Oruka Therapeutics (ORKA) 10-Q 11 May 21 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2021	May 10, 2021
Cover [Abstract]
Entity Registrant Name	ARCA Biopharma, Inc.
Entity Central Index Key	0000907654
Entity Current Reporting Status	Yes
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2021
Document Fiscal Period Focus	Q1
Trading Symbol	ABIO
Document Fiscal Year Focus	2021
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		14,410,143
Entity Shell Company	false
Entity File Number	000-22873
Entity Tax Identification Number	36-3855489
Entity Address, Address Line One	10170 Church Ranch Way
Entity Address, Address Line Two	Suite 100
Entity Address, City or Town	Westminster
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80021
City Area Code	720
Local Phone Number	940-2200
Document Quarterly Report	true
Document Transition Report	false
Title of 12(b) Security	Common Stock, par value $0.001 per share
Security Exchange Name	NASDAQ
Entity Incorporation, State or Country Code	DE
Entity Interactive Data Current	Yes

BALANCE SHEETS (Unaudited)

BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 66,933	$ 49,071
Other current assets	1,797	897
Total current assets	68,730	49,968
Right-of-use asset - operating	414	428
Property and equipment, net	27	21
Other assets	12	12
Total assets	69,183	50,429
Current liabilities:
Accounts payable	1,578	1,773
Accrued compensation and employee benefits	255	815
Accrued expenses and other liabilities	1,047	911
Total current liabilities	2,880	3,499
Operating lease liability, net of current portion	394	409
Total liabilities	3,274	3,908
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.001 par value; 100 million shares authorized at March 31, 2021 and December 31, 2020; 14,410,143 and 9,548,150 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively	14	10
Additional paid-in capital	224,149	200,665
Accumulated deficit	(158,254)	(154,154)
Total stockholders’ equity	65,909	46,521
Total liabilities and stockholders’ equity	$ 69,183	$ 50,429

BALANCE SHEETS (Unaudited) (Par

BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2021	Dec. 31, 2020
Statement Of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	14,410,143	9,548,150
Common stock, shares outstanding	14,410,143	9,548,150

STATEMENTS OF OPERATIONS (Unaud

STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Costs and expenses:
Research and development	$ 2,876	$ 365
General and administrative	1,226	975
Total costs and expenses	4,102	1,340
Loss from operations	(4,102)	(1,340)
Interest and other income	2	24
Interest expense		(4)
Net loss	$ (4,100)	$ (1,320)
Net loss per share:
Basic and diluted	$ (0.33)	$ (0.83)
Weighted average shares outstanding:
Basic and diluted	12,356,928	1,594,070

STATEMENTS OF STOCKHOLDERS' EQU

STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit
Beginning Balance at Dec. 31, 2019	$ 7,610	$ 2	$ 152,024	$ (144,416)
Beginning Balance, shares at Dec. 31, 2019		1,594,070
Share-based compensation	16		16
Net loss	(1,320)			(1,320)
Ending Balance at Mar. 31, 2020	6,306	$ 2	152,040	(145,736)
Ending Balance, shares at Mar. 31, 2020		1,594,070
Beginning Balance at Dec. 31, 2019	7,610	$ 2	152,024	(144,416)
Beginning Balance, shares at Dec. 31, 2019		1,594,070
Ending Balance at Dec. 31, 2020	$ 46,521	$ 10	200,665	(154,154)
Ending Balance, shares at Dec. 31, 2020	9,548,150	9,548,150
Beginning Balance at Mar. 31, 2020	$ 6,306	$ 2	152,040	(145,736)
Beginning Balance, shares at Mar. 31, 2020		1,594,070
Issuance of common stock and exercise of prefunded warrants for cash, net of offering costs	5,297		5,297
Issuance of common stock and exercise of prefunded warrants for cash, net of offering costs, shares		673,500
Share-based compensation	4		4
Net loss	(1,302)			(1,302)
Ending Balance at Jun. 30, 2020	10,305	$ 2	157,341	(147,038)
Ending Balance, shares at Jun. 30, 2020		2,267,570
Issuance of common stock for cash, net of offering costs	42,136	$ 7	42,129
Issuance of common stock for cash, net of offering costs, shares		7,018,054
Share-based compensation	5		5
Net loss	(1,991)			(1,991)
Ending Balance at Sep. 30, 2020	50,455	$ 9	199,475	(149,029)
Ending Balance, shares at Sep. 30, 2020		9,285,624
Issuance of common stock for cash, net of offering costs	1,173	$ 1	1,172
Issuance of common stock for cash, net of offering costs, shares		262,526
Share-based compensation	18		18
Net loss	(5,125)			(5,125)
Ending Balance at Dec. 31, 2020	$ 46,521	$ 10	200,665	(154,154)
Ending Balance, shares at Dec. 31, 2020	9,548,150	9,548,150
Issuance of common stock for cash, net of offering costs	$ 23,347	$ 4	23,343
Issuance of common stock for cash, net of offering costs, shares		4,861,993
Share-based compensation	141		141
Net loss	(4,100)			(4,100)
Ending Balance at Mar. 31, 2021	$ 65,909	$ 14	$ 224,149	$ (158,254)
Ending Balance, shares at Mar. 31, 2021	14,410,143	14,410,143

