Longboard Pharmaceuticals (LBPH) 10-Q 10 May 21 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2021	May 05, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2021
Entity Registrant Name	Longboard Pharmaceuticals, Inc.
Entity Central Index Key	0001832168
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity File Number	001-40192
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	84-5009619
Entity Address, Address Line One	6154 Nancy Ridge Drive
Entity Address, City or Town	San Diego
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92121
City Area Code	619
Local Phone Number	592-9775
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Trading Symbol	LBPH
Title of 12(b) Security	Common stock, par value $0.0001 per share
Security Exchange Name	NASDAQ
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Common Stock, Shares Outstanding		17,215,350
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Shell Company	false
Document Quarterly Report	true
Document Transition Report	false

Condensed Balance Sheets (unaud

Condensed Balance Sheets (unaudited) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 120,851	$ 55,316
Prepaid expenses and other current assets	2,779	46
Total current assets	123,630	55,362
Deferred financing costs	0	876
Total assets	123,630	56,238
Current liabilities:
Accounts payable	2,019	1,213
Accrued research and development expenses	1,051	916
Accrued other expenses	699	845
Accrued compensation and related expenses	275	161
Total current liabilities	4,044	3,135
Commitments and contingencies (see Note 8)
Stockholders’ equity (deficit):
Preferred stock, value
Common stock, value	1
Additional paid-in-capital	139,684	11,708
Accumulated deficit	(20,099)	(14,400)
Total stockholder’s equity (deficit)	119,586	(2,692)
Total liabilities, convertible preferred stock and shareholders’ equity (deficit)	123,630	56,238
Series A Convertible Preferred Stock [Member]
Convertible preferred stock:
Temporary equity, value		55,795
Non-Voting Common Stock [Member]
Stockholders’ equity (deficit):
Common stock, value

Condensed Balance Sheets (una_2

Condensed Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000,000	0
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	300,000,000	10,500,000
Common stock, shares issued	12,939,140	3,840,540
Common stock, shares outstanding	12,939,140	3,840,540
Common stock, subject to repurchase	348,450	348,450
Series A Convertible Preferred Stock [Member]
Temporary equity, par value	$ 0.0001	$ 0.0001
Temporary equity, shares authorized	0	5,600,000
Temporary equity, shares issued	0	5,600,000
Temporary equity, Balance (in shares)	0	5,600,000
Temporary equity, liquidation preference, value	$ 0	$ 56,000
Non-Voting Common Stock [Member]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	10,000,000	0
Common stock, shares issued	3,629,400	0
Common stock, shares outstanding	3,629,400	0

Statements of Operations and Co

Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Operating expenses:
Research and development expenses	$ 4,398	$ 59
General and administrative expenses	1,305	115
Total operating expenses	5,703	174
Loss from operations	(5,703)	(174)
Interest income	4
Net loss and comprehensive loss	$ (5,699)	$ (174)
Net loss per share, basic and diluted	$ (0.84)	$ (0.05)
Weighted-average shares outstanding, basic and diluted	6,810,407	3,711,084

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2020
Cash flows from operating activities:
Net loss	$ (5,699)	$ (174)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense	333	95
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	(2,733)	(1)
Accounts payable	275
Accrued research and development expenses	135	27
Accrued other expenses	(172)	5
Accrued compensation and related expenses	115		$ 9
Net cash used in operating activities	(7,746)	(39)
Financing activities:
Capital contributions from Arena Pharmaceuticals, Inc.		39
Series A convertible preferred stock issuance costs	(1)
Proceeds from initial public offering	80,000
Initial public offering costs	(6,718)
Net cash provided by financing activities	73,281	39
Net increase in cash and cash equivalents	65,535
Cash and cash equivalents at the beginning of the period	55,316
Cash and cash equivalents at the end of the period	120,851
Supplemental disclosure of cash flow information:
Initial public offering costs in accounts payable	531
Initial public offering costs in accrued other expenses	$ 664

