned the Exclusive License Agreement between Amplyx and Novartis (the Novartis License) and Manufacturing and Supply Agreements to the Company. Under the Novartis License, the Company has exclusive worldwide rights from Novartis to develop, manufacture and commercialize MAU868. The Company will be solely responsible for all research, development, regulatory, manufacturing and commercialization activities of MAU868. Under the Amplyx Agreement, the Company is obligated to make future milestone payments to Amplyx and Novartis upon the achievement of specified development, regulatory and commercial milestones. In September 2022, the Company and Novartis entered into an amendment to the Novartis License to modify the terms of future milestone payments. Pursuant to this amendment, the Company issued 283,034 shares of Class A common stock to Novartis in exchange for a reduction of $ 7.0 million in contingent future development milestones, including the $ 2.0 million contingent milestone obligation accrued by the Company in December 2021. The value of the shares issued was $ 5.7 million based on the closing market value of the Company’s Class A common stock as of the effective date of the amendment, and as a result of the amendment the Company recognized $ 3.7 million of research and development expense in the year ended December 31, 2022. As of December 31, 2023, the Company is obligated to make future milestone payments of up to $ 7.0 million and $ 62.0 million to Amplyx and Novartis, respectively, contingent upon the achievement of specified development, regulatory and commercial milestones. In the event that MAU868 is commercialized, the Company will be obligated to pay royalties to Amplyx and Novartis based on net sales by country and by product. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. INCOME TAXES For financial reporting purposes, income (loss) before provision for income taxes, includes the following components (in thousands) : December 31, 2023 2022 Domestic $ ( 95,989 ) $ ( 89,055 ) Foreign — — Loss before income taxes $ ( 95,989 ) $ ( 89,055 ) Provision for Income Taxes The provision for income taxes consisted of the following (in thousands) . December 31, 2023 2022 Current: Federal $ — $ — State 1 1 Total current 1 1 Total deferred — — Provision for income taxes $ 1 $ 1 A reconciliation of the provision for income taxes computed using the U.S. statutory federal income tax rate compared to the income tax provision included in the statement of operations and comprehensive loss is as follows (in thousands). December 31, 2023 2022 Tax on U.S. statutory rate on income before income taxes $ ( 20,158 ) $ ( 18,702 ) State taxes ( 489 ) 3,583 State valuation allowance 490 ( 3,582 ) Federal valuation allowance 21,250 19,643 Tax credits ( 1,598 ) ( 710 ) Other 506 ( 231 ) Provision for income taxes $ 1 $ 1 Deferred Tax Assets and Liabilities Deferred tax assets and liabilities are determined based on the differences between financial reporting and income tax bases of assets and liabilities, as well as net operating loss carryforwards and are measured using the enacted tax rates and laws in effect when the differences are expected to reverse. The significant components of the Company’s net deferred tax assets and liabilities are as follows (in thousands) . December 31, 2023 2022 Deferred tax assets: Federal and state NOL carryforward $ 27,539 $ 21,945 Research and other credits 6,051 3,762 Capitalized R&D 25,264 12,731 Fixed assets 3 2 Reserves and accruals 755 519 Stock based compensation 2,978 1,430 Other intangibles 8,313 8,583 Other DTA 384 402 Lease liability 804 1,360 Total gross DTA 72,091 50,734 Less: valuation allowance ( 71,372 ) ( 49,648 ) Total deferred tax assets 719 1,086 Deferred tax liabilities: Right of use ( 619 ) ( 1,086 ) Other DTL ( 100 ) — Total gross DTL ( 719 ) ( 1,086 ) Net deferred tax assets $ — $ — As of December 31, 2023 , the Company has federal and state net operating loss carryforwards of $ 118.9 million and $ 35.7 million, respectively, of which $ 10.2 million of federal net operating loss carryforwards and $ 0.3 million of state net operating carryforwards will begin expiring in the year 2032 and 2036 , respectively, if not utilized. The Company also has $ 109.0 million of federal net operating loss carryforwards as of December 31, 2023 that does not expire as a result of recent tax law changes. The Company has $5 .4 million of federal research and development tax credit carryforwards, which begin to expire in the year 2037. The Company has $ 2.2 million of state research and development tax credit carryforwards, which have no expiration date. Utilization of the federal and state net operating loss and tax credit carryforwards may be subject to a substantial annual limitation due to the “change in ownership” provisions of the Internal Revenue Code of 1986. The annual limitation may result in the expiration of net operating losses and credits before utilization. The Company has not performed an analysis to determine if such ownership changes have occurred. An analysis will be performed prior to recognizing the benefits of any losses or credits in the financial statements. Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. Based on the weight of all evidence including a history of operating losses, management has determined that it is not more likely than not that the net deferred tax assets will be realized. A valuation allowance of $ 71.4 million and $ 49.6 million for the year ended December 31, 2023 and 2022 has been established to offset the deferred tax assets as realization of such assets is uncertain. Uncertain Tax Benefits The Company has the following activity relating to the gross amount of unrecognized tax benefits (in thousands) : Year Ended December 31, 2023 2022 Beginning balance $ 941 $ 668 Additions based on tax positions related to prior year — 19 Decreases based on tax positions related to prior year — ( 11 ) Additions based on tax positions related to current year 572 265 Ending balance $ 1,513 $ 941 The Company accounts for income taxes in accordance with authoritative accounting guidance which states the impact of an uncertain income tax position is recognized at the largest amount that is “more likely than not” to be sustained upon audit by the relevant taxing authority. An uncertain tax position will not be recognized if it has less than a 50% likelihood of being sustained. None of these uncertain tax positions will impact the Company’s effective tax rate if assessed. The Company’s policy is to classify interest and penalties associated with unrecognized tax benefits as income tax expense. The Company had no interest or penalty accruals associated with uncertain tax benefits in its balance sheet and statement of operations for the years ended December 31, 2023 and 2022. The Company files income tax returns in the U.S. and California. The Company is not currently under examination by any major tax jurisdictions nor has it been in the past. Because of net operating losses and research credit carryovers, substantially all of our tax years remain open to examination. Although it is reasonably possible that certain unrecognized tax benefits may increase or decrease within the next 12 months due to tax examination changes, settlement activities, expirations of statute of limitations, or the impact on recognition and measurement considerations related to the results of published tax cases or other similar activities, the Company does not anticipate any significant changes to unrecognized tax benefits over the next 12 months. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. COMMITMENTS AND CONTINGENCIES Legal Proceedings The Company believes that there are no actions pending which would have a material adverse effect on its results of operations, financial condition, or cash flows. Indemnifications As of December 31, 2023, the Company did not have any material indemnification claims that were probable or reasonably possible, and consequently no related liabilities have been recorded. Employee Agreements The Company has signed employment agreements with certain key employees pursuant to which, if their employment is terminated following a change of control of the Company, the employees are entitled to receive certain benefits, including severance and accelerated vesting of equity incentives. Development and Manufacturing Services Agreements The Company enters into development and manufacturing contracts with vendors in the conduct of our business. Contracts with these vendors may be terminated at the Company’s option, with varying provisions regarding termination. If a contract with a specific vendor were to be terminated, the Company would be obligated to pay for the products or services that had been provided or received at the time the termination became effective, and potentially additional compensation based upon lead time remaining between the date of notice of cancellation and the scheduled manufacturing run. |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Stockholders | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Attributable to Common Stockholders | 14. NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS The following outstanding potentially dilutive shares were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented, because including them would have been anti-dilutive (on an as-converted basis). Year Ended December 31, 2023 2022 Class A common stock options issued and outstanding 5,762,236 3,821,787 Unvested restricted stock units 131,679 204,000 Total 5,893,915 4,025,787 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 15. RELATED PARTY TRANSACTIONS In October 2020, the Company entered into the Ares Agreement with Ares, pursuant to which the Company obtained an exclusive worldwide license to certain patents and related know-how to research, develop, manufacture, use and commercialize therapeutic products containing atacicept, a recombinant fusion protein used to inhibit B cell growth and differentiation, which could potentially treat some autoimmune diseases. Related party transactions and balances in the current periods presented are described in Note 3 and Note 11. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Event | 16. SUBSEQUENT EVENTS Effective January 29, 2024, the Company suspended and terminated the prospectus (the ATM Prospectus) related to the sale of its Class A co mmon stock in an “at-the-market” offering pursuant to the terms of the Sales Agreement (see Note 8). As a result, the Company will not make any sales of its Common Stock pursuant to the Sales Agreement unless and until a new prospectus, prospectus supplement or registration statement is filed. Deferred costs of $ 0.3 million were recognized as general and administrative expense upon termination of the ATM Prospectus. On February 1, 2024, the Company completed a follow-on public offering pursuant to which the Company issued and sold 9,274,194 shares of its Class A common stock at an offering price of $ 31.00 per share, including the exercise in full by the underwriters of their option to purchase an additional 1,209,677 shares of Class A common stock. The Company received total net proceeds of approximately $ 269.6 million, after deducting underwriting discounts and commissions of $ 17.3 million, and offering costs of approximately $ 0.7 million. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) and applicable rules and regulations of the SEC regarding financial reporting. The U.S. dollar is the Company’s functional and reporting currency. |
Emerging Growth Company Status | Emerging Growth Company Status T he Company is an emerging growth company as defined in the Jumpstart Our Business Startups Act of 2012 (JOBS Act). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with certain new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it (1) is no longer an emerging growth company or (2) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, these financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates. |
Use of Estimates | Use of Estimates The preparation of the Company’s financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Management estimates that affect the reported amounts of assets and liabilities include the research contract costs and accruals, stock-based compensation expense, and the valuation allowance for deferred tax assets. The Company evaluates and adjusts its estimates and assumptions on an ongoing basis using historical experience and other factors. Actual results could differ materially from those estimates. |
Concentrations of Credit Risk and Other Risks and Uncertainties | Concentrations of Credit Risk and Other Risks and Uncertainties Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents and marketable securities. The Company maintains bank deposits in a federally insured financial institution and these deposits may exceed federally insured limits. The Company is exposed to credit risk in the event of default by the financial institution holding its cash, cash equivalents, and marketable securities to the extent recorded in the balance sheet. The Company has not experienced any losses to date related to these concentrations. The Company’s future results of operations involve a number of other risks and uncertainties. Factors that could affect the Company’s future operating results and cause actual results to vary materially from expectations include, but are not limited to, uncertainty of results of clinical trials and reaching milestones, uncertainty of regulatory approval of the Company’s current and potential future product candidates, uncertainty of market acceptance of the Company’s product candidates, competition from substitute products and larger companies, securing and protecting proprietary technology, strategic relationships and dependence on key individuals or sole-source suppliers. The Company relies on one supply chain for each of its product candidates. If any of the single source suppliers in any of the supply chains fails to satisfy the Company’s requirements on a timely basis, it could suffer delays in its clinical development programs and activities, which could adversely affect operating results. The Company’s product candidates require approvals from the U.S. Food and Drug Administration and comparable foreign regulatory authorities prior to commercial sales in their respective jurisdictions. There can be no assurance that any product candidates will receive the necessary approvals. If the Company was denied approval, approval was delayed, or the Company was unable to maintain approval for any product candidate, it could have a materially adverse impact on the Company. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Cash equivalents consist of money market funds and are stated at fair value. |
Restricted Cash | Restricted Cash Restricted cash represents cash held by a financial institution as collateral for a letter of credit securing its operating lease for office and laboratory space, which is classified as a non-current asset on the balance sheets based on the maturity of the lease. |