STATEMENTS OF CASH FLOWS (Unaud

STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended				12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2020
Cash flows from operating activities:
Net loss	$ (4,100)	$ (5,125)	$ (1,302)	$ (1,320)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	3			3
Amortization of right-of-use asset - operating	14			22
Share-based compensation	141			16
Change in operating assets and liabilities:
Other current assets	(840)			(75)
Accounts payable	56			(293)
Accrued compensation and employee benefits	(560)			60
Accrued expenses and other liabilities	61			(99)
Net cash used in operating activities	(5,225)			(1,686)
Cash flows from investing activities:
Purchases of property and equipment	(6)			(3)
Net cash used in investing activities	(6)			(3)
Cash flows from financing activities:
Proceeds from the issuance of common stock	24,070
Common stock offering costs	(977)
Net cash provided by financing activities	23,093
Net increase (decrease) in cash and cash equivalents	17,862			(1,689)
Cash and cash equivalents, beginning of period	49,071		$ 6,674	8,363	$ 8,363
Cash and cash equivalents, end of period	66,933	$ 49,071		6,674	$ 49,071
Supplemental disclosure of noncash investing and financing transactions:
Purchases of property and equipment in accounts payable	$ 3
Vendor finance agreement				408
Leased assets obtained in exchange for operating lease liabilities				$ 49

The Company and Summary of Sign

The Company and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
The Company and Summary of Significant Accounting Policies	(1) The Company and Summary of Significant Accounting Policies Description of Business ARCA biopharma, Inc. (the Company or ARCA), a Delaware corporation, is headquartered in Westminster, Colorado. The Company is a clinical-stage biopharmaceutical company applying a precision medicine approach to the development and commercialization of genetically targeted therapies for cardiovascular diseases. The Company’s lead product candidates are rNAPc2 (AB201) as a potential treatment for diseases caused by ribonucleic acid, or RNA, viruses, initially focusing on COVID-19, the disease caused by SARS-CoV-2 virus, and Gencaro™ (bucindolol hydrochloride) for the treatment of atrial fibrillation (AF) in patients with chronic heart failure (HF). rNAPc2 is a protein therapeutic in clinical development as a potential treatment for patients hospitalized with COVID-19. Based on its unique mechanism of action, development history and the clinical evidence from the SARS‑CoV-2 pandemic, the Company believes rNAPc2 has potential to be a beneficial therapy for patients with this serious viral disease. The Company initiated the Phase 2b clinical trial of rNAPc2 as a potential treatment for patients hospitalized with COVID-19 in the fourth quarter of 2020. The Company continues to evaluate the feasibility and potential timing for initiating PRECISION-AF relative to the COVID-19 pandemic and prioritizing the development of rNAPc2. The Company’s other product candidate, AB171, is a thiol-substituted isosorbide mononitrate, which ARCA plans to develop as a genetically-targeted treatment for HF and peripheral arterial disease. In March 2020, the World Health Organization declared the outbreak of COVID-19, a novel strain of Coronavirus, a global pandemic. This outbreak is causing major disruptions to businesses and markets worldwide as the virus spreads. The Company does not expect a material financial effect as a result of the pandemic. However, if the pandemic continues to be a severe worldwide crisis, it could have a material adverse effect on the Company’s business, results of operations, financial condition and cash flows. Liquidity and Going Concern The Company devotes substantially all of its efforts towards obtaining regulatory approval and raising capital necessary to fund its operations and it is subject to a number of risks associated with clinical research and development, including dependence on key individuals, the development of and regulatory approval of commercially viable products, the need to raise adequate additional financing necessary to fund the development and commercialization of its products, and competition from larger companies. The Company has not generated revenue to date and has incurred substantial losses and negative cash flows from operations since its inception. The Company has historically funded its operations through issuances of common and preferred stock. The Company believes that its current cash and cash equivalents as of March 31, 2021 the end of fiscal year Conducting a Phase 3 rNAPc2 clinical trial or the Phase 3 PRECISION-AF trial would likely require additional financing However, changing circumstances may cause us to consume capital significantly faster or slower than currently anticipated. The Company has based these estimates on assumptions that may prove to be wrong, and the Company could exhaust its available financial resources sooner than the Company currently anticipates. Therefore, the Company may have to raise additional capital for clinical trials of and will have to raise additional capital for clinical trials of Gencaro. The Company may not be able to raise sufficient capital on acceptable terms, or at all, to continue development of or Gencaro or to otherwise continue operations and may not be able to execute any strategic transaction The Company’s liquidity, and its ability to raise additional capital or complete any strategic transaction, depends on a number of factors, including, but not limited to, the following: • the costs and timing for the potential additional clinical trials in order to gain possible regulatory approval for rNAPc2, Gencaro or any other product candidate; • the market price of the Company’s stock and the availability and cost of additional equity capital from existing and potential new investors; • the Company’s ability to retain the listing of its common stock on the Nasdaq Capital Market; • general economic and industry conditions affecting the availability and cost of capital, including as a result of the COVID-19 pandemic; • the costs of filing, prosecuting, defending and enforcing any patent claims and other intellectual property rights; and • the terms and conditions of the Company’s existing collaborative and licensing agreements. The sale of additional equity or convertible debt securities would likely result in substantial additional dilution to the Company’s stockholders. If the Company raises additional funds through the incurrence of indebtedness, the obligations related to such indebtedness would be senior to rights of holders of the Company’s capital stock and could contain covenants that would restrict the Company’s operations. The Company also cannot predict what consideration might be available, if any, to the Company or its stockholders, in connection with any strategic transaction. Should strategic alternatives or additional capital not be available to the Company, or not be available on acceptable terms, the Company may be unable to realize value from its assets and discharge its liabilities in the normal course of business which may, among other alternatives, cause the Company to further delay, substantially reduce or discontinue operational activities to conserve its cash resources. Basis of Presentation The accompanying unaudited financial statements of the Company were prepared in accordance with generally accepted accounting principles for interim financial information and instructions to Form 10-Q and pursuant to Regulation S-X. Accordingly, these financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (GAAP) for complete financial statements. In the opinion of management, these financial statements include all normal and recurring adjustments considered necessary for a fair presentation of these interim financial statements. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of results expected for the full year ending December 31, 2021. The Company has generated no revenue to date and its activities have consisted of seeking regulatory approval, research and development, exploring strategic alternatives for further developing and commercializing rNAPc2 and Gencaro, and raising capital. These unaudited financial statements should be read in conjunction with the audited financial statements and footnotes thereto for the year ended December 31, 2020 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission. Amounts presented are rounded to the nearest thousand, where indicated, except per share data and par values. Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents. The Company has no off-balance-sheet concentrations of credit risk, such as foreign exchange contracts, option contracts, or foreign currency hedging arrangements. The Company maintains cash and cash equivalent balances in the form of bank demand deposits and money market fund accounts with financial institutions that management believes are creditworthy. Such balances may at times exceed the insured amount. Comprehensive Loss Comprehensive loss is defined as the change in equity during a period from transactions and other events and/or circumstances from non-owner sources. If the Company had comprehensive gains (losses), they would be reflected in the statement of operations and comprehensive loss and as a separate component in the statement of stockholders’ equity. There were no elements of comprehensive loss during the three months ended March 31, 2021 and 2020. Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in right-of-use (ROU) asset – operating and lease obligations are included in accrued expenses and other liabilities and operating lease liability on the Company’s March 31, 2021 and December 31, 2020 balance sheets. ROU lease assets represent the Company’s right to use an underlying asset for the lease term and lease obligations represent the Company’s obligation to make lease payments arising from the lease. Operating ROU lease assets are recognized at the commencement date based on the present value of lease payments over the lease term. As the Company’s lease does not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. 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. Accrued Outsourcing Expenses As part of the process of preparing its financial statements, the Company is required to estimate accrued outsourcing expenses. This process involves identifying services that third parties have performed on the Company’s behalf and estimating the level of service performed and the associated cost incurred for these services as of the balance sheet date. Examples of estimated accrued outsourcing expenses include contract service fees, such as fees payable to contract manufacturers in connection with the production of materials related to the Company’s drug product, and service fees and pass through costs from clinical research organizations. The Company develops estimates of liabilities using its judgment based upon the facts and circumstances known at the time. Recent Accounting Pronouncements The Company reviewed recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact to the financial statements.