Organization and Basis of Prese

Organization and Basis of Presentation	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Organization and Basis of Presentation	Note 1. Organization and Basis of Presentation Description of Business Longboard Pharmaceuticals, Inc. (the "Company"), formerly Arena Neuroscience, Inc., was incorporated in the state of Delaware on January 3, 2020 and is based in San Diego, California. The Company was organized and initially wholly-owned by Arena Pharmaceuticals, Inc. ("Arena"), until the closing of its Series A convertible preferred stock ("Series A Preferred Stock") financing in October 2020. The Company is a clinical stage biopharmaceutical company focused on developing novel, transformative medicines for neurological diseases. The Company’s most advanced product candidate, LP352, is being developed to treat patients with developmental and epileptic encephalopathies and is currently in a Phase 1 clinical trial. The Company’s preclinical product candidates include LP143 and LP659, which are focused on developing therapies for central nervous system neuroinflammatory diseases. Initial Public Offering On March 16, 2021, the Company completed the initial public offering (“IPO”) of its common stock. In connection with the IPO, the Company issued and sold 5,298,360 shares of common stock, which included 298,360 shares of its common stock issued pursuant to the option granted to the underwriters to purchase additional shares in April 2021, at a public offering price of $ 16.00 per share. The Company raised $ 76.2 million in net proceeds from the IPO after deducting underwriters’ discounts and commissions of $ 5.9 million and issuance costs of $ 2.6 million. The net proceeds from the Company’s IPO included $ 1.2 million in unpaid issuance costs classified in accounts payable and accrued liabilities as of March 31, 2021. Immediately prior to the closing of the IPO, 2,630,000 shares of Series A Preferred Stock were exchanged for 3,629,400 shares of non-voting common stock and 2,970,000 shares were automatically converted into 4,098,600 shares of voting common stock. Following the IPO, there were no shares of Series A Preferred Stock outstanding. Forward Stock Splits On October 27, 2020, the Company filed an amendment to the Company’s certificate of incorporation to effect a forward stock split of shares of the Company’s common stock on a 2,783 -for-1 basis (October Forward Stock Split). The par value of the common stock was not adjusted as a result of the October Forward Stock Split. The accompanying financial statements and notes to the financial statements give retroactive effect to the October Forward Stock Split for the periods presented. On March 5, 2021, the Company filed an amendment to the Company’s amended and restated certificate of incorporation to effect a forward stock split of shares of the Company’s common stock on a 1.38 -for-1 basis (March Forward Stock Split). Adjustments corresponding to the March Forward Stock Split were made to the ratio at which the Company’s Series A Preferred Stock were converted into common stock immediately prior to the closing of the IPO. The par value of the common stock and number of shares authorized were not adjusted as a result of the March Forward Stock Split. All references to common stock, options to purchase common stock, share data, per share data, and related information contained in the financial statements and related footnotes have been retrospectively adjusted to reflect the effect of the March Forward Stock Split for all periods presented. Basis of Presentation The Company’s condensed financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and pursuant to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Accordingly, the accompanying condensed financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. The accompanying condensed financial statements and related notes are unaudited. The unaudited condensed financial statements reflect all adjustments which, in the opinion of management, are necessary for a fair statement of the results for the periods presented. All such adjustments are of a normal and recurring nature. The condensed balance sheet as of December 31, 2020 has been derived from the audited financial statements at that date but does not include all information and notes required by GAAP for complete financial statements. The operating results presented in these unaudited condensed financial statements are not necessarily indicative of the results that may be expected for any future periods. These condensed financial statements should be read in conjunction with the Company's audited financial statements included in the prospectus dated March 11, 2021 that forms a part of the Company’s registration statement on Form S-1 (File No. 333-253329) as filed with the SEC pursuant to Rule 424(b)(4) promulgated under the Securities Act of 1933, as amended, on March 12, 2021. In addition, the accompanying condensed financial statements include the financial results from inception (January 3, 2020) through March 31, 2021. The Company’s fiscal year-end is December 31. The Company concluded under the guidance in Accounting Standards Codification 805, Business Combinations that the Company was not required to present historical carve-out financial results for activity occurring at Arena prior to the Company’s formation as the assets licensed to the Company by Arena did not constitute a business. The financial statements include allocations for certain Arena corporate expenses, including costs of information technology, human resources, accounting, legal, facilities, insurance, treasury and other corporate and infrastructure services. These allocations were made on the basis of the actual hours incurred in providing services to the Company by employees of Arena multiplied by a fully burdened average cost per employee. Management believes such allocation of corporate expenses from Arena is reasonable. Effective October 27, 2020, the Company entered into a formal services agreement with Arena for these services (see Note 6). The financial statements may not include all of the expenses that would have been incurred had the Company been a stand-alone company during the period presented and may not reflect the Company’s results of operations, financial position and cash flows had the Company been a stand-alone company during the period presented. The Company also received capital contributions of $ 3.2 million from Arena to fund start-up activities throughout the period ended December 31, 2020. The capital contributions from Arena have been presented in additional paid-in capital on the balance sheet. Liquidity and Capital Resources Since its inception, the Company has devoted substantially all of its resources to organizing and staffing, research and development ("R&D") activities, business planning, raising capital, in-licensing intellectual property rights and establishing its intellectual property portfolio, and providing general and administrative ("G&A") support for these operations and has funded its operations primarily with the net proceeds from the issuance of Series A Preferred Stock and common stock. The Company has incurred losses and negative cash flows from operations since commencement of its operations. The Company had an accumulated deficit of $ 20.1 million and $ 14.4 million as of March 31, 2021 and December 31, 2020, respectively. Management expects the Company will incur substantial operating losses for the foreseeable future in order to complete preclinical studies and clinical trials, seek regulatory approval, and launch and commercialize any product candidates for which it receives regulatory approval. The Company will need to raise additional capital through public or private equity or debt financings or other capital sources, including potential collaborations, licenses and other similar arrangements. The COVID-19 pandemic continues to rapidly evolve and has already resulted in a significant disruption of global financial markets. The Company’s ability to raise additional capital may be adversely impacted by potential worsening of global economic conditions and the recent disruptions to, and volatility in, the credit and financial markets in the United States and worldwide resulting from the pandemic. If the disruption persists and deepens, the Company could experience an inability to access additional capital. As of March 31, 2021, the Company had available cash and cash equivalents of $ 120.9 million and working capital of $ 119.6 million to fund future operations. Management believes that its capital resources as of March 31, 2021 will be sufficient to fund the Company’s operations for at least 12 months after the date these unaudited condensed financial statements are issued.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2. Summary of Significant Accounting Policies Use of Estimates The Company’s financial statements are prepared in accordance with accounting principles generally accepted in the United States ("GAAP"). The preparation of the Company’s financial statements requires the Company to make estimates and assumptions that impact the reported amounts of assets, liabilities and expenses and the disclosure of contingent assets and liabilities in the financial statements and accompanying notes. Such estimates include the accrual of R&D expenses and stock-based compensation. Management evaluates its estimates on an ongoing basis. Although estimates are based on the Company’s historical experience, knowledge of current events and actions it may undertake in the future, actual results may materially differ from these estimates and assumptions. Concentration of Credit Risk Financial instruments which potentially subject the Company to significant concentration of credit risk consist solely of cash. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits. The Company has not experienced any losses in such accounts, and management believes that the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held. Deferred Financing Costs Prior to the completion of the IPO, the Company had deferred financing costs consisting of legal, accounting and other fees and costs directly attributable to the IPO. As of December 31, 2020, $ 0.9 million of deferred financing costs were recorded on the balance sheet. Upon the completion of the IPO, all deferred financing costs were reclassified to additional paid-in capital. Comprehensive Loss Comprehensive loss is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources, including unrealized gains and losses on investments and foreign currency gains and losses. Net loss and comprehensive loss were the same for the periods presented. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. Cash and cash equivalents include cash in readily available checking accounts, money market funds, corporate debt securities, and obligations of U.S. Government-sponsored enterprises. The carrying amounts reported in the unaudited condensed balance sheets for cash and cash equivalents are valued at cost, which approximates fair value. R&D Expenses R&D expenses are expensed in the periods in which they are incurred. External expenses consist primarily of payments to Arena, outside consultants and contract research organizations in connection with the Company’s discovery, preclinical and clinical activities, process development, manufacturing activities, regulatory and other services. Certain R&D external expenses are recognized based on an evaluation of the progress to completion of specific tasks using information provided to the Company by its service providers or the estimate of the level of service that has been performed at each reporting date. R&D expenses amounted to $ 4.4 million and $ 0.1 million for the three months ended March 31, 2021 and the period from January 3, 2020 (inception) through March 31, 2020, respectively. Stock-Based Compensation In October 2020, the Company’s board of directors and stockholder approved the 2020 Equity Incentive Plan ("2020 Plan"). The Company's board of directors adopted the 2021 Equity Incentive Plan ("2021 Plan") in February 2021 and the Company's stockholders approved the 2021 Plan in March 2021. The 2021 Plan is the successor and continuation of the 2020 Plan. Under both the 2021 and 2020 Plans, awards are measured at fair value and recognized over the requisite service period. Forfeitures are accounted for in the period they occur. The Company estimates the fair value of each stock-based award on the date of grant using the Black-Scholes option pricing model which requires the input of subjective assumptions, including price volatility of the underlying stock, risk-free interest rate, dividend yield, and expected term of the option. From January 3, 2020 through October 26, 2020, Company employees participated in Arena’s stock incentive plan and therefore the Company used Arena’s Black-Scholes fair value, and underlying inputs and assumptions, to recognize stock-based compensation. Stock-based awards were measured at fair value and recognized over the requisite service period. There were no forfeitures. Net Loss Per Share Basic net loss per share 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, without consideration of potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock and potentially dilutive securities outstanding for the period. As the Company has reported a net loss for the periods presented, diluted net loss per share of common stock is the same as basic net loss per share of common stock for the periods. The following outstanding shares of potentially dilutive securities 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: Three Months Ended Period from Options to purchase common stock 1,248,156 — Restricted stock awards, issued but unvested 348,450 — Total 1,596,606 — Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (ASU 2016-02), which supersedes FASB Accounting Standards Codification Topic 840, Leases (Topic 840), and provides principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method for finance leases or on a straight-line basis over the term of the lease for operating leases. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases. For companies that are not emerging growth companies, ASU 2016-02 is effective for fiscal years beginning after December 15, 2018. For emerging growth companies, the ASU was to be effective for fiscal years beginning after December 15, 2019. However, in June 2020, the FASB issued ASU 2020-05, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842) : Effective Dates for certain Entities, which deferred the effective date of ASU 2016-02 for certain entities. As a result, the ASU is now effective for emerging growth companies for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company plans to adopt the new standard in the first quarter of 2022 using the modified retrospective method, under which the Company applies Topic 842 to existing and new leases as of January 1, 2022, but prior periods will not be restated and will continue to be reported under Topic 840 guidance in effect during those periods. The Company is currently evaluating the impact the adoption of these ASUs will have on its financial statements and related disclosures. In December 2019, the FASB issued ASU 2019-12, Income Taxes—Simplifying the Accounting for Income Taxes (ASU 2019-12). Among other items, the amendments in ASU 2019-12 simplify the accounting treatment of tax law changes and year-to-date losses in interim periods. An entity generally recognizes the effects of a change in tax law in the period of enactment; however, there is an exception for tax laws with delayed effective dates. Under current guidance, an entity may not adjust its annual effective tax rate for a tax law change until the period in which the law is effective. This exception was removed under ASU 2019-12, thereby providing that all effects of a tax law change are recognized in the period of enactment, including adjustment of the estimated annual effective tax rate. Regarding year-to-date losses in interim periods, an entity is required to estimate its annual effective tax rate for the full fiscal year at the end of each interim period and use that rate to calculate its income taxes on a year-to-date basis. However, current guidance provides an exception that when a loss in an interim period exceeds the anticipated loss for the year, the income tax benefit is limited to the amount that would be recognized if the year-to-date loss were the anticipated loss for the full year. ASU 2019-12 removes this exception and provides that, in this situation, an entity would compute its income tax benefit at each interim period based on its estimated annual effective tax rate. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, including interim periods within those annual periods. Early adoption is permitted. The Company adopted this new standard in the first quarter of 2021 and it did not have a material impact on its financial statements and related disclosures. Risks and Uncertainties In December 2019, COVID-19, a novel strain of coronavirus, was first identified in Wuhan, China. In March 2020, the World Health Organization categorized COVID-19 as a pandemic, and the virus has spread to over 100 countries, including the United States. The impact of this pandemic has been and will likely continue to be extensive in many aspects of society, which has resulted in and will likely continue to result in significant disruptions to the global economy, as well as businesses and capital markets around the world. Potential impacts to the Company’s business include, but are not limited to, temporary closures of facilities of its vendors, disruptions or restrictions on its employees’ ability to travel, disruptions to or delays in ongoing laboratory experiments, preclinical studies, clinical trials, third-party manufacturing supply and other operations, the potential diversion of healthcare resources away from the conduct of clinical trials to focus on pandemic concerns, interruptions or delays in the operations of the U.S. Food and Drug Administration or other regulatory authorities, and the Company’s ability to raise capital and conduct business development activities.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 3. Fair Value Measurements The accounting guidance defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the accounting guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1 — Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 — Quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 — Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported by little or no market activity). As of March 31, 2021 and December 31, 2020, the Company did no t have financial assets or liabilities that are measured at fair value on a recurring basis.

Accrued Other Expenses

Accrued Other Expenses	3 Months Ended
	Mar. 31, 2021
Accrued Liabilities Current [Abstract]
Accrued Other Expenses	Note 4. Accrued Other Expenses Accrued other expenses consisted of the following (in thousands): As of As of (unaudited) Accrued financing costs $ 664 $ 639 Accrued consulting fees — 115 Accrued other 35 91 Total $ 699 $ 845

Convertible Preferred Stock and

Convertible Preferred Stock and Stockholders' Equity (Deficit)	3 Months Ended
	Mar. 31, 2021
Equity [Abstract]
Convertible Preferred Stock and Stockholders' Equity (Deficit)	Note 5. Convertible Preferred Stock and Stockholders’ Equity (Deficit) Amended and Restated Certificate of Incorporation In March 2021, the Company amended and restated the Company’s certificate of incorporation to, among other things, increase the authorized shares of voting common stock, non-voting common stock and preferred stock to 300,000,000 shares, 10,000,000 shares and 10,000,000 shares, respectively. Voting Common Stock and Non-Voting Common Stock As of March 31, 2021, the Company had 12,939,140 shares of voting common stock outstanding, excluding 348,450 shares subject to repurchase, and 3,629,400 shares of non-voting common stock outstanding. As of December 31, 2020, the Company had 3,840,540 shares of voting common stock outstanding, excluding 348,450 shares subject to repurchase. 3,840,540 shares were purchased by Arena for aggregate consideration of $ 0.10 in January 2020. Series A Preferred Stock In October 2020, the Company issued and sold 5,600,000 shares of Series A Preferred Stock at a price of $ 10.00 per share, resulting in gross proceeds of $ 56.0 million, including 100,000 shares purchased by Arena. The Company incurred $ 0.2 million in issuance costs related to the Series A Preferred Stock financing. On March 16, 2021, immediately prior to the closing of the IPO, 2,630,000 shares of the Series A Preferred Stock were exchanged for 3,629,400 shares of non-voting common stock. Upon the closing of the IPO, 2,970,000 shares of the Series A Preferred Stock were automatically converted into 4,098,600 shares of voting common stock. Following the IPO, there were no shares of Series A Preferred Stock outstanding. The Series A Preferred Stock had been classified as temporary equity in the accompanying balance sheet as of December 31, 2020, in accordance with authoritative guidance for the classification and measurement of potentially redeemable securities whose redemption is based upon certain change in control events outside of the Company’s control, including liquidation, sale or change of control of the Company. Reconciliation of Changes in Convertible Preferred Stock and Stockholders’ Equity (Deficit) The following tables document the changes in convertible preferred stock and stockholders' equity (deficit) for the three months ended March 31, 2021 and the period from January 3, 2020 (inception) through March 31, 2020 (unaudited): Convertible Preferred Stock Preferred Stock Voting Common Stock Non-Voting Common Stock (in thousands, except shares) Number of Shares Amount Number of Shares Amount Number of Shares Amount Number of Shares Amount Additional Accumulated Deficit Total Stockholders' Equity (Deficit) Balance at December 31, 2020 5,600,000 $ 55,795 — $ — 3,840,540 $ — — $ — $ 11,708 $ ( 14,400 ) $ ( 2,692 ) Conversion of convertible preferred stock to common stock in connection with initial public offering ( 5,600,000 ) ( 55,795 ) — — 4,098,600 — 3,629,400 — 55,795 55,795 Issuance of common stock in initial public offering, net — — — — 5,000,000 1 — — 71,848 71,849 Stock-based compensation — — — — — — — — 333 — 333 Net loss — — — — — — — — — ( 5,699 ) ( 5,699 ) Balance at March 31, 2021 — $ — — $ — 12,939,140 $ 1 3,629,400 $ — $ 139,684 $ ( 20,099 ) $ 119,586 Convertible Preferred Stock Preferred Stock Voting Common Stock Non-Voting Common Stock (in thousands, except shares) Number of Shares Amount Number of Shares Amount Number of Shares Amount Number of Shares Amount Additional Accumulated Deficit Total Stockholders' Equity (Deficit) Balance at January 3, 2020 (Inception) — $ — — $ — — $ — — $ — $ — $ — $ — Purchase of common stock by Arena Pharmaceuticals, Inc. — — — — 3,840,540 — — — — — — Arena Pharmaceuticals, Inc. capital contributions — — — — — — — — 39 — 39 Stock-based compensation — — — — — — — — 95 — 95 Net loss — — — — — — — — — ( 174 ) ( 174 ) Balance at March 31, 2020 — $ — — $ — 3,840,540 $ — - $ — $ 134 $ ( 174 ) $ ( 40 )

