Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 02, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Trading Symbol | TNYA | ||
Entity Registrant Name | TENAYA THERAPEUTICS, INC. | ||
Entity Central Index Key | 0001858848 | ||
Entity File Number | 001-40656 | ||
Entity Incorporation, State or Country Code | DE | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Tax Identification Number | 81-3789973 | ||
Entity Address, Address Line One | 171 Oyster Point Boulevard | ||
Entity Address, Address Line Two | Suite 500 | ||
Entity Address, City or Town | South San Francisco | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94080 | ||
City Area Code | 650 | ||
Local Phone Number | 825-6990 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Title of 12(b) Security | Common Stock $0.0001 par value per share | ||
Security Exchange Name | NASDAQ | ||
Entity Public Float | $ 156,445,652 | ||
Entity Common Stock, Shares Outstanding | 66,865,250 | ||
Documents Incorporated by Reference | Portions of the definitive proxy statement for the Registrant’s 2022 Annual Meeting of Stockholders are incorporated by reference in Part III of this Form 10-K. Such definitive proxy statement will be filed with the Securities and Exchange Commission within 120 days after the end of the Registrant’s 2022 fiscal year ended December 31, 2022. | ||
Auditor Firm ID | 34 | ||
Auditor Name | Deloitte & Touche LLP | ||
Auditor Location | San Francisco, California |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 95,272 | $ 38,129 |
Short-term investments in marketable securities | 91,255 | 213,171 |
Prepaid expenses and other current assets | 7,227 | 4,058 |
Total current assets | 193,754 | 255,358 |
Property and equipment, net | 51,032 | 43,020 |
Operating lease right-of-use assets | 11,663 | 11,685 |
Long-term investments in marketable securities | 17,703 | |
Other noncurrent assets | 4,793 | 4,126 |
Total assets | 278,945 | 314,189 |
Current liabilities: | ||
Accounts payable | 9,578 | 10,721 |
Accrued and other current liabilities | 10,664 | 9,059 |
Operating lease liabilities, current | 4,006 | 1,994 |
Total current liabilities | 24,248 | 21,774 |
Operating lease liabilities, noncurrent | 11,093 | 13,707 |
Other noncurrent liabilities | 228 | 182 |
Total liabilities | 35,569 | 35,663 |
Commitments and contingencies (Note 6) | ||
Stockholders' equity: | ||
Preferred stock, $0.0001 par value; 200,000,000 shares authorized as of December 31, 2022 and 2021; no shares issued and outstanding as of December 31, 2022 and 2021 | ||
Common stock, $0.0001 par value; 1,000,000,000 shares authorized as of December 31, 2022 and 2021; 66,857,113 and 41,291,374 shares issued and outstanding as of December 31, 2022 and 2021 | 7 | 4 |
Additional paid-in capital | 522,945 | 434,196 |
Accumulated other comprehensive loss | (378) | (141) |
Accumulated deficit | (279,198) | (155,533) |
Total stockholders' equity | 243,376 | 278,526 |
Total liabilities and stockholders' equity | $ 278,945 | $ 314,189 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized | 200,000,000 | 200,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, issued | 66,857,113 | 41,291,374 |
Common stock, outstanding | 66,857,113 | 41,291,374 |
Statements of Operations and Co
Statements of Operations and Comprehensive Loss - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Operating expenses: | ||
Research and development | $ 94,537,000 | $ 54,393,000 |
General and administrative | 31,084,000 | 18,413,000 |
Total operating expenses | 125,621,000 | 72,806,000 |
Loss from operations | (125,621,000) | (72,806,000) |
Other income (expense), net: | ||
Interest income | 1,954,000 | 108,000 |
Other income (expense), net | 2,000 | (23,000) |
Total other income (expense), net | 1,956,000 | 85,000 |
Net loss before income tax expense | (123,665,000) | (72,721,000) |
Income tax expense | 0 | 0 |
Net loss | (123,665,000) | (72,721,000) |
Other comprehensive loss: | ||
Net unrealized loss on marketable securities | (237,000) | (141,000) |
Comprehensive loss | $ (123,902,000) | $ (72,862,000) |
Net loss per share, basic | $ (2.76) | $ (4.10) |
Net loss per share, diluted | $ (2.76) | $ (4.10) |
Weighted-average shares used in computing net loss per share, basic | 44,823,597 | 17,734,166 |
Weighted-average shares used in computing net loss per share, diluted | 44,823,597 | 17,734,166 |
Statements of Convertible Prefe
Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Initial Public Offering | Convertible Preferred Stock | Convertible Preferred Stock Initial Public Offering | Series C Convertible Preferred Stock | Common Stock | Common Stock Initial Public Offering | Additional Paid-In Capital | Additional Paid-In Capital Initial Public Offering | Notes Receivable from Stockholders | Accumulated Other Comprehensive Loss | Accumulated Deficit |
Balance at Dec. 31, 2020 | $ (81,315) | $ 1,584 | $ (87) | $ (82,812) | ||||||||
Temporary equity balance, shares at Dec. 31, 2020 | 24,493,528 | |||||||||||
Temporary equity, balance at Dec. 31, 2020 | $ 220,754 | |||||||||||
Balance, shares at Dec. 31, 2020 | 1,210,306 | |||||||||||
Issuance of convertible preferred stock, net of issuance costs | $ 19,981 | |||||||||||
Issuance of convertible preferred stock, net of issuance costs, shares | 1,608,750 | |||||||||||
Conversion of convertible preferred stock to common stock upon completion of initial public offering | $ 240,735 | $ (240,735) | $ 3 | $ 240,732 | ||||||||
Conversion of convertible preferred stock to common stock upon completion of initial public offering, shares | (26,102,278) | 26,102,278 | ||||||||||
Issuance of common stock upon initial public offering, net of issuance costs | $ 188,541 | $ 1 | $ 188,540 | |||||||||
Issuance of common stock upon initial public offering, net of issuance costs, shares | 13,800,000 | |||||||||||
Issuance of common stock upon exercise of stock options | 358 | 358 | ||||||||||
Issuance of common stock upon exercise of stock options, shares | 195,749 | |||||||||||
Repurchase of common stock related to early exercise of options, shares | (16,959) | |||||||||||
Vesting of early exercised stock options | 32 | 32 | ||||||||||
Notes receivable from stockholders | 87 | $ 87 | ||||||||||
Stock-based compensation | 2,950 | 2,950 | ||||||||||
Other comprehensive loss | (141) | $ (141) | ||||||||||
Net loss | (72,721) | (72,721) | ||||||||||
Balance at Dec. 31, 2021 | 278,526 | $ 4 | 434,196 | (141) | (155,533) | |||||||
Balance, shares at Dec. 31, 2021 | 41,291,374 | |||||||||||
Issuance of common stock and pre-funded warrants, net of issuance costs | 76,886 | $ 3 | 76,883 | |||||||||
Issuance of common stock and pre-funded warrants, net of issuance costs, shares | 25,429,716 | |||||||||||
Issuance of common stock upon exercise of stock options and vesting of restricted stock units | 51 | 51 | ||||||||||
Issuance of common stock upon exercise of stock options and vesting of restricted stock units, shares | 32,609 | |||||||||||
Issuance of common stock pursuant to employee stock purchase plan, shares | 106,192 | |||||||||||
Issuance of common stock pursuant to employee stock purchase plan | 329 | 329 | ||||||||||
Repurchase of common stock related to early exercise of options, shares | (2,778) | |||||||||||
Vesting of early exercised stock options | 19 | 19 | ||||||||||
Stock-based compensation | 11,467 | 11,467 | ||||||||||
Other comprehensive loss | (237) | (237) | ||||||||||
Net loss | (123,665) | (123,665) | ||||||||||
Balance at Dec. 31, 2022 | $ 243,376 | $ 7 | $ 522,945 | $ (378) | $ (279,198) | |||||||
Balance, shares at Dec. 31, 2022 | 66,857,113 |
Statements of Convertible Pre_2
Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Initial Public Offering | ||
Stock issuance costs | $ 18,459 | |
Pre Funded Warrant | ||
Stock issuance costs | $ 5,441 | |
Series C Convertible Preferred Stock | ||
Stock issuance costs | $ 20 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (123,665) | $ (72,721) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 6,467 | 2,961 |
Amortization (accretion) of premium (discount) on marketable securities | (307) | 131 |
Stock-based compensation | 11,467 | 2,950 |
Non-cash operating lease expense | 2,246 | 1,064 |
Other | 217 | 61 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | (2,934) | (2,730) |
Other noncurrent assets | (815) | (3,114) |
Accounts payable | 1,660 | 8,600 |
Accrued and other current liabilities | 4,348 | 3,295 |
Operating lease liabilities | (3,107) | (1,472) |
Other noncurrent liabilities | (1) | 163 |
Net cash used in operating activities | (104,424) | (60,812) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (20,630) | (25,121) |
Purchases of marketable securities | (140,476) | (213,443) |
Proceeds from maturities of marketable securities | 244,750 | |
Other | 8 | |
Net cash provided by (used in) investing activities | 83,652 | (238,564) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock and pre-funded warrants in follow-on offering, net of issuance costs | 77,387 | |
Proceeds from initial public offering, net of issuance costs | 188,541 | |
Proceeds from exercise of stock options and employee stock purchase plan | 380 | 374 |
Repurchase of common stock | (13) | |
Proceeds from repayments on notes receivable from stockholders | 87 | |
Net cash provided by financing activities | 77,767 | 208,970 |
Net change in cash, cash equivalents and restricted cash | 56,995 | (90,406) |
Cash and cash equivalents and restricted cash at beginning of period | 38,676 | 129,082 |
Cash and cash equivalents and restricted cash at end of period | 95,671 | 38,676 |
Components of cash, cash equivalents and restricted cash: | ||
Cash and cash equivalents | 95,272 | 38,129 |
Restricted cash included in other noncurrent assets | 399 | 547 |
Cash, cash equivalents and restricted cash | 95,671 | 38,676 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Conversion of convertible preferred stock to common stock upon completion of initial public offering | 240,735 | |
Offering costs related to November 2022 public offering included in accounts payable and accrued and other current liabilities | 501 | |
Property and equipment included in accounts payable and accrued and other current liabilities | $ 549 | 4,100 |
Series C Convertible Preferred Stock | ||
Cash flows from financing activities: | ||
Proceeds from issuance of convertible preferred stock, net of issuance costs | $ 19,981 |
Organization and Description of
Organization and Description of the Business | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of the Business | Note 1. Organization and Description of the Business Description of the Business Tenaya Therapeutics, Inc. (the “Company”) was incorporated in the state of Delaware in August 2016 and is headquartered in South San Francisco, California. The Company is a clinical-stage biotechnology company focused on discovering, developing and delivering curative therapies that address the underlying drivers of heart disease. The Company's lead product candidates include, TN-201, a gene therapy for myosin binding protein C3-associated hypertrophic cardiomyopathy, TN-301, a small molecule for heart failure with preserved ejection fraction, and TN-401, a gene therapy for plakophilin 2-associated arrhythmogenic right ventricular cardiomyopathy (ARVC). Reverse Stock Split In July 2021, the Company’s board of directors approved an amended and restated certificate of incorporation to effect a reverse split of shares of the Company’s common stock, convertible preferred stock, and authorized shares on a 1-for- 6 basis (the “Reverse Stock Split”) effective on July 23, 2021. The par value of the common stock and convertible preferred stock was not adjusted as a result of the Reverse Stock Split. All share data, per share data and related information for all periods presented in the accompanying financial statements have been retrospectively adjusted to reflect the effect of the Reverse Stock Split. Liquidity The Company has incurred net losses since inception and expects such losses to continue in the future as it conducts research and development activities. As of December 31, 2022, the Company had an accumulated deficit of $ 279.2 million. The Company incurred a net loss of $ 123.7 million and $ 72.7 million during the years ended December 31, 2022 and 2021, respectively. The Company had $ 204.2 million of cash, cash equivalents and investments in marketable securities as of December 31, 2022. Management recognizes the need to raise additional capital to fully implement its business plan. The Company may seek to raise capital through equity financings, debt financings, license agreements, collaborative agreements or other sources of financing. Management believes that its existing cash, cash equivalents and investments in marketable securities as of December 31, 2022 will be sufficient to fund the Company’s operations for at least the next twelve months following the date these financial statements are filed with the Securities and Exchange Commission (SEC). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). Reclassification Certain prior year balances have been reclassified in order to conform to current year presentation for the condensed balance sheets. These reclassifications have no effect on the previously reported financial position. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Significant estimates and assumptions made in the accompanying financial statements include, but are not limited to, the fair value of common stock, the valuation of equity-based awards, the useful lives of property and equipment, the fair value of the convertible preferred stock tranche liability, accrued expenses related to research and development activities and the valuation allowance for deferred tax assets. The Company bases its estimates on historical experience, the current economic environment, and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may differ from those estimates or assumptions. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value as follows: Level 1 - Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 - Inputs other than quoted market prices included in Level 1 are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level 3 - Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company’s cash and cash equivalents, prepaid expenses and other current assets, accounts payable and accrued expenses and other current liabilities approximate their fair value due to their short-term nature. Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentration of risk consist principally of cash, cash equivalents and marketable securities. The Company maintains deposits in cash and cash equivalents in federally insured financial institutions that it believes have high credit quality. Such deposits may exceed federally insured limits. The Company is exposed to credit risk in the event of default by the financial institutions holding its cash and cash equivalents and the issuers of its investments in marketable securities to the extent recorded in the balance sheets. The Company has not experienced any losses on its deposits of cash and cash equivalents. Risks and Uncertainties The Company is subject to certain risks similar to that of other early-stage biopharmaceutical companies, including, but not limited to, the ability to obtain future financing, possible failure of future clinical trials, the need to obtain regulatory approvals for its product candidates, the need to successfully commercialize and gain market acceptance of the Company’s product candidates, competitive developments, protection of the proprietary technology, the ability to make milestone, royalty or other payments due under licensing agreements, and the Company’s ability to attract and retain employees necessary to support its growth. Segment Information and Geographical Information The Company has one operating segment and one reportable segment, which is the business of developing treatments that address heart failure. The Company’s chief operating decision maker, its Chief Executive Officer, reviews financial information on an aggregate basis for the purpose of allocating resources and evaluating financial performance. All of the Company’s assets are located in the United States. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less on the date of purchase to be cash equivalents. Cash equivalents primarily consist of money market funds that are stated at fair value. Restricted Cash The restricted cash represents security deposits for the Company’s operating leases in South San Francisco, and Union City, California. The security deposits are in the form of a letter of credit secured by restricted cash. Marketable Securities The Company invests in marketable securities, primarily securities issued by the U.S. government and its agencies, commercial paper and corporate bonds. All marketable securities have been classified as available-for-sale and are carried at estimated fair value as determined based upon quoted market prices or pricing models for similar securities. Management determines the appropriate classification of its marketable debt securities at the time of purchase and reevaluates such designation at each balance sheet date. Unrealized gains and losses are excluded from earnings and are reported as a component of other comprehensive loss. Realized gains and losses and declines in fair value judged to be other than temporary, if any, on available-for-sale securities are included in other income (expense), net. There are no material realized gains or losses on marketable securities for all periods presented. The cost of securities sold is based on the specific-identification method. Interest earned on marketable securities is included in interest income. Property and Equipment, Net Property and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally three to five years . Leasehold improvements are amortized over the shorter of the assets’ expected lives or the remaining lease term. Costs for capital assets not yet placed into service are capitalized as construction in progress and are not depreciated until the asset is placed in service. Upon retirement or sale, the cost of disposed assets and their related accumulated depreciation are removed from the balance sheets. Any resulting gains or losses on dispositions of property and equipment are included as a component of other income (expense), net, within the Company’s statements of operations and comprehensive loss. Repair and maintenance costs, which are not considered improvements and do not extend the useful life of property and equipment, are expensed as incurred. Impairment for Long-Lived Assets Long-lived assets, including construction in progress, are reviewed for impairment annually or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future net cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. Impairment of long-lived assets were not material for any of the periods presented. Leases The Company determines if an arrangement is a lease at inception. Operating lease right-of-use (ROU) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized based on the present value of lease payments over the lease term at the commencement date of the lease. ROU assets also include any initial direct costs incurred and any lease payments made at or before the lease commencement date, less any lease incentive received. The Company uses the rate implicit in the lease in determining the present value of lease payments and, if that rate is not readily determinable, the Company uses its incremental borrowing rate based on the information available at the date of lease commencement. The incremental borrowing rate reflects the rate of interest that a lessee would have to pay to borrow, on a collateralized basis over a similar term, an amount equal to the lease payments in a similar economic environment. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company’s non-lease components are primarily related to property taxes, insurance, and common area maintenance, which vary based on future outcomes, and are recognized as rent expense when incurred. Asset Retirement Obligation The Company records asset retirement obligations (AROs) for the estimated cost of removing constructed leasehold improvement assets and restoring the leased premises back to their original condition, at the time when the contractual obligations are incurred. AROs represent the present value of the expected costs for the related restoration activities. The ARO assets and liabilities are recorded in property, plant and equipment and other long-term liabilities, respectively, in the Company’s balance sheets. The Company records accretion expense, which represents the increase in the asset retirement obligations, over the remaining or operational life of the associated leasehold improvements. Accretion expense is recorded as operating expense in the statements of operations using an accretion rate based on the credit adjusted risk-free interest rate. Changes resulting from revisions to the timing or amount of the original estimate of cash flows are recognized as an increase or a decrease in the asset retirement cost, or income when the asset retirement cost is depleted. Research and Development Expenses Research and development (R&D) costs are expensed as incurred. Research and development expenses include, among others, consulting fees, salaries, benefits, travel, stock-based compensation, laboratory supplies and other non-capital equipment utilized for in-house research, allocated facilities and overhead costs, fees related to licensing agreements, fees paid to contract research organizations (CRO) that conduct research and development activities on the Company’s behalf and costs related to compliance with regulatory requirements. Goods or services incurred for research and development activities that have not yet been invoiced are recorded as liabilities within accrued expenses and other current liabilities on the Company’s balance sheets. The Company has and may continue to acquire the rights to licensed technology that represents in-process research and development to use and develop in the commercialization of new product candidates. The upfront payments made to acquire licenses, product or rights, or payments made related to future milestone payments are recognized as research and development expenses provided that there is no alternative future use of the rights in other research and development projects, up to the point of regulatory approval. Milestone payments are expensed when the specific milestone has been achieved. Non-refundable advance payments for goods or services to be rendered as part of future research and development activities are capitalized on the Company’s balance sheets until the goods or services are received. Classification between prepaid expenses and other current assets and other non-current assets is based on an evaluation of when the goods will be delivered and/or services will be performed, with such amounts subsequently amortized to expense once incurred. Stock-Based Compensation The Company measures and records expense related to all equity awards granted to employees and non-employees in the statements of operations and comprehensive loss based on their grant date fair values, including stock options and restricted stock awards. For stock-based awards that vest subject to the satisfaction of a service requirement, the expense is recognized using the straight-line method over the requisite service period, which is generally the vesting period. Forfeitures are recognized as they occur. The fair value of restricted stock awards is determined on the date of grant based on the estimated fair value of the Company’s common stock on that date. For purposes of determining the estimated fair value of options granted to employees and nonemployees, the Company uses the Black-Scholes option pricing model. See Note 8 to the Company's financial statements for the specific assumptions used in applying the Black-Scholes valuation model. Income Taxes The Company accounts for income taxes using the asset and liability method. The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. A valuation allowance is recorded for deferred tax assets if it is more likely than not that some portion or all of the deferred tax assets will not be realized. As of December 31, 2022 and 2021, the Company has recorded a full valuation allowance on its net deferred tax assets. Tax benefits related to uncertain tax positions are recognized when it is more likely than not that a tax position will be sustained during an audit. Interest and penalties, if any, related to unrecognized tax benefits are included within the provision for income tax. Net Loss Per Share Basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of the Company’s common stock outstanding for the period, without consideration for potential dilutive shares of common stock. Basic shares of common stock outstanding include the weighted-average effect of the Company’s pre-funded warrants issued in November 2022 because the pre-funded warrants have a nominal exercise price. As the Company is in a loss position for the periods presented, diluted net loss per share is the same as basic net loss per share, since the effects of potentially dilutive securities are antidilutive. Shares related to early exercised stock options that are subject to repurchase are excluded from the basic and diluted net loss per share calculation until the Company’s repurchase right lapses. Emerging Growth Company Status The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (JOBS Act). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it (a) is no longer an emerging growth company or (b) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, these financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates. Recently Adopted Accounting Standards In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12) , which is intended to simplify the accounting for income taxes. This standard eliminates certain exceptions to the approach for intra period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. As an emerging growth company, ASU 2019-12 became effective for the Company beginning January 1, 2022 . The adoption of this standard did not have any impact on the Company ’s financial statements. In November 2021, the FASB issued ASU No. 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance (ASU 2021-10) , which requires business entities to make annual disclosures about transactions with a government they account for by analogizing to a grant or contribution accounting model. The required annual disclosures include the nature of the transaction, the entity’s related accounting policy, the financial statement line items affected and the amounts reflected in the current period financial statements, and any significant terms and conditions. ASU 2021-10 became effective for the Company beginning January 1, 2022 . The adoption of this standard did not have a material impact on the Company ’s financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13), which replaces the existing incurred loss impairment model with an expected credit loss model. This standard will require companies to recognize an allowance for credit losses on available-for-sale debt securities rather than the current approach of recording a reduction to the carrying value of the asset. As an emerging growth company, ASU 2016-13 will become effective for the Company beginning January 1, 2023. The Company does not expect the adoption of this standard will have a material impact on its financial statements . |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 3. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value as follows: Level 1 - Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 - Inputs other than quoted market prices included in Level 1 are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level 3 - Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. The following tables summarize the Company’s financial assets measured at fair value on a recurring basis by level within the fair value hierarchy: December 31, 2022 Valuation Amortized Unrealized Unrealized Fair Value (In thousands) Assets: Cash equivalents: Cash equivalents Level 1 $ 20,532 — — $ 20,532 Money market funds Level 1 7,203 — — 7,203 Commercial paper Level 2 11,972 — ( 4 ) 11,968 Government agencies bonds Level 2 54,569 12 — 54,581 Marketable securities: U.S. treasuries Level 1 25,273 1 ( 147 ) 25,127 Commercial paper Level 2 43,605 4 ( 125 ) 43,484 Corporate bonds Level 2 2,696 — ( 18 ) 2,678 Government agencies bonds Level 2 37,770 9 ( 110 ) 37,669 Total financial assets $ 203,620 $ 26 $ ( 404 ) $ 203,242 December 31, 2021 Valuation Amortized Unrealized Unrealized Fair Value (In thousands) Assets: Cash equivalents: Money market funds Level 1 $ 37,129 $ — $ — $ 37,129 Marketable securities: U.S. treasuries Level 1 78,097 — ( 85 ) 78,012 Commercial paper Level 2 121,634 — ( 50 ) 121,584 Corporate bonds Level 2 8,979 — ( 3 ) 8,976 Government agencies bonds Level 2 4,602 — ( 3 ) 4,599 Total financial assets $ 250,441 $ — $ ( 141 ) $ 250,300 Money market funds and U.S. treasuries are classified as Level 1 because they are valued using quoted market prices in active markets for identical assets. Financial instruments classified within Level 2 of the fair value hierarchy are valued based on observable inputs or can be derived from non-binding quotes from the Company’s investment managers, which are based on proprietary valuation models of independent pricing services. These models generally use inputs such as observable market data, quoted market prices for similar instruments, or historical pricing trends of a security relative to its peers. To validate the fair value determination provided by its investment managers, the Company reviews the pricing movement in the context of overall market trends and trading information from its investment managers. In addition, the Company considers the inputs and methods used in determining the fair value in order to determine the classification of securities in the fair value hierarchy. The Company believes it is more likely than not that its marketable securities in an unrealized loss position will be held until maturity or the recovery of the cost basis of the investment. To date, the Company has no t recorded any impairment charges on marketable securities related to other-than-temporary declines in market value. As of December 31, 2022, the fair value of available-for-sale marketable securities was $ 109.0 million. $ 91.3 million of available-for-sale marketable securities had remaining maturities of less than one year. The remaining $ 17.7 million of marketable securities had remaining maturities between one and two years . The carrying amount of the Company’ s remaining financial assets and liabilities, which include cash, receivables and payables, approximate their fair values due to their short-term nature. |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | Note 4. Balance Sheet Components Property and Equipment, Net Property and equipment, net, consists of the following: December 31, December 31, (In thousands) Leasehold improvements $ 23,605 $ 7,241 Laboratory equipment 20,537 11,891 Manufacturing equipment 17,468 — Construction in progress 3,128 32,561 Computer equipment and software 1,060 218 Furniture and fixtures 910 534 Total property and equipment $ 66,708 $ 52,445 Less: accumulated depreciation and amortization ( 15,676 ) ( 9,425 ) Total property and equipment, net $ 51,032 $ 43,020 Depreciation and amortization expense for the years ended December 31, 2022 and 2021, was $ 6.5 million and $ 3.0 million, respectively. Leasehold improvements represent certain enhancements made to the Company’s leased manufacturing and office space located in Union City, California (Union City Facility). During the quarter ended June 30, 2022, the Company completed the build out and operational launch of the Union City Facility. As a result, the Company reclassified the related capitalized machinery and equipment from construction in progress to manufacturing and laboratory equipment in that period. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following: December 31, December 31, (In thousands) Accrued compensation and related expenses $ 6,299 $ 3,667 Accrued research and development expenses 3,214 2,023 Accrued professional services 482 344 Accrued property and equipment 139 2,863 Other current liabilities 530 162 Total accrued and other current liabilities $ 10,664 $ 9,059 Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets include a receivable of approximately $ 2 million relating to the employee retention credit (ERC) under the Coronavirus Aid, Relief, and Economic Security Act. The ERC is a refundable tax credit, which was provided to encourage businesses to keep employees on the payroll during the COVID-19 pandemic. During the year ended December 31, 2022, the Company recorded the receivable with the offsetting benefit included in operating expenses. |
License Agreements
License Agreements | 12 Months Ended |
Dec. 31, 2022 | |
License Agreements [Abstract] | |
License Agreements | Note 5. License Agreements Gladstone License Agreement In October 2016, the Company entered into a license agreement with the J. David Gladstone Institute (Gladstone), pursuant to which Gladstone granted the Company a worldwide, royalty-bearing exclusive patent license and a non-exclusive technology license to develop and commercialize certain products for certain diseases (Gladstone License Agreement). Pursuant to the Gladstone License Agreement, the Company is obligated, among other things, to pay Gladstone (i) annual license maintenance fees ranging from $ 25,000 up to $ 0.1 million per year, which will be creditable against royalties paid in the following twelve month period, (ii) milestone payments up to $ 4.1 million for royalty-bearing products directed to a particular target, which are contingent upon achieving specific clinical and commercialization milestone events, and (iii) tiered low-single digit royalties on future net sales of each royalty-bearing product. Under the agreement, the Company is subject to diligence requirements to develop and commercialize at least one royalty-bearing product. The Company may pay $ 50,000 to $ 100,000 to extend the deadline for its diligence milestone obligations for up to four additional one-year terms. Dr. Deepak Srivastava, M.D., a member of the Company ’ s board of directors, serves as President of Gladstone. As of December 31, 2022, the Company has no t recognized any milestone and royalty payments under the Gladstone License Agreement. During the years ended December 31, 2022 and 2021, amounts recorded related to annual license fees payable pursuant to the Gladstone License Agreement were immaterial. University of Texas Southwestern License Agreement In January 2020, the Company entered into a license agreement with the University of Texas Southwestern (UTSW License), pursuant to which UTSW granted the Company a royalty-bearing exclusive and sublicensable patent license and a non-exclusive, non-sublicensable license for mutually agreed upon development activities. Under the UTSW License, the Company is obligated to pay UTSW (i) a non-refundable upfront license fee of $ 0.1 million, which was paid by the Company in 2020, (ii) milestone payments up to a total of $ 14.8 million in aggregate, which are contingent upon achieving specific development and commercialization milestone events, and (iii) royalties on future net sales of each royalty-bearing product ranging in the low-single digits. As of December 31, 2022, the Company has no t recognized any milestone and royalty payments under the UTSW License. Other License Agreements In addition to the agreements described above, the Company has also entered into other license agreements with various institutions and business entities, none of which are material individually or in the aggregate. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 6. Commitments and Contingencies Facility Leases In December 2016, the Company entered into a lease agreement for office and laboratory space in South San Francisco, California. The lease expires in May 2025 and the Company may renew the lease term for two additional five-year periods. In February 2021, the Company entered into a lease agreement for the Union City Facility. The lease commenced in May 2021 and has a ten-year term with one five-year renewal option. Upon the execution of the lease agreement, the Company provided the landlord with a refundable security deposit of $ 3.3 million, which was included in other noncurrent assets on the balance sheets. In November 2021, the Company entered into a short-term sublease agreement for additional office and laboratory space in South San Francisco, California with a lease term that was initially set to expire on June 30, 2022 . In May 2022, the Company entered into an amendment to extend the term for the existing sublease premise through December 31, 2022 . Under the amendment, the Company also subleased additional office and laboratory space at the same sublease premise through November 30, 2023. Information related to operating lease activity during the year ended December 31, 2022 was as follows (in thousands): Year Ended 2022 2021 Operating lease cost $ 3,714 $ 2,364 Variable lease cost 1,209 $ 1,095 Short-term lease cost 952 2,241 Total lease cost $ 5,875 $ 5,700 Operating lease-right-of-use assets obtained in exchange for lease obligations $ 2,224 $ 8,558 Cash paid for leases included in operating cash outflows $ 6,454 $ 6,110 Cash paid for amounts included in the measurement of lease liabilities $ 4,293 $ 2,774 As of December 31, 2022, the Company’ s operating leases had a weighted average remaining lease term of 5.6 years and a weighted average discount rate of 9.3 %. Future minimum lease payments under the Company’s operating leases as of December 31, 2022 were as follows: Amount (In thousands) 2023 $ 5,223 2024 3,910 2025 2,445 2026 1,386 2027 1,428 Thereafter 5,477 Total undiscounted future minimum lease payments $ 19,869 Imputed interest ( 4,770 ) Total operating lease liabilities $ 15,099 Asset Retirement Obligation Under the lease agreement for the Union City Facility, the Company is