0001113148-22-000007 | 10-K | XBRL Viewer | Infinity Pharmaceuticals INC

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Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 80,726	$ 28,593
Available-for-sale securities	0	5,515
Prepaid expenses and other current assets	1,542	1,912
Total current assets	82,268	36,020
Property and equipment, net	1,241	1,710
Restricted cash, less current portion	158	165
Operating lease right-of-use assets	1,064	1,419
Other assets	54	5
Total assets	84,785	39,319
Current liabilities:
Accounts payable	2,320	2,982
Accrued expenses and other current liabilities	10,980	8,065
Total current liabilities	13,300	11,047
Liabilities related to sale of future royalties, net, less current portion (Note 9)	48,727	28,021
Liability related to sale of future royalties to a related party, net (Note 9)	0	21,559
Operating lease liability, less current portion	917	1,436
Other liabilities	270	245
Total liabilities	63,214	62,308
Commitments and contingencies
Stockholders’ equity (deficit):
Preferred Stock, $0.001 par value; 1,000,000 shares authorized, no shares issued and outstanding at December 31, 2021 and 2020	0	0
Common Stock, $0.001 par value; 200,000,000 shares authorized; 89,155,311 and 64,320,244 shares issued and outstanding at December 31, 2021 and 2020, respectively	89	64
Additional paid-in capital	833,065	743,269
Accumulated deficit	(811,583)	(766,321)
Accumulated other comprehensive income (loss)	0	(1)
Total stockholders’ equity (deficit)	21,571	(22,989)
Total liabilities and stockholders’ equity	$ 84,785	$ 39,319

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	89,155,311	64,320,244
Common stock, shares outstanding (in shares)	89,155,311	64,320,244

Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Revenue:
Revenue, Product and Service [Extensible Enumeration]	Royalty revenue
Total revenues	$ 1,858	$ 1,719
Operating expenses:
Research and development	31,647	26,761
General and administrative	14,174	12,418
Royalty expense (Note 11)	1,120	1,037
Total operating expenses	46,941	40,216
Loss from operations	(45,083)	(38,497)
Other income (expense):
Investment and other income	1	450
Non-cash interest expense (Note 9)	(180)	(153)
Non-cash related party interest expense (Note 9)	0	(2,292)
Total other expense	(179)	(1,995)
Net loss	$ (45,262)	$ (40,492)
Basic loss per common share (in dollars per share)	$ (0.53)	$ (0.68)
Diluted loss per common share (in dollars per share)	$ (0.53)	$ (0.68)
Basic weighted average number of common shares outstanding (in shares)	85,597,264	59,857,860
Diluted weighted average number of common shares outstanding (in shares) (in shares)	85,597,264	59,857,860
Other comprehensive loss:
Net unrealized holding gains (losses) on available-for-sale securities arising during the period	$ 1	$ (13)
Comprehensive loss	$ (45,261)	$ (40,505)

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Operating activities
Net loss	$ (45,262)	$ (40,492)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	480	483
Stock-based compensation	2,695	1,456
Non-cash royalty revenue	(984)	(910)
Non-cash interest expense	180	153
Non-cash related party interest expense	0	2,292
Other, net	59	(106)
Changes in operating assets and liabilities:
Prepaid expenses and other assets	171	585
Operating lease right-of-use asset	355	298
Accounts payable, accrued expenses and other liabilities	2,177	882
Operating lease liability	(489)	(380)
Net cash used in operating activities	(40,618)	(35,739)
Investing activities
Purchases of property and equipment	(11)	(43)
Purchases of available-for-sale securities	0	(43,006)
Proceeds from maturities of available-for-sale securities	5,500	57,680
Net cash provided by investing activities	5,489	14,631
Financing activities
Proceeds from public offering, net	85,838	0
Proceeds from sale of future royalties to a related party, net	0	19,572
Proceeds from common stock sales facility, net of issuance costs	336	7,711
Proceeds from issuances of common stock, net	931	158
Net cash provided by financing activities	87,105	27,441
Net increase in cash, cash equivalents and restricted cash	51,976	6,333
Cash, cash equivalents and restricted cash at beginning of period	28,908	22,575
Cash, cash equivalents and restricted cash at end of period	80,884	28,908
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets
Cash and cash equivalents	80,726	28,593
Prepaid expenses and other current assets	0	150
Restricted cash, less current portion	158	165
Total cash, cash equivalents and restricted cash	80,884	28,908
Supplemental schedule of noncash activities
Issuance of common stock for compensation	$ 0	$ 444