Marketable Securities | Marketable Securities The Company holds investments in marketable securities, consisting of U.S. government securities. Marketable debt securities with stated maturities of three months or less from the date of purchase are classified as cash equivalents and those with stated maturities of greater than three months as marketable securities on the balance sheet. The Company determines the appropriate classification of marketable debt securities at the time of purchase. The Company has the ability, if necessary, to liquidate its investments to meet its liquidity needs in the next 12 months, without significant penalty. Accordingly, those investments with contractual maturities greater than one year from the date of purchase are classified as current assets on the accompanying balance sheets. All marketable debt securities are classified as available-for-sale and are reported at estimated fair value, with unrealized gains and losses recorded in accumulated other comprehensive loss within stockholders’ equity. Interest, amortization and accretion of purchase premiums and discounts on marketable debt securities are included in other income (expense), net, in the statements of operations and comprehensive loss. The cost of available-for-sale marketable securities sold is based on the specific identification method. Realized gains and losses on the sale of available-for-sale marketable securities are recorded in other income, net in the statements of operations and comprehensive loss. The Company regularly reviews all of the marketable securities for decline in fair value to determine whether unrealized losses have resulted from credit loss or other factors. The review includes considerations for the cause of the impairment but is not limited to (i) the consideration of the cause of the decline, (ii) any currently recorded expected credit losses and (iii) the creditworthiness of the respective security issuers. A decline of fair value below cost basis is considered an other-than-temporary impairment if the Company has the intent to sell the security or it is more likely than not that the company will be required to sell the security before recovery of the entire cost basis. Regardless of the Company’s intent or requirement to sell the security, an impairment is considered other-than-temporary if the Company does not expect to recover the entire cost basis. In those instances, an impairment charge equal to the difference between fair value and the cost basis is recorded in other income (expense), on the statements of operations and comprehensive loss. No impairment loss was recognized for the fiscal years ended December 31, 2023 and 2022. The amortized or accreted cost basis of the marketable securities approximates its fair value. |
Deferred Offering Costs | Deferred Offering Costs Deferred offering costs consisting of legal, accounting and filing fees relating to equity offerings. Deferred offering costs are included in other long-term assets on the Company’s balance sheets. Upon completion of the offering, these amounts are offset against the proceeds of the offering. |
Leases | Leases The Company leases office space under operating leases and determines if the arrangement is a lease at inception. These leases contain lease and non-lease components. Non-lease components include payments for maintenance, utilities, real estate taxes, and management fees. The lease and non-lease components are combined and accounted as a single lease component. Payments made under operating leases (net of any incentive received from the lessors) are recorded on a straight-line basis over the term of the lease. These leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on information available at commencement date in determining the present value of lease payments. The incremental borrowing rate is a hypothetical rate based on the Company’s understanding of what the credit rating would be in a similar economic environment. Operating leases are included in operating lease right-of-use assets and operating lease liabilities, current and non-current, on the balance sheets. Leases may include one or more options to renew. The Company does not assume renewals in determination of the lease term unless the renewals are deemed to be reasonably assured. The lease agreements generally do not contain any material residual value guarantees or material restrictive covenants. |
Foreign Currency Translations | Foreign Currency Translations Transactions denominated in foreign currencies are initially measured in U.S. dollars using the exchange rate on the date of the transaction. Foreign currency denominated monetary assets and liabilities are subsequently re-measured at the end of each reporting period using the exchange rate at that date, with the corresponding foreign currency transaction gain or loss recorded in the statements of operations and statements of cash flows. Nonmonetary assets and liabilities are not subsequently re-measured. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the exchange price to sell an asset or transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Fair value should be based on the assumptions market participants would use when pricing the asset or liability. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Fair value measurements are classified and disclosed in one of the following three categories: Level 1 – Quoted unadjusted prices for identical instruments in active markets. Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all observable inputs and significant value drivers are observable in active markets. Level 3 – Model derived valuations in which one or more significant inputs or significant value drivers are unobservable, including assumptions developed by the Company. Fair value accounting is applied to all financial assets and liabilities that are recognized or disclosed in the financial statements on a recurring basis. The Company’s financial instruments consist of cash and cash equivalents, restricted cash, marketable securities, prepaid expenses and other current assets, non-marketable equity securities, accounts payable and accrued expenses and long-term debt. Cash, restricted cash, and marketable securities and non-marketable securities are reported at their respective fair values on the Company’s balance sheets. The remaining financial instruments are reported on the Company’s balance sheets at cost, which approximate their fair value due to their short-term nature. Money market funds are highly liquid investments that are actively traded. The pricing information for the Company’s money market funds are readily available and can be independently validated as of the measurement date. This approach results in the classification of these securities as Level 2 of the fair value hierarchy. The Company’s non-marketable equity securities (see Note 5) are measured at fair value using an option pricing valuation methodology. The option pricing methodology relies on risk-neutral valuation which calculates the value of an asset by discounting the expected value of its future payoffs at the risk-free rate of return. The fair value of the non-marketable equity securities is derived from quoted prices for similar instruments and observable inputs in active markets. This approach results in the classification of these securities as Level 2 of the fair value hierarchy. There were no transfers between Levels 1, 2, or 3 for any of the periods presented. As of December 31, 2023, and December 31, 2022 , the Company held $ 44.7 million and $ 42.5 million, respectively, in money market funds. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss consists of two components: net loss and other comprehensive loss. Other comprehensive loss refers to unrealized gains and losses that are recorded as an element of stockholders’ equity and are excluded from net loss. For the year ended December 31, 2023, other comprehensive loss consists of unrealized gains and losses on marketable securities. |