Agreements with Arena Pharmaceu

Agreements with Arena Pharmaceuticals, Inc.	3 Months Ended
	Mar. 31, 2021
Related Party Transactions [Abstract]
Agreements with Arena Pharmaceuticals, Inc.	Note 6. Agreements with Arena Pharmaceuticals, Inc. The Company entered into a license agreement (the "License Agreement"), a services agreement (the "Services Agreement"), and a royalty purchase agreement (the "Royalty Purchase Agreement") in October 2020 with Arena. The following section summarizes these related party agreements. License Agreement Pursuant to the License Agreement, the Company obtained an exclusive, royalty bearing, sublicensable, worldwide license under certain know-how and patents of Arena to develop and commercialize LP352 for any use in humans, LP143 for the treatment of any central nervous system ("CNS") indication in humans (excluding the treatment, prevention or amelioration of pain or any gastrointestinal, non-CNS autoimmune or cardiovascular disorder), and LP659 for the treatment of selected CNS indications in humans (pharmaceutical products containing any such compounds, Licensed Products). As consideration for the rights granted to the Company under the License Agreement, the Company will be required to pay to Arena a mid-single digit royalty on net sales of Licensed Products of LP352, and a low-single digit royalty on net sales of all other Licensed Products, by the Company, its affiliates or its sublicensees, subject to standard reductions. The Company’s royalty obligations continue on a Licensed Product-by-Licensed Product and country-by-country basis until the later of the (i) tenth anniversary of the first commercial sale of such product in such country or (ii) expiration of the last-to-expire valid claim of the patents licensed by us under the License Agreement covering the manufacture, use or sale of such product in such country. Services Agreement In connection with the License Agreement, the Company also entered into a Services Agreement with Arena under which Arena agreed to perform certain research and development services, general administrative services, management services and other mutually agreed services for the Company and receive service fees therefor on an hourly rate based on an annual full time equivalent rate agreed upon by the parties. Arena will invoice the Company for services provided on a monthly basis, in arrears. The Services Agreement shall continue until December 31, 2021 and shall automatically renew for successive one-year terms unless terminated by either party. Payments for services provided under the Services Agreement are recorded to R&D expenses or G&A expenses, on the statement of operations, as appropriate. For the three months ended March 31, 2021, the Company recorded $ 246,000 and $ 69,000 in R&D expenses and G&A expenses, respectively. For the period from January 3, 2020 (inception) through March 31, 2020, the Company recorded $ 16,000 and $ 79,000 in R&D expenses and G&A expenses, respectively. There were $ 231,000 and $ 241,000 of related party amounts related to the Services Agreement in accounts payable as of March 31, 2021 and December 31, 2020, respectively. Royalty Purchase Agreement In October 2020, the Company entered into a Royalty Purchase Agreement with 356 Royalty Inc., a wholly owned subsidiary of Arena ("356 Royalty") and Arena, pursuant to which we purchased the right to receive all milestone payments, royalties, interest and other payments relating to net sales of lorcaserin, owed or otherwise payable to 356 Royalty by Eisai Inc. and Eisai Co., Ltd. pursuant to the Transaction Agreement, by and among 356 Royalty, Eisai Inc. and Eisai Co., Ltd. The Company made a one-time payment to Arena of $ 0.1 million. The Company expensed this amount to research and development expense on the statement of operations and comprehensive loss as lorcaserin is subject to regulatory approval and there are risks and uncertainties as to whether royalties will ultimately be paid and collected.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation	Note 7. Stock-Based Compensation Equity Incentive Plan In October 2020, the Company’s board of directors and stockholder approved the 2020 Plan, which provided for the grant of incentive stock options, nonstatutory stock options, restricted stock awards, restricted stock unit awards, and stock appreciation rights to its employees, members of its board of directors, and consultants. The Company’s board of directors determined the exercise price, vesting and expiration period of the grants under the 2020 Plan. The Company's board of directors adopted the 2021 Plan in February 2021 and the Company's stockholders approved the 2021 Plan in March 2021. The 2021 Plan became effective on March 11, 2021. The 2021 Plan is the successor and continuation of the 2020 Plan. No additional awards may be granted under the 2020 Plan and all outstanding awards under the 2020 Plan remain subject to the terms of the 2020 Plan. The 2021 Plan authorizes and provides for the issuance of up to 2,834,232 shares of common stock, which amount will be increased to the extent that awards granted under the 2021 Plan are forfeited, expire or are settled for cash (except as otherwise provided in the 2021 Plan). Recipients of stock options are eligible to purchase shares of the Company’s common stock at an exercise price equal to no less than the estimated fair market value of such stock on the date of grant. The maximum term of options granted under the 2020 and 2021 Plans (or collectively, the “Equity Plans”) is ten years and, in general, the options issued under the Equity Plans vest over a one to four year period from the vesting commencement date. There are 1,586,076 shares available for grant under the 2021 Plan as of March 31, 2021. Stock Award Grants under the Equity Plans A summary of the Company’s Equity Plans stock option activity is as follows: Number of Options Outstanding Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in Years) Balance at December 31, 2020 873,264 $ 3.42 9.9 Options granted 374,892 12.10 9.9 Options exercised — — — Options cancelled — — — Balance at March 31, 2021 1,248,156 $ 6.03 9.7 Options exercisable at March 31, 2021 356,187 $ 3.18 9.6 Options exercisable at March 31, 2021 included 7,737 vested stock options and 348,450 stock options that are subject to an early exercise provision. The intrinsic value of options outstanding and exercisable as of March 31, 2021 were $ 12.9 million and $ 4.7 million, respectively. The following table presents the weighted-average assumptions used for the stock option grants for the three months ended March 31, 2021 and for the period from January 3, 2020 (inception) through March 31, 2020, along with the related grant date fair value: Three Months Ended Period from Stock price $ 12.10 — Risk-free interest rate 0.84 % — Dividend yield 0.00 % — Expected volatility 73.87 % — Expected life (years) 6.0 — Estimated grant date fair value per share of award granted $ 7.80 — Determination of Fair Value of Common Stock. Prior to the IPO, there was no public market for the Company's common stock, and therefore, the estimated fair value of common stock for option grants was determined by the Company’s board of directors as of the date of each option grant, with input from management, considering the most recently available third-party valuations of common stock and the board of directors’ assessment of additional objective and subjective factors that it believed were relevant and which may have changed from the date of the most recent valuation through the date of the grant. Historically, these independent third-party valuations of our equity instruments were performed contemporaneously with identified value inflection points. These third-party valuations were performed in accordance with the guidance outlined in the American Institute of Certified Public Accountants’ Accounting and Valuation Guide, Valuation of Privately-Held-Company Equity Securities Issued as Compensation ("Practice Aid"). The Practice Aid identifies various available methods for allocating the enterprise value across classes of series of capital stock in determining the fair value of the common stock at each valuation date. In addition to considering the results of these independent third-party valuations, the Company’s board of directors considered various objective and subjective factors to determine the fair value of its common stock as of each grant date, including: the prices of the preferred stock sold to or exchanged between outside investors in arm’s length transactions and the rights, preferences and privileges of the preferred stock as compared to those of the Company’s common stock including liquidation preferences of the Company’s preferred stock; the progress of the Company’s research and development programs, including the status and results of preclinical and clinical trials for product candidates; the stage of development and material risks related to the Company’s business; external market and other conditions affecting the biopharmaceutical industry and trends within the biopharmaceutical industry; the Company’s business conditions and projections; the Company’s financial position and its historical and forecasted performance and operating results; the lack of an active public market for the Company’s common stock and preferred stock; the likelihood of achieving a liquidity event for the Company’s securityholders, such as an initial public offering or a sale of the Company in light of prevailing market conditions; the hiring of key personnel and the experience of management; and the analysis of initial public offerings and the market performance of similar companies in the biopharmaceutical industry, as well as trends and developments in the biopharmaceutical industry. Significant changes to the key assumptions underlying the factors used could result in different fair values of common stock at each valuation date. Risk-free interest rate . The risk-free interest rate is based on the U.S. Treasury yield in effect at the time of grant for zero coupon U.S. Treasury notes with maturities similar to the expected term of the awards. Expected dividend yield . The Company bases the expected dividend yield assumption on the fact that it has never paid cash dividends and has no present intention to pay cash dividends and, therefore, used an expected dividend yield of zero. Expected volatility . Since the Company is a newly public company and does not have a trading history for its common stock, the expected volatility assumption is based on volatilities of a peer group of similar companies whose share prices are publicly available. The peer group was developed based on companies in the biotechnology industry. The Company will continue to apply this process until a sufficient amount of historical information regarding the volatility of its own stock price becomes available. Expected life . The expected life represents the period of time that options are expected to be outstanding. Because the Company does not have historical exercise behavior, it determines the expected life assumption using the simplified method, for employees, which is an average of the contractual term of the option and its vesting period. The expected term for nonemployee options is equal to the contractual term. After the closing of the IPO in March 2021, the Company began utilizing the closing stock price of the common stock on the Nasdaq Global Market as both the exercise price and an input to the Black Scholes option pricing model to determine stock-based compensation expense. In October 2020, 348,450 restricted stock awards were granted to an employee under the 2020 Plan, which vest over two years and had an estimated fair value of $ 3.12 per share at the time of grant. Stock Award Grants under the Arena Amended and Restated 2017 Long-Term Incentive Plan (Arena 2017 LTIP) Prior to October 27, 2020, the Company did not have its own equity incentive plan. Stock award grants from the period of January 3, 2020 through October 26, 2020, were made under the Arena 2017 LTIP, a plan approved by Arena’s stockholders. Under the Arena 2017 LTIP, Arena may grant incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards and performance awards. Under the Arena 2017 LTIP, 70,000 stock options were granted to the Company’s Chief Executive Officer. Stock options under the Arena 2017 LTIP generally vest over four years with 25 % of the shares subject to each option vesting on the first anniversary of the grant date and the remainder vesting monthly over the following three years in equal installments and have contractual terms of seven years . All option grants provide for an option exercise price equal to the closing market value share of Arena’s common stock on the date of grant. As of October 27, 2020, in connection with the Series A Preferred Stock financing, the employees of the Company are no longer eligible to participate in the Arena 2017 LTIP. The following table presents the assumptions used for the stock option grants under the Arena 2017 LTIP for the period from January 3, 2020 (inception) through March 31, 2020, along with the related grant date fair value: For the Period January 3, 2020 (Inception) through March 31, 2020 Stock price $ 44.60 Risk-free interest rate 0.89 % Dividend yield 0.00 % Expected volatility 57.80 % Expected life (years) 4.5 Estimated grant date fair value per share of award granted $ 21.02 In connection with the Series A Preferred Stock financing and the formal commencement of the Chief Executive Officer’s (Mr. Lind’s) employment with the Company, Mr. Lind entered into a Separation Agreement with Arena ("Separation Agreement"). Pursuant to the Separation Agreement, Mr. Lind voluntarily resigned his employment with Arena, effective October 27, 2020. Such resignation did not affect Mr. Lind’s status as the President and Chief Executive Officer of the Company. The Separation Agreement provided for the acceleration of vesting and the extension of the exercise period for equity awards outstanding at Arena as of the separation date. Stock-Based Compensation Expense Stock-based compensation expense recognized for all equity awards has been reported in the statements of operations and comprehensive loss as follows: (in thousands) Three Months Ended Period from Research and development $ 70 $ 16 General and administrative 263 79 Total $ 333 $ 95 As of March 31, 2021, unrecognized stock-based compensation expense was $ 5.5 million, which is expected to be recognized over a remaining weighted-average period of approximately 3.4 years. Employee Stock Purchase Plan The Company's board of directors adopted the 2021 Employee Stock Purchase Plan (“ESPP”) in February 2021, the Company's stockholders approved the ESPP in March 2021 and it became effective on March 11, 2021. The ESPP initially authorizes the issuance of 353,339 shares of common stock under purchase rights granted to our employees. The ESPP permits eligible employees, who elect to participate in an offering under the ESPP, to contribute up to 15 % of their eligible earnings (as defined in the ESPP) towards the purchase of shares of common stock. Unless otherwise determined by the Company's board of directors, the price at which stock is purchased under the ESPP is equal will be 85 % of the fair market value of the Company’s common stock on the commencement date of each offering period or the relevant purchase date, whichever is lower. There are certain service requirements for an employee to be eligible to participate in the ESPP, and no employee may purchase shares under the ESPP at a rate in excess of $ 25,000 worth of common stock (as determined in accordance with the ESPP). Offering durations under the ESPP may not be longer than 27 months , and the Company may specify shorter purchase periods within each offering. The ESPP is considered a compensatory plan as defined by the authoritative guidance for stock-based compensation. As of March 31, 2021, the ESPP had not yet been implemented.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2021
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 8. Commitments and Contingencies Leases The Company leases certain office space in San Diego, California under a month to month lease. Rent payments are approximately $ 1,000 per month. Rent expense totaled approximately $ 3,000 and $ 1,000 for the three months ended March 31, 2021 and 2020, respectively. Contingencies From time to time, the Company may become subject to claims or suits arising in the ordinary course of business. The Company will accrue a liability for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. As of March 31, 2021 and December 31, 2020, the Company is not a party to any litigation.

Employment Benefits

Employment Benefits	3 Months Ended
	Mar. 31, 2021
Postemployment Benefits [Abstract]
Employment Benefits	Note 9. Employment Benefits The Company’s employees who had been Arena employees were eligible to participate in Arena’s employee 401(k) salary deferral plan, which covers all Arena employees, through October 26, 2020. After that date, the Company’s employees were no longer eligible to participate in Arena’s employee 401(k) salary deferral plan. Employees made contributions by withholding a percentage of their salary up to the IRC annual limit. The Company made matching contributions of $ 2,000 for the three months ended March 31, 2020. The Company plans to establish a 401(k) salary deferral plan for its employees in 2021.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2021
Subsequent Events [Abstract]
Subsequent Events	Note 10. Subsequent Events On April 9, 2021, the underwriters in the IPO exercised their option to purchase an additional 298,360 shares of common stock of the Company at a public offering price of $ 16.00 per share. The Company raised $ 4.4 million in net proceeds from this purchase after deducting underwriters’ discounts and commissions of $ 0.3 million.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The Company’s condensed financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and pursuant to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Accordingly, the accompanying condensed financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. The accompanying condensed financial statements and related notes are unaudited. The unaudited condensed financial statements reflect all adjustments which, in the opinion of management, are necessary for a fair statement of the results for the periods presented. All such adjustments are of a normal and recurring nature. The condensed balance sheet as of December 31, 2020 has been derived from the audited financial statements at that date but does not include all information and notes required by GAAP for complete financial statements. The operating results presented in these unaudited condensed financial statements are not necessarily indicative of the results that may be expected for any future periods. These condensed financial statements should be read in conjunction with the Company's audited financial statements included in the prospectus dated March 11, 2021 that forms a part of the Company’s registration statement on Form S-1 (File No. 333-253329) as filed with the SEC pursuant to Rule 424(b)(4) promulgated under the Securities Act of 1933, as amended, on March 12, 2021. In addition, the accompanying condensed financial statements include the financial results from inception (January 3, 2020) through March 31, 2021. The Company’s fiscal year-end is December 31. The Company concluded under the guidance in Accounting Standards Codification 805, Business Combinations that the Company was not required to present historical carve-out financial results for activity occurring at Arena prior to the Company’s formation as the assets licensed to the Company by Arena did not constitute a business. The financial statements include allocations for certain Arena corporate expenses, including costs of information technology, human resources, accounting, legal, facilities, insurance, treasury and other corporate and infrastructure services. These allocations were made on the basis of the actual hours incurred in providing services to the Company by employees of Arena multiplied by a fully burdened average cost per employee. Management believes such allocation of corporate expenses from Arena is reasonable. Effective October 27, 2020, the Company entered into a formal services agreement with Arena for these services (see Note 6). The financial statements may not include all of the expenses that would have been incurred had the Company been a stand-alone company during the period presented and may not reflect the Company’s results of operations, financial position and cash flows had the Company been a stand-alone company during the period presented. The Company also received capital contributions of $ 3.2 million from Arena to fund start-up activities throughout the period ended December 31, 2020. The capital contributions from Arena have been presented in additional paid-in capital on the balance sheet.
Use of Estimates	Use of Estimates The Company’s financial statements are prepared in accordance with accounting principles generally accepted in the United States ("GAAP"). The preparation of the Company’s financial statements requires the Company to make estimates and assumptions that impact the reported amounts of assets, liabilities and expenses and the disclosure of contingent assets and liabilities in the financial statements and accompanying notes. Such estimates include the accrual of R&D expenses and stock-based compensation. Management evaluates its estimates on an ongoing basis. Although estimates are based on the Company’s historical experience, knowledge of current events and actions it may undertake in the future, actual results may materially differ from these estimates and assumptions.
Concentration of Credit Risk	Concentration of Credit Risk Financial instruments which potentially subject the Company to significant concentration of credit risk consist solely of cash. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits. The Company has not experienced any losses in such accounts, and management believes that the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held.
Deferred Financing Costs	Deferred Financing Costs Prior to the completion of the IPO, the Company had deferred financing costs consisting of legal, accounting and other fees and costs directly attributable to the IPO. As of December 31, 2020, $ 0.9 million of deferred financing costs were recorded on the balance sheet. Upon the completion of the IPO, all deferred financing costs were reclassified to additional paid-in capital.
Comprehensive Loss	Comprehensive Loss Comprehensive loss is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources, including unrealized gains and losses on investments and foreign currency gains and losses. Net loss and comprehensive loss were the same for the periods presented.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. Cash and cash equivalents include cash in readily available checking accounts, money market funds, corporate debt securities, and obligations of U.S. Government-sponsored enterprises. The carrying amounts reported in the unaudited condensed balance sheets for cash and cash equivalents are valued at cost, which approximates fair value.
R&D Expenses	R&D Expenses R&D expenses are expensed in the periods in which they are incurred. External expenses consist primarily of payments to Arena, outside consultants and contract research organizations in connection with the Company’s discovery, preclinical and clinical activities, process development, manufacturing activities, regulatory and other services. Certain R&D external expenses are recognized based on an evaluation of the progress to completion of specific tasks using information provided to the Company by its service providers or the estimate of the level of service that has been performed at each reporting date. R&D expenses amounted to $ 4.4 million and $ 0.1 million for the three months ended March 31, 2021 and the period from January 3, 2020 (inception) through March 31, 2020, respectively.
Stock-Based Compensation	Stock-Based Compensation In October 2020, the Company’s board of directors and stockholder approved the 2020 Equity Incentive Plan ("2020 Plan"). The Company's board of directors adopted the 2021 Equity Incentive Plan ("2021 Plan") in February 2021 and the Company's stockholders approved the 2021 Plan in March 2021. The 2021 Plan is the successor and continuation of the 2020 Plan. Under both the 2021 and 2020 Plans, awards are measured at fair value and recognized over the requisite service period. Forfeitures are accounted for in the period they occur. The Company estimates the fair value of each stock-based award on the date of grant using the Black-Scholes option pricing model which requires the input of subjective assumptions, including price volatility of the underlying stock, risk-free interest rate, dividend yield, and expected term of the option. From January 3, 2020 through October 26, 2020, Company employees participated in Arena’s stock incentive plan and therefore the Company used Arena’s Black-Scholes fair value, and underlying inputs and assumptions, to recognize stock-based compensation. Stock-based awards were measured at fair value and recognized over the requisite service period. There were no forfeitures.
Net Loss Per Share	Net Loss Per Share Basic net loss per share 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, without consideration of potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock and potentially dilutive securities outstanding for the period. As the Company has reported a net loss for the periods presented, diluted net loss per share of common stock is the same as basic net loss per share of common stock for the periods. The following outstanding shares of potentially dilutive securities 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: Three Months Ended Period from Options to purchase common stock 1,248,156 — Restricted stock awards, issued but unvested 348,450 — Total 1,596,606 —
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (ASU 2016-02), which supersedes FASB Accounting Standards Codification Topic 840, Leases (Topic 840), and provides principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method for finance leases or on a straight-line basis over the term of the lease for operating leases. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases. For companies that are not emerging growth companies, ASU 2016-02 is effective for fiscal years beginning after December 15, 2018. For emerging growth companies, the ASU was to be effective for fiscal years beginning after December 15, 2019. However, in June 2020, the FASB issued ASU 2020-05, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842) : Effective Dates for certain Entities, which deferred the effective date of ASU 2016-02 for certain entities. As a result, the ASU is now effective for emerging growth companies for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company plans to adopt the new standard in the first quarter of 2022 using the modified retrospective method, under which the Company applies Topic 842 to existing and new leases as of January 1, 2022, but prior periods will not be restated and will continue to be reported under Topic 840 guidance in effect during those periods. The Company is currently evaluating the impact the adoption of these ASUs will have on its financial statements and related disclosures. In December 2019, the FASB issued ASU 2019-12, Income Taxes—Simplifying the Accounting for Income Taxes (ASU 2019-12). Among other items, the amendments in ASU 2019-12 simplify the accounting treatment of tax law changes and year-to-date losses in interim periods. An entity generally recognizes the effects of a change in tax law in the period of enactment; however, there is an exception for tax laws with delayed effective dates. Under current guidance, an entity may not adjust its annual effective tax rate for a tax law change until the period in which the law is effective. This exception was removed under ASU 2019-12, thereby providing that all effects of a tax law change are recognized in the period of enactment, including adjustment of the estimated annual effective tax rate. Regarding year-to-date losses in interim periods, an entity is required to estimate its annual effective tax rate for the full fiscal year at the end of each interim period and use that rate to calculate its income taxes on a year-to-date basis. However, current guidance provides an exception that when a loss in an interim period exceeds the anticipated loss for the year, the income tax benefit is limited to the amount that would be recognized if the year-to-date loss were the anticipated loss for the full year. ASU 2019-12 removes this exception and provides that, in this situation, an entity would compute its income tax benefit at each interim period based on its estimated annual effective tax rate. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, including interim periods within those annual periods. Early adoption is permitted. The Company adopted this new standard in the first quarter of 2021 and it did not have a material impact on its financial statements and related disclosures.
Risks and Uncertainties	Risks and Uncertainties In December 2019, COVID-19, a novel strain of coronavirus, was first identified in Wuhan, China. In March 2020, the World Health Organization categorized COVID-19 as a pandemic, and the virus has spread to over 100 countries, including the United States. The impact of this pandemic has been and will likely continue to be extensive in many aspects of society, which has resulted in and will likely continue to result in significant disruptions to the global economy, as well as businesses and capital markets around the world. Potential impacts to the Company’s business include, but are not limited to, temporary closures of facilities of its vendors, disruptions or restrictions on its employees’ ability to travel, disruptions to or delays in ongoing laboratory experiments, preclinical studies, clinical trials, third-party manufacturing supply and other operations, the potential diversion of healthcare resources away from the conduct of clinical trials to focus on pandemic concerns, interruptions or delays in the operations of the U.S. Food and Drug Administration or other regulatory authorities, and the Company’s ability to raise capital and conduct business development activities.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following outstanding shares of potentially dilutive securities 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: Three Months Ended Period from Options to purchase common stock 1,248,156 — Restricted stock awards, issued but unvested 348,450 — Total 1,596,606 —

Accrued Other Expenses (Tables)

Accrued Other Expenses (Tables)	3 Months Ended
	Mar. 31, 2021
Accrued Liabilities Current [Abstract]
Summary of Accrued Other Expenses	Accrued other expenses consisted of the following (in thousands): As of As of (unaudited) Accrued financing costs $ 664 $ 639 Accrued consulting fees — 115 Accrued other 35 91 Total $ 699 $ 845

Convertible Preferred Stock a_2

Convertible Preferred Stock and Stockholder's Equity (Deficit) (Tables)	3 Months Ended
	Mar. 31, 2021
Equity [Abstract]
Schedule of Changes in Convertible Preferred Stock and Stockholders' Equity (Deficit)	The following tables document the changes in convertible preferred stock and stockholders' equity (deficit) for the three months ended March 31, 2021 and the period from January 3, 2020 (inception) through March 31, 2020 (unaudited): Convertible Preferred Stock Preferred Stock Voting Common Stock Non-Voting Common Stock (in thousands, except shares) Number of Shares Amount Number of Shares Amount Number of Shares Amount Number of Shares Amount Additional Accumulated Deficit Total Stockholders' Equity (Deficit) Balance at December 31, 2020 5,600,000 $ 55,795 — $ — 3,840,540 $ — — $ — $ 11,708 $ ( 14,400 ) $ ( 2,692 ) Conversion of convertible preferred stock to common stock in connection with initial public offering ( 5,600,000 ) ( 55,795 ) — — 4,098,600 — 3,629,400 — 55,795 55,795 Issuance of common stock in initial public offering, net — — — — 5,000,000 1 — — 71,848 71,849 Stock-based compensation — — — — — — — — 333 — 333 Net loss — — — — — — — — — ( 5,699 ) ( 5,699 ) Balance at March 31, 2021 — $ — — $ — 12,939,140 $ 1 3,629,400 $ — $ 139,684 $ ( 20,099 ) $ 119,586 Convertible Preferred Stock Preferred Stock Voting Common Stock Non-Voting Common Stock (in thousands, except shares) Number of Shares Amount Number of Shares Amount Number of Shares Amount Number of Shares Amount Additional Accumulated Deficit Total Stockholders' Equity (Deficit) Balance at January 3, 2020 (Inception) — $ — — $ — — $ — — $ — $ — $ — $ — Purchase of common stock by Arena Pharmaceuticals, Inc. — — — — 3,840,540 — — — — — — Arena Pharmaceuticals, Inc. capital contributions — — — — — — — — 39 — 39 Stock-based compensation — — — — — — — — 95 — 95 Net loss — — — — — — — — — ( 174 ) ( 174 ) Balance at March 31, 2020 — $ — — $ — 3,840,540 $ — - $ — $ 134 $ ( 174 ) $ ( 40 )

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Summary of Stock Option Activity	A summary of the Company’s Equity Plans stock option activity is as follows: Number of Options Outstanding Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in Years) Balance at December 31, 2020 873,264 $ 3.42 9.9 Options granted 374,892 12.10 9.9 Options exercised — — — Options cancelled — — — Balance at March 31, 2021 1,248,156 $ 6.03 9.7 Options exercisable at March 31, 2021 356,187 $ 3.18 9.6
Summary of Weighted Average Grant Date Fair Values and Weighted Average Assumptions used to calculate Fair Value of Options Granted	The following table presents the weighted-average assumptions used for the stock option grants for the three months ended March 31, 2021 and for the period from January 3, 2020 (inception) through March 31, 2020, along with the related grant date fair value: Three Months Ended Period from Stock price $ 12.10 — Risk-free interest rate 0.84 % — Dividend yield 0.00 % — Expected volatility 73.87 % — Expected life (years) 6.0 — Estimated grant date fair value per share of award granted $ 7.80 —
Schedule of Stock-Based Compensation Expense Recognized for all Equity Awards and Reported in the Statements of Operations and Comprehensive Loss	Stock-based compensation expense recognized for all equity awards has been reported in the statements of operations and comprehensive loss as follows: (in thousands) Three Months Ended Period from Research and development $ 70 $ 16 General and administrative 263 79 Total $ 333 $ 95
Arena 2017 LTIP [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Summary of Weighted Average Grant Date Fair Values and Weighted Average Assumptions used to calculate Fair Value of Options Granted	The following table presents the assumptions used for the stock option grants under the Arena 2017 LTIP for the period from January 3, 2020 (inception) through March 31, 2020, along with the related grant date fair value: For the Period January 3, 2020 (Inception) through March 31, 2020 Stock price $ 44.60 Risk-free interest rate 0.89 % Dividend yield 0.00 % Expected volatility 57.80 % Expected life (years) 4.5 Estimated grant date fair value per share of award granted $ 21.02

Organization and Basis of Pre_2

Organization and Basis of Presentation - Additional Information (Details) $ / shares in Units, $ in Thousands	Mar. 16, 2021$ / sharesshares	Mar. 05, 2021	Oct. 27, 2020	Oct. 31, 2020USD ($)	Mar. 31, 2021USD ($)shares	Mar. 31, 2020USD ($)	Dec. 31, 2020USD ($)shares	Jan. 31, 2020shares
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Stock split, description		On March 5, 2021, the Company filed an amendment to the Company’s amended and restated certificate of incorporation to effect a forward stock split of shares of the Company’s common stock on a 1.38-for-1 basis (March Forward Stock Split). Adjustments corresponding to the March Forward Stock Split were made to the ratio at which the Company’s Series A Preferred Stock were converted into common stock immediately prior to the closing of the IPO. The par value of the common stock and number of shares authorized were not adjusted as a result of the March Forward Stock Split. All references to common stock, options to purchase common stock, share data, per share data, and related information contained in the financial statements and related footnotes have been retrospectively adjusted to reflect the effect of the March Forward Stock Split for all periods presented.	On October 27, 2020, the Company filed an amendment to the Company’s certificate of incorporation to effect a forward stock split of shares of the Company’s common stock on a 2,783-for-1 basis (October Forward Stock Split). The par value of the common stock was not adjusted as a result of the October Forward Stock Split. The accompanying financial statements and notes to the financial statements give retroactive effect to the October Forward Stock Split for the periods presented.
Forward stock split		1.38	2,783
Common Stock Shares Issued | shares					12,939,140		3,840,540
Net Proceeds from Initial Public Offering(IPO)					$ 80,000
Stock issuance costs					$ 1
Number of shares Exchanged During Period | shares					2,970,000
Common stock, shares authorized | shares					300,000,000		10,500,000
Proceeds from contributed capital							$ 3,200
Accumulated deficit					$ 20,099		14,400
Cash and cash equivalents					120,851		$ 55,316
Working Capital					$ 119,600
Common Stock
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Common Stock Shares Issued | shares								3,840,540
Common stock, shares authorized | shares					300,000,000
IPO
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Number of Common Stock Shares Issued and Sold | shares	5,298,360
Common Stock Shares Issued | shares	298,360
Public Offering Price Per Share | $ / shares	$ 16
Net Proceeds from Initial Public Offering(IPO)					$ 76,200
Discount and Commissions Paid					5,900
Stock issuance costs					2,600
Unpaid Stock Issuance Cost					$ 1,200
Series A Preferred Stock
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Stock issuance costs				$ 200
Number of Shares Converted | shares	2,970,000
Gross proceeds				$ 56,000
Series A Preferred Stock | IPO
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Number of shares Exchanged During Period | shares					2,630,000
Voting | Common Stock
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Number of Shares Converted | shares					4,098,600
Non Voting | Common Stock
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Number of Shares Converted | shares					3,629,400

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Accounting Policies [Abstract]
Deferred financing costs	$ 0		$ 876
Research and development expenses	$ 4,398	$ 59

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details)	3 Months Ended
	Mar. 31, 2021shares
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share	1,596,606
Options To Purchase Common Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share	1,248,156
Restricted Stock Awards Issued But Unvested
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share	348,450

Fair Value Measurements (Additi

Fair Value Measurements (Additional Information) (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	$ 0	$ 0
Liabilities	$ 0	$ 0

Accrued Other Expenses - Summar

Accrued Other Expenses - Summary of Accrued Other Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Accrued Liabilities Current [Abstract]
Accrued financing costs	$ 664	$ 639
Accrued consulting fees	0	115
Accrued other	35	91
Accrued other expenses	$ 699	$ 845

Convertible Preferred Stock a_3

Convertible Preferred Stock and Stockholders' Equity (Deficit) - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	Mar. 16, 2021	Oct. 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Jan. 31, 2020	Jan. 03, 2020
Common stock, shares authorized			300,000,000		10,500,000
Preferred stock, shares authorized			10,000,000		0
Common stock, shares outstanding			12,939,140		3,840,540
Common stock, subject to repurchase			348,450		348,450
Preferred stock, shares issued			0		0
Preferred stock, shares outstanding			0		0
Stock issuance costs			$ 1
Common stock, shares issued			12,939,140		3,840,540
Series A Preferred Stock [Member]
Shares purchased		100,000
Preferred stock, shares issued		5,600,000
Preferred stock, shares outstanding	0
Convertible preferred stock available for conversion	2,630,000
Gross proceeds		$ 56,000
Stock issuance costs		$ 200
Price per share		$ 10
Number of shares converted	2,970,000
Non-Voting Common Stock [Member]
Common stock, shares authorized			10,000,000		0
Common stock, shares outstanding			3,629,400		0
Stock issued during conversion of convertible securities	3,629,400
Conversion of stock, shares issued			3,629,400
Common stock, shares issued			3,629,400		0
Voting Common Stock [Member]
Common stock, shares authorized			300,000,000
Common stock, shares outstanding			12,939,140		3,840,540
Common stock, subject to repurchase			348,450		348,450
Price per share							$ 0.10
Conversion of stock, shares issued	4,098,600		4,098,600
Common stock, shares issued						3,840,540
Share purchased				3,840,540

Convertible Preferred Stock a_4

Convertible Preferred Stock and Stockholders' Equity (Deficit) - Schedule of Changes in Convertible Preferred Stock and Stockholders' Equity (Deficit) (Details) - USD ($) $ in Thousands	Mar. 16, 2021	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Balance		$ (2,692)
Conversion of convertible preferred stock to common stock in association with initial public offering		55,795
Arena Pharmaceuticals, Inc. capital contributions			39
Stock-based compensation		333	95
Net loss		(5,699)	(174)
Temporary equity, Balance
Balance		119,586	$ (40)
IPO [Member]
Issuance of common stock		71,849
Convertible Preferred Stock [Member]
Temporary equity, Balance		$ 55,795
Temporary equity, Balance (in shares)				5,600,000
Conversion of convertible preferred stock to common stock in association with initial public offering		$ 55,795
Conversion of convertible preferred stock to common stock in association with initial public offering (in shares)		5,600,000
Non-Voting Common Stock [Member]
Balance (in shares)
Conversion of convertible preferred stock to common stock in association with initial public offering (in shares)		3,629,400
Balance (in shares)		3,629,400
Voting Common Stock [Member]
Balance
Balance (in shares)		3,840,540
Conversion of convertible preferred stock to common stock in association with initial public offering (in shares)	4,098,600	4,098,600
Issuance of common stock (in shares)			3,840,540
Balance		$ 1
Balance (in shares)		12,939,140	(3,840,540)
Voting Common Stock [Member] | IPO [Member]
Issuance of common stock		$ 1
Issuance of common stock (in shares)		5,000,000
Additional Paid-in Capital [Member]
Balance		$ 11,708
Conversion of convertible preferred stock to common stock in association with initial public offering		55,795
Arena Pharmaceuticals, Inc. capital contributions			39
Stock-based compensation		333	95
Balance		139,684	134
Additional Paid-in Capital [Member] | IPO [Member]
Issuance of common stock		71,848
Accumulated Deficit [Member]
Balance		(14,400)
Net loss		(5,699)	(174)
Balance		$ (20,099)	$ (174)

Agreements with Arena Pharmac_2

Agreements with Arena Pharmaceuticals, Inc. - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Oct. 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Related Party Transaction [Line Items]
Research and development expenses		$ 4,398	$ 59
General and administrative expenses		1,305	115
Arena Pharmaceuticals, Inc.
Related Party Transaction [Line Items]
Renew of successive agreement term	1 year
Research and development expenses		246,000	16,000
General and administrative expenses		69,000	$ 79,000
Related party amounts related to accounts payable		$ 231,000		$ 241,000
Payments of related party	$ 100

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) - USD ($)	1 Months Ended	3 Months Ended
	Oct. 31, 2020	Mar. 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options exercisable, vested stock options		7,737
Options exercisable, subject to early exercise provision		348,450
Options outstanding, Intrinsic value		$ 12,900,000
Options exercisable, Intrinsic value		$ 4,700,000
Number of shares, options granted		374,892
Unrecognized stock-based compensation expense		$ 5,500,000
Cost not yet recognized, period for recognition		3 years 4 months 24 days
Employee Stock Purchase Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares authorized for issuance		353,339
Employee stock purchase plan, eligible earnings contribution, percentage		15.00%
Employee stock purchase plan, shares purchase price as a percentage of market fair value		85.00%
Employee stock purchase plan, maximum shares purchased, value		$ 25,000
Employee stock purchase plan, maximum offering period		27 months
2021 Equity Incentive Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares available for grant		1,586,076
2021 Equity Incentive Plan [Member] | Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares authorized for issuance		2,834,232
2021 Equity Incentive Plan [Member] | Stock Options [Member] | Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period		1 year
2021 Equity Incentive Plan [Member] | Stock Options [Member] | Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period		4 years
Award expiration term		10 years
2020 Equity Incentive Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares available for grant		0
2020 Equity Incentive Plan [Member] | Stock Options [Member] | Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period		1 year
2020 Equity Incentive Plan [Member] | Stock Options [Member] | Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period		4 years
Award expiration term		10 years
2020 Equity Incentive Plan [Member] | Restricted Stock Awards [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period	2 years
Restricted stock award, granted	348,450
Restricted stock award, Grant date fair value	$ 3.12
Arena 2017 LTIP [Member] | Chief Executive Officer [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period		4 years
Number of shares, options granted		70,000
Award vesting rights percentage		25.00%
Remaining contractual term, options granted		7 years

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock Option Activity (Details) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Options [Roll Forward]
Number of Shares, Options outstanding, beginning balance	873,264
Number of Shares, Options granted	374,892
Number of Shares, Options exercised
Number of Shares, Options cancelled
Number of Shares, Options outstanding, ending balance	1,248,156	873,264
Number of Shares, Options exercisable	356,187
Weighted Average Exercise Price [Roll Forward]
Weighted Average Exercise Price Per share, Options outstanding, beginning balance	$ 3.42
Weighted Average Exercise Price Per share, Options granted	12.10
Weighted Average Exercise Price Per share, Options exercised
Weighted Average Exercise Price Per share, Options cancelled
Weighted Average Exercise Price Per share, Options outstanding, ending balance	6.03	$ 3.42
Weighted Average Exercise Price Per share, Options exercisable	$ 3.18
Weighted Average Remaining Contractual Term (in Years) [Roll Forward]
Weighted Average Remaining Contractual Term, Options outstanding	9 years 8 months 12 days	9 years 10 months 24 days
Remaining Contractual Term, Options granted	9 years 10 months 24 days
Weighted Average Remaining Contractual Term, Options exercised
Weighted Average Remining Contractual Term, Options cancelled
Weighted Average Remaining Contractual Term, Options exercisable	9 years 7 months 6 days

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of Weighted Average Grant-Date Fair Values And Weighted Average Assumptions Used to Calculate Fair Value of Options Granted (Details) - $ / shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock price	$ 12.10
Risk-free interest rate	0.84%
Dividend yield	0.00%
Expected volatility	73.87%
Expected life (years)	6 years
Estimated grant date fair value per share of award granted	$ 7.80
Arena 2017 LTIP [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock price		$ 44.60
Risk-free interest rate		0.89%
Dividend yield		0.00%
Expected volatility		57.80%
Expected life (years)		4 years 6 months
Estimated grant date fair value per share of award granted		$ 21.02

Stock-Based Compensation Expens

Stock-Based Compensation Expense - Schedule of Stock-Based Compensation Expense Recognized for all Equity Awards and Reported in the Statements of Operations and Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 333	$ 95
Research and Development [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	70	16
General and Administrative [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 263	$ 79

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Commitments And Contingencies Disclosure [Abstract]
Rent payments per month	$ 1,000
Total rent expense	$ 3,000	$ 1,000

Employment Benefits - Additiona

Employment Benefits - Additional Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021USD ($)
Postemployment Benefits [Abstract]
Matching contributions	$ 2,000

Subsequent Events - Additional

Subsequent Events - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	Apr. 09, 2021	Mar. 31, 2021
Subsequent Event [Line Items]
Number of Shares, Options exercised
Subsequent Event | IPO [Member]
Subsequent Event [Line Items]
Number of Shares, Options exercised	298,360
Shares issued price per share	$ 16
Proceeds from stock options exercised	$ 4.4
Other underwriting expense	$ 0.3