Net Loss Per Share

Net Loss Per Share	3 Months Ended
	Mar. 31, 2021
Earnings Per Share [Abstract]
Net Loss Per Share	(2) Net Loss Per Share The Company calculates basic earnings per share by dividing net loss by the weighted average common shares outstanding during the period. Diluted earnings per share is computed by dividing net loss by the weighted average number of common shares outstanding during the period increased to include, if dilutive, the number of additional common shares that would have been outstanding if the potential common shares had been issued. The Company’s potentially dilutive shares include stock options and warrants for common stock . Because the Company reported a net loss for the three months ended March 31, 2021 and 2020, all potentially dilutive shares of common stock have been excluded from the computation of the dilutive net loss per share for all periods presented. March 31, 2021 2020 Potentially dilutive securities, excluded: Outstanding stock options 596,497 30,890 Warrants to purchase common stock 133,401 133,401 729,898 164,291

Fair Value Disclosures

Fair Value Disclosures	3 Months Ended
	Mar. 31, 2021
Fair Value Disclosures [Abstract]
Fair Value Disclosures	(3) Fair Value Disclosures There were no marketable securities as of March 31, 2021 or December 31, 2020. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). Inputs used to measure fair value are classified into the following hierarchy: • Level 1—Unadjusted quoted prices in active markets for identical assets or liabilities. The Company’s Level 1 assets consist of money market investments. The Company does not have any Level 1 liabilities. • Level 2—Unadjusted quoted prices in active markets for similar assets or liabilities; unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs other than quoted prices that are observable for the asset or liability. The Company does not have any Level 2 assets or liabilities. • Level 3—Unobservable inputs for the asset or liability. The Company does not have any Level 3 assets or liabilities. As of March 31, 2021 and December 31, 2020, the Company had $66.9 million and $49.1 million, respectively, of cash equivalents consisting of money market funds with original maturities of 90 days or less. The Company has the ability to liquidate these investments without restriction. The Company determines fair value for these money market funds with Level 1 inputs through quoted market prices. There were no transfers of assets between fair value hierarchy levels during the three-month period ended March 31, 2021. Fair Value of Other Financial Instruments The carrying amount of other financial instruments, including accounts payable and a vendor finance agreement, which are included in accounts payable and accrued expenses and other liabilities, approximated fair value due to their short maturities.