Research and Development Costs | Research and Development Costs Research and development costs are expensed as incurred and consist primarily of employees’ salaries and related benefits, including stock-based compensation and termination expenses for employees engaged in research and development efforts, allocated overhead including rent, depreciation, information technology and utilities, contracted services, license fees, and external expenses to conduct and support the Company’s operations that are directly attributable to the Company’s research and development efforts. Payments made to third parties under these arrangements in advance of the performance of the related services by the third parties are recorded as prepaid expenses until the services are rendered. Costs incurred in obtaining technology licenses including upfront and milestone payments incurred under the Company’s licensing agreements are recorded as expense in the period in which they are incurred, provided that the licensed technology, method or process has no alternative future uses other than for the Company’s research and development activities. Where contingent milestone payments are due to third parties under license or other agreements, the milestone payment obligations are recognized as expense when achievement of the contingent milestone is probable, which is generally upon achievement of the milestone. |
Research Contract Costs And Accruals | Research Contract Costs and Accruals The Company enters into various research and development and other agreements with commercial firms, researchers, and others for provisions of goods and services from time to time. These agreements are generally cancellable, and the related costs are recorded as research and development expenses as incurred. The Company records accruals for estimated ongoing research and development costs. When evaluating the adequacy of the accrued liabilities, the Company analyzes progress of the studies or clinical trials, including the phase or completion of events, invoices received and contracted costs. Significant judgments and estimates are made in determining the accrued balances at the end of any reporting period. Actual results could differ materially from the Company’s estimates. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes compensation expense based on estimated fair values for all stock-based payment awards made to the Company’s employees, nonemployee directors and consultants that are expected to vest. The valuation of stock option awards is determined at the date of grant using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the Company to make assumptions and judgments about the inputs used in the calculations, such as the fair value of the common stock, expected term, expected volatility of the Company’s common stock, risk-free interest rate and expected dividend yield. The valuation of restricted stock awards is measured by the fair value of the Company’s Class A common stock on the date of the grant. For all stock options granted, the Company calculated the expected term using the simplified method (derived from the average midpoint between the weighted average vesting period and the contractual term of the award) for “plain vanilla” stock option awards, as the Company has limited historical information to develop expectations about future exercise patterns and post vesting employment termination behavior. The estimate of expected volatility is based on comparative companies’ volatility. The risk-free rate is based on the yield available on United States Treasury zero-coupon issues corresponding to the expected term of the award. The Company records forfeitures when they occur. The Company determines the fair value of its Class A common stock using the market closing price on the date of grant. The Company records compensation expense for service-based awards on a straight-line basis over the requisite service period, which is generally the vesting period of the award. The amount of stock-based compensation expense recognized during a period is based on the value of the portion of the awards that are ultimately expected to vest. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred income taxes are recorded for temporary differences between financial statement carrying amounts and the tax basis of assets and liabilities. Deferred tax assets and liabilities reflect tax rates expected to be in effect for the years in which the differences are expected to be reversed. A valuation allowance is provided if it is more likely than not that some or all of the deferred tax assets will not be realized. |
Net Loss Per Share Attributable to Common Stockholders | Net Loss Per Share Attributable to Common Stockholders Net loss per share of common stock is computed using the two-class method required for multiple classes of common stock and participating securities based upon their respective rights to receive dividends as if all income for the period has been distributed. The rights, including the liquidation and dividend rights and sharing of losses, of the Class A and Class B common stock are identical, other than voting rights. As the liquidation and dividend rights and sharing of losses are identical, the undistributed earnings are allocated on a proportionate basis and the resulting net loss per share attributed to common stockholders is therefore the same for Class A and Class B common stock on an individual or combined basis. Basic net loss per share attributable to common stockholders is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, adjusted for outstanding shares that are subject to repurchase. Diluted net loss per share is computed by giving effect to all potentially dilutive securities outstanding for the period using the treasury stock method or the if-converted method based on the nature of such securities. For periods in which the Company reports net losses, diluted net loss per share attributable to common stockholders is the same as basic net loss per share attributable to common stockholders, because potentially dilutive shares are not assumed to have been issued if their effect is anti-dilutive. |
Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Issued Accounting Pronouncements Not Yet Adopted In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. This standard clarifies the guidance in Topic 210, when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security and introduces new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. The guidance is effective for annual periods beginning after December 15, 2023, with early adoption permitted. The Company does not expect that the adoption of this standard will have a material impact on its financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures (Topic 740). The ASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid. The ASU is effective on a prospective basis for annual periods beginning after December 15, 2024. Early adoption is also permitted for annual financial statements that have not yet been issued or made available for issuance. This ASU will result in the required additional disclosures being included in the Company’s financial statements upon adoption. |
Other Financial Statement Inf_2
Other Financial Statement Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Financial Statement Information [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following (in thousands) . December 31, December 31, Prepaid clinical trial and drug manufacturing costs $ 6,480 $ 8,487 Prepaid insurance 597 998 Prepaid equity financing costs 410 490 Prepaid rent 257 247 Prepaid software costs 237 104 Prepaid recruiting fees 109 — Other 3,217 719 Total prepaid expenses and other current assets $ 11,307 $ 11,045 |
Schedule of Accrued Expenses And Other Current Liabilities | Accrued expenses and other current liabilities consist of the following (in thousands) . December 31, December 31, Accrued payroll $ 3,932 $ 3,217 Accrued clinical and drug manufacturing expenses 2,213 4,334 Related party payable 1,926 2,780 Accrued legal fees 59 338 Accrued expenses and other 619 295 Total accrued expenses and other current liabilities $ 8,749 $ 10,964 |
Cash Equivalents And Marketab_2
