Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 01, 2022 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-40925 | |
Entity Registrant Name | Xilio Therapeutics, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 85-1623397 | |
Entity Address, Address Line One | 828 Winter Street | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Waltham | |
Entity Address State Or Province | MA | |
Entity Address, Postal Zip Code | 02451 | |
City Area Code | 857 | |
Local Phone Number | 524-2466 | |
Title of 12(b) Security | Common stock, par value $0.0001 per share | |
Trading Symbol | XLO | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 27,471,607 | |
Entity Central Index Key | 0001840233 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 159,410 | $ 198,053 |
Prepaid expenses and other current assets | 3,597 | 4,464 |
Total current assets | 163,007 | 202,517 |
Restricted cash | 1,554 | 1,553 |
Property and equipment, net | 7,442 | 7,620 |
Operating lease right-of-use asset | 5,789 | 5,977 |
Other non-current assets | 335 | 393 |
Total assets | 178,127 | 218,060 |
Current liabilities | ||
Accounts payable | 1,410 | 3,144 |
Accrued expenses | 12,087 | 8,751 |
Operating lease liability, current portion | 858 | 801 |
Notes payable, current portion | 3,333 | |
Other current liabilities | 82 | 82 |
Total current liabilities | 17,770 | 12,778 |
Notes payable, net of current portion | 6,394 | 9,628 |
Operating lease liability, net of current portion | 9,664 | 10,107 |
Other liabilities, long-term | 82 | 118 |
Total liabilities | 33,910 | 32,631 |
Commitments and contingencies (Note 7) | ||
Stockholders' equity | ||
Preferred stock, $0.0001 par value; 5,000,000 shares authorized, no shares issued or outstanding at June 30, 2022 and December 31, 2021 | ||
Common stock, $0.0001 par value; 200,000,000 shares authorized at June 30, 2022 and December 31, 2021; 27,471,607 shares issued and 27,391,834 shares outstanding at June 30, 2022; 27,468,950 shares issued and 27,358,375 shares outstanding at December 31, 2021 | 3 | 3 |
Additional paid-in capital | 351,066 | 346,312 |
Accumulated deficit | (206,852) | (160,886) |
Total stockholders' equity (deficit) | 144,217 | 185,429 |
Total liabilities and stockholders' equity | $ 178,127 | $ 218,060 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
CONSOLIDATED BALANCE SHEETS | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 27,471,607 | 27,468,950 |
Common stock, shares outstanding | 27,391,834 | 27,358,375 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Operating expenses | ||||
Research and development | $ 16,246 | $ 17,745 | $ 31,166 | $ 29,366 |
General and administrative | 8,306 | 5,262 | 14,610 | 10,161 |
Total operating expenses | 24,552 | 23,007 | 45,776 | 39,527 |
Loss from operations | (24,552) | (23,007) | (45,776) | (39,527) |
Other expense, net | ||||
Other expense, net | (61) | (174) | (190) | (321) |
Total other expense, net | (61) | (174) | (190) | (321) |
Net loss | (24,613) | (23,181) | (45,966) | (39,848) |
Comprehensive loss | $ (24,613) | $ (23,181) | $ (45,966) | $ (39,848) |
Net loss per share, basic (in dollars per share) | $ (0.90) | $ (31.48) | $ (1.68) | $ (55.16) |
Net loss per share, diluted (in dollars per share) | $ (0.90) | $ (31.48) | $ (1.68) | $ (55.16) |
Weighted average common shares outstanding, basic (in shares) | 27,384,614 | 736,473 | 27,376,043 | 722,424 |
Weighted average common shares outstanding, diluted (in shares) | 27,384,614 | 736,473 | 27,376,043 | 722,424 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Mar. 31, 2021 | |
Series A Convertible Preferred Stock | ||
Temporary Equity | ||
Beginning balance | $ 7,309 | $ 7,309 |
Beginning balance (in shares) | 7,500,000 | 7,500,000 |
Issuance of preferred stock or units, net of issuance costs | $ 0 | |
Issuance of preferred stock or units (in shares) | 0 | |
Ending balance | $ 7,309 | $ 7,309 |
Ending balance (in shares) | 7,500,000 | 7,500,000 |
Series A-1 Convertible Preferred Stock | ||
Temporary Equity | ||
Beginning balance | $ 20,740 | $ 20,740 |
Beginning balance (in shares) | 19,565,216 | 19,565,216 |
Issuance of preferred stock or units, net of issuance costs | $ 0 | |
Issuance of preferred stock or units (in shares) | 0 | |
Ending balance | $ 20,740 | $ 20,740 |
Ending balance (in shares) | 19,565,216 | 19,565,216 |
Series B Convertible Preferred Stock | ||
Temporary Equity | ||
Beginning balance | $ 100,153 | $ 49,953 |
Beginning balance (in shares) | 79,446,624 | 39,723,312 |
Issuance of preferred stock or units, net of issuance costs | $ 0 | $ 50,200 |
Issuance of preferred stock or units (in shares) | 0 | 39,723,312 |
Ending balance | $ 100,153 | $ 100,153 |
Ending balance (in shares) | 79,446,624 | 79,446,624 |
Series C Convertible Preferred Stock | ||
Temporary Equity | ||
Beginning balance | $ 94,686 | |
Beginning balance (in shares) | 68,271,641 | |
Issuance of preferred stock or units, net of issuance costs | $ 0 | $ 94,686 |
Issuance of preferred stock or units (in shares) | 0 | 68,271,641 |
Ending balance | $ 94,686 | $ 94,686 |
Ending balance (in shares) | 68,271,641 | 68,271,641 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2021 USD ($) | |
Series B Convertible Preferred Stock | |
Issuance costs | $ 50 |
Series C Convertible Preferred Stock | |
Issuance costs | $ 314 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Beginning balance at Dec. 31, 2020 | $ 1,799 | $ (85,086) | $ (83,287) | |
Beginning balance (in shares) at Dec. 31, 2020 | 689,929 | |||
Stockholders' Deficit | ||||
Vesting of restricted common stock (in shares) | 27,989 | |||
Exercise of stock options | 25 | 25 | ||
Exercise of stock options (in shares) | 4,473 | |||
Equity-based compensation expense | 794 | 794 | ||
Net loss | (16,667) | (16,667) | ||
Ending balance at Mar. 31, 2021 | 2,618 | (101,753) | (99,135) | |
Ending balance (in shares) at Mar. 31, 2021 | 722,391 | |||
Beginning balance at Dec. 31, 2020 | 1,799 | (85,086) | (83,287) | |
Beginning balance (in shares) at Dec. 31, 2020 | 689,929 | |||
Stockholders' Deficit | ||||
Net loss | (39,848) | |||
Ending balance at Jun. 30, 2021 | 3,625 | (124,934) | (121,309) | |
Ending balance (in shares) at Jun. 30, 2021 | 750,101 | |||
Beginning balance at Mar. 31, 2021 | 2,618 | (101,753) | (99,135) | |
Beginning balance (in shares) at Mar. 31, 2021 | 722,391 | |||
Stockholders' Deficit | ||||
Vesting of restricted common stock (in shares) | 26,676 | |||
Exercise of stock options | 5 | 5 | ||
Exercise of stock options (in shares) | 1,034 | |||
Equity-based compensation expense | 1,002 | 1,002 | ||
Net loss | (23,181) | (23,181) | ||
Ending balance at Jun. 30, 2021 | 3,625 | (124,934) | (121,309) | |
Ending balance (in shares) at Jun. 30, 2021 | 750,101 | |||
Beginning balance at Dec. 31, 2021 | $ 3 | 346,312 | (160,886) | 185,429 |
Beginning balance (in shares) at Dec. 31, 2021 | 27,358,375 | |||
Stockholders' Deficit | ||||
Vesting of restricted common stock (in shares) | 15,441 | |||
Exercise of stock options | 16 | 16 | ||
Exercise of stock options (in shares) | 2,657 | |||
Equity-based compensation expense | 2,029 | 2,029 | ||
Net loss | (21,353) | (21,353) | ||
Ending balance at Mar. 31, 2022 | $ 3 | 348,357 | (182,239) | 166,121 |
Ending balance (in shares) at Mar. 31, 2022 | 27,376,473 | |||
Beginning balance at Dec. 31, 2021 | $ 3 | 346,312 | (160,886) | $ 185,429 |
Beginning balance (in shares) at Dec. 31, 2021 | 27,358,375 | |||
Stockholders' Deficit | ||||
Exercise of stock options (in shares) | 2,657 | |||
Net loss | $ (45,966) | |||