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2021
Property Plant And Equipment [Abstract]
Property and Equipment	(4) Property and Equipment Property and equipment consist of the following (in thousands): Estimated Life March 31, 2021 December 31, 2020 Computer equipment 3 years $ 37 $ 31 Lab equipment 5 years 146 146 Furniture and fixtures 5 years 38 38 Computer software 3 years 59 56 280 271 Accumulated depreciation and amortization (253 ) (250 ) Property and equipment, net $ 27 $ 21 For the three months ended March 31, 2021 and 2020, depreciation and amortization expense was $3,000 and $3,000, respectively.

Related Party Arrangements

Related Party Arrangements	3 Months Ended
	Mar. 31, 2021
Related Party Transactions [Abstract]
Related Party Arrangements	(5) Related Party Arrangements Transactions with the Company’s President and Chief Executive Officer The Company has entered into unrestricted research grants with its President and Chief Executive Officer’s academic research laboratory at the University of Colorado. Funding of any unrestricted research grants is contingent upon the Company’s financial condition, and can be deferred or terminated at the Company’s discretion. Total expense under these arrangements for the three months ended March 31, 2021 and 2020 was $107,000 and $70,000 respectively.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2021
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	(6) Commitments and Contingencies The Company has or is subject to the following commitments and contingencies. Employment Agreements The Company maintains employment agreements with several key executive employees. The agreements may be terminated at any time by the Company with or without cause upon written notice to the employee, and entitle the employee to wages in lieu of notice for periods not exceeding one calendar year from the date of termination without cause or by the employee for good reason. Certain of these agreements also provide for payments to be made under certain conditions related to a change in control of the Company. Operating Lease On August 1, 2013 the Company entered into a lease agreement for approximately 5,300 square feet of office facilities in Westminster, Colorado which served as the Company’s primary business office from October 1, 2013 until September 30, 2020. On August 29, 2020 the Company entered into a lease agreement for approximately 5,200 square feet of office facilities in Westminster, Colorado which serves as the Company’s primary business office effective October 1, 2020 (October 2020 Lease). The lease term is 42 months beginning October 1, 2020 and includes an option to renew for an additional 36 month term at the then prevailing rental rate. The exercise of the lease renewal option is at the Company’s sole discretion. The amounts recorded assume the Company will exercise its renewal option. The lease includes real estate taxes and insurance, which is not a lease component and is not included in the lease obligation. In addition, common area maintenance charges are based on actual costs incurred and are a non-lease component that is not included in the lease obligation. Future minimum commitments due under the October 2020 Lease agreement as of March 31, 2021 are as follows (in thousands): Remainder of 2021 $ 64 2022 88 2023 90 2024 93 2025 96 Thereafter 125 Total remaining lease payments 556 Less: imputed lease interest (106 ) Less: Current portion (56 ) Operating lease liability, net of current portion $ 394 Rent expense, which is included in general and administrative expense, for the three months ended March 31, 2021 and 2020 was $22,000 and $23,000, respectively. As of March 31, 2021, the lease liability was $450,000, and the current portion is included in accrued expenses and other liabilities and the non-current portion is in operating lease liability, net of current portion in the accompanying balance sheet. Cash paid for amounts included in the measurement of lease liabilities and the operating cash flows from operating leases for the three months ended March 31, 2021 and 2020 were $7,000 and $25,000, respectively. The weighted-average remaining lease term for the operating lease as of March 31, 2021 is 6.0 years. The discount rate for the operating lease is 7%.