contractually obligated to remove constructed leasehold improvements related to capitalized machinery and equipment (see Note 4 ) and to restore the leased space to its original condition upon termination of the lease agreement. As of December 31, 2022, the balance of the asset retirement obligation liability was not material. Purchase Commitments The Company enters into contractual agreements with various suppliers in the normal course of its business, including vendors that provide machinery and equipment. All contracts are terminable, with varying provisions regarding termination. If a contract with a specific vendor were to be terminated, the Company would only be obligated for the products or services that the Company had received through the time of termination. Indemnification From time to time, the Company may become involved in litigation and other legal actions. The Company estimates the range of liability related to any pending litigation where the amount and range of loss can be estimated. The Company records its best estimate of a loss when the loss is considered probable. Where a liability is probable and there is a range of estimated loss with no best estimate in the range, the Company records a charge equal to at least the minimum estimated liability for a loss contingency when both of the following conditions are met: (i) information available prior to issuance of the consolidated financial statements indicates that it is probable that a liability had been incurred at the date of the consolidated financial statements and (ii) the range of loss can be reasonably estimated. The Company was not involved in any material litigation as of December 31, 2022 and 2021. In the normal course of business, the Company enters into agreements that may include indemnification provisions. Pursuant to such agreements, the Company may indemnify, hold harmless and defend an indemnified party for losses suffered or incurred by the indemnified party. In some cases, the indemnification will continue after the termination of the agreement. The maximum potential amounts of future payments the Company could be required to make under these provisions is not determinable. In addition, the Company has entered into indemnification agreements with its directors and certain officers that may require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. As of December 31, 2022 and 2021, the Company did not have any material indemnification claims that were probable or reasonably possible and, consequently, has not recorded any related liabilities. |
Convertible Preferred Stock and
Convertible Preferred Stock and Stockholders' Equity (Deficit) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Convertible Preferred Stock and Stockholders' Equity (Deficit) | Note 7. Convertible Preferred Stock and Stockholders ’ Equity (Deficit) Convertible Preferred Stock On August 3, 2021, immediately prior to the completion of the Company’s IPO, all outstanding shares of convertible preferred stock were converted into 26,102,278 shares of the Company’s common stock. The Company classified its convertible preferred stock outside of total stockholders’ deficit because, in the event of certain change of control events that are not solely within the control of the Company (including liquidation, sale or transfer of the Company), the shares would become redeemable at the option of the holders. Common Stock The holders of common stock are entitled to one vote per share on all matters to be voted on by the stockholders of the Company and are entitled to dividends, if and when declared by the board of directors, subject to the prior rights of the preferred stockholders. Common stock issued and outstanding on the balance sheets and statements of convertible preferred stock and stockholders’ equity (deficit) includes shares related to early exercised options and restricted stock that are subject to repurchase. Common stock issued and outstanding is reduced for any repurchases of early exercised stock options and restricted stock. As of December 31, 2022 and 2021, outstanding common stock included 853 and 28,905 shares, respectively, related to early exercised stock options and restricted stock that are unvested and subject to repurchase. Initial Public Offering On August 3, 2021, the Company completed its IPO, at which time the Company issued an aggregate of 13,800,000 shares of its common stock (inclusive of 1,800,000 shares pursuant to the underwriters’ overallotment option) at a price of $ 15.00 per share. The Company received net proceeds of $ 188.5 million, after deducting underwriting discounts and commissions of $ 14.5 million and other offering expenses of $ 4.0 million. Immediately prior to the completion of the IPO, all of the Company’s outstanding shares of convertible preferred stock automatically converted into 26,102,278 shares of common stock. “At-the-Market” Equity Offering On August 10, 2022, the Company entered into a sales agreement with a sales agent to establish an at-the-market (ATM) offering defined in Rule 415 under the Securities Act. Pursuant to the sales agreement, the Company is permitted to offer and sell, from time to time, shares of its common stock having a maximum aggregate offering price of up to $ 75.0 million. As of December 31, 2022, no shares have been sold pursuant to the ATM program. Follow-On Offering On November 21, 2022, the Company completed an underwritten public offering of 22,613,307 shares of its common stock at a price of $ 2.60 per share and, to certain investors in lieu of common stock, pre-funded warrants to purchase 6,236,693 shares of its common stock at a price of $ 2.599 per pre-funded warrant. The pre-funded warrants can be exercised at any time after issuance for an exercise price of $ 0.001 per share, subject to certain ownership limitations. The Company determined the pre-funded warrants qualified for equity accounting. In addition, the Company granted the underwriters a 30-day option to purchase up to an additional 4,327,500 shares of its common stock to cover overallotments, if any, at $ 2.60 per share. On November 29, 2022, the underwriters partially exercised the option and purchased an additional 2,816,409 shares of Company ’ s common stock. The Company received net proceeds of $ 76.9 million, inclusive of the additional shares purchased by the underwriters, after deducting underwriting discounts and commissions of $ 4.9 million and other offering expenses of $ 0.5 million. The offering expenses were paid in January 2023 . As of December 31, 2022, total shares of common stock reserved for issuance, on an as-if converted basis, are as follows: December 31, Outstanding stock options and awards 5,669,374 Outstanding pre-funded warrants 6,236,693 Stock options and awards available for future grant 2,318,761 Shares available for further issuance under the employee stock purchase plan 1,106,721 Total 15,331,549 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Note 8. Stock-Based Compensation 2021 Equity Incentive Plan In July 2021, the Company adopted the 2021 Equity Incentive Plan (2021 Plan), which became effective in connection with the initial public offering (IPO). Under the 2021 Plan, 4,000,000 shares of the Company’s common stock were initially reserved for issuance of equity awards to employees, directors, and consultants, under terms and provisions established by the Board of Directors. The number of shares of common stock available for issuance under the 2021 Plan automatically increases on the first day of January for a period of ten years , commencing on January 1, 2022, in an amount equal to the lesser of: 4,000,000 shares; 4 % of the outstanding shares of the Company’s common stock as of the last day of the immediately preceding year; or such other amount as the Company’s Board of Directors may determine. In addition, the Company’s 2016 Equity Incentive Plan (2016 Plan) was terminated in connection with the IPO. Shares subject to awards granted under the 2016 Plan that are repurchased by or forfeited to the Company will be reserved for issuance under the 2021 Plan. Total shares reserved and available for grant under the 2021 Plan as of December 31, 2022 are 2,318,761 . Stock Option Activity The following table summarizes stock option activity : Shares Weighted- Weighted- Aggregate (in dollars) (Years) (In thousands) Outstanding as of December 31, 2021 2,772,154 $ 7.90 Options granted 2,632,302 $ 12.58 Options exercised ( 23,677 ) $ 2.14 Options cancelled ( 170,597 ) $ 16.54 Outstanding as of December 31, 2022 5,210,182 $ 10.01 8.45 $ 751 Exercisable as of December 31, 2022 1,719,533 $ 7.15 7.56 $ 691 The aggregate intrinsic value is the value of the Company ’ s closing stock price on the last trading day of the year in excess of the weighted-average exercise price multiplied by the number of options outstanding or exercisable. The total intrinsic value of options exercised during the years ended December 31, 2022 and 2021, was $ 0.2 million and $ 1.7 million. The weighted-average grant-date fair value of options granted during the years ended December 31, 2022 and 2021 was $ 9.80 and $ 9.50 per share. As of December 31, 2022, there was $ 30.3 million of unrecognized stock-based compensation cost related to stock options, which is expected to be recognized over an estimated weighted-average period of 2.6 years. Stock Option Valuation The fair value of the Company’s stock option awards is estimated on the date of grant using the Black-Scholes option pricing model using the following assumptions: The assumptions used to determine the fair value of options granted were as follows. Each of these inputs is subjective, involve inherent uncertainties, and generally requires significant judgment. The assumptions used to determine the fair value of the awards represent management’s best estimates. Year Ended 2022 2021 Expected term (in years) 5.5 – 6.1 5.0 – 6.1 Expected volatility 95 % – 97 % 95 % – 103 % Risk-free interest rate 1.6 % – 4.2 % 0.6 % – 1.4 % Expected dividend yield —% —% Expected Term — The Company determines the expected term, which represents the period that stock-based awards are expected to be outstanding, in accordance with the simplified method due to its limited operating history, which is presumed to be the mid-point between the contractual term and the vesting period. Expected Volatility — As there is limited trading history for the Company’s common stock, the Company determines its computation of expected volatility on the historical volatility of a representative group of public companies with similar characteristics to the Company, including stage of product development and life science industry focus. The historical volatility is calculated based on a period of time commensurate with the expected term assumption. Risk-Free Interest Rate — The Company bases the risk-free interest rate on U.S. Treasury zero coupon issues in effect at the time of grant for periods corresponding with the expected term assumption. Expected Dividend Yield — The expected dividend yield is assumed to be zero as the Company has never paid and has no plans to pay any dividends on its common stock. Restricted Stock Units The Company began granting restricted stock units (RSUs) during the quarter ended March 31, 2022. RSUs are awards that entitle the holder to receive freely tradable shares of the Company’ s common stock upon the completion of a specific period of continued service. RSUs are generally subject to forfeiture if employment terminates prior to the release of vesting restrictions. RSUs are valued at the market price of the underlying common stock on the date of grant. The Company recognizes noncash compensation expense for the fair value of RSUs on a straight-line basis over the requisite service period of the awards. The following table summarizes activity of RSUs granted to employees with service-based vesting under the 2021 Plan. Shares Weighted Weighted- Aggregate (in dollars) (Years) (In thousands) Unvested as of December 31, 2021 — $ — Granted 489,153 $ 4.44 Vested ( 8,932 ) $ 15.19 Forfeited ( 21,029 ) $ 7.93 Unvested as of December 31, 2022 459,192 $ 4.07 1.41 $ 923 As of December 31, 2022, there was $ 1.7 million of unrecognized stock-based compensation cost related to RSUs, which is expected to be recognized over an estimated weighted-average period of 2.3 years. 