Ending balance at Jun. 30, 2022 | $ 3 | 351,066 | (206,852) | 144,217 |
Ending balance (in shares) at Jun. 30, 2022 | 27,391,834 | |||
Beginning balance at Mar. 31, 2022 | $ 3 | 348,357 | (182,239) | 166,121 |
Beginning balance (in shares) at Mar. 31, 2022 | 27,376,473 | |||
Stockholders' Deficit | ||||
Vesting of restricted common stock (in shares) | 15,361 | |||
Equity-based compensation expense | 2,709 | 2,709 | ||
Net loss | (24,613) | (24,613) | ||
Ending balance at Jun. 30, 2022 | $ 3 | $ 351,066 | $ (206,852) | $ 144,217 |
Ending balance (in shares) at Jun. 30, 2022 | 27,391,834 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (45,966) | $ (39,848) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 885 | 723 |
Non-cash interest expense | 106 | 78 |
Equity-based compensation expense | 4,738 | 1,796 |
Loss on disposal of property and equipment | 19 | |
Change in fair value of warrant and derivative liabilities | 44 | |
Changes in operating assets and liabilities: | ||
Prepaid and other assets | 857 | (1,398) |
Operating lease right-of-use asset | 188 | 159 |
Accounts payable | (1,217) | 1,921 |
Accrued expenses and other liabilities | 3,204 | (6,159) |
Operating lease liability | (386) | (205) |
Net cash used in operating activities | (37,591) | (42,870) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (1,025) | (608) |
Net cash used in investing activities | (1,025) | (608) |
Cash flows from financing activities: | ||
Repayments of debt principal | (333) | |
Payments of finance lease | (42) | (42) |
Proceeds from issuance of convertible preferred stock, net of issuance costs | 144,886 | |
Proceeds from exercise of stock options | 16 | 30 |
Net cash (used in) provided by financing activities | (26) | 144,541 |
(Decrease) increase in cash, cash equivalents and restricted cash | (38,642) | 101,063 |
Cash, cash equivalents and restricted cash, beginning of period | 199,606 | 20,789 |
Cash, cash equivalents and restricted cash, end of period | 160,964 | 121,852 |
Supplemental cash flow disclosure: | ||
Cash paid for interest | 240 | 253 |
Supplemental disclosure of non-cash activities: | ||
Capital expenditures included in accounts payable or accrued expenses | $ 154 | 2 |
Deferred offering costs included in accounts payable or accrued expenses | $ 1,538 |
Description of Business, Initia
Description of Business, Initial Public Offering and Liquidity and Capital Resources | 6 Months Ended |
Jun. 30, 2022 | |
Description of Business, Initial Public Offering and Liquidity and Capital Resources | |
Description of Business, Initial Public Offering and Liquidity and Capital Resources | 1. Description of Business, Initial Public Offering and Liquidity and Capital Resources Description of Business Xilio Therapeutics, Inc. (“Xilio” or the “Company”) is a clinical-stage biotechnology company focused on harnessing the immune system to achieve deep and durable clinical responses to improve the lives of patients with cancer. The Company was incorporated in Delaware in June 2020, and its headquarters are based in Waltham, Massachusetts. Initial Public Offering In the fourth quarter of 2021, the Company completed its initial public offering (“IPO”) of common stock, in which it issued and sold an aggregate of 8,119,106 shares of its common stock, including 766,106 shares pursuant to the partial exercise by the underwriters of their option to purchase additional shares, at a public offering price of $16.00 per share. The Company received approximately $116.4 million in net proceeds, after deducting underwriting discounts and commissions and offering expenses payable by the Company. Liquidity and Capital Resources Since its inception, the Company has devoted substantially all of its financial resources and efforts to research and development activities. The Company is subject to risks and uncertainties common to early-stage companies in the biotechnology industry, including but not limited to, risks associated with the successful research, development and manufacturing of product candidates, and, if approved, any products, obtaining regulatory approvals for product candidates, and, if approved, commercialization of any products, protection and enforcement of intellectual property and proprietary technology, development by third parties of potentially competitive products or product candidates, compliance with governmental regulations, and the ability to secure additional capital to fund operations. Programs currently under development will require significant additional research and development efforts, including preclinical and clinical testing and manufacturing process development and will need to obtain regulatory approval prior to commercialization. These efforts require significant amounts of additional capital, adequate personnel and infrastructure and extensive compliance-reporting capabilities. Even if the Company’s product development efforts are successful, it is uncertain when, if ever, the Company will realize revenue from product sales. As of June 30, 2022, the Company had cash and cash equivalents of $159.4 million. The Company believes that its existing cash and cash equivalents will be sufficient to enable the Company to fund its operating expenses and capital expenditure requirements into the first half of 2024, which is at least twelve months from the date of issuance of these condensed consolidated financial statements. The Company expects to continue to generate negative cash flows from operations and net losses for the foreseeable future and will need additional capital in the future to support its continuing operations and growth strategy as it continues to invest significantly in research and development of its product candidates, including preclinical and clinical testing and manufacturing process development. To date, the Company has primarily funded its operations with proceeds from the sale of convertible preferred units and convertible preferred stock, a debt financing and the IPO. Management’s conclusion with respect to its ability to fund operations is based on estimates that are subject to risks and uncertainties that may prove to be incorrect. If actual results differ from management’s estimates, the Company may be required to seek additional capital sooner or curtail planned activities to reduce operating expenses, which may have an adverse impact on the Company’s ability to achieve its business objectives. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation These condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) and pursuant to the rules and regulations of the United States Securities and Exchange Commission, (the “SEC”). Certain information and footnote disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021. Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASUs”) of the Financial Accounting Standards Board (“FASB”). In April 2012, the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”) was enacted. Section 107(b) of the JOBS Act provides that an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting standards. Thus, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company has elected not to “opt out” of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company can adopt the new or revised standard at the time private companies adopt the new or revised standard and may do so until such time that the Company either (1) irrevocably elects to “opt out” of such extended transition period or (2) no longer qualifies as an emerging growth company. The Company may take advantage of these exemptions up until the last day of the fiscal year following the fifth anniversary of its initial public offering or such earlier time that it is no longer an emerging growth company. In connection with its IPO, the Company effected a 1-for-9.5 Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries: Xilio Therapeutics LLC, Xilio Concerto LLC, Xilio Development, Inc. and Xilio Securities Corporation, which is a Massachusetts subsidiary created to buy, sell and hold securities. All intercompany accounts and transactions have been eliminated in consolidation. Significant Accounting Policies The significant accounting policies used in preparation of the unaudited condensed consolidated financial statements are described in Note 2, “ Summary of Significant Accounting Policies ” of the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. There have been no material changes to the significant accounting policies previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Unaudited Interim Condensed Consolidated Financial Information The accompanying condensed consolidated financial statements are unaudited. The financial data and other information contained in these notes are also unaudited. The condensed consolidated balance sheet data as of December 31, 2021 was derived from the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited annual consolidated financial statements, and in the opinion of management, reflect all adjustments, which include only normal recurring adjustments necessary for the fair presentation of the Company’s financial position as of June 30, 2022, the results of its operations for the three and six months ended June 30, 2022 and 2021 and cash flows for the six months ended June 30, 2022 and 2021. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2021, and the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. The results for the three and six months ended June 30, 2022 are not necessarily indicative of results to be expected for the year ended December 31, 2022, or any other interim periods, or any future year or period. Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and judgments that may affect the reported amounts of assets and liabilities and related disclosures of contingent assets and liabilities at the date of the financial statements and the related reporting of expenses during the reporting period. Management considers many factors in selecting appropriate financial accounting policies and controls, and in developing the estimates and assumptions that are used in the preparation of these condensed consolidated financial statements. Factors that may affect estimates include expected business and operational changes, sensitivity and volatility associated with the assumptions used in developing estimates, and whether historical trends are expected to be representative of future trends. The estimation process often may yield a range of potentially reasonable estimates of the ultimate future outcomes and management must select an amount that falls within that range of reasonable estimates. Significant estimates of accounting reflected in these condensed consolidated financial statements include, but are not limited to, estimates related to accrued expenses, the valuation of equity-based compensation, including stock options and restricted common stock, the useful life of long-lived assets and income taxes. Actual results could differ from those estimates. Cash, Cash Equivalents and Restricted Cash The Company considers all short-term, highly liquid investments with original maturities of 90 days or less at acquisition date to be cash equivalents. Cash equivalents, which consist of money market accounts, are stated at fair value. Restricted cash primarily represents a letter of credit issued to the landlord of the Company’s facility lease and is reflected in non-current assets on the accompanying condensed consolidated balance sheets. Cash, cash equivalents and restricted cash consists of the following: June 30, June 30, 2022 2021 Cash and cash equivalents $ 159,410 $ 120,299 Restricted cash 1,554 1,553 Total cash, cash equivalents and restricted cash as shown on the consolidated statement of cash flows $ 160,964 $ 121,852 Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326)—Measurement of Credit Losses on Financial Instruments , as amended (“ASU 2016-13”). The provisions of ASU 2016-13 modify the impairment model to utilize an expected loss methodology in place of the previously used incurred loss methodology and require a consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The Company adopted ASU 2016-13 as of January 1, 2022, and the adoption did not have a material effect on its condensed consolidated financial statements and related disclosures. In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470 - 20) and Derivatives and Hedging Contracts in Entity’s Own Equity (Subtopic 815 - 40) |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Measurements | |
Fair Value Measurements | 3. Fair Value Measurements The Company measures the following financial assets at fair value on a recurring basis. The fair value of these assets was determined as follows: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable June 30, Assets Inputs Inputs 2022 Level 1 Level 2 Level 3 Financial assets: Cash equivalents—money market funds $ 934 $ 934 $ — $ — Total financial assets $ 934 $ 934 $ — $ — Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable December 31, Assets Inputs Inputs 2021 Level 1 Level 2 Level 3 Financial assets: Cash equivalents—money market funds $ 8,534 $ 8,534 $ — $ — Total financial assets $ 8,534 $ 8,534 $ — $ — During the six months ended June 30, 2022 and 2021, the Company did not hold any investments and there were no transfers between Level 1, Level 2, and Level 3. |
Property and Equipment, Net
Property and Equipment, Net | 6 Months Ended |
Jun. 30, 2022 | |
Property and Equipment, Net | |
Property and Equipment, Net | 4. Property and Equipment, Net Property and equipment, net consists of the following as of June 30, 2022 and December 31, 2021: June 30, December 31, 2022 2021 Laboratory equipment $ 4,984 $ 3,805 Computers and software 228 228 Furniture and fixtures 636 636 Leasehold improvements 5,124 5,124 Construction in process — 539 Total property and equipment $ 10,972 $ 10,332 Less accumulated depreciation (3,530) (2,712) Property and equipment, net $ 7,442 $ 7,620 The Company incurred depreciation and amortization expense related to property and equipment of $0.8 million and $0.7 million for the six months ended June 30, 2022 and 2021, respectively. |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Jun. 30, 2022 | |
Accrued Expenses | |
Accrued Expenses | 5. Accrued Expenses Accrued expenses consist of the following as of June 30, 2022 and December 31, 2021: June 30, December 31, 2022 2021 External research and development $ 8,198 $ 2,794 Personnel-related 2,991 5,145 Professional and consulting fees 593 491 Other 305 321 Total accrued expenses $ 12,087 $ 8,751 |
Loan and Security Agreement
Loan and Security Agreement | 6 Months Ended |
Jun. 30, 2022 | |
Loan and Security Agreement | |