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)
Beginning Balance (in shares) at Dec. 31, 2019		57,077,550
Beginning Balance at Dec. 31, 2019	$ 7,726	$ 57	$ 733,486	$ (725,829)	$ 12
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)		46,433
Exercise of stock options	85		85
Stock-based compensation expense	1,456		1,456
Issuance of common stock related to sales facility, net of issuance costs (in shares)		6,725,691
Issuance of common stock related to sales facility, net of issuance costs	7,711	$ 7	7,704
Issuance of common stock, net (in shares)		470,570
Issuance of common stock, net	538		538
Unrealized loss on marketable securities	(13)				(13)
Net loss	(40,492)			(40,492)
Ending Balance (in shares) at Dec. 31, 2020		64,320,244
Ending Balance at Dec. 31, 2020	$ (22,989)	$ 64	743,269	(766,321)	(1)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)	531,864	531,864
Exercise of stock options	$ 860	$ 1	859
Stock-based compensation expense	2,695		2,695
Issuance of common stock related to sales facility, net of issuance costs (in shares)		89,520
Issuance of common stock related to sales facility, net of issuance costs	336		336
Issuance of common stock, net (in shares)		63,683
Issuance of common stock, net	92		92
Unrealized loss on marketable securities	1				1
Issuance of common stock related to public offering, net of issuance costs (in shares)		24,150,000
Issuance of common stock related to public offering, net of issuance costs	85,838	$ 24	85,814
Net loss	(45,262)			(45,262)
Ending Balance (in shares) at Dec. 31, 2021		89,155,311
Ending Balance at Dec. 31, 2021	$ 21,571	$ 89	$ 833,065	$ (811,583)	$ 0

Organization	12 Months Ended
Organization	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	1. Organization Infinity Pharmaceuticals, Inc., is a clinical-stage innovative biopharmaceutical company dedicated to developing novel medicines for people with cancer. As used throughout these audited, consolidated financial statements, the terms “Infinity,” “we,” “us,” and “our” refer to the business of Infinity Pharmaceuticals, Inc., and its wholly owned subsidiaries.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Basis of Presentation

These consolidated financial statements include the accounts of Infinity and its wholly owned subsidiaries. We have eliminated all significant intercompany accounts and transactions in consolidation.

The preparation of consolidated financial statements in accordance with generally accepted accounting principles requires our management to make estimates and judgments that may affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates and judgments. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions.

Segment Information

We operate in one business segment, which focuses on drug development. We make operating decisions based upon the performance of the enterprise as a whole and utilize our consolidated financial statements for decision making.

Cash Equivalents and Available-For-Sale Securities

Cash equivalents and available-for-sale securities primarily consist of money market funds and U.S. Treasury securities. We consider all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. Cash equivalents, which consist of money market funds and U.S. Treasury securities, are stated at fair value. They are also readily convertible to known amounts of cash and have such short-term maturities that each presents insignificant risk of change in value due to changes in interest rates. Our classification of cash equivalents is consistent with prior periods.

We determine the appropriate classification of marketable securities at the time of purchase and reevaluate such designation at each balance sheet date. We have classified all of our marketable securities at December 31, 2021 and 2020 as “available-for-sale.” We carry available-for-sale securities at fair value. Unrealized gains and losses on available-for-sale debt securities are reported in accumulated other comprehensive income (loss), which is a separate component of stockholders’ equity.

We adjust the cost of available-for-sale debt securities for amortization of premiums and accretion of discounts to maturity. We include such amortization and accretion in investment and other income. The cost of securities sold is based on the specific identification method. We include in investment income interest and dividends on securities classified as available-for-sale.