Cash Equivalents And Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Summarizes the Unrealized Gains and Losses in Fair Value of the Company's Investments in Debt Securities | The following table presents the Company’s financial assets measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands) : December 31, 2023 Fair Value Hierarchy Level Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Money market funds Level 1 $ 44,650 $ - $ - $ 44,650 U.S. Government bonds Level 2 63,619 70 ( 6 ) 63,683 U.S. Government agency securities Level 2 19,665 7 ( 14 ) 19,658 Corporate debt securities Level 2 31,500 194 - 31,694 Total cash equivalents and marketable securities $ 159,434 $ 271 $ ( 20 ) $ 159,685 December 31, 2022 Fair Value Hierarchy Level Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Money market funds Level 1 $ 42,495 $ - $ - $ 42,495 U.S. Government bonds Level 2 71,418 1 ( 225 ) 71,194 Total cash equivalents and marketable securities $ 113,913 $ 1 $ ( 225 ) $ 113,689 |
Schedule of Estimated Fair Value of Investments in Available-for-sale Marketable Debt Securities | The following table classifies the estimated fair value of investments in available-for-sale marketable debt securities by effective contractual maturity dates (in thousands) : December 31, 2023 Due within one year $ 93,845 Due after one year to two years 21,190 Total marketable securities $ 115,035 |
Non-Marketable Equity Securit_2
Non-Marketable Equity Securities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Non-marketable Equity Securities | The following table summarizes the value of non-marketable equity securities using the measurement alternative (in thousands) : December 31, December 31, Initial cost $ 1,759 $ 1,759 Cumulative net fair value loss ( 1,748 ) ( 1,701 ) Carrying value of non-marketable equity securities $ 11 $ 58 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Lease Cost | Net lease cost recognized for 2023 is summarized as follows (in thousands) : Year Ended December 31, 2023 Year Ended December 31, 2022 Operating lease cost $ 2,577 $ 2,378 Sublease income ( 1,928 ) ( 1,928 ) Net lease cost $ 649 $ 450 |
Schedule of lease liabilities based on minimum lease commitment | As of December 31, 2023, the maturities of the lease liabilities based on minimum lease commitment amount are as follows (in thousands) : 2024 $ 3,022 2025 1,880 2026 - 2027 - Total minimum lease payments 4,902 Less: Imputed interest ( 1,071 ) Present value of operating lease liabilities 3,831 Less: Current portion of operating lease liabilities ( 2,436 ) Non-current operating lease liabilities $ 1,395 |
Schedule of Receivable Future Annual Sublease Payments | As of December 31, 2023, under the terms of the sublease agreement, the Company is entitled to receive future annual sublease payments as follows (in thousands) : 2024 $ 1,954 2025 1,496 Total sublease payments $ 3,450 |
Note Payable (Table)
Note Payable (Table) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable | Note payable consists of the following ($ in thousands) : December 31, December 31, Maturity Effective Interest Rate Amount Effective Interest Rate Amount Collateralized note 2021-12 2027 14.73 % $ 5,000 13.57 % $ 5,000 Collateralized note 2022-11 2027 14.87 % 20,000 13.74 % 20,000 Collateralized note 2023-12 2027 15.37 % 25,000 — Total borrowings 50,000 25,000 Less: Debt issuance costs ( 123 ) ( 190 ) Net carrying amount of debt $ 49,877 $ 24,810 |
Schedule Principal Installments Due | Principal installments due on the notes are as follows (in thousands) : 2024 $ — 2025 — 2026 — 2027 50,000 Total long-term debt $ 50,000 |
Stock Compensation (Table)
Stock Compensation (Table) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Share-based Compensation Arrangements by Share-based Payment Award | Stock option activity under the 2017 EIP and 2021 EIP was as follows: NUMBER OF WEIGHTED- WEIGHTED- AGGREGATE Outstanding as of December 31, 2022 3,821,787 $ 10.30 8.51 $ 35,872 Granted 2,291,000 Exercised ( 111,927 ) Cancelled and forfeited ( 238,624 ) Outstanding as of December 31, 2023 5,762,236 $ 9.42 7.66 $ 39,197 Options exercisable as of December 31, 2023 2,611,696 $ 8.45 7.10 $ 20,112 Vested and expected to vest as of December 31, 2023 5,762,236 $ 9.42 7.66 $ 39,197 |
Summary of Share-based Payment Arrangement, Expensed and Capitalized, Amount | The following tables summarize the stock-based compensation expense for stock options, restricted stock awards, and restricted stock units granted to employees and nonemployees and for ESPP stock-based compensation that was recorded in the Company’s statements of operations and comprehensive loss for the years ended December 31, 2023 and 2022 (in thousands) . Year Ended December 31, 2023 2022 Research and development $ 4,845 $ 4,592 General and administrative 6,648 4,295 Total stock-based compensation expense $ 11,493 $ 8,887 Year Ended December 31, 2023 2022 Employees $ 10,494 $ 5,975 Nonemployees 999 2,912 Total stock-based compensation expense $ 11,493 $ 8,887 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of stock options granted during the years ended December 31, 2023 and 2022, was estimated using the Black-Scholes option pricing model based on the following weighted average assumptions. Year Ended December 31, 2023 2022 Expected term (in years) 5.5 – 6.1 5.5 – 6.1 Expected volatility 79.5 % – 80.5 % 75.8 % – 77.6 % Risk-free rate 3.4 % – 4.7 % 1.76 % – 4.2 % Dividend yield — — |
Summary of Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity | The following table shows RSU activity for the period ending December 31, 2023. NUMBER OF WEIGHTED- Unvested balance at December 31, 2022 204,000 $ 18.37 Granted — — Vested ( 66,321 ) 18.36 Cancelled and forfeited ( 6,000 ) 18.60 Unvested balance at December 31, 2023 131,679 $ 18.36 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) Before Provision for Income Taxes | For financial reporting purposes, income (loss) before provision for income taxes, includes the following components (in thousands) : December 31, 2023 2022 Domestic $ ( 95,989 ) $ ( 89,055 ) Foreign — — Loss before income taxes $ ( 95,989 ) $ ( 89,055 ) |
Schedule of Components of Provision for Income Taxes | The provision for income taxes consisted of the following (in thousands) . December 31, 2023 2022 Current: Federal $ — $ — State 1 1 Total current 1 1 Total deferred — — Provision for income taxes $ 1 $ 1 |
Schedule of Reconciliation of Provision for Income Taxes | A reconciliation of the provision for income taxes computed using the U.S. statutory federal income tax rate compared to the income tax provision included in the statement of operations and comprehensive loss is as follows (in thousands). December 31, 2023 2022 Tax on U.S. statutory rate on income before income taxes $ ( 20,158 ) $ ( 18,702 ) State taxes ( 489 ) 3,583 State valuation allowance 490 ( 3,582 ) Federal valuation allowance 21,250 19,643 Tax credits ( 1,598 ) ( 710 ) Other 506 ( 231 ) Provision for income taxes $ 1 $ 1 |
Summary of Deferred Tax Assets and Liabilities | The significant components of the Company’s net deferred tax assets and liabilities are as follows (in thousands) . December 31, 2023 2022 Deferred tax assets: Federal and state NOL carryforward $ 27,539 $ 21,945 Research and other credits 6,051 3,762 Capitalized R&D 25,264 12,731 Fixed assets 3 2 Reserves and accruals 755 519 Stock based compensation 2,978 1,430 Other intangibles 8,313 8,583 Other DTA 384 402 Lease liability 804 1,360 Total gross DTA 72,091 50,734 Less: valuation allowance ( 71,372 ) ( 49,648 ) Total deferred tax assets 719 1,086 Deferred tax liabilities: Right of use ( 619 ) ( 1,086 ) Other DTL ( 100 ) — Total gross DTL ( 719 ) ( 1,086 ) Net deferred tax assets $ — $ — |