Loan and Security Agreement | 6. Loan and Security Agreement In November 2019, the Company entered into a loan and security agreement with Pacific Western Bank (“PacWest”), as amended (the “Loan Agreement”), pursuant to which the Company borrowed $10.0 million under a term loan and has the ability to request one or more additional term loans in an aggregate principal amount of $10.0 million prior to December 31, 2022. Interest on amounts outstanding under the Loan Agreement accrue at a variable annual rate equal to the greater of (i) the prime rate plus 0.25% or (ii) 4.75%. As of June 30, 2022 the interest rate on the term loan is 5.0%. The Company is required to make interest-only payments on any outstanding balances through December 31, 2022. Subsequent to the interest-only period, the Company will be required to make equal monthly payments of principal plus interest until the term loan matures on June 30, 2024. In addition, under the Loan Agreement, the Company paid a one-time success fee of $0.8 million to PacWest in October 2021 upon the closing of the IPO. The Company is also obligated to pay PacWest a fee of 1.0% of the aggregate principal amounts then outstanding if any term loans are repaid prior to September 17, 2022. The Loan Agreement contains customary representations, warranties and covenants and also includes customary terms covering events of default, including payment defaults, breaches of covenants, a change of control provision and occurrence of a material adverse effect. As security for its obligations under the Loan Agreement, the Company granted PacWest a first priority security interest on substantially all of the Company’s assets (other than intellectual property), subject to certain exceptions. The Company has determined that the risk of subjective acceleration under the material adverse effect clause is not probable and therefore has classified the long-term portion of the outstanding principal in non-current liabilities. Upon the occurrence and continuation of an event of default, a default interest rate of an additional 5% per annum may be applied to the outstanding loan balance, and the administrative agent, collateral agent, and lender may declare all outstanding obligations immediately due and payable and exercise all of their rights and remedies as set forth in the Loan Agreement and under applicable law. As of June 30, 2022, the Company was in compliance with all covenants under the Loan Agreement. The Company has the following minimum aggregate future loan payments under the Loan Agreement as of June 30, 2022: Minimum Loan Payments 2022 $ — 2023 6,667 2024 3,333 Total future principal payments 10,000 Less: unamortized discount (273) Total notes payable $ 9,727 The Company recognized $0.3 million of interest expense related to the Loan Agreement during each of the six months ended June 30, 2022 and 2021, respectively, which is reflected in other expense, net on the condensed consolidated statements of operations and comprehensive loss. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies | |
Commitments and Contingencies | 7. Commitments and Contingencies Leases The Company has an operating lease for its facility and a finance lease for certain lab equipment. In August 2019, the Company entered into a lease agreement with a landlord providing funding for tenant improvements and occupancy of approximately 27,830 square feet of office and laboratory space at 828 Winter Street, Waltham, Massachusetts. The initial term of the lease expires in March 2030, unless terminated earlier in accordance with the terms of the lease. The Company has an option to extend the lease for a period of five years at then-market rates. The Company is obligated to pay its portion of real estate taxes and costs related to the premises, including costs of operations, maintenance, repair, replacement, and management of the leased premises, which it began paying simultaneous with the rent commencement date in March 2020. As of June 30, 2022, the Company has a letter of credit for the benefit of its landlord in the amount of $1.6 million, collateralized by a money market fund, which is classified as restricted cash on the condensed consolidated balance sheets. |
Preferred Stock and Common Stoc
Preferred Stock and Common Stock | 6 Months Ended |
Jun. 30, 2022 | |
Preferred Stock and Common Stock | |
Preferred Stock and Common Stock | 8. Preferred Stock and Common Stock Undesignated Preferred Stock As of June 30, 2022 and December 31, 2021, the Company’s certificate of incorporation, as amended, authorized the Company to issue up to 5,000,000 shares of undesignated preferred stock at $0.0001 par value per share. Convertible Preferred Stock Upon the closing of the IPO in October 2021, all shares of the Company’s then outstanding preferred stock automatically converted into an aggregate of 18,398,248 shares of common stock. Common Stock As of June 30, 2022 and December 31, 2021, the Company’s certificate of incorporation, as amended, authorized the Company to issue up to 200,000,000 shares of common stock, $0.0001 par value per share. Shares Reserved for Future Issuance As of June 30, 2022 and December 31, 2021, the Company had reserved shares of common stock for future issuance, including under the Company’s 2020 Stock Incentive Plan (as amended, the “2020 Plan”), 2021 Stock Incentive Plan (the “2021 Plan”) and 2021 Employee Stock Purchase Plan (the “2021 ESPP”) as follows: June 30, December 31, 2022 2021 Shares of common stock reserved for exercise of a warrant 2,631 2,631 Shares of common stock reserved for exercise of outstanding stock options under the 2021 and 2020 Stock Incentive Plans 5,181,011 4,088,456 Shares of common stock reserved for future awards under the 2021 Stock Incentive Plan 2,628,110 2,349,875 Shares of common stock reserved for purchase under the 2021 Employee Stock Purchase Plan 566,720 292,031 Total shares reserved for future issuance 8,378,472 6,732,993 |
Equity-Based Compensation
Equity-Based Compensation | 6 Months Ended |
Jun. 30, 2022 | |
Equity-Based Compensation | |
Equity-Based Compensation | 9. Equity-Based Compensation Equity Incentive Plans 2020 Stock Incentive Plan In July 2020, the Company’s stockholders approved the 2020 Plan. Under the 2020 Plan, the Company was authorized to issue shares of common stock to the Company’s employees, officers, directors, consultants, and advisors in the form of options, restricted stock awards or other stock-based awards. Upon the effectiveness of the 2021 Plan in October 2021, the Company ceased granting awards under the 2020 Plan. 2021 Stock Incentive Plan In September 2021, the Company’s board of directors adopted the 2021 Plan, which was approved by the Company’s stockholders and became effective immediately prior to the effectiveness of the Company’s registration statement on Form S-1, as amended (File No. 333-259973), which was declared effective by the SEC on October 21, 2021 (the “Registration Statement”). The 2021 Plan provides for the grant of incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock units, and other stock-based awards. The number of shares of the Company’s common stock initially reserved for issuance under the 2021 Plan was the sum of (1) 2,654,828; plus (2) the number of shares (up to 3,967,038 shares) as is equal to the sum of (x) the number of shares of the Company’s common stock reserved for issuance under the 2020 Plan that remained available for grant under the 2020 Plan immediately prior to the effectiveness of the Registration Statement and (y) the number of shares of the Company’s common stock subject to outstanding awards whether granted under the 2020 Plan or outside of the 2020 Plan which awards expire, terminate or are otherwise surrendered, canceled, forfeited or repurchased by us at their original issuance price pursuant to a contractual repurchase right and that, prior to the effectiveness of the 2021 Plan, would have become available