2021 Employee Stock Purchase Plan In July 2021, the Company adopted the 2021 Employee Stock Purchase Plan (ESPP), which became effective in connection with the IPO. The Company initially reserved 800,000 shares for future issuance under the ESPP. The number of shares of common stock available for issuance under the ESPP automatically increases on the first day of each fiscal year beginning with 2022 in an amount equal to the lesser of: 800,000 shares; 1 % of the outstanding shares of the Company’s common stock as of the last day of the immediately preceding year; or such other amount as the board of directors may determine. As of December 31, 2022, 1,106,721 shares were reserved for future issuance under the ESPP. Under the Company ’ s ESPP, employees are generally eligible to participate and can purchase shares on each purchase date established semi-annually through payroll deductions at the lower of 85 % of the fair market value of the Company ’ s stock at the commencement of the offering period or each purchase date of the offering period. Each offering period spans 6 months . The ESPP permits eligible employees to purchase common stock through payroll deductions for up to 15 % of qualified compensation, up to an annual limit of $ 25,000 per the Internal Revenue Service. The first offering period commenced in January 2022. For the year ended December 31, 2022, the stock-based compensation expense for ESPP was no t material. Stock-Based Compensation The following table summarizes stock-based compensation recognized in the Company’s statements of operations and comprehensive loss: Year Ended 2022 2021 (In thousands) Research and development $ 4,914 $ 1,179 General and administrative 6,553 1,771 Total stock-based compensation $ 11,467 $ 2,950 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9. Income Taxes No provision for or benefit from income taxes was recorded during the years ended December 31, 2022 and 2021. The Company has established a full valuation allowance against its net deferred tax assets due to the uncertainty regarding the realization of such assets. All losses to date have been incurred in the United States. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as operating losses and tax credit carryforwards. Effective Tax Rate Reconciliation The effective tax rate of the Company’s provision for income taxes differs from the federal statutory rate and the effective tax rate reconciliation is as follows: December 31, 2022 2021 U.S. federal taxes at statutory rate 21.0 % 21.0 % State taxes (net of federal benefit) 1.2 0.6 Credits 2.8 3.1 Stock-based compensation ( 0.3 ) ( 0.3 ) Section 382 limitation on tax attribute carryforwards 0.0 0.0 Change in valuation allowance ( 24.1 ) ( 23.3 ) Other ( 0.6 ) ( 1.1 ) Total —% —% A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: December 31, 2022 2021 (In thousands) Balance at beginning of year $ 1,470 $ 571 Additions based on tax positions related to current year 1,588 901 Additions based on tax positions related to prior years 83 — Reductions for tax positions related to prior years — ( 2 ) Balance at end of year $ 3,141 $ 1,470 The Company does not expect that its uncertain tax positions will materially change in the next twelve months. The reversal of the uncertain tax benefits would not impact the Company’s effective tax rate as the Company continues to maintain a full valuation allowance against its deferred tax assets. The Company files tax returns in U.S. federal and state jurisdictions with varying statutes of limitations. Due to net operating loss and credit carryforwards, all of the tax years since inception through the 2022 tax year remain subject to examination by the U.S. federal and state authorities. The Company is currently not subject to any income tax audits by federal or state taxing authorities. Deferred Income Taxes The tax effects of significant items comprising the Company’s deferred income taxes are as follows : December 31, 2022 2021 (In thousands) Deferred tax assets: Net operating losses $ 41,256 $ 34,746 Capitalized research and development expenditure 17,045 — Tax credits 9,347 4,443 Lease liability 3,176 3,362 Stock-based compensation 1,631 309 Accrued expenses and other 1,368 727 Property and equipment — 152 Total deferred tax assets 73,823 43,739 Valuation allowance ( 71,129 ) ( 41,281 ) Deferred tax assets, net of valuation allowance 2,694 2,458 Deferred tax liabilities: Right-of-use asset ( 2,453 ) ( 2,458 ) Property and equipment ( 241 ) — Net deferred tax assets $ — $ — Beginning January 1, 2022, the Tax Cuts and Jobs Act eliminated the option to deduct research and development expenditures in the current year and requires taxpayers to capitalize such expenses pursuant to Internal Revenue Code (IRC) Section 174. The capitalized expenses are amortized over a 5-year period for domestic expenses and a 15-year period for foreign expenses. The tax benefit of net operating losses, capitalized research expenses, temporary differences and credit carryforwards are recorded as an asset to the extent that the Company assesses that realization is more likely than not. Realization of the future tax benefits is dependent on the Company’s ability to generate sufficient taxable income within the carryforward period. As a result of the Company’s recent history of operating losses, the Company believes that recognition of deferred tax assets arising from the above-mentioned future tax benefits is currently not likely to be realized and, accordingly, has provided a full valuation allowance. The valuation allowance increased by $ 29.8 million and $ 17.0 million during the years ended December 31, 2022 and 2021. The increase in valuation allowance during the year ended December 31, 2022, was primarily due to the increase in deferred tax assets from 2022 federal net operating losses and the IRC Section 174 capitalized expenses. Net Operating Loss and Tax Credit Carryforwards As of December 31, 2022, the Company’s net operating loss and tax carryforwards are summarized as follows: Amount Expiration in years Net operating losses, federal (post-December 31, 2017) $ 171,533 Do Not Expire Net operating losses, federal (pre-January 1, 2018) $ 3,093 Begins to Expire 2036 Net operating losses, state $ 62,973 Begins to Expire 2036 Tax credits, federal $ 8,544 Begins to Expire 2036 Tax credits, state $ 5,067 Do Not Expire Under Section 382 of the Internal Revenue Code of 1986, as amended, the ability to utilize net operating loss carryforwards or other tax attributes, such as research tax credits, in any taxable year may be limited if the Company has experienced an “ownership change”. This annual limitation may result in the expiration of net operating losses and credits before utilization. As of December 31, 2022, a study was updated and the Company concluded that there were no ownership changes during 2022. The Company’s ability to use its remaining net operating loss carryforwards may be further limited if the Company experiences a Section 382 ownership change as a result of future changes in its stock ownership. The Company recognizes interest and penalties related to taxes and uncertain tax positions as a component of income tax expense. During the years ended December 31, 2022 and 2021, no interest and penalties were accrued by the Company. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Note 10. Net Loss Per Share Basic and diluted loss per share are computed by dividing net loss by the weighted-average number of common shares outstanding during the reporting period. Basic weighted-average shares of common stock outstanding includes the weighted-average effect of the Company’s pre-funded warrants issued in November 2022 (see Note 7 ), the exercise of which requires nominal consideration for the delivery of Company’s common shares. The following potentially dilutive securities were excluded from the calculation of diluted net loss per share for the periods presented because the effect would have been anti-dilutive: December 31, 2022 2021 Outstanding stock options and awards 5,669,374 2,772,154 Restricted stock subject to future vesting 853 28,905 Total 5,670,227 2,801,059 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). |
Reclassification | Reclassification Certain prior year balances have been reclassified in order to conform to current year presentation for the condensed balance sheets. These reclassifications have no effect on the previously reported financial position. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Significant estimates and assumptions made in the accompanying financial statements include, but are not limited to, the fair value of common stock, the valuation of equity-based awards, the useful lives of property and equipment, the fair value of the convertible preferred stock tranche liability, accrued expenses related to research and development activities and the valuation allowance for deferred tax assets. The Company bases its estimates on historical experience, the current economic environment, and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may differ from those estimates or assumptions. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value as follows: Level 1 - Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 - Inputs other than quoted market prices included in Level 1 are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level 3 - Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company’s cash and cash equivalents, prepaid expenses and other current assets, accounts payable and accrued expenses and other current liabilities approximate their fair value due to their short-term nature. |
Concentration of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentration of risk consist principally of cash, cash equivalents and marketable securities. The Company maintains deposits in cash and cash equivalents in federally insured financial institutions that it believes have high credit quality. Such deposits may exceed federally insured limits. The Company is exposed to credit risk in the event of default by the financial institutions holding its cash and cash equivalents and the issuers of its investments in marketable securities to the extent recorded in the balance sheets. The Company has not experienced any losses on its deposits of cash and cash equivalents. |
Risks and Uncertainties | Risks and Uncertainties The Company is subject to certain risks similar to that of other early-stage biopharmaceutical companies, including, but not limited to, the ability to obtain future financing, possible failure of future clinical trials, the need to obtain regulatory approvals for its product candidates, the need to successfully commercialize and gain market acceptance of the Company’s product candidates, competitive developments, protection of the proprietary technology, the ability to make milestone, royalty or other payments due under licensing agreements, and the Company’s ability to attract and retain employees necessary to support its growth. |
Segment Information and Geographical Information | Segment Information and Geographical Information The Company has one operating segment and one reportable segment, which is the business of developing treatments that address heart failure. The Company’s chief operating decision maker, its Chief Executive Officer, reviews financial information on an aggregate basis for the purpose of allocating resources and evaluating financial performance. All of the Company’s assets are located in the United States. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less on the date of purchase to be cash equivalents. Cash equivalents primarily consist of money market funds that are stated at fair value. |
Restricted Cash | Restricted Cash The restricted cash represents security deposits for the Company’s operating leases in South San Francisco, and Union City, California. The security deposits are in the form of a letter of credit secured by restricted cash. |
Marketable Securities | Marketable Securities The Company invests in marketable securities, primarily securities issued by the U.S. government and its agencies, commercial paper and corporate bonds. All marketable securities have been classified as available-for-sale and are carried at estimated fair value as determined based upon quoted market prices or pricing models for similar securities. Management determines the appropriate classification of its marketable debt securities at the time of purchase and reevaluates such designation at each balance sheet date. Unrealized gains and losses are excluded from earnings and are reported as a component of other comprehensive loss. Realized gains and losses and declines in fair value judged to be other than temporary, if any, on available-for-sale securities are included in other income (expense), net. There are no material realized gains or losses on marketable securities for all periods presented. The cost of securities sold is based on the specific-identification method. Interest earned on marketable securities is included in interest income. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally three to five years . Leasehold improvements are amortized over the shorter of the assets’ expected lives or the remaining lease term. Costs for capital assets not yet placed into service are capitalized as construction in progress and are not depreciated until the asset is placed in service. Upon retirement or sale, the cost of disposed assets and their related accumulated depreciation are removed from the balance sheets. Any resulting gains or losses on dispositions of property and equipment are included as a component of other income (expense), net, within the Company’s statements of operations and comprehensive loss. Repair and maintenance costs, which are not considered improvements and do not extend the useful life of property and equipment, are expensed as incurred. |