We conduct periodic reviews to identify and evaluate each available-for-sale debt security that is in an unrealized loss position in order to determine whether an other-than-temporary impairment exists. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. For available-for-sale debt securities in an unrealized loss position, we perform an analysis to assess whether we intend to sell or whether we would more likely than not be required to sell the security before the expected recovery of the amortized cost basis. Where we intend to sell a security, or may be required to do so, the security’s decline in fair value is deemed to be other-than-temporary, and the full amount of the unrealized loss is recorded within earnings as an impairment loss. Unrealized losses on available-for-sale debt securities that are determined to be temporary, and not related to credit loss, are recorded, net of tax, in accumulated other comprehensive loss.

Regardless of our intent to sell a security, we perform additional analysis on all securities in an unrealized loss position to evaluate losses associated with the creditworthiness of the security. Credit losses are identified where we do not expect to receive cash flows sufficient to recover the amortized cost basis of a security and are recorded within earnings as an impairment loss.

Liquidity

As of December 31, 2021, our cash and cash equivalents balance was $80.7 million. We have primarily incurred operating losses since inception and have relied on our ability to fund our operations through collaboration and license arrangements, or other strategic arrangements, and through the sale of stock.

We expect to continue to spend significant resources to fund the development and potential commercialization of eganelisib, also known as IPI-549, an orally administered immuno-oncology product candidate that selectively inhibits the enzyme phosphoinositide-3 kinase gamma, or PI3K gamma, and to incur significant operating losses for the foreseeable future.

We believe that our existing cash and cash equivalents at December 31, 2021 will be adequate to satisfy our current operating plans for at least the next twelve months from the issuance date of these financial statements.

Concentration of Credit Risk

Cash and cash equivalents are primarily maintained with two major financial institutions in the United States. Deposits at banks may exceed the insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and, therefore, bear minimal risk. Financial instruments that potentially subject us to concentration of credit risk primarily consist of available-for-sale securities. Available-for-sale securities consist of U.S. Treasury securities. Our investment policy, which has been approved by our Board of Directors, limits the amount that we may invest in any one issuer of investments, thereby reducing credit risk concentrations.

Property and Equipment

Property and equipment are stated at cost. Depreciation is recorded using the straight-line method over the estimated useful lives of the applicable assets. Application development costs incurred for computer software developed or obtained for internal use are capitalized. Upon sale or retirement, the cost and related accumulated depreciation are eliminated from the respective account, and the resulting gain or loss, if any, is included in current operations. Amortization of leasehold improvements, building improvements and finance leases is recorded as depreciation expense and included in research and development and general and administrative expense, as applicable. Repairs and maintenance charges that do not increase the useful life of the assets are charged to operations as incurred. Property and equipment are depreciated over the following periods:



Computer equipment and software						3 to 5 years
Leasehold improvements						Shorter of lease term or useful life of asset

Furniture and fixtures						7 to 10 years

Impairment of Long-Lived Assets

We evaluate our long-lived assets for potential impairment. Potential impairment is assessed when there is evidence that events or changes in circumstances have occurred that indicate that the carrying amount of a long-lived asset may not be recovered. Recoverability of these assets is assessed based on undiscounted expected future cash flows from the assets, considering a number of factors, including past operating results, budgets and economic projections, market trends and product development cycles. An impairment in the carrying value of each asset is assessed when the undiscounted expected future cash flows, including its eventual residual value, derived from the asset are less than its carrying value. Impairments, if any, are recognized in earnings. An impairment loss would be recognized in an amount equal to the excess of the carrying amount over the undiscounted expected future cash flows.

Fair Value Measurements

We define fair value as the price that we would receive to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We determine fair value based on the assumptions market participants use when pricing the asset or liability. We use a valuation hierarchy for disclosure of the inputs used to measure fair value. This hierarchy prioritizes the inputs into three broad levels. Level 1 inputs, which we consider the highest level inputs, are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. The classification of a financial asset or liability within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

We value our available-for-sale securities utilizing third-party pricing services. The pricing services use many observable market inputs to determine value, including benchmark yields, reportable trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data, new issue data, monthly payment information and collateral performance. We validate the prices provided by our third-party pricing services by understanding the models used, obtaining market values from other pricing sources and confirming that those securities trade in active markets.