Summary of Activity Relating to Gross Amount of Unrecognized Tax Benefits | The Company has the following activity relating to the gross amount of unrecognized tax benefits (in thousands) : Year Ended December 31, 2023 2022 Beginning balance $ 941 $ 668 Additions based on tax positions related to prior year — 19 Decreases based on tax positions related to prior year — ( 11 ) Additions based on tax positions related to current year 572 265 Ending balance $ 1,513 $ 941 |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable to Common Stockholders (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Summary of Dilutive Shares Excluded From Computation of Diluted Net Loss Per Share | The following outstanding potentially dilutive shares were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented, because including them would have been anti-dilutive (on an as-converted basis). Year Ended December 31, 2023 2022 Class A common stock options issued and outstanding 5,762,236 3,821,787 Unvested restricted stock units 131,679 204,000 Total 5,893,915 4,025,787 |
Organization and Description _2
Organization and Description of the Business - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Feb. 06, 2023 | Feb. 14, 2022 | Oct. 31, 2020 | Dec. 31, 2023 | Dec. 31, 2022 |
Accumulated deficit | $ 309,102 | $ 213,112 | |||
Cash and cash equivalents and marketable securities | $ 160,700 | ||||
Common Class A [Member] | |||||
Stock shares issued during the period new issues shares | 2,142,857 | 748,959 | |||
Common Class A [Member] | IPO [Member] | |||||
Conversion of redeemable convertible preferred stock to common stock | 1,913,501 | ||||
Common Class A [Member] | Follow-on Public Offering [Member] | |||||
Stock shares issued during the period new issues shares | 16,428,572 | 5,742,026 | |||
Sale of stock, price per share | $ 7 | $ 15 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounting Policies [Line Items] | ||
Impairment loss on available-for-sale marketable securities | $ 0 | $ 0 |
Operating lease right-of-use assets | 2,949 | 5,173 |
Operating Lease, Liability | 3,831 | |
Money Market Funds [Member] | ||
Accounting Policies [Line Items] | ||
Money market funds | $ 44,700 | $ 42,500 |
Other Financial Statement Inf_3
Other Financial Statement Information - Schedule Of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other Financial Statement Information [Abstract] | ||
Prepaid clinical trial and drug manufacturing costs | $ 6,480 | $ 8,487 |
Prepaid insurance | 597 | 998 |
Prepaid equity financing costs | 410 | 490 |
Prepaid rent | 257 | 247 |
Prepaid software costs | 237 | 104 |
Prepaid recruiting fees | 109 | 0 |
Other | 3,217 | 719 |
Total prepaid expenses and other current assets | $ 11,307 | $ 11,045 |
Other Financial Statement Inf_4
Other Financial Statement Information - Schedule Of Accrued Expenses And Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accrued payroll | $ 3,932 | $ 3,217 |
Accrued clinical and drug manufacturing expenses | 2,213 | 4,334 |
Accrued legal fees | 59 | 338 |
Accrued expenses and other | 619 | 295 |
Total accrued expenses and other current liabilities | 8,749 | 10,964 |
Related Party [Member] | ||
Related party payable | $ 1,926 | $ 2,780 |
Cash Equivalents And Marketab_3
Cash Equivalents And Marketable Securities - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Cash Equivalents And Marketable Securities [Abstract] | ||
Fair value of the debt securities | $ 115 | $ 71.2 |
Cash Equivalents And Marketab_4
Cash Equivalents And Marketable Securities - Summarizes the Unrealized Gains and Losses in Fair Value of the Company's Investments in Debt Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Marketable Securities [Line Items] | ||
Amortized Cost | $ 159,434 | $ 113,913 |
Unrealized Gains | 271 | 1 |
Unrealized Losses | (20) | (225) |
Estimated Fair Value | 159,685 | 113,689 |
Money Market Funds [Member] | Level 1 | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 44,650 | 42,495 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Estimated Fair Value | 44,650 | 42,495 |
U.S. Government Bonds [Member] | Level 2 | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 63,619 | 71,418 |
Unrealized Gains | 70 | 1 |
Unrealized Losses | (6) | (225) |
Estimated Fair Value | 63,683 | $ 71,194 |
US Government Agencies Debt Securities [Member] | Level 2 | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 19,665 | |
Unrealized Gains | 7 | |
Unrealized Losses | (14) | |
Estimated Fair Value | 19,658 | |
Corporate Debt Securities [Member] | Level 2 | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 31,500 | |
Unrealized Gains | 194 | |
Unrealized Losses | 0 | |
Estimated Fair Value | $ 31,694 |
Cash Equivalents And Marketab_5
Cash Equivalents And Marketable Securities - Schedule of Estimated Fair Value of Marketable Securities by Stated Contractual Maturities (Detail) $ in Thousands | Dec. 31, 2023 USD ($) |
Cash Equivalents And Marketable Securities [Abstract] | |
Due within one year | $ 93,845 |
Due after one year to two years | 21,190 |
Total marketable securities | $ 115,035 |
Non-Marketable Equity Securit_3
Non-Marketable Equity Securities - Summary of Non-marketable Equity Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Initial cost | $ 1,759 | $ 1,759 |
Cumulative net fair value loss | (1,748) | (1,701) |
Carrying value of non-marketable equity securities | $ 11 | $ 58 |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Operating lease cost | $ 2,577 | $ 2,378 |
Sublease income | (1,928) | (1,928) |
Net lease cost | $ 649 | $ 450 |
Leases - Schedule of Lease Liab
Leases - Schedule of Lease Liabilities Based on Minimum Lease Commitment (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2024 | $ 3,022 | |
2025 | 1,880 | |
2026 | 0 | |
2027 | 0 | |
Total minimum lease payments | 4,902 | |
Less: Imputed interest | (1,071) | |
Present value of operating lease liabilities | 3,831 | |
Less: Current portion of operating lease liabilities | (2,436) | $ (2,645) |
Non-current operating lease liabilities | $ 1,395 | $ 3,831 |
Leases - Schedule of receivable
Leases - Schedule of receivable future annual sublease payments (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 1,954 |
2025 | 1,496 |
Total sublease payments | $ 3,450 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Millions | Dec. 31, 2023 USD ($) |
Lessee, Lease, Description [Line Items] | |
Operating lease minimum future commitments | $ 4.3 |
Operating Lease, Weighted Average Remaining Lease Term | 1 year 6 months |
Operating Lease, Weighted Average Discount Rate, Percent | 9.10% |
Note Payable - Schedule of Note
Note Payable - Schedule of Notes Payable (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Total borrowings | $ 50,000 | $ 25,000 |
Less: Debt issuance costs | (123) | (190) |
Net carrying amount of debt | $ 49,877 | $ 24,810 |
LIBOR [Member] | Collateralized note 2021-12 | ||
Debt Instrument [Line Items] | ||
Collateralized debt instrument maturity date. | 2027 | |
Collateralized note , Effective interest rate | 14.73% | 13.57% |
Collateralized note ,Amount | $ 5,000 | $ 5,000 |
SOFR [Member] | Collateralized note 2022-11 | ||
Debt Instrument [Line Items] | ||
Collateralized debt instrument maturity date. | 2027 | |
Collateralized note , Effective interest rate | 14.87% | 13.74% |
Collateralized note ,Amount | $ 20,000 | $ 20,000 |
SOFR [Member] | Collateralized note 2023-12 | ||
Debt Instrument [Line Items] | ||
Collateralized debt instrument maturity date. | 2027 | |
Collateralized note , Effective interest rate | 15.37% | |
Collateralized note ,Amount | $ 25,000 | $ 0 |
Note Payable - Additional Infor
Note Payable - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Carrying amount of debt outstanding | $ 50,000 | |
Base Rate [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 8.25% | |
Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Revolving credit facility with borrowing capacity | $ 50,000 | |
Carrying amount of debt outstanding | $ 50,000 | |
Additional borrowing capacity | $ 20,000 | |
Remaining capacity available | $ 25,000 | |