Impairment for Long-Lived Assets | Impairment for Long-Lived Assets Long-lived assets, including construction in progress, are reviewed for impairment annually or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future net cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. Impairment of long-lived assets were not material for any of the periods presented. |
Leases | Leases The Company determines if an arrangement is a lease at inception. Operating lease right-of-use (ROU) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized based on the present value of lease payments over the lease term at the commencement date of the lease. ROU assets also include any initial direct costs incurred and any lease payments made at or before the lease commencement date, less any lease incentive received. The Company uses the rate implicit in the lease in determining the present value of lease payments and, if that rate is not readily determinable, the Company uses its incremental borrowing rate based on the information available at the date of lease commencement. The incremental borrowing rate reflects the rate of interest that a lessee would have to pay to borrow, on a collateralized basis over a similar term, an amount equal to the lease payments in a similar economic environment. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company’s non-lease components are primarily related to property taxes, insurance, and common area maintenance, which vary based on future outcomes, and are recognized as rent expense when incurred. |
Asset Retirement Obligation | Asset Retirement Obligation The Company records asset retirement obligations (AROs) for the estimated cost of removing constructed leasehold improvement assets and restoring the leased premises back to their original condition, at the time when the contractual obligations are incurred. AROs represent the present value of the expected costs for the related restoration activities. The ARO assets and liabilities are recorded in property, plant and equipment and other long-term liabilities, respectively, in the Company’s balance sheets. The Company records accretion expense, which represents the increase in the asset retirement obligations, over the remaining or operational life of the associated leasehold improvements. Accretion expense is recorded as operating expense in the statements of operations using an accretion rate based on the credit adjusted risk-free interest rate. Changes resulting from revisions to the timing or amount of the original estimate of cash flows are recognized as an increase or a decrease in the asset retirement cost, or income when the asset retirement cost is depleted. |
Research and Development Expense | Research and Development Expenses Research and development (R&D) costs are expensed as incurred. Research and development expenses include, among others, consulting fees, salaries, benefits, travel, stock-based compensation, laboratory supplies and other non-capital equipment utilized for in-house research, allocated facilities and overhead costs, fees related to licensing agreements, fees paid to contract research organizations (CRO) that conduct research and development activities on the Company’s behalf and costs related to compliance with regulatory requirements. Goods or services incurred for research and development activities that have not yet been invoiced are recorded as liabilities within accrued expenses and other current liabilities on the Company’s balance sheets. The Company has and may continue to acquire the rights to licensed technology that represents in-process research and development to use and develop in the commercialization of new product candidates. The upfront payments made to acquire licenses, product or rights, or payments made related to future milestone payments are recognized as research and development expenses provided that there is no alternative future use of the rights in other research and development projects, up to the point of regulatory approval. Milestone payments are expensed when the specific milestone has been achieved. Non-refundable advance payments for goods or services to be rendered as part of future research and development activities are capitalized on the Company’s balance sheets until the goods or services are received. Classification between prepaid expenses and other current assets and other non-current assets is based on an evaluation of when the goods will be delivered and/or services will be performed, with such amounts subsequently amortized to expense once incurred. |
Stock-Based Compensation | Stock-Based Compensation The Company measures and records expense related to all equity awards granted to employees and non-employees in the statements of operations and comprehensive loss based on their grant date fair values, including stock options and restricted stock awards. For stock-based awards that vest subject to the satisfaction of a service requirement, the expense is recognized using the straight-line method over the requisite service period, which is generally the vesting period. Forfeitures are recognized as they occur. The fair value of restricted stock awards is determined on the date of grant based on the estimated fair value of the Company’s common stock on that date. For purposes of determining the estimated fair value of options granted to employees and nonemployees, the Company uses the Black-Scholes option pricing model. See Note 8 to the Company's financial statements for the specific assumptions used in applying the Black-Scholes valuation model. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method. The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. A valuation allowance is recorded for deferred tax assets if it is more likely than not that some portion or all of the deferred tax assets will not be realized. As of December 31, 2022 and 2021, the Company has recorded a full valuation allowance on its net deferred tax assets. Tax benefits related to uncertain tax positions are recognized when it is more likely than not that a tax position will be sustained during an audit. Interest and penalties, if any, related to unrecognized tax benefits are included within the provision for income tax. |
Net Loss Per Share | Net Loss Per Share Basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of the Company’s common stock outstanding for the period, without consideration for potential dilutive shares of common stock. Basic shares of common stock outstanding include the weighted-average effect of the Company’s pre-funded warrants issued in November 2022 because the pre-funded warrants have a nominal exercise price. As the Company is in a loss position for the periods presented, diluted net loss per share is the same as basic net loss per share, since the effects of potentially dilutive securities are antidilutive. Shares related to early exercised stock options that are subject to repurchase are excluded from the basic and diluted net loss per share calculation until the Company’s repurchase right lapses. |
Emerging Growth Company Status | Emerging Growth Company Status The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (JOBS Act). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it (a) is no longer an emerging growth company or (b) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, these financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates. |
Recently Adopted Accounting Standards and Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Standards In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12) , which is intended to simplify the accounting for income taxes. This standard eliminates certain exceptions to the approach for intra period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. As an emerging growth company, ASU 2019-12 became effective for the Company beginning January 1, 2022 . The adoption of this standard did not have any impact on the Company ’s financial statements. In November 2021, the FASB issued ASU No. 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance (ASU 2021-10) , which requires business entities to make annual disclosures about transactions with a government they account for by analogizing to a grant or contribution accounting model. The required annual disclosures include the nature of the transaction, the entity’s related accounting policy, the financial statement line items affected and the amounts reflected in the current period financial statements, and any significant terms and conditions. ASU 2021-10 became effective for the Company beginning January 1, 2022 . The adoption of this standard did not have a material impact on the Company ’s financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13), which replaces the existing incurred loss impairment model with an expected credit loss model. This standard will require companies to recognize an allowance for credit losses on available-for-sale debt securities rather than the current approach of recording a reduction to the carrying value of the asset. As an emerging growth company, ASU 2016-13 will become effective for the Company beginning January 1, 2023. The Company does not expect the adoption of this standard will have a material impact on its financial statements . |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value of Financial Assets Measured at Fair Value on Recurring Basis | December 31, 2022 Valuation Amortized Unrealized Unrealized Fair Value (In thousands) Assets: Cash equivalents: Cash equivalents Level 1 $ 20,532 — — $ 20,532 Money market funds Level 1 7,203 — — 7,203 Commercial paper Level 2 11,972 — ( 4 ) 11,968 Government agencies bonds Level 2 54,569 12 — 54,581 Marketable securities: U.S. treasuries Level 1 25,273 1 ( 147 ) 25,127 Commercial paper Level 2 43,605 4 ( 125 ) 43,484 Corporate bonds Level 2 2,696 — ( 18 ) 2,678 Government agencies bonds Level 2 37,770 9 ( 110 ) 37,669 Total financial assets $ 203,620 $ 26 $ ( 404 ) $ 203,242 December 31, 2021 Valuation Amortized Unrealized Unrealized Fair Value (In thousands) Assets: Cash equivalents: Money market funds Level 1 $ 37,129 $ — $ — $ 37,129 Marketable securities: U.S. treasuries Level 1 78,097 — ( 85 ) 78,012 Commercial paper Level 2 121,634 — ( 50 ) 121,584 Corporate bonds Level 2 8,979 — ( 3 ) 8,976 Government agencies bonds Level 2 4,602 — ( 3 ) 4,599 Total financial assets $ 250,441 $ — $ ( 141 ) $ 250,300 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Summary of Property and Equipment, Net | Property and equipment, net, consists of the following: December 31, December 31, (In thousands) Leasehold improvements $ 23,605 $ 7,241 Laboratory equipment 20,537 11,891 Manufacturing equipment 17,468 — Construction in progress 3,128 32,561 Computer equipment and software 1,060 218 Furniture and fixtures 910 534 Total property and equipment $ 66,708 $ 52,445 Less: accumulated depreciation and amortization ( 15,676 ) ( 9,425 ) Total property and equipment, net $ 51,032 $ 43,020 |
Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: December 31, December 31, (In thousands) Accrued compensation and related expenses $ 6,299 $ 3,667 Accrued research and development expenses 3,214 2,023 Accrued professional services 482 344 Accrued property and equipment 139 2,863 Other current liabilities 530 162 Total accrued and other current liabilities $ 10,664 $ 9,059 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Operating Lease Activity | Information related to operating lease activity during the year ended December 31, 2022 was as follows (in thousands): Year Ended 2022 2021 Operating lease cost $ 3,714 $ 2,364 Variable lease cost 1,209 $ 1,095 Short-term lease cost 952 2,241 Total lease cost $ 5,875 $ 5,700 Operating lease-right-of-use assets obtained in exchange for lease obligations $ 2,224 $ 8,558 Cash paid for leases included in operating cash outflows $ 6,454 $ 6,110 Cash paid for amounts included in the measurement of lease liabilities $ 4,293 $ 2,774 |