for issuance under the 2020 Plan; plus (3) an annual increase, to be added on the first day of each fiscal year, beginning with the fiscal year, commencing on January 1, 2022 and continuing until, and including, January 1, 2031, equal to the lesser of (i) 5% of the number of shares of the Company’s common stock outstanding on the first day of such fiscal year and (ii) the number of shares of common stock determined by the Company’s board of directors (the “Evergreen Provision”). Effective January 1, 2022, the number of shares reserved for issuance under the 2021 Plan increased by 1,373,447 shares in accordance with the Evergreen Provision. As of June 30, 2022, there were 2,628,110 shares available for future issuance under the 2021 Plan. 2021 Employee Stock Purchase Plan In September 2021, the Company’s board of directors adopted the 2021 ESPP, which was approved by the stockholders and became effective on October 21, 2021, immediately prior to the effectiveness of the Registration Statement. The Company initially reserved 292,031 shares of the Company’s common stock for future issuance under the 2021 ESPP. The number of shares of common stock reserved for issuance under the 2021 ESPP will automatically increase on each January 1, beginning on January 1, 2022 and ending on January 1, 2031, by the lesser of (i) 584,062 shares of common stock, (ii) 1% of the number of shares of the Company’s common stock outstanding on such date, and (iii) a number of shares of common stock as determined by the Company’s board of directors (the “ESPP Evergreen Provision”). Effective January 1, 2022, the number of shares reserved for issuance under the 2021 ESPP increased by 274,689 shares in accordance with the ESPP Evergreen Provision. As of June 30, 2022, no offering periods have commenced under the 2021 ESPP. Equity-Based Compensation Expense During the three and six months ended June 30, 2022 and 2021, the Company recorded compensation expense related to stock options and restricted common stock for employees and non-employees, which was allocated as follows in the condensed consolidated statements of operations and comprehensive loss: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Research and development expense $ 637 $ 351 $ 1,233 $ 486 General and administrative expense 2,072 651 3,505 1,310 Total equity-based compensation expense $ 2,709 $ 1,002 $ 4,738 $ 1,796 For the three and six months ended June 30, 2022, general and administrative equity-based compensation expense includes $0.6 million in non-recurring compensation expense resulting from the modification of previously issued stock options. Stock Options A summary of stock option activity under the 2021 Plan is as follows: Weighted Average Remaining Aggregate Weighted Contractual Intrinsic Number of Average Term Value Stock Options Exercise Price (In years) (In thousands) Outstanding as of December 31, 2021 4,088,456 $ 8.59 9.13 $ 30,291 Granted 1,362,816 $ 9.35 Exercised (2,657) $ 5.89 Cancelled/forfeited (267,604) $ 9.04 Outstanding as of June 30, 2022 5,181,011 $ 8.77 8.94 $ 87 Exercisable as of June 30, 2022 1,366,453 $ 7.65 8.35 $ - Vested and expected to vest as of June 30, 2022 5,181,011 $ 8.77 8.94 $ 87 Using the Black-Scholes option pricing model, the weighted average fair value of options granted to employees and directors during the six months ended June 30, 2022 and 2021 was $6.56 and $4.71, respectively. The following assumptions were used in determining the fair value of options granted during the six months ended June 30, 2022 and 2021: Six Months Ended June 30, 2022 2021 Risk-free interest rate 1.47 – 3.39 % 0.63 – 1.15 % Expected dividend yield 0 % 0 % Expected term (in years) 5.50 – 6.08 5.52 – 10.00 Expected volatility 80.75 – 87.42 % 81.06 – 85.26 % The achievement of the performance conditions underlying outstanding performance-based awards was not probable as of June 30, 2022; therefore, no compensation expense was recorded for these awards. As of June 30, 2022, total unrecognized compensation costs related to performance-based awards was less than $0.1 million. As of June 30, 2022, total unrecognized compensation cost related to unvested stock options, excluding performance-based awards, was approximately $22.6 million, which is expected to be recognized over a weighted-average period of 2.92 years. Restricted Stock A summary of the Company’s restricted stock activity and related information is as follows: Number Weighted of Shares Average of Restricted Grant Date Stock Fair Value Unvested as of December 31, 2021 110,575 $ 5.51 Vested (30,802) $ 5.51 Canceled/Forfeited — $ — Unvested as of June 30, 2022 79,773 $ 5.51 In June 2020, the Company granted 552,546 shares of common stock underlying restricted stock awards, and the Company has not subsequently granted any additional restricted stock awards. During the six months ended June 30, 2022, the aggregate fair value of the restricted stock awards that vested was $0.2 million. As of June 30, 2022, total unrecognized compensation cost related to unvested restricted stock awards was approximately $0.5 million, which is expected to be recognized over a weighted-average period of 1.34 years. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Taxes | |
Income Taxes | 10. Income Taxes The Company did not record a provision or benefit for income taxes during the six months ended June 30, 2022 and 2021. The Company continues to maintain a full valuation allowance against all of its deferred tax assets. The Company has evaluated the positive and negative evidence involving its ability to realize its deferred tax assets and has considered its history of cumulative net losses incurred since inception and its lack of any commercially ready products. The Company has concluded that it is more likely than not that it will not realize the benefits of its deferred tax assets. The Company reevaluates the positive and negative evidence at each reporting period. |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Net Loss Per Share | |
Net Loss Per Share | 11. Net Loss Per Share The following table sets forth the outstanding shares of common stock equivalents, presented based on amounts outstanding at each period end, that were excluded from the calculation of diluted net loss per share attributable to common stockholders during each period because including them would have been anti-dilutive: Six Months Ended June 30, 2022 2021 Convertible preferred stock — 18,398,248 Unvested restricted common stock 79,773 168,328 Outstanding stock options 5,181,011 3,275,172 Warrants 2,631 2,631 Total common stock equivalents 5,263,415 21,844,379 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation These condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) and pursuant to the rules and regulations of the United States Securities and Exchange Commission, (the “SEC”). Certain information and footnote disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021. Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASUs”) of the Financial Accounting Standards Board (“FASB”). In April 2012, the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”) was enacted. Section 107(b) of the JOBS Act provides that an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting standards. Thus, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company has elected not to “opt out” of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company can adopt the new or revised standard at the time private companies adopt the new or revised standard and may do so until such time that the Company either (1) irrevocably elects to “opt out” of such extended transition period or (2) no longer qualifies as an emerging growth company. The Company may take advantage of these exemptions up until the last day of the fiscal year following the fifth anniversary of its initial public offering or such earlier time that it is no longer an emerging growth company. In connection with its IPO, the Company effected a 1-for-9.5 |
Principles of Consolidation | Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries: Xilio Therapeutics LLC, Xilio Concerto LLC, Xilio Development, Inc. and Xilio Securities Corporation, which is a Massachusetts subsidiary created to buy, sell and hold securities. All intercompany accounts and transactions have been eliminated in consolidation. |
Unaudited Interim Condensed Consolidated Financial Information | Unaudited Interim Condensed Consolidated Financial Information The accompanying condensed consolidated financial statements are unaudited. The financial data and other information contained in these notes are also unaudited. The condensed consolidated balance sheet data as of December 31, 2021 was derived from the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited annual consolidated financial statements, and in the opinion of management, reflect all adjustments, which include only normal recurring adjustments necessary for the fair presentation of the Company’s financial position as of June 30, 2022, the results of its operations for the three and six months ended June 30, 2022 and 2021 and cash flows for the six months ended June 30, 2022 and 2021. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2021, and the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. The results for the three and six months ended June 30, 2022 are not necessarily indicative of results to be expected for the year ended December 31, 2022, or any other interim periods, or any future year or period. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and judgments that may affect the reported amounts of assets and liabilities and related disclosures of contingent assets and liabilities at the date of the financial statements and the related reporting of expenses during the reporting period. Management considers many factors in selecting appropriate financial accounting policies and controls, and in developing the estimates and assumptions that are used in the preparation of these condensed consolidated financial statements. Factors that may affect estimates include expected business and operational changes, sensitivity and volatility associated with the assumptions used in developing estimates, and whether historical trends are expected to be representative of future trends. The estimation process often may yield a range of potentially reasonable estimates of the ultimate future outcomes and management must select an amount that falls within that range of reasonable estimates. Significant estimates of accounting reflected in these condensed consolidated financial statements include, but are not limited to, estimates related to accrued expenses, the valuation of equity-based compensation, including stock options and restricted common stock, the useful life of long-lived assets and income taxes. Actual results could differ from those estimates. |
Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash The Company considers all short-term, highly liquid investments with original maturities of 90 days or less at acquisition date to be cash equivalents. Cash equivalents, which consist of money market accounts, are stated at fair value. Restricted cash primarily represents a letter of credit issued to the landlord of the Company’s facility lease and is reflected in non-current assets on the accompanying condensed consolidated balance sheets. Cash, cash equivalents and restricted cash consists of the following: June 30, June 30, 2022 2021 Cash and cash equivalents $ 159,410 $ 120,299 Restricted cash 1,554 1,553 Total cash, cash equivalents and restricted cash as shown on the consolidated statement of cash flows $ 160,964 $ 121,852 |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326)—Measurement of Credit Losses on Financial Instruments , as amended (“ASU 2016-13”). The provisions of ASU 2016-13 modify the impairment model to utilize an expected loss methodology in place of the previously used incurred loss methodology and require a consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The Company adopted ASU 2016-13 as of January 1, 2022, and the adoption did not have a material effect on its condensed consolidated financial statements and related disclosures. In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470 - 20) and Derivatives and Hedging Contracts in Entity’s Own Equity (Subtopic 815 - 40) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Summary of Significant Accounting Policies | |
Schedule of cash, cash equivalents and restricted cash | June 30, June 30, 2022 2021 Cash and cash equivalents $ 159,410 $ 120,299 Restricted cash 1,554 1,553 Total cash, cash equivalents and restricted cash as shown on the consolidated statement of cash flows $ 160,964 $ 121,852 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Measurements | |
Schedule of financial assets at fair value on a recurring basis | Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable June 30, Assets Inputs Inputs 2022 Level 1 Level 2 Level 3 Financial assets: Cash equivalents—money market funds $ 934 $ 934 $ — $ — Total financial assets $ 934 $ 934 $ — $ — Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable December 31, Assets Inputs Inputs 2021 Level 1 Level 2 Level 3 Financial assets: Cash equivalents—money market funds $ 8,534 $ 8,534 $ — $ — Total financial assets $ 8,534 $ 8,534 $ — $ — |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Property and Equipment, Net | |
Summary of property and equipment, net | June 30, December 31, 2022 2021 Laboratory equipment $ 4,984 $ 3,805 Computers and software 228 228 Furniture and fixtures 636 636 Leasehold improvements 5,124 5,124 Construction in process — 539 Total property and equipment $ 10,972 $ 10,332 Less accumulated depreciation (3,530) (2,712) Property and equipment, net $ 7,442 $ 7,620 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accrued Expenses | |
Summary of accrued expenses | June 30, December 31, 2022 2021 External research and development $ 8,198 $ 2,794 Personnel-related 2,991 5,145 Professional and consulting fees 593 491 Other 305 321 Total accrued expenses $ 12,087 $ 8,751 |
Loan and Security Agreement (Ta
Loan and Security Agreement (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Loan and Security Agreement | |
Schedule of minimum aggregate future loan payments | The Company has the following minimum aggregate future loan payments under the Loan Agreement as of June 30, 2022: Minimum Loan Payments 2022 $ — 2023 6,667 2024 3,333 Total future principal payments 10,000 Less: unamortized discount (273) Total notes payable $ 9,727 |
Preferred Stock and Common St_2
Preferred Stock and Common Stock (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Preferred Stock and Common Stock | |
Schedule of Shares Reserved for Future Issuance | June 30, December 31, 2022 2021 Shares of common stock reserved for exercise of a warrant 2,631 2,631 Shares of common stock reserved for exercise of outstanding stock options under the 2021 and 2020 Stock Incentive Plans 5,181,011 4,088,456 Shares of common stock reserved for future awards under the 2021 Stock Incentive Plan 2,628,110 2,349,875 Shares of common stock reserved for purchase under the 2021 Employee Stock Purchase Plan 566,720 292,031 Total shares reserved for future issuance 8,378,472 6,732,993 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity-Based Compensation | |