Debt facility payments description | The interest-only payment period was also extended by 12 months to December 2026. | |
Prepayment of the loan | 7% |
Note Payable - Schedule Princip
Note Payable - Schedule Principal Installments Due (Detail) $ in Thousands | Dec. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2027 | $ 50,000 |
Total long-term debt | $ 50,000 |
Common Stock - Additional Infor
Common Stock - Additional Information (Detail) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Feb. 06, 2023 | Feb. 14, 2022 | Sep. 30, 2022 | May 31, 2022 | Sep. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Class Of Stock [Line Items] | |||||||
Maximum aggregate offering price of common stock, preferred stock, debt securities and warrants | $ 400,000,000 | ||||||
Available for Issuance and Sale Under Sales Agreement | 150,000,000 | ||||||
Cowen and Company, LLC [Member] | Maximum [Member] | 2022 ATM facility [Member] | |||||||
Class Of Stock [Line Items] | |||||||
Maximum aggregate offering price of common stock, preferred stock, debt securities and warrants | $ 150,000,000 | ||||||
Common Class A [Member] | |||||||
Class Of Stock [Line Items] | |||||||
Common stock, shares authorized | 500,000,000 | 500,000,000 | |||||
Common stock, Par value | $ 0.001 | $ 0.001 | |||||
Common stock conversion basis | one | ||||||
Cash dividends | $ 0 | ||||||
Stock shares issued during the period new issues shares | 2,142,857 | 748,959 | |||||
Shares converted | 99,238 | 210,000 | |||||
Company shares issued | 283,034 | 283,034 | |||||
Common Class A [Member] | Follow-on Public Offering [Member] | |||||||
Class Of Stock [Line Items] | |||||||
Stock shares issued during the period new issues shares | 16,428,572 | 5,742,026 | |||||
Sale of stock, price per share | $ 7 | $ 15 | |||||
Common Class B [Member] | |||||||
Class Of Stock [Line Items] | |||||||
Common stock, shares authorized | 14,600,000 | ||||||
Common stock, Par value | $ 0.001 | ||||||
Cash dividends | $ 0 | ||||||
Shares converted | 99,238 | 210,000 |
Stock Compensation - Additional
Stock Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Apr. 30, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share based compensation arrangement by share based payment award, Options exercised in period, Total intrinsic value | $ 1,000 | ||
Number of shares issued under share based payment arrangement | 59,808 | ||
Stock-based compensation expense | $ 11,493 | $ 8,887 | |
Employee Stock Purchase Plan ESPP [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock capital, Shares reserved for future issuance | 707,942 | ||
2021 Equity Incentive Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock capital, Shares reserved for future issuance | 4,650,796 | ||
Share-based compensation arrangement by share-based payment award, Number of shares available for issuance | 288,775 | ||
2017 and 2021 Amended Equity Incentive Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share based compensation arrangement by share based payment award, Options granted in period, Weighted average grant date fair value | $ 5.92 | $ 13.63 | |
Unvested Stock Options And Restricted Stock Awards [Member] | 2017 and 2021 Amended Equity Incentive Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share based compensation, Nonvested awards, Compensation cost not yet recognized Stock options and equity instruments other than options | $ 22,000 | ||
Share based compensation, Nonvested awards, Compensation cost not yet recognized period of recognition stock options and equity instruments other than options | 2 years 6 months | ||
Unvested Stock Options And Restricted Stock Unit [Member] | 2017 and 2021 Amended Equity Incentive Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share based compensation, Nonvested awards, Compensation cost not yet recognized Stock options and equity instruments other than options | $ 1,500 | ||
ESPP [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock Percent of Fair Market Value | 85% | ||
Share purchases funded through payroll deductions for employee's eligible minimum annual compensation, percentage | 1% | ||
Share purchases funded through payroll deductions for employee's eligible maximum annual compensation, percentage | 15% | ||
Potential increase in shares reserved for future issuance (in shares) | 440,502 | ||
Potential increase in shares reserved for future issuance as percentage of outstanding share | 1% | ||
Stock-based compensation expense | $ 200 | ||
Restricted Stock [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted average Grant date fair value | $ 18.36 | $ 18.37 | |
Restricted Stock [Member] | Unvested Stock Options And Restricted Stock Unit [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share based compensation, Nonvested awards, Compensation cost not yet recognized period of recognition stock options and equity instruments other than options | 9 months 18 days | ||
Restricted Stock Units R S U [Member] | 2017 and 2021 Amended Equity Incentive Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 1,600 |
Stock Compensation - Summary of
Stock Compensation - Summary of Share-based Compensation Arrangements by Share-based Payment Award (Details) - 2017 EIP And 2021 EIP [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Number of Options, Beginning | 3,821,787 | |
Number of options, Granted | 2,291,000 | |
Number of Options, Exercised | (111,927) | |
Number of Options, Cancelled and forfeited | (238,624) | |
Number of Options, Ending | 5,762,236 | 3,821,787 |
Number of Options, Options exercisable | 2,611,696 | |
Number of Options, Vested and expected to vest | 5,762,236 | |
Weighted average exercise price Opening balance | $ 10.3 | |
Weighted average exercise price Ending balance | 9.42 | $ 10.3 |
Weighted average exercise price, Options exercisable | 8.45 | |
Weighted average exercise price, Vested and expected to vest | $ 9.42 | |
Weighted average remaining contractual term | 7 years 7 months 28 days | 8 years 6 months 3 days |
Weighted average remaining contractual term, Options exercisable | 7 years 1 month 6 days | |
Weighted average remaining contractual term, Vested and expected to vest | 7 years 7 months 28 days | |
Intrinsic Value | $ 39,197 | $ 35,872 |
Intrinsic Value, Options exercisable | 20,112 | |
Intrinsic Value, Vested and expected to vest | $ 39,197 |
Stock Compensation - Summary _2
Stock Compensation - Summary of Share-based Payment Arrangement, Expensed and Capitalized, Amount (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based Payment Arrangement, Expense | $ 11,493 | $ 8,887 |
Employees [Member] | ||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based Payment Arrangement, Expense | 10,494 | 5,975 |
Nonemployees [Member] | ||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based Payment Arrangement, Expense | 999 | 2,912 |
Research and Development [Member] | ||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based Payment Arrangement, Expense | 4,845 | 4,592 |
General and Administrative [Member] | ||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based Payment Arrangement, Expense | $ 6,648 | $ 4,295 |
Stock Compensation - Schedule o
Stock Compensation - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule Of Share Based Payment Award Stock Options Valuation Assumptions [Line Items] | ||
Expected volatility, Minimum | 79.50% | 75.80% |
Expected volatility, Maximum | 80.50% | 77.60% |
Risk-free rate, Minimum | 3.40% | 1.76% |
Risk-free rate, Maximum | 4.70% | 4.20% |
Minimum [Member] | ||
Schedule Of Share Based Payment Award Stock Options Valuation Assumptions [Line Items] | ||
Expected term (in years) | 5 years 6 months | 5 years 6 months |
Maximum [Member] | ||
Schedule Of Share Based Payment Award Stock Options Valuation Assumptions [Line Items] | ||
Expected term (in years) | 6 years 1 month 6 days | 6 years 1 month 6 days |
Stock Compensation - Summary _3
Stock Compensation - Summary of Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity (Details) - Restricted Stock [Member] | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Unvested as of December 31, 2022 | shares | 204,000 |
Granted | shares | 0 |
Vested | shares | (66,321) |
Cancelled and forfeited | shares | (6,000) |
Unvested as of December 31, 2023 | shares | 131,679 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 18.37 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 0 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 18.36 |
Weighted Average Grant Date Fair Value, Cancelled and Forfeited | $ / shares | 18.6 |
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 18.36 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Retirement Benefits [Abstract] | ||
Employer contributions | $ 142,000 | $ 95,000 |
Licenses and Collaborations - A
Licenses and Collaborations - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |||||
Oct. 31, 2020 | Sep. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
License And Collaborations [Line Items] | |||||||
Research and development | $ 78,225 | $ 68,993 | |||||
Ares Agreement [Member] | Ares Trading S A [Member] | |||||||
License And Collaborations [Line Items] | |||||||
Temporary equity shares issued during the period value | $ 13,100 | ||||||
Milestone payments payable | $ 25,000 | ||||||
Related party transaction, expenses from transactions with related party | 2,800 | $ 4,500 | |||||
Ares Agreement [Member] | Ares Trading S A [Member] | Achievement Of Specified BLA Filing Or Regulatory Approval Milestones [Member] | |||||||
License And Collaborations [Line Items] | |||||||
Milestone payments payable | $ 176,500 | ||||||
Ares Agreement [Member] | Ares Trading S A [Member] | Achievement Of Specified Commercial Milestones [Member] | |||||||
License And Collaborations [Line Items] | |||||||
Milestone payments payable | $ 515,000 | ||||||
Amplyx Agreement [Member] | |||||||
License And Collaborations [Line Items] | |||||||
Milestone payments payable | $ 2,000 | ||||||
Acquisition cost | 5,000 | ||||||
Research and development | $ 3,700 | 7,000 | |||||
Reduction in contingent future development | 7,000 | ||||||
Contingent milestone obligation accrued | $ 2,000 | ||||||
Company shares issued | $ 5,700 | ||||||
Amplyx Agreement [Member] | Amplyx and Novartis [Member] | Achievement of Various Clinical Development and Regulatory Milestones [Member] | |||||||
License And Collaborations [Line Items] | |||||||
Milestone payments payable | 7,000 | ||||||
Novartis [Member] | Amplyx and Novartis [Member] | Achievement of Various Clinical Development and Regulatory Milestones [Member] | |||||||
License And Collaborations [Line Items] | |||||||
Milestone payments payable | $ 62,000 | ||||||
Common Class A [Member] | |||||||
License And Collaborations [Line Items] | |||||||
Issuance of common stock for payment of licensing fees, net of offering costs, shares | 283,034 | 283,034 | |||||
Common Class A [Member] | IPO [Member] | |||||||
License And Collaborations [Line Items] | |||||||
Conversion of redeemable convertible preferred stock to common stock | 1,913,501 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income (Loss) Before Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Domestic | $ (95,989) | $ (89,055) |
Foreign | 0 | 0 |
Loss before provision for income taxes | $ (95,989) | $ (89,055) |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Current: | ||
Federal | $ 0 | $ 0 |
State | 1 | 1 |
Total current | 1 | 1 |
Deferred: | ||
Total deferred | 0 | 0 |
Provision for income taxes | $ 1 | $ 1 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Valuation Allowance [Line Items] | ||
Tax on U.S. statutory rate on income before income taxes | $ (20,158) | $ (18,702) |
State Taxes | (489) | 3,583 |
Tax credits | (1,598) | (710) |
Other | 506 | (231) |
Provision for income taxes | 1 | 1 |
Federal [Member] | ||
Valuation Allowance [Line Items] | ||
Valuation allowance | 21,250 | 19,643 |
State [Member] | ||
Valuation Allowance [Line Items] | ||
Valuation allowance | $ 490 | $ (3,582) |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred Tax Assets, Net [Abstract] | ||
Federal and state NOL carryforward | $ 27,539 | $ 21,945 |
Research and other credits | 6,051 | 3,762 |
Capitalized R&D | 25,264 | 12,731 |
Fixed assets | 3 | 2 |
Reserves and accruals | 755 | 519 |
Stock based compensation | 2,978 | 1,430 |
Other intangibles | 8,313 | 8,583 |
Other DTA | 384 | 402 |
Lease liability | 804 | 1,360 |
Total gross DTA | 72,091 | 50,734 |
Less: valuation allowance | (71,372) | (49,648) |
Total deferred tax assets | 719 | 1,086 |
Right of use | (619) | (1,086) |
Other DTL | (100) | 0 |
Total gross DTL | (719) | (1,086) |
Net deferred tax assets | $ 0 | $ 0 |
Income Taxes - Summary of Activ
Income Taxes - Summary of Activity Relating to Gross Amount of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Uncertainties [Abstract] | ||
Beginning balance | $ 941 | $ 668 |
Additions based on tax positions related to prior year | 0 | 19 |
Decreases based on tax positions related to prior year | 0 | (11) |
Additions based on tax positions related to current year | 572 | 265 |
Ending balance | $ 1,513 | $ 941 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance | $ 71,372,000 | $ 49,648,000 |
Federal net operating loss carryforwards | 109,000,000 | |
Interest or penalty accruals associated with uncertain tax benefits | 0 | $ 0 |
Federal [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 118,900,000 | |
Operating loss carryforwards expiration year | 2032 | |
Federal [Member] | 2032 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 10,200,000 | |
Federal [Member] | Research [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryforward amount | 400,000 | |
State [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 35,700,000 | |
Operating loss carryforwards expiration year | 2036 | |
State [Member] | 2036 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 300,000 | |
State [Member] | Research [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryforward amount | $ 2,200,000 |
Net Loss Per Share Attributab_3
Net Loss Per Share Attributable to Common Stockholders - Summary of Dilutive Shares Excluded from Computation of Diluted Net Loss Per Share (Detail) - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share Line Items | ||
Antidilutive Securities | 5,893,915 | 4,025,787 |
Class A Common Stock Options Issued and Outstanding | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share Line Items | ||
Antidilutive Securities | 5,762,236 | 3,821,787 |
Unvested Restricted Stock Units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share Line Items | ||
Antidilutive Securities | 131,679 | 204,000 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 01, 2024 | Jan. 29, 2024 | Feb. 06, 2023 | Feb. 14, 2022 | Dec. 31, 2023 | Dec. 31, 2022 |
Common Class A [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Stock shares issued during the period new issues shares | 2,142,857 | 748,959 | ||||
Common stock, par value | $ 0.001 | $ 0.001 | ||||
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Sale of stock net consideration received on the transaction | $ 269.6 | |||||
Underwriting discounts and commissions | 17.3 | |||||
Payments of offering costs | $ 0.7 | |||||
Subsequent Event | 2022 ATM facility [Member] | Cowen and Company, LLC [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Deferred costs, written off | $ 0.3 | |||||
Subsequent Event | Common Class A [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Sale of stock, number of shares issued in transaction | 9,274,194 | |||||
Sale of stock, price per share | $ 31 | |||||
Subsequent Event | Common Class A [Member] | Over-Allotment Option [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Stock shares issued during the period new issues shares | 1,209,677 |