Summary of Future Minimum Lease Payments Under Operating Lease | Future minimum lease payments under the Company’s operating leases as of December 31, 2022 were as follows: Amount (In thousands) 2023 $ 5,223 2024 3,910 2025 2,445 2026 1,386 2027 1,428 Thereafter 5,477 Total undiscounted future minimum lease payments $ 19,869 Imputed interest ( 4,770 ) Total operating lease liabilities $ 15,099 |
Convertible Preferred Stock a_2
Convertible Preferred Stock and Stockholders' Equity (Deficit) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Common Stock Reserved for Issuance | As of December 31, 2022, total shares of common stock reserved for issuance, on an as-if converted basis, are as follows: December 31, Outstanding stock options and awards 5,669,374 Outstanding pre-funded warrants 6,236,693 Stock options and awards available for future grant 2,318,761 Shares available for further issuance under the employee stock purchase plan 1,106,721 Total 15,331,549 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | The following table summarizes stock option activity : Shares Weighted- Weighted- Aggregate (in dollars) (Years) (In thousands) Outstanding as of December 31, 2021 2,772,154 $ 7.90 Options granted 2,632,302 $ 12.58 Options exercised ( 23,677 ) $ 2.14 Options cancelled ( 170,597 ) $ 16.54 Outstanding as of December 31, 2022 5,210,182 $ 10.01 8.45 $ 751 Exercisable as of December 31, 2022 1,719,533 $ 7.15 7.56 $ 691 |
Summary of Fair Value of Stock Option Awards | The assumptions used to determine the fair value of the awards represent management’s best estimates. Year Ended 2022 2021 Expected term (in years) 5.5 – 6.1 5.0 – 6.1 Expected volatility 95 % – 97 % 95 % – 103 % Risk-free interest rate 1.6 % – 4.2 % 0.6 % – 1.4 % Expected dividend yield —% —% |
Summary of Restricted Stock Activity | The following table summarizes activity of RSUs granted to employees with service-based vesting under the 2021 Plan. Shares Weighted Weighted- Aggregate (in dollars) (Years) (In thousands) Unvested as of December 31, 2021 — $ — Granted 489,153 $ 4.44 Vested ( 8,932 ) $ 15.19 Forfeited ( 21,029 ) $ 7.93 Unvested as of December 31, 2022 459,192 $ 4.07 1.41 $ 923 |
Summary of Stock-based Compensation | The following table summarizes stock-based compensation recognized in the Company’s statements of operations and comprehensive loss: Year Ended 2022 2021 (In thousands) Research and development $ 4,914 $ 1,179 General and administrative 6,553 1,771 Total stock-based compensation $ 11,467 $ 2,950 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Tax Rate Reconciliation | The effective tax rate of the Company’s provision for income taxes differs from the federal statutory rate and the effective tax rate reconciliation is as follows: December 31, 2022 2021 U.S. federal taxes at statutory rate 21.0 % 21.0 % State taxes (net of federal benefit) 1.2 0.6 Credits 2.8 3.1 Stock-based compensation ( 0.3 ) ( 0.3 ) Section 382 limitation on tax attribute carryforwards 0.0 0.0 Change in valuation allowance ( 24.1 ) ( 23.3 ) Other ( 0.6 ) ( 1.1 ) Total —% —% |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: December 31, 2022 2021 (In thousands) Balance at beginning of year $ 1,470 $ 571 Additions based on tax positions related to current year 1,588 901 Additions based on tax positions related to prior years 83 — Reductions for tax positions related to prior years — ( 2 ) Balance at end of year $ 3,141 $ 1,470 |
Schedule of Deferred Income Taxes | The tax effects of significant items comprising the Company’s deferred income taxes are as follows : December 31, 2022 2021 (In thousands) Deferred tax assets: Net operating losses $ 41,256 $ 34,746 Capitalized research and development expenditure 17,045 — Tax credits 9,347 4,443 Lease liability 3,176 3,362 Stock-based compensation 1,631 309 Accrued expenses and other 1,368 727 Property and equipment — 152 Total deferred tax assets 73,823 43,739 Valuation allowance ( 71,129 ) ( 41,281 ) Deferred tax assets, net of valuation allowance 2,694 2,458 Deferred tax liabilities: Right-of-use asset ( 2,453 ) ( 2,458 ) Property and equipment ( 241 ) — Net deferred tax assets $ — $ — |
Summary of Net Operating Loss and Tax Carryforwards | As of December 31, 2022, the Company’s net operating loss and tax carryforwards are summarized as follows: Amount Expiration in years Net operating losses, federal (post-December 31, 2017) $ 171,533 Do Not Expire Net operating losses, federal (pre-January 1, 2018) $ 3,093 Begins to Expire 2036 Net operating losses, state $ 62,973 Begins to Expire 2036 Tax credits, federal $ 8,544 Begins to Expire 2036 Tax credits, state $ 5,067 Do Not Expire |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Diluted Net Loss Per Share | The following potentially dilutive securities were excluded from the calculation of diluted net loss per share for the periods presented because the effect would have been anti-dilutive: December 31, 2022 2021 Outstanding stock options and awards 5,669,374 2,772,154 Restricted stock subject to future vesting 853 28,905 Total 5,670,227 2,801,059 |
Organization and Description _2
Organization and Description of the Business - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Jul. 23, 2021 | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Organization And Description Of Business [Line Items] | |||
Reverse stock split description | 1-for-6 | ||
Reverse stock split | 0.1667 | ||
Accumulated deficit | $ (279,198) | $ (155,533) | |
Net loss | (123,665) | $ (72,721) | |
Cash, cash equivalents and investments in marketable securities | $ 204,200 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) Segment | Dec. 31, 2021 USD ($) | |
Significant Accounting Policies [Line Items] | ||
Number of operating segment | Segment | 1 | |
Number of reportable segment | Segment | 1 | |
Restricted cash included in other noncurrent assets | $ 399 | $ 547 |
Operating lease right-of-use assets | 11,663 | $ 11,685 |
Operating lease liabilities | $ 15,099 | |
ASU 2019-12 | ||
Significant Accounting Policies [Line Items] | ||
Accounting standards update, adopted [true false] | true | |
Accounting standards update, immaterial effect [true false] | true | |
Accounting standards update, adoption date | Jan. 01, 2022 | |
ASU 2021-10 | ||
Significant Accounting Policies [Line Items] | ||
Accounting standards update, adopted [true false] | true | |
Accounting standards update, immaterial effect [true false] | true | |
Accounting standards update, adoption date | Jan. 01, 2022 | |
Minimum | ||
Significant Accounting Policies [Line Items] | ||
Property and equipment, useful life | 3 years | |
Maximum | ||
Significant Accounting Policies [Line Items] | ||
Property and equipment, useful life | 5 years |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Fair Value of Financial Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amortized Cost | $ 203,620 | $ 250,441 |
Unrealized Gain | 26 | |
Unrealized Loss | (404) | (141) |
Fair Value | 203,242 | 250,300 |
Cash Equivalents | Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amortized Cost | 20,532 | |
Fair Value | 20,532 | |
Money Market Funds | Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amortized Cost | 7,203 | 37,129 |
Fair Value | 7,203 | 37,129 |
Commercial Paper | Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amortized Cost | 11,972 | |
Unrealized Loss | (4) | |
Fair Value | 11,968 | |
Government Agencies Bonds | Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amortized Cost | 54,569 | |
Unrealized Gain | 12 | |
Fair Value | 54,581 | |
Debt Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value | 109,000 | |
Commercial Paper | Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amortized Cost | 43,605 | 121,634 |
Unrealized Gain | 4 | |
Unrealized Loss | (125) | (50) |
Fair Value | 43,484 | 121,584 |
U.S. Treasuries | Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amortized Cost | 25,273 | 78,097 |
Unrealized Gain | 1 | |
Unrealized Loss | (147) | (85) |
Fair Value | 25,127 | 78,012 |
Corporate Bonds | Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amortized Cost | 2,696 | 8,979 |
Unrealized Loss | (18) | (3) |
Fair Value | 2,678 | 8,976 |
Government Agencies Bonds | Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amortized Cost | 37,770 | 4,602 |
Unrealized Gain | 9 | |
Unrealized Loss | (110) | (3) |
Fair Value | $ 37,669 | $ 4,599 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Impairment charges on marketable securities related to other-than-temporary | $ 0 |
Available-for-sale marketable securities remaining maturities less than one year | 91.3 |
Available-for-sale marketable securities maturities between one and two years | 17.7 |
Marketable Securities | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Debt securities available-for-sale | $ 109 |
Maximum | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Available-for-sale marketable securities contractual maturities term | 2 years |
Minimum | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Available-for-sale marketable securities contractual maturities term | 1 year |
Balance Sheet Components - Summ
Balance Sheet Components - Summary of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 66,708 | $ 52,445 |
Less: accumulated depreciation and amortization | (15,676) | (9,425) |
Total property and equipment, net | 51,032 | 43,020 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 23,605 | 7,241 |
Laboratory Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 20,537 | 11,891 |
Manufacturing equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 17,468 | |
Construction in Progress | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 3,128 | 32,561 |
Computer Equipment and Software | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 1,060 | 218 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 910 | $ 534 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Depreciation and amortization expense | $ 6.5 | $ 3 |
Prepaid Expenses and Other Current Assets | ||
Employee retention credit receivable CARES Act | $ 2 |
Balance Sheet Components - Su_2
Balance Sheet Components - Summary of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued compensation and related expenses | $ 6,299 | $ 3,667 |
Accrued property and equipment | 139 | 2,863 |
Accrued research and development expenses | 3,214 | 2,023 |
Accrued professional services | 482 | 344 |
Other current liabilities | 530 | 162 |
Total accrued and other current liabilities | $ 10,664 | $ 9,059 |
License Agreements (Details)
License Agreements (Details) | 1 Months Ended | 12 Months Ended | |
Jan. 31, 2020 USD ($) | Oct. 31, 2016 USD ($) Option | Dec. 31, 2022 USD ($) | |
University of Texas Southwestern License Agreement | |||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Milestone and royalty payments recognized | $ 0 | ||
Non-refundable upfront license fee | $ 100,000 | ||
University of Texas Southwestern License Agreement | Maximum | |||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Milestone payments contingent upon achieving specific development and commercialization milestone events | $ 14,800,000 | ||
Gladstone | Gladstone License Agreement | |||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Number of additional option to extend milestone payment | Option | 4 | ||
Milestone obligation additional extended payment terms | 1 year | ||
Milestone and royalty payments recognized | $ 0 | ||
Gladstone | Gladstone License Agreement | Minimum | |||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Annual license maintenance fees | $ 25,000 | ||
Milestone obligation amount | 50,000 | ||
Gladstone | Gladstone License Agreement | Maximum | |||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Annual license maintenance fees | 100,000 | ||
Milestone payments for royalty-bearing products contingent upon achieving specific clinical and commercialization milestone events | 4,100,000 | ||
Milestone obligation amount | $ 100,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | 1 Months Ended | ||||
May 31, 2022 | Nov. 30, 2021 | Feb. 28, 2021 USD ($) RenewalOption | Dec. 31, 2016 RenewalOption | Dec. 31, 2022 | |
Commitments And Contingencies [Line Items] | |||||
Weighted-average remaining lease term | 5 years 7 months 6 days | ||||
Weighted-average discount rate | 9.30% | ||||
Union City Facility | |||||
Commitments And Contingencies [Line Items] | |||||
Number of lease renewal term | 1 | ||||
Lease renewal term | 5 years | ||||
Lease commenced month and year | 2021-05 | ||||
Term of lease | 10 years | ||||
Union City Facility | Other Noncurrent Assets | |||||
Commitments And Contingencies [Line Items] | |||||
Security deposit | $ | $ 3.3 | ||||
Office and Laboratory Space | South San Francisco, California | |||||
Commitments And Contingencies [Line Items] | |||||
Lease expiration month and year | 2025-05 | ||||
Number of lease renewal term | 2 | ||||
Lease renewal term | 5 years | ||||
Additional Office and Laboratory Space | South San Francisco, California | |||||
Commitments And Contingencies [Line Items] | |||||
Lease Expiration Date | Dec. 31, 2022 | Jun. 30, 2022 |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Operating Lease Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease cost | $ 3,714 | $ 2,364 |
Variable lease cost | 1,209 | 1,095 |
Short-term lease cost | 952 | 2,241 |
Total lease cost | 5,875 | 5,700 |
Operating lease-right-of-use assets obtained in exchange for lease obligations | 2,224 | 8,558 |
Cash paid for leases included in operating cash outflows | 6,454 | 6,110 |
Cash paid for amounts included in the measurement of lease liabilities | $ 4,293 | $ 2,774 |
Commitments and Contingencies_3
Commitments and Contingencies - Summary of Future Minimum Lease Payments Under Operating Leases (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2023 | $ 5,223 |
2024 | 3,910 |
2025 | 2,445 |
2026 | 1,386 |
2027 | 1,428 |
Thereafter | 5,477 |
Total undiscounted future minimum lease payments | 19,869 |
Imputed interest | (4,770) |
Total operating lease liabilities | $ 15,099 |
Convertible Preferred Stock - A
Convertible Preferred Stock - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 03, 2021 | Dec. 31, 2021 | |
Series C Convertible Preferred Stock | ||
Temporary Equity [Line Items] | ||
Proceeds from issuance of Series C convertible preferred stock, net of issuance costs | $ 19,981 | |
Common Stock | ||
Temporary Equity [Line Items] | ||
Conversion of outstanding shares of convertible preferred stock | 26,102,278 |
Convertible Preferred Stock a_3
Convertible Preferred Stock and Stockholders' Equity (Deficit) - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Nov. 29, 2022 | Nov. 21, 2022 | Aug. 10, 2022 | Aug. 03, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Class Of Stock [Line Items] | ||||||
Common stock voting rights | The holders of common stock are entitled to one vote per share on all matters to be voted on by the stockholders of the Company and are entitled to dividends, if and when declared by the board of directors, subject to the prior rights of the preferred stockholders. | |||||
Common stock, outstanding | 66,857,113 | 41,291,374 | ||||
Net proceeds of after deducting underwriting discounts and commissions | $ 188,541 | |||||
Early Exercised Stock Options and Restricted Stock That are Unvested and Subject to Repurchase | ||||||
Class Of Stock [Line Items] | ||||||
Common stock, outstanding | 853 | 28,905 | ||||
At-the-Market Equity Offering | ||||||
Class Of Stock [Line Items] | ||||||
Maximum aggregate offering price | $ 75,000 | |||||
Follow On Offering | ||||||
Class Of Stock [Line Items] | ||||||
Underwriting discounts and commissions | $ 4,900 | |||||
Other Offering Expenses | $ 500 | |||||
Number of common shares | 2,816,409 | 22,613,307 | ||||
Common stock, per share | $ 2.60 | |||||
Warrant purchase common stock | 4,327,500 | |||||
Net proceeds from offering | $ 76,900 | |||||
Pre Funded Warrant | Follow On Offering | ||||||
Class Of Stock [Line Items] | ||||||
Warrants issued to purchase shares of common stock | 6,236,693 | |||||
Class of warrant price per share | $ 2.599 | |||||
Warrants, exercise price | $ 0.001 | |||||
Common Stock | ||||||
Class Of Stock [Line Items] | ||||||
Conversion of outstanding shares of convertible preferred stock | 26,102,278 | |||||
Common Stock | Initial Public Offering | ||||||
Class Of Stock [Line Items] | ||||||
Issuance of common stock | 13,800,000 | 13,800,000 | ||||
Share price | $ 15 | |||||
Net proceeds of after deducting underwriting discounts and commissions | $ 188,500 | |||||
Underwriting discounts and commissions | 14,500 | |||||
Other Offering Expenses | $ 4,000 | |||||
Common Stock | Overallotment Option | ||||||
Class Of Stock [Line Items] | ||||||
Issuance of common stock | 1,800,000 |
Convertible Preferred Stock a_4
Convertible Preferred Stock and Stockholders' Equity (Deficit) - Schedule of Common Stock Reserved for Issuance (Details) | Dec. 31, 2022 shares |
Class Of Stock [Line Items] | |
Common stock reserved for issuance | 15,331,549 |
Outstanding Stock Options and Awards | |
Class Of Stock [Line Items] | |
Common stock reserved for issuance | 5,669,374 |
Stock Options and Awards Available for Future Grant | |
Class Of Stock [Line Items] | |
Common stock reserved for issuance | 2,318,761 |
Employee Stock Purchase Plan | Shares Available for Further Issuance Under the Employee Stock Purchase Plan | |
Class Of Stock [Line Items] | |
Common stock reserved for issuance | 1,106,721 |
Outstanding Pre-Funded Warrants | |
Class Of Stock [Line Items] | |
Common stock reserved for issuance | 6,236,693 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |
Jul. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock reserved for issuance | 15,331,549 | ||
Intrinsic value of options exercised | $ 200 | $ 1,700 | |
Weighted-average grant-date fair value of options granted | $ 9.80 | $ 9.50 | |
Stock-based compensation | $ 11,467 | $ 2,950 | |
Unrecognized stock-based compensation | $ 30,300 | ||
Weighted-average period | 2 years 7 months 6 days | ||
Restricted Stock | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized stock-based compensation cost | $ 1,700 | ||
Weighted-average period | 2 years 3 months 18 days | ||
2021 Employee Stock Purchase Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock reserved for issuance | 800,000 | 1,106,721 | |
Participants to purchase common stock through payroll deduction maximum percentage of eligible compensation | 15% | ||
Participants to purchase shares through payroll deduction at lower percentage of fair market value | 85% | ||
Number of shares of common stock that may be issued in accordance with the plan | 800,000 | ||
Percentage of shares of common stock outstanding on last day of immediately preceding year | 1% | ||
Stock-based compensation | $ 0 | ||
Participants to purchase common stock through payroll deduction annual limit of eligible compensation | $ 25,000 | ||
Offering period | 6 months | ||
2021 Equity Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock reserved for issuance | 4,000,000 | ||
Common stock shares available for issuance period | 10 years | ||
Number of shares of common stock that may be issued in accordance with the plan | 4,000,000 | ||
Percentage of shares of common stock outstanding on last day of immediately preceding year | 4% | ||
Shares reserved and available for grant | 2,318,761 | ||
Intrinsic value of options exercised | $ 691 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Details) - 2021 Equity Incentive Plan $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Shares, Outstanding Beginning Balance | shares | 2,772,154 |
Shares, Options granted | shares | 2,632,302 |
Shares, Options exercised | shares | (23,677) |
Shares, Options cancelled | shares | (170,597) |
Shares, Outstanding Ending Balance | shares | 5,210,182 |
Shares, Exercisable as of December 31, 2022 | shares | 1,719,533 |
Weighted-Average Exercise Price Per Share, Outstanding Beginning Balance | $ / shares | $ 7.90 |
Weighted-Average Exercise Price Per Share, Options granted | $ / shares | 12.58 |
Weighted-Average Exercise Price Per Share, Options exercised | $ / shares | 2.14 |
Weighted-Average Exercise Price Per Share, Options cancelled | $ / shares | 16.54 |
Weighted-Average Exercise Price Per Share, Outstanding Ending Balance | $ / shares | 10.01 |
Weighted-Average Exercise Price Per Share, Exercisable as of December 31, 2022 | $ / shares | $ 7.15 |
Weighted-Average Remaining Contractual Life, Outstanding | 8 years 5 months 12 days |
Weighted-Average Remaining Contractual Life, Exercisable as of December 31, 2022 | 7 years 6 months 21 days |
Aggregate Intrinsic Value, Outstanding | $ | $ 751 |
Aggregate Intrinsic Value, Exercisable as of December 31, 2022 | $ | $ 691 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Fair Value of Stock Option Awards (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected volatility, minimum | 95% | 95% |
Expected volatility, maximum | 97% | 103% |
Risk-free interest rate, minimum | 1.60% | 0.60% |
Risk free interest rate, maximum | 4.20% | 1.40% |
Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term (in years) | 5 years 6 months | 5 years |
Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term (in years) | 6 years 1 month 6 days | 6 years 1 month 6 days |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Restricted Stock Activity (Details) - 2021 Equity Incentive Plan - Restricted Stock $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Granted | shares | 489,153 |
Vested | shares | (8,932) |
Forfeited | shares | (21,029) |
Unvested as of December 31, 2022 | shares | 459,192 |
Weighted Average Grant Date Fair Value per Share | |
Granted | $ / shares | $ 4.44 |
Vested | $ / shares | 15.19 |
Forfeited | $ / shares | 7.93 |
Unvested as of December 31, 2022 | $ / shares | $ 4.07 |
Weighted-Average Remaining Contractual Life, Unvested | 1 year 4 months 28 days |
Aggregate Intrinsic Value, Unvested | $ | $ 923 |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of Stock-based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation | $ 11,467 | $ 2,950 |
Research and Development | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation | 4,914 | 1,179 |
General and Administrative | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation | $ 6,553 | $ 1,771 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Income taxes expense | $ 0 | $ 0 |
Increase in valuation allowance, deferred tax assets | 29,800,000 | 17,000,000 |
Interest and penalties related to taxes and uncertain tax positions | $ 0 | $ 0 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Tax Rate Reconciliation (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
U.S. federal taxes at statutory rate | 21% | 21% |
State taxes (net of federal benefit) | 1.20% | 0.60% |
Credits | 2.80% | 3.10% |
Stock-based compensation | (0.30%) | (0.30%) |
Section 382 limitation on tax attribute carryforwards | 0% | 0% |
Change in valuation allowance | (24.10%) | (23.30%) |
Other | (0.60%) | (1.10%) |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Balance at beginning of year | $ 1,470 | $ 571 |
Additions based on tax positions related to current year | 1,588 | 901 |
Additions based on tax positions related to prior years | 83 | |
Reductions for tax positions related to prior years | (2) | |
Balance at end of year | $ 3,141 | $ 1,470 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Income Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Net operating losses | $ 41,256 | $ 34,746 |
Capitalized research and development expenditure | 17,045 | |
Tax credits | 9,347 | 4,443 |
Lease liability | 3,176 | 3,362 |
Stock-based compensation | 1,631 | 309 |
Accrued expenses and other | 1,368 | 727 |
Property and equipment | 152 | |
Total deferred tax assets | 73,823 | 43,739 |
Valuation allowance | (71,129) | (41,281) |
Deferred tax assets, net of valuation allowance | 2,694 | 2,458 |
Deferred tax liabilities: | ||
Right-of-use asset | (2,453) | $ (2,458) |
Property and equipment | $ (241) |
Income Taxes - Summary of Net O
Income Taxes - Summary of Net Operating Loss and Tax Carryforwards (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Operating Loss Carryforwards [Line Items] | |
Net operating losses, state expiration begin year | 2036 |
Tax credits, federal expiration begin year | 2036 |
Tax credits, state expiration description | Do Not Expire |
Federal | |
Operating Loss Carryforwards [Line Items] | |
Tax credits | $ 8,544 |
State | |
Operating Loss Carryforwards [Line Items] | |
Net operating losses | 62,973 |
Tax credits | $ 5,067 |
Post-December 31, 2017 | |
Operating Loss Carryforwards [Line Items] | |
Net operating losses, federal expiration description | Do Not Expire |
Post-December 31, 2017 | Federal | |
Operating Loss Carryforwards [Line Items] | |
Net operating losses | $ 171,533 |
Pre-January 1, 2018 | |
Operating Loss Carryforwards [Line Items] | |
Net operating losses, federal expiration begin year | 2036 |
Pre-January 1, 2018 | Federal | |
Operating Loss Carryforwards [Line Items] | |
Net operating losses | $ 3,093 |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Antidilutive Securities Excluded from Computation of Diluted Net Loss Per Share (Details) - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities were not included in the calculation of diluted net loss per share | 5,670,227 | 2,801,059 |
Outstanding Stock Options and Awards | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities were not included in the calculation of diluted net loss per share | 5,669,374 | 2,772,154 |
Restricted Stock Subject to Future Vesting | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities were not included in the calculation of diluted net loss per share | 853 | 28,905 |