Schedule of recorded compensation expense related to incentive units, stock options, and restricted common stock | Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Research and development expense $ 637 $ 351 $ 1,233 $ 486 General and administrative expense 2,072 651 3,505 1,310 Total equity-based compensation expense $ 2,709 $ 1,002 $ 4,738 $ 1,796 |
Summary of stock option activity | Weighted Average Remaining Aggregate Weighted Contractual Intrinsic Number of Average Term Value Stock Options Exercise Price (In years) (In thousands) Outstanding as of December 31, 2021 4,088,456 $ 8.59 9.13 $ 30,291 Granted 1,362,816 $ 9.35 Exercised (2,657) $ 5.89 Cancelled/forfeited (267,604) $ 9.04 Outstanding as of June 30, 2022 5,181,011 $ 8.77 8.94 $ 87 Exercisable as of June 30, 2022 1,366,453 $ 7.65 8.35 $ - Vested and expected to vest as of June 30, 2022 5,181,011 $ 8.77 8.94 $ 87 |
Schedule of assumptions used in determining the fair value of options granted to employees | Six Months Ended June 30, 2022 2021 Risk-free interest rate 1.47 – 3.39 % 0.63 – 1.15 % Expected dividend yield 0 % 0 % Expected term (in years) 5.50 – 6.08 5.52 – 10.00 Expected volatility 80.75 – 87.42 % 81.06 – 85.26 % |
Schedule of company's restricted stock activity | Number Weighted of Shares Average of Restricted Grant Date Stock Fair Value Unvested as of December 31, 2021 110,575 $ 5.51 Vested (30,802) $ 5.51 Canceled/Forfeited — $ — Unvested as of June 30, 2022 79,773 $ 5.51 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Net Loss Per Share | |
Schedule of antidilutive securities excluded from computation of diluted net loss per share | Six Months Ended June 30, 2022 2021 Convertible preferred stock — 18,398,248 Unvested restricted common stock 79,773 168,328 Outstanding stock options 5,181,011 3,275,172 Warrants 2,631 2,631 Total common stock equivalents 5,263,415 21,844,379 |
Description of Business, Init_2
Description of Business, Initial Public Offering and Liquidity and Capital Resources - IPO (Details) - Common Stock $ / shares in Units, $ in Millions | 3 Months Ended |
Dec. 31, 2021 USD ($) $ / shares shares | |
IPO | |
Sale of stock | |
Number of shares issued and sold | 8,119,106 |
Offering price (in dollar per share) | $ / shares | $ 16 |
Net proceeds received | $ | $ 116.4 |
Over-Allotment Option | |
Sale of stock | |
Number of shares issued and sold | 766,106 |
Description of Business, Init_3
Description of Business, Initial Public Offering and Liquidity and Capital Resources - Liquidity and Capital Resources (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | |
Description of Business, Initial Public Offering and Liquidity and Capital Resources | |||
Cash and cash equivalents | $ 159,410 | $ 198,053 | $ 120,299 |
Substantial doubt about going concern within one year | false |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Reverse Stock Split (Details) | Oct. 15, 2021 |
Summary of Significant Accounting Policies | |
Reverse stock split | 0.1053 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Summary of Significant Accounting Policies | ||||
Cash and cash equivalents | $ 159,410 | $ 198,053 | $ 120,299 | |
Restricted cash | 1,554 | 1,553 | 1,553 | |
Total cash, cash equivalents and restricted cash as shown on the consolidated statement of cash flows | $ 160,964 | $ 199,606 | $ 121,852 | $ 20,789 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial assets at fair value on a recurring basis (Details) - Recurring basis - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financial assets: | ||
Total financial assets | $ 934 | $ 8,534 |
Cash equivalents-money market funds | ||
Financial assets: | ||
Total financial assets | 934 | 8,534 |
Level 1 | ||
Financial assets: | ||
Total financial assets | 934 | 8,534 |
Level 1 | Cash equivalents-money market funds | ||
Financial assets: | ||
Total financial assets | $ 934 | $ 8,534 |
Fair Value Measurements - Trans
Fair Value Measurements - Transfers between levels (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Fair Value Measurements | ||
Transfer of Level 1 to level 2 | $ 0 | $ 0 |
Transfer of Level 2 to level 1 | 0 | 0 |
Transfer into level 3 | 0 | 0 |
Transfer out level 3 | $ 0 | $ 0 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Property and Equipment | |||
Property and equipment | $ 10,972 | $ 10,332 | |
Less accumulated depreciation | (3,530) | (2,712) | |
Property and equipment, net | 7,442 | 7,620 | |
Depreciation | 800 | $ 700 | |
Laboratory equipment | |||
Property and Equipment | |||
Property and equipment | 4,984 | 3,805 | |
Computers and software | |||
Property and Equipment | |||
Property and equipment | 228 | 228 | |
Furniture & fixtures | |||
Property and Equipment | |||
Property and equipment | 636 | 636 | |
Leasehold improvements | |||
Property and Equipment | |||
Property and equipment | $ 5,124 | 5,124 | |
Construction in process | |||
Property and Equipment | |||
Property and equipment | $ 539 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Accrued Expenses | ||
External research and development | $ 8,198 | $ 2,794 |
Personnel related | 2,991 | 5,145 |
Professional and consulting services | 593 | 491 |
Other | 305 | 321 |
Total accrued expenses | $ 12,087 | $ 8,751 |
Loan and Security Agreement - D
Loan and Security Agreement - Description (Details) - Loan Agreement and Amended Loan Agreement - USD ($) $ in Millions | 1 Months Ended | |||
Sep. 17, 2021 | Oct. 31, 2021 | Nov. 30, 2019 | Jun. 30, 2022 | |
Loan and security agreement | ||||
Borrowed amount | $ 10 | |||
Additional borrowing capacity | $ 10 | |||
Interest rate at end of period (as a percent) | 5% | |||
Fee paid upon closing of IPO | $ 0.8 | |||
Fee payable (as percent) | 1% | |||
Additional interest rate upon event of default (as a percent) | 5% | |||
Minimum | ||||
Loan and security agreement | ||||
Stated interest rate | 4.75% | |||
Prime rate | ||||
Loan and security agreement | ||||
Basis spread (as percent) | 0.25% |
Loan and Security Agreement - M
Loan and Security Agreement - Maturities (Details) - Loan Agreement and Amended Loan Agreement - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Minimum aggregate future loan payments | ||
2023 | $ 6,667 | |
2024 | 3,333 | |
Total future principal payments | 10,000 | |
Less: unamortized discount | (273) | |
Total notes payable | 9,727 | |
Interest expense | $ 300 | $ 300 |
Commitments and Contingencies -
Commitments and Contingencies - Lease information (Details) $ in Millions | 1 Months Ended | |
Aug. 31, 2019 ft² | Jun. 30, 2022 USD ($) | |
Commitments and Contingencies | ||
Area leased (in square feet) | ft² | 27,830 | |
Option to extend | true | |
Term of option to extend | 5 years | |
Letter of credit for the benefit of landlord | $ | $ 1.6 |
Preferred Stock and Common St_3
Preferred Stock and Common Stock - Authorized (Details) - $ / shares | 1 Months Ended | ||
Oct. 31, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | |
Preferred stock and Common stock | |||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Common stock, shares authorized | 200,000,000 | 200,000,000 | |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Common Stock | |||
Preferred stock and Common stock | |||
Conversion of convertible preferred stock into common stock upon initial public offering (in shares) | 18,398,248 |
Preferred Stock and Common St_4
Preferred Stock and Common Stock - Shares Reserved for Future Issuance (Details) - shares | Jun. 30, 2022 | Dec. 31, 2021 |
Preferred Stock and Common Stock | ||
Shares of common stock reserved for exercise of a warrant | 2,631 | 2,631 |
Shares of common stock reserved for exercise of outstanding stock options under the 2021 and 2020 Stock Incentive Plans | 5,181,011 | 4,088,456 |
Shares of common stock reserved for future awards under the 2021 Stock Incentive Plan | 2,628,110 | 2,349,875 |
Shares of common stock reserved for purchase under the 2021 Employee Stock Purchase Plan | 566,720 | 292,031 |
Total shares reserved for future issuance | 8,378,472 | 6,732,993 |
Equity-Based Compensation - Equ
Equity-Based Compensation - Equity Incentive Plans (Details) - shares | Oct. 21, 2021 | Jun. 30, 2022 | Jan. 01, 2022 | Dec. 31, 2021 |
Equity-Based Compensation | ||||
Common stock reserved for issuance (in shares) | 8,378,472 | 6,732,993 | ||
2021 Stock Incentive Plan | ||||
Equity-Based Compensation | ||||
Additional common stock reserved for issuance (in shares) | 1,373,447 | |||
Available for future issuance (in shares) | 2,628,110 | |||
2021 Stock Incentive Plan | Minimum | ||||
Equity-Based Compensation | ||||
Common stock reserved for issuance (in shares) | 2,654,828 | |||
2021 Stock Incentive Plan | Maximum | ||||
Equity-Based Compensation | ||||
Common stock reserved for issuance (in shares) | 3,967,038 | |||
Annual increase in number of shares reserved for issuance (as a percent) | 5% |
Equity-Based Compensation - Emp
Equity-Based Compensation - Employee Stock Purchase Plan (Details) - shares | Jan. 01, 2022 | Oct. 21, 2021 | Jun. 30, 2022 | Dec. 31, 2021 |
Equity-Based Compensation | ||||
Common stock reserved for issuance (in shares) | 8,378,472 | 6,732,993 | ||
Employee Stock Purchase Plan | ||||
Equity-Based Compensation | ||||
Common stock reserved for issuance (in shares) | 292,031 | |||
Additional common stock issuable under the plan | 274,689 | |||
Employee Stock Purchase Plan | Maximum | ||||
Equity-Based Compensation | ||||
Annual increase in number of shares reserved and available for issuance (in shares) | 584,062 | |||
Annual increase in number of shares reserved for issuance (as a percent) | 1% |
Equity-Based Compensation - E_2
Equity-Based Compensation - Equity-based compensation expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Equity-Based Compensation | ||||
Total compensation expense | $ 2,709 | $ 1,002 | $ 4,738 | $ 1,796 |
Research and development expense | ||||
Equity-Based Compensation | ||||
Total compensation expense | 637 | 351 | 1,233 | 486 |
General and administrative expense | ||||
Equity-Based Compensation | ||||
Total compensation expense | 2,072 | $ 651 | 3,505 | $ 1,310 |
Non-recurring compensation expense | $ 600 | $ 600 |
Equity-Based Compensation - Sto
Equity-Based Compensation - Stock option activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Options Outstanding | ||
Outstanding at beginning of period (in shares) | 4,088,456 | |
Granted (in shares) | 1,362,816 | |
Exercised (in shares) | (2,657) | |
Cancelled/forfeited (in shares) | (267,604) | |
Outstanding at end of period (in shares) | 5,181,011 | 4,088,456 |
Exercisable at end of period (in shares) | 1,366,453 | |
Vested and expected to vest at end of period (in shares) | 5,181,011 | |
Weighted Average Exercise Price | ||
Outstanding (in dollars per share) | $ 8.77 | $ 8.59 |
Granted (in dollars per share) | 9.35 | |
Exercised (in dollars per share) | 5.89 | |
Cancelled/forfeited (in dollars per share) | 9.04 | |
Exercisable at end of period (in dollars per share) | 7.65 | |
Vested and expected to vest at end of period (in dollars per share) | $ 8.77 | |
Weighted Average Remaining Contractual Term (In years) | ||
Outstanding (in years) | 8 years 11 months 8 days | 9 years 1 month 17 days |
Exercisable at end of period (in years) | 8 years 4 months 6 days | |
Vested and expected to vest at end of period (in years) | 8 years 11 months 8 days | |
Aggregate Intrinsic Value | ||
Outstanding (in dollars) | $ 87 | $ 30,291 |
Vested and expected to vest (in dollars) | $ 87 |
Equity-Based Compensation - S_2
Equity-Based Compensation - Stock options, fair value assumptions (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Equity-Based Compensation | ||||
Fair value of options granted (in dollars per share) | $ 6.56 | $ 4.71 | ||
Stock options granted during the period (in shares) | 1,362,816 | |||
Equity-based compensation expense | $ 2,709 | $ 1,002 | $ 4,738 | $ 1,796 |
Stock options | ||||
Equity-Based Compensation | ||||
Risk-free interest rate, minimum (as a percent) | 1.47% | 0.63% | ||
Risk-free interest rate, maximum (as a percent) | 3.39% | 1.15% | ||
Expected dividend yield (as a percent) | 0% | 0% | ||
Expected volatility, minimum (as percentage) | 80.75% | 81.06% | ||
Expected volatility, maximum (as percentage) | 87.42% | 85.26% | ||
Stock options | Minimum | ||||
Equity-Based Compensation | ||||
Expected term (in years) | 5 years 6 months | 5 years 6 months 7 days | ||
Stock options | Maximum | ||||
Equity-Based Compensation | ||||
Expected term (in years) | 6 years 29 days | 10 years | ||
Stock options, excluding performance-based awards | ||||
Equity-Based Compensation | ||||
Total unrecognized compensation cost | 22,600 | $ 22,600 | ||
Weighted-average period for unrecognized compensation cost to be recognized | 2 years 11 months 1 day | |||
Stock options, vesting based on performance | ||||
Equity-Based Compensation | ||||
Equity-based compensation expense | $ 0 | |||
Stock options, vesting based on performance | Maximum | ||||
Equity-Based Compensation | ||||
Total unrecognized compensation cost | $ 100 | $ 100 |
Equity-Based Compensation - Res
Equity-Based Compensation - Restricted Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Weighted Average Grant Date Fair Value | |||||
Equity-based compensation expense | $ 2,709 | $ 1,002 | $ 4,738 | $ 1,796 | |
Restricted Stock | |||||
Equity Based Compensation | |||||
Outstanding at beginning of period (in shares) | 110,575 | ||||
Vested (in shares) | (30,802) | ||||
Outstanding at end of period (in shares) | 79,773 | 79,773 | |||
Weighted Average Grant Date Fair Value | |||||
Outstanding at beginning of period (in dollars per share) | $ 5.51 | ||||
Vested (in dollars per share) | 5.51 | ||||
Outstanding at end of period (in dollars per share) | $ 5.51 | $ 5.51 | |||
Granted (in shares) | 552,546 | ||||
Aggregate fair value of restricted stock awards that vested | $ 200 | ||||
Total unrecognized compensation cost of unvested restricted stock awards | $ 500 | $ 500 | |||
Weighted-average period for unrecognized compensation cost to be recognized | 1 year 4 months 2 days |
Income Taxes - Provision (Detai
Income Taxes - Provision (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Income Taxes | ||
Provision or benefit for income taxes | $ 0 | $ 0 |
Net Loss Per Share (Details)
Net Loss Per Share (Details) - shares | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Net Loss Per Share | ||
Total common stock equivalents | 5,263,415 | 21,844,379 |
Convertible preferred stock | ||
Net Loss Per Share | ||
Total common stock equivalents | 18,398,248 | |
Restricted Stock | ||
Net Loss Per Share | ||
Total common stock equivalents | 79,773 | 168,328 |
Stock options | ||
Net Loss Per Share | ||
Total common stock equivalents | 5,181,011 | 3,275,172 |
Warrants | ||
Net Loss Per Share | ||
Total common stock equivalents | 2,631 | 2,631 |