Liabilities Related to Sale of Future Royalties

We treat the liabilities related to sale of future royalties (see Note 9) as debt financings, amortized under the effective interest rate method over the estimated life of the related expected royalty stream. The liabilities related to sale of future royalties and the debt amortization are based on our current estimates of future royalties expected to be paid over the life of the arrangement. We will periodically assess the expected royalty payments using projections from external sources. To the extent our estimates of future royalty payments are greater or less than previous estimates or the estimated timing of such payments is materially different than previous estimates, we will adjust the effective interest rate and recognize related non-cash interest expense on a prospective basis. Non-cash royalty revenue is reflected as royalty revenue, and non-cash amortization of debt is reflected as interest expense in the Consolidated Statements of Operations and Comprehensive Loss.

Leases

We have entered into leases for office space and a data center. As of January 1, 2019, we adopted the provisions of Accounting Standards Codification, or ASC, Topic 842, Leases, or ASC 842. Accordingly, we recorded a right-of-use asset and a corresponding lease liability related to our leases. Rights and obligations related to our leases are included within operating lease right-of-use assets, accrued expenses and other current liabilities, and operating lease liability, less current portion in the Consolidated Balance Sheets.

We recognize a right-of-use asset and a lease liability upon the commencement of a lease that has a term of more than twelve months. We combine lease and nonlease components for our leases. Lease payments included in determining the right-of-use asset and lease liability recognized include fixed payments to be paid over the term of the lease, less any lease incentives to be paid or payable to us by the lessor. Variable lease payments are included if they are based on an index or rate. Variable lease payments that are not based on an index or rate are recognized as expense in the period incurred. The lease term is determined at lease commencement, and includes the noncancellable period during which we have the right to use the underlying asset. Any period covered by an option to extend or terminate a lease is also included in the lease term if we are reasonably certain that the option to extend will be exercised or the option to terminate will not be exercised.

Our leases do not provide an implicit rate; therefore, we use an estimate of our incremental borrowing rate based on the information available at the adoption date or lease commencement date in determining the present value of lease payments.

Revenue Recognition

To date, all our revenue has been generated under collaboration agreements, including payments to us of upfront license fees, funding or reimbursement of research and development efforts, milestone payments, if specified objectives are achieved, and royalties on product sales.

We recognize revenue when we transfer goods or services to customers in an amount that reflects the consideration that we expect to receive for those goods or services. These principles are applied using a five-step model: 1) identify the customer contract; 2) identify the contract’s performance obligations; 3) determine the transaction price; 4) allocate the transaction price to the performance obligations; and 5) recognize revenue when or as a performance obligation is satisfied. We evaluate all promised goods and services within a customer contract and determine which of those are separate performance obligations. This evaluation includes an assessment of whether the good or service is capable of being distinct and whether the good or service is separable from other promises in the contract. When a performance obligation is satisfied, we recognize as revenue the amount of the transaction price, excluding estimates of variable consideration that are constrained, that is allocated to that performance obligation. For contracts that contain variable consideration, such as milestone payments, we estimate the amount of variable consideration by using either the expected value method or the most likely amount method. In making this assessment, we evaluate factors such as the clinical, regulatory, commercial and other risks that must be overcome to achieve the milestone. Each reporting period we re-evaluate the probability of achievement of such milestones and any related constraints. We will include variable consideration, without constraint, in the transaction price to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved.

We recognize sales-based milestones and royalty revenue based upon net sales by the licensee of licensed products in licensed territories, and in the period the sales occur under the sales- and usage-based royalty exception when the sole or predominate item to which the royalty relates is a license to intellectual property.

In the event of an early termination of a collaboration agreement, any contract liabilities would be recognized in the period in which all our obligations under the agreement have been fulfilled.