Equity Financings and Warrants

Equity Financings and Warrants	3 Months Ended
	Mar. 31, 2021
Equity [Abstract]
Equity Financings and Warrants	(7) Equity Financings and Warrants Registered Direct Financing On June 3, 2020, the Company closed a registered direct offering with certain institutional and accredited investors of 348,000 shares of the Company’s common stock, at a purchase price of $9.00 per share, and pre-funded warrants to purchase 325,500 shares of common stock at a purchase price of $8.999 per warrant. All warrants were exercised by the closing date. The net proceeds were approximately $5.3 million, after deducting placement agent fees and other offering expenses. The Company paid JonesTrading a placement agent fee equal to 8.0% of the aggregate gross proceeds and agreed to provide JonesTrading with customary indemnification and contribution rights. At the Market Equity Financing On January 11, 2017, the Company entered into a Capital on Demand TM Under the amended Sales Agreement, JonesTrading may sell the Shares by any method permitted by law and deemed to be an “at the market offering” as defined in Rule 415 promulgated under the Securities Act of 1933, as amended, including sales made directly on or through the Nasdaq Capital Market, on any other existing trading market for the Common Stock or to or through a market maker. In addition, under the amended Sales Agreement, JonesTrading may sell the Shares by any other method permitted by law, including in negotiated transactions. The Company may instruct JonesTrading not to sell Shares if the sales cannot be effected at or above the price designated by the Company from time to time. The Company is not obligated to make any sales of the Shares under the amended Sales Agreement. The offering of Shares pursuant to the amended Sales Agreement will terminate upon the earlier of (a) the sale of all of the Shares subject to the amended Sales Agreement or (b) the termination of the amended Sales Agreement by JonesTrading or the Company, as permitted therein. The Company paid JonesTrading a commission rate equal to 3.0% of the aggregate gross proceeds from each sale of Shares and agreed to provide JonesTrading with customary indemnification and contribution rights. The Company will also reimburse JonesTrading for certain specified expenses in connection with entering into and amending the Sales Agreement. Under the amended Sales Agreement, the Company sold an aggregate of 2,214,301 On July 22, 2020, the Company entered into a new Capital on Demand TM In April 2021, the Company amended the 2020 Sales Agreement and has $50.0 million available for the offering under its prospectus to the Company’s registration statement on Form S-3 (No. 333-254585). Warrants Warrants to purchase shares of common stock were previously granted as part of various financing and business agreements. All outstanding warrants were recorded in additional paid-in capital at their estimated fair market value at the date of grant using a Black-Scholes option-pricing model. As of March 31, 2021, these warrants, by year of expiration, are summarized below: Year of Expiration Number of Warrants Weighted Average Exercise Price 2022 133,401 $ 109.80

Share-based Compensation

Share-based Compensation	3 Months Ended
	Mar. 31, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Share-based Compensation	(8) Share-based Compensation For the three month periods ended March 31, 2021 and 2020, the Company recognized the following non-cash, share-based compensation expense in the statements of operations (in thousands): Three Months Ended March 31, 2021 2020 Research and development $ 36 $ 9 General and administrative 105 7 Total $ 141 $ 16 Stock option transactions for the three month period ended March 31, 2021 under the Company’s stock incentive plans were as follows: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Options outstanding at December 31, 2020 531,238 $ 8.71 9.68 Granted 67,200 4.30 Exercised — — Forfeited and cancelled (1,941 ) 72.33 Options outstanding at March 31, 2021 596,497 $ 8.01 9.51 Options exercisable at March 31, 2021 66,125 $ 38.02 7.68 Options vested and expected to vest 595,774 $ 8.01 9.51

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Income Taxes	(9) Income Taxes In accordance with GAAP, a valuation allowance should be provided if it is more likely than not that some or all of the Company’s deferred tax assets will not be realized. The Company’s ability to realize the benefit of its deferred tax assets will depend on the generation of future taxable income. Due to the uncertainty of future profitable operations and taxable income, the Company has recorded a full valuation allowance against its net deferred tax assets. The Company believes its tax filing positions and deductions related to tax periods subject to examination will be sustained upon audit and, therefore, has no reserve for uncertain tax positions.

The Company and Summary of Si_2

The Company and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Description of Business	Description of Business ARCA biopharma, Inc. (the Company or ARCA), a Delaware corporation, is headquartered in Westminster, Colorado. The Company is a clinical-stage biopharmaceutical company applying a precision medicine approach to the development and commercialization of genetically targeted therapies for cardiovascular diseases. The Company’s lead product candidates are rNAPc2 (AB201) as a potential treatment for diseases caused by ribonucleic acid, or RNA, viruses, initially focusing on COVID-19, the disease caused by SARS-CoV-2 virus, and Gencaro™ (bucindolol hydrochloride) for the treatment of atrial fibrillation (AF) in patients with chronic heart failure (HF). rNAPc2 is a protein therapeutic in clinical development as a potential treatment for patients hospitalized with COVID-19. Based on its unique mechanism of action, development history and the clinical evidence from the SARS‑CoV-2 pandemic, the Company believes rNAPc2 has potential to be a beneficial therapy for patients with this serious viral disease. The Company initiated the Phase 2b clinical trial of rNAPc2 as a potential treatment for patients hospitalized with COVID-19 in the fourth quarter of 2020. The Company continues to evaluate the feasibility and potential timing for initiating PRECISION-AF relative to the COVID-19 pandemic and prioritizing the development of rNAPc2. The Company’s other product candidate, AB171, is a thiol-substituted isosorbide mononitrate, which ARCA plans to develop as a genetically-targeted treatment for HF and peripheral arterial disease. In March 2020, the World Health Organization declared the outbreak of COVID-19, a novel strain of Coronavirus, a global pandemic. This outbreak is causing major disruptions to businesses and markets worldwide as the virus spreads. The Company does not expect a material financial effect as a result of the pandemic. However, if the pandemic continues to be a severe worldwide crisis, it could have a material adverse effect on the Company’s business, results of operations, financial condition and cash flows.
Liquidity and Going Concern	Liquidity and Going Concern The Company devotes substantially all of its efforts towards obtaining regulatory approval and raising capital necessary to fund its operations and it is subject to a number of risks associated with clinical research and development, including dependence on key individuals, the development of and regulatory approval of commercially viable products, the need to raise adequate additional financing necessary to fund the development and commercialization of its products, and competition from larger companies. The Company has not generated revenue to date and has incurred substantial losses and negative cash flows from operations since its inception. The Company has historically funded its operations through issuances of common and preferred stock. The Company believes that its current cash and cash equivalents as of March 31, 2021 the end of fiscal year Conducting a Phase 3 rNAPc2 clinical trial or the Phase 3 PRECISION-AF trial would likely require additional financing However, changing circumstances may cause us to consume capital significantly faster or slower than currently anticipated. The Company has based these estimates on assumptions that may prove to be wrong, and the Company could exhaust its available financial resources sooner than the Company currently anticipates. Therefore, the Company may have to raise additional capital for clinical trials of and will have to raise additional capital for clinical trials of Gencaro. The Company may not be able to raise sufficient capital on acceptable terms, or at all, to continue development of or Gencaro or to otherwise continue operations and may not be able to execute any strategic transaction The Company’s liquidity, and its ability to raise additional capital or complete any strategic transaction, depends on a number of factors, including, but not limited to, the following: • the costs and timing for the potential additional clinical trials in order to gain possible regulatory approval for rNAPc2, Gencaro or any other product candidate; • the market price of the Company’s stock and the availability and cost of additional equity capital from existing and potential new investors; • the Company’s ability to retain the listing of its common stock on the Nasdaq Capital Market; • general economic and industry conditions affecting the availability and cost of capital, including as a result of the COVID-19 pandemic; • the costs of filing, prosecuting, defending and enforcing any patent claims and other intellectual property rights; and • the terms and conditions of the Company’s existing collaborative and licensing agreements. The sale of additional equity or convertible debt securities would likely result in substantial additional dilution to the Company’s stockholders. If the Company raises additional funds through the incurrence of indebtedness, the obligations related to such indebtedness would be senior to rights of holders of the Company’s capital stock and could contain covenants that would restrict the Company’s operations. The Company also cannot predict what consideration might be available, if any, to the Company or its stockholders, in connection with any strategic transaction. Should strategic alternatives or additional capital not be available to the Company, or not be available on acceptable terms, the Company may be unable to realize value from its assets and discharge its liabilities in the normal course of business which may, among other alternatives, cause the Company to further delay, substantially reduce or discontinue operational activities to conserve its cash resources.
Basis of Presentation	Basis of Presentation The accompanying unaudited financial statements of the Company were prepared in accordance with generally accepted accounting principles for interim financial information and instructions to Form 10-Q and pursuant to Regulation S-X. Accordingly, these financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (GAAP) for complete financial statements. In the opinion of management, these financial statements include all normal and recurring adjustments considered necessary for a fair presentation of these interim financial statements. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of results expected for the full year ending December 31, 2021. The Company has generated no revenue to date and its activities have consisted of seeking regulatory approval, research and development, exploring strategic alternatives for further developing and commercializing rNAPc2 and Gencaro, and raising capital. These unaudited financial statements should be read in conjunction with the audited financial statements and footnotes thereto for the year ended December 31, 2020 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission. Amounts presented are rounded to the nearest thousand, where indicated, except per share data and par values.
Concentrations of Credit Risk	Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents. The Company has no off-balance-sheet concentrations of credit risk, such as foreign exchange contracts, option contracts, or foreign currency hedging arrangements. The Company maintains cash and cash equivalent balances in the form of bank demand deposits and money market fund accounts with financial institutions that management believes are creditworthy. Such balances may at times exceed the insured amount.
Comprehensive Loss	Comprehensive Loss Comprehensive loss is defined as the change in equity during a period from transactions and other events and/or circumstances from non-owner sources. If the Company had comprehensive gains (losses), they would be reflected in the statement of operations and comprehensive loss and as a separate component in the statement of stockholders’ equity. There were no elements of comprehensive loss during the three months ended March 31, 2021 and 2020.
Leases	Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in right-of-use (ROU) asset – operating and lease obligations are included in accrued expenses and other liabilities and operating lease liability on the Company’s March 31, 2021 and December 31, 2020 balance sheets. ROU lease assets represent the Company’s right to use an underlying asset for the lease term and lease obligations represent the Company’s obligation to make lease payments arising from the lease. Operating ROU lease assets are recognized at the commencement date based on the present value of lease payments over the lease term. As the Company’s lease does not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. 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.
Accrued Outsourcing Expenses	Accrued Outsourcing Expenses As part of the process of preparing its financial statements, the Company is required to estimate accrued outsourcing expenses. This process involves identifying services that third parties have performed on the Company’s behalf and estimating the level of service performed and the associated cost incurred for these services as of the balance sheet date. Examples of estimated accrued outsourcing expenses include contract service fees, such as fees payable to contract manufacturers in connection with the production of materials related to the Company’s drug product, and service fees and pass through costs from clinical research organizations. The Company develops estimates of liabilities using its judgment based upon the facts and circumstances known at the time.
Recent Accounting Pronouncements	Recent Accounting Pronouncements The Company reviewed recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact to the financial statements.

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	3 Months Ended
	Mar. 31, 2021
Earnings Per Share [Abstract]
Summary of Potentially Dilutive Shares of Common Stock	Because the Company reported a net loss for the three months ended March 31, 2021 and 2020, all potentially dilutive shares of common stock have been excluded from the computation of the dilutive net loss per share for all periods presented. March 31, 2021 2020 Potentially dilutive securities, excluded: Outstanding stock options 596,497 30,890 Warrants to purchase common stock 133,401 133,401 729,898 164,291

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2021
Property Plant And Equipment [Abstract]
Summary of Property and Equipment	Property and equipment consist of the following (in thousands): Estimated Life March 31, 2021 December 31, 2020 Computer equipment 3 years $ 37 $ 31 Lab equipment 5 years 146 146 Furniture and fixtures 5 years 38 38 Computer software 3 years 59 56 280 271 Accumulated depreciation and amortization (253 ) (250 ) Property and equipment, net $ 27 $ 21

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2021
Commitments And Contingencies Disclosure [Abstract]
Future Minimum Commitments due Under October 2020 Lease Agreement	Future minimum commitments due under the October 2020 Lease agreement as of March 31, 2021 are as follows (in thousands): Remainder of 2021 $ 64 2022 88 2023 90 2024 93 2025 96 Thereafter 125 Total remaining lease payments 556 Less: imputed lease interest (106 ) Less: Current portion (56 ) Operating lease liability, net of current portion $ 394

Equity Financings and Warrants

Equity Financings and Warrants (Tables)	3 Months Ended
	Mar. 31, 2021
Equity [Abstract]
Summary of Warrants by Year of Expiration	As of March 31, 2021, these warrants, by year of expiration, are summarized below: Year of Expiration Number of Warrants Weighted Average Exercise Price 2022 133,401 $ 109.80

Share-based Compensation (Table

Share-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Non-cash, Share-based Compensation Expense	For the three month periods ended March 31, 2021 and 2020, the Company recognized the following non-cash, share-based compensation expense in the statements of operations (in thousands): Three Months Ended March 31, 2021 2020 Research and development $ 36 $ 9 General and administrative 105 7 Total $ 141 $ 16
Summary of Stock Option Activities	Stock option transactions for the three month period ended March 31, 2021 under the Company’s stock incentive plans were as follows: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Options outstanding at December 31, 2020 531,238 $ 8.71 9.68 Granted 67,200 4.30 Exercised — — Forfeited and cancelled (1,941 ) 72.33 Options outstanding at March 31, 2021 596,497 $ 8.01 9.51 Options exercisable at March 31, 2021 66,125 $ 38.02 7.68 Options vested and expected to vest 595,774 $ 8.01 9.51

The Company and Summary of Si_3

The Company and Summary of Significant Accounting Policies (Details Textual)	3 Months Ended
	Mar. 31, 2021USD ($)
Accounting Policies [Abstract]
Revenues	$ 0
Concentrations of credit risk	$ 0

Net Loss Per Share - Summary of

Net Loss Per Share - Summary of Potentially Dilutive Shares of Common Stock (Details) - shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	729,898	164,291
Outstanding stock options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	596,497	30,890
Warrants to purchase common stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	133,401	133,401

Fair Value Disclosures (Details

Fair Value Disclosures (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities	$ 0	$ 0
Transfers of assets between fair value hierarchy levels	0
Fair Value Measurements, Recurring | Level 1 | Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash equivalents consisting of money market funds and commercial paper	$ 66,900,000	$ 49,100,000

Property and Equipment - Summar

Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Property Plant And Equipment [Line Items]
Property and Equipment, Gross	$ 280	$ 271
Accumulated depreciation and amortization	(253)	(250)
Property and equipment, net	$ 27	21
Computer Equipment
Property Plant And Equipment [Line Items]
Estimated Life	3 years
Property and Equipment, Gross	$ 37	31
Lab Equipment
Property Plant And Equipment [Line Items]
Estimated Life	5 years
Property and Equipment, Gross	$ 146	146
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Estimated Life	5 years
Property and Equipment, Gross	$ 38	38
Computer Software
Property Plant And Equipment [Line Items]
Estimated Life	3 years
Property and Equipment, Gross	$ 59	$ 56

Property and Equipment (Details

Property and Equipment (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Property Plant And Equipment [Abstract]
Depreciation and amortization expense	$ 3	$ 3

Related Party Arrangements (Det

Related Party Arrangements (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Chief Executive Officer | Research Grants
Related Party Transaction [Line Items]
Total expense	$ 107	$ 70

Commitments and Contingencies_2

Commitments and Contingencies (Details Textual) $ in Thousands	Aug. 29, 2020ft²	Mar. 31, 2021USD ($)	Mar. 31, 2020USD ($)	Aug. 01, 2013ft²
Commitments And Contingencies [Line Items]
Area of office facilities taken on lease | ft²	5,200			5,300
Operating lease term	42 months
Additional operating lease term	36 months
Weighted-average discount rate	7.00%	7.00%
Lease renewal option	option to renew for an additional 36 month term at the then prevailing rental rate.
Lessee, Operating Lease, Existence of Option to Extend [true false]	true
Lessee, operating lease, assumptions and judgments, allocation of lease and nonlease component		The lease includes real estate taxes and insurance, which is not a lease component and is not included in the lease obligation. In addition, common area maintenance charges are based on actual costs incurred and are a non-lease component that is not included in the lease obligation.
Operating lease, cash paid for measurement of lease liabilities		$ 7	$ 25
Lease liability		$ 450
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]		Accrued expenses and other liabilities
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]		Operating lease liability, net of current portion
Weighted-average remaining lease term		6 years
General and Administrative Expense
Commitments And Contingencies [Line Items]
Rent expense		$ 22	$ 23

Commitments and Contingencies -

Commitments and Contingencies - Future Minimum Commitments due Under October 2020 Lease Agreement (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Commitments And Contingencies Disclosure [Abstract]
Remainder of 2021	$ 64
2022	88
2023	90
2024	93
2025	96
Thereafter	125
Total remaining lease payments	556
Less: imputed lease interest	(106)
Less: Current portion	$ (56)
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accrued expenses and other liabilities
Operating lease liability, net of current portion	$ 394	$ 409

Equity Financings and Warrant_2

Equity Financings and Warrants (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	Jun. 03, 2020	Mar. 31, 2021	Dec. 31, 2020	Apr. 30, 2021	Jul. 22, 2020	Jul. 14, 2020	Jan. 11, 2017
Equity Financing And Warrants [Line Items]
Net proceeds from issuance of common stock		$ 24,070
Common stock, par value		$ 0.001	$ 0.001
Common stock, shares issued		14,410,143	9,548,150
JonesTrading
Equity Financing And Warrants [Line Items]
Percentage of selling commission per additional shares sold							3.00%
Sales Agreement
Equity Financing And Warrants [Line Items]
Common stock, shares issued			2,214,301
Net proceeds from issuance of common stock			$ 14,400
Sales Agreement | JonesTrading
Equity Financing And Warrants [Line Items]
Common stock, par value							$ 0.001
Aggregate offering price of common stock authorized						$ 32,400	$ 7,300
2020 Sales Agreement
Equity Financing And Warrants [Line Items]
Net proceeds from issuance of common stock		$ 23,300	$ 28,900
Aggregate offering price of common stock authorized					$ 54,000
Sale of common stock		4,861,993	5,066,279
2020 Sales Agreement | Subsequent Event
Equity Financing And Warrants [Line Items]
Aggregate offering price of common stock authorized				$ 50,000
Direct Offering
Equity Financing And Warrants [Line Items]
Common stock issued	348,000
Purchase price per share	$ 9
Pre-funded warrants to purchase shares of common stock	325,500
Purchase price per warrant	$ 8.999
Net proceeds from issuance of common stock	$ 5,300
Percentage of selling commission per additional shares sold	8.00%

Equity Financings and Warrant_3

Equity Financings and Warrants - Summary of Warrants by Year of Expiration (Details) - 2022	3 Months Ended
	Mar. 31, 2021$ / sharesshares
Class Of Warrant Or Right [Line Items]
Year of Expiration	2022
Number of Warrants | shares	133,401
Weighted Average Exercise Price | $ / shares	$ 109.80

Share-based Compensation - Summ

Share-based Compensation - Summary of Non-cash, Share-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total expenses	$ 141	$ 16
Research and development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total expenses	36	9
General and administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total expenses	$ 105	$ 7

Share-based Compensation - Su_2

Share-based Compensation - Summary of Stock Option Activities (Details) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Number of Stock Options
Number of Options, Options outstanding, beginning of period	531,238
Number of Options, Granted	67,200
Number of Options, Forfeited and cancelled	(1,941)
Number of Options, Options outstanding, end of period	596,497	531,238
Number of Options, Options exercisable, end of period	66,125
Number of Options, Options vested and expected to vest	595,774
Stock Options, Weighted Average Exercise Price
Weighted Average Exercise Price, Options outstanding, beginning of period	$ 8.71
Weighted Average Exercise Price, Granted	4.30
Weighted Average Exercise Price, Forfeited and cancelled	72.33
Weighted Average Exercise Price, Options outstanding, end of period	8.01	$ 8.71
Weighted Average Exercise Price, Options exercisable, end of period	38.02
Weighted Average Exercise Price, Options vested and expected to vest, end of period	$ 8.01
Stock Options, Weighted Average Remaining Contractual Term
Weighted Average Remaining Contractual Term (in years), Options outstanding	9 years 6 months 3 days	9 years 8 months 4 days
Weighted Average Remaining Contractual Term (in years), Options exercisable	7 years 8 months 4 days
Weighted Average Remaining Contractual Term (in years), Options vested and expected to vest	9 years 6 months 3 days

Income Taxes (Details Textual)

Income Taxes (Details Textual)	Mar. 31, 2021USD ($)
Income Tax Disclosure [Abstract]
Reserve for uncertain tax positions	$ 0