Research and Development Expense

Research and development expense consists of expenses incurred in performing research and development activities, including salaries and benefits, overhead expenses including facilities expenses, materials and supplies, preclinical expenses, clinical trial and related clinical manufacturing expenses, comparator and combination drug expenses, stock-based compensation expense, depreciation of property and equipment, contract services, and other outside expenses. We also include as research and development expense upfront license payments related to acquired technologies which have not yet reached technological feasibility and have no alternative use. We expense research and development costs as they are incurred. Prepaid comparator and combination drug expenses are capitalized and then recognized as expense when title transfers to us. We have been a party to collaboration agreements in which we were reimbursed for work performed on behalf of the collaborator, as well as one in which we reimbursed the collaborator for work it had performed. We record all appropriate expenses under our collaborations as research and development expense. If the arrangement provides for reimbursement of research and development expenses incurred by us, we evaluate the terms of the arrangement to determine whether the reimbursement should be recorded as revenue or as an offset to research and development expense. If the arrangement provides for us to reimburse the collaborator for research and development expenses or for the achievement of a development milestone for which a payment is due, we record the reimbursement or the achievement of the development milestone as research and development expense.

Stock-based Compensation Expense

For awards granted to employees, directors, non-employees, and awards granted under our 2013 Employee Stock Purchase Plan, or ESPP, we measure stock-based compensation cost at the grant date based on the estimated fair value of the award and recognize it as expense over the requisite service period on a straight-line basis. Stock-based compensation costs for non-employees are recognized as expense over the vesting period on a ratable basis. We use the Black-Scholes valuation model in determining the fair value of all equity awards. For awards with performance conditions, we estimate the likelihood of satisfaction of the performance conditions, which affects the period over which the expense is recognized. When the performance conditions related to these awards are determined to be probable, we recognize the expense over the requisite service period. We have no awards with market conditions.

Royalty Expense

Royalty expense is recorded when incurred and represents the expense associated with amounts owed to third parties as a result of royalty revenue recognized and the amounts owed by us to Takeda Pharmaceutical Company Limited, or Takeda, in relation to sale of future royalties (see Note 11).

Income Taxes

We use the liability method to account for income taxes. Deferred tax assets and liabilities are determined based on differences between financial reporting and income tax basis of assets and liabilities, as well as net operating loss and tax credit carryforwards, and are measured using the enacted tax rates and laws that will be in effect when the differences reverse. Deferred tax assets are reduced by a valuation allowance to reflect the uncertainty associated with their ultimate realization. The effect of a change in tax rate on deferred taxes is recognized in income or loss in the period that includes the enactment date.

We use our judgment for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. We recognize any material interest and penalties related to unrecognized tax benefits in income tax expense.

Due to the uncertainty surrounding the realization of the net deferred tax assets in future periods, we have recorded a full valuation allowance against our otherwise recognizable net deferred tax assets as of December 31, 2021 and 2020.

Basic and Diluted Net Loss per Common Share

Basic net loss per share is based upon the weighted average number of common shares outstanding during the period, excluding restricted stock that has been issued but has not yet vested. Diluted net loss per share is based upon the weighted average number of common shares outstanding during the period plus the effect of additional weighted average common equivalent shares outstanding during the period when the effect of adding such shares is dilutive. Common equivalent shares result from the assumed exercise of outstanding stock options and the exercise of outstanding warrants (the proceeds of which are then assumed to have been used to repurchase outstanding stock using the treasury stock method) and the vesting of restricted shares of common stock. In addition, the assumed proceeds under the treasury stock method include the average unrecognized compensation expense of stock options that are in-the-money. This results in the “assumed” buyback of additional shares, thereby reducing the dilutive impact of stock options. The two-class method is used for outstanding warrants as such warrants are considered to be participating securities, and this method is more dilutive than the treasury stock method. The following outstanding shares of common stock equivalents were excluded from the computation of net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive:


	At December 31,
	2021	2020
Stock options	12,689,439	12,664,664
Unvested restricted stock	50,000	—
Warrants (excluded from treasury stock method)	—	1,000,000

Comprehensive Loss

Comprehensive loss is comprised of net loss and other comprehensive loss. Other comprehensive loss is comprised of unrealized holding gains and losses arising during the period on available-for-sale securities that are not other-than-temporarily impaired. During the year ended December 31, 2021, there were no material reclassifications out of accumulated other comprehensive loss.

New Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standard Update, or ASU, No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Statements, or ASU No. 2016-13, which requires that credit losses be reported using an expected losses model rather than the incurred losses model that is currently used, and it establishes additional disclosure requirements related to credit risks. For available-for-sale debt securities with expected credit losses, this standard now requires allowances to be recorded instead of reducing the amortized cost of the investment. In November 2019, the FASB subsequently issued ASU 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates, whereby the effective date of this standard for smaller reporting companies was deferred to annual reporting periods beginning after December 15, 2022, including interim periods within those annual reporting periods, and early adoption is still permitted. We are currently evaluating the impact of ASU No. 2016-13 on our consolidated financial statements and related disclosures.

In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, or ASU No. 2020-06, which simplifies the guidance on an issuer’s accounting for convertible instruments and contracts in its own equity. The provisions of ASU No. 2020-06 are applicable for fiscal years beginning after December 15, 2023, with early adoption permitted no earlier than fiscal years beginning after December 15, 2020. We are currently evaluating the impact of ASU No. 2020-06 on our consolidated financial statements.

In November 2021, the FASB issued ASU No. 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance, or ASU No. 2021-10, which requires additional annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. The additional disclosures required by this standard include 1) information about the nature of the transactions and the related accounting policy used to account for the transactions, 2) the financial statement line items that are impacted by the transactions and the amounts applicable to each financial statement line item and 3) significant terms and conditions of the transactions, including commitments and contingencies. ASU No. 2021-10 is effective for annual periods beginning after December 15, 2021, with early adoption permitted. We are currently evaluating the impact of ASU No. 2021-10 on our consolidated financial statements and related disclosures.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a

Service Contract, or ASU No. 2018-15, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. We adopted this standard effective January 1, 2020 on a prospective basis. The adoption of the standard has not had a material impact on our consolidated financial statements.

Stock-Based Compensation

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

3. Stock-Based Compensation

Under each of the stock incentive plans described below, stock option awards made to new employees upon commencement of employment typically provide for vesting of 25% of the shares underlying the award at the end of the first year of service with the remaining 75% of the shares underlying the award vesting ratably on a monthly basis over the following three-year period subject to continued service. Annual grants to existing employees typically provide for ratable vesting over specified periods determined by the Board of Directors. In addition, under each plan, all options granted expire no later than ten years after the date of grant.

2019 Equity Incentive Plan

Our 2019 Equity Incentive Plan, or the 2019 Plan, was approved by our stockholders in June 2019. The 2019 Plan provides for the grant of incentive stock options intended to qualify under Section 422 of the Internal Revenue Code of 1986, as amended, or IRC, as well as nonstatutory stock options, stock appreciation rights, restricted stock, restricted stock units and other stock-based and cash-based awards. Up to 6,031,009 shares of our common stock may be issued pursuant to awards granted under the 2019 Plan, plus an additional amount of our common stock underlying awards issued under the 2010 Stock Incentive Plan, or the 2010 Plan, that expire or are canceled without the holders receiving any shares under those awards. As of December 31, 2021, an aggregate of 5,226,973 shares of our common stock were reserved for issuance upon the exercise of outstanding awards, and up to 2,069,146 shares of common stock may be issued pursuant to awards granted under the 2019 Plan.

2010 Stock Incentive Plan

The 2010 Plan provided for the grant of incentive stock options under the IRC, as well as nonstatutory stock options, stock appreciation rights, restricted stock, restricted stock units and other stock-based and cash-based awards. As of December 31, 2021, an aggregate of 6,912,466 shares of our common stock were reserved for issuance upon the exercise of outstanding awards granted under the 2010 Plan. The 2010 Plan was terminated upon approval of the 2019 Plan; therefore, no further grants may be made under the 2010 Plan.

2013 Employee Stock Purchase Plan

Our ESPP permits eligible employees to purchase shares of our common stock at a discount and consists of consecutive, overlapping 24-month offering periods, each consisting of four six-month purchase periods. On the first day of each offering period, each employee who is enrolled in the ESPP will automatically receive an option to purchase up to a whole number of shares of our common stock. The purchase price of each of the shares purchased, in a given purchase period, will be 85% of the closing price of a share of our common stock, on the first day of the offering period or the last day of the purchase period, whichever is lower. During the year ended December 31, 2021, 57,561 shares of common stock were purchased for total proceeds of approximately $0.1 million. During the year ended December 31, 2020, 91,696 shares of common stock were purchased for total proceeds of approximately $0.1 million.

Compensation Expense

Total stock-based compensation expense, related to all equity awards, comprised the following:


	Year Ended December 31,
	2021		2020
	(in thousands)
Research and development	$	830	$	383
General and administrative	1,865		1,073
Total stock-based compensation expense	$	2,695	$	1,456

As of December 31, 2021, we had approximately $5.6 million of total unrecognized compensation cost related to unvested common stock options and awards under our ESPP, which are expected to be recognized over a weighted-average period of 2.7 years.

Stock Options

Valuation Assumptions

We estimate the fair value of stock options at the date of grant using the Black-Scholes valuation model with the following weighted-average assumptions:


	December 31,
	2021		2020
Risk-free interest rate	0.9	%	1.0	%
Expected annual dividend yield	—		—
Expected stock price volatility	106.3	%	98.3	%
Expected term of options	5.9 years		5.7 years

The valuation assumptions were determined as follows:

•Risk-free interest rate: The yield on zero-coupon U.S. Treasury securities for a period that was commensurate with the expected term of the awards.

•Expected annual dividend yield: The estimate for annual dividends was zero because we have not historically paid a dividend and do not intend to do so in the foreseeable future.

•Expected stock price volatility: We determined the expected volatility by using our available implied and historical price information.

•Expected term of options: The expected term of the awards represents the period of time that the awards were expected to be outstanding. We use the simplified method to estimate expected term, whereby, the expected life equals the average of the vesting term and the original contractual term of the option.

We recognize forfeitures related to employee share-based payments as they occur.

A summary of our stock option activity for the year ended December 31, 2021 is as follows:


	Stock Options	Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Life (years)	Aggregate Intrinsic Value (in millions)
Outstanding at January 1, 2021	12,664,664	$	3.51
Granted	999,040	3.32
Exercised	(531,864)	1.62
Forfeited	(221,708)	1.87
Expired	(220,693)	7.50
Outstanding at December 31, 2021	12,689,439	$	3.53	6.4	$	7.0
Exercisable at December 31, 2021	9,076,912	$	4.15	5.6	$	5.2

The weighted-average fair value per share of options granted during the years ended December 31, 2021 and 2020 was $2.69 and $1.15, respectively.

The aggregate intrinsic value of options outstanding at December 31, 2021 was calculated based on the positive difference, if any, between the closing fair market value of our common stock on December 31, 2021 and the exercise price of the underlying options.

The aggregate intrinsic value of options exercised during the year ended December 31, 2021 was $0.8 million.

No related income tax benefits were recorded during the years ended December 31, 2021 or 2020.

We settle employee stock option exercises with newly issued shares of our common stock.

Cash, Cash Equivalents and Available-for-Sale Securities

12 Months Ended

Dec. 31, 2021

Cash and Cash Equivalents [Abstract]

Cash, Cash Equivalents and Available-for-Sale Securities

4. Cash, Cash Equivalents and Available-for-Sale Securities

The following is a summary of cash, cash equivalents and available-for-sale securities:


	December 31, 2021
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(in thousands)
Cash and cash equivalents	$	80,726	$	—	$	—	$	80,726




Total cash and cash equivalents	$	80,726	$	—	$	—	$	80,726

	December 31, 2020
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(in thousands)
Cash and cash equivalents	$	28,593	$	—	$	—	$	28,593
Available-for-sale securities:
U.S. Treasury securities due in one year or less	5,516		—		(1)		5,515

Total available-for-sale securities	5,516		—		(1)		5,515
Total cash, cash equivalents and available-for-sale securities	$	34,109	$	—	$	(1)	$	34,108

We evaluated our securities for other-than-temporary impairments based on quantitative and qualitative factors as of December 31, 2020. As of December 31, 2021, we did not hold any securities in an unrealized loss position.

We had no material realized gains or losses on our available-for-sale securities for the years ended December 31, 2021 and 2020. There were no other-than-temporary impairments recognized for the years ended December 31, 2021 and 2020.

Fair Value

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value

5. Fair Value

The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2021 and 2020:


	December 31, 2021
	Level 1		Level 2		Level 3
	(in thousands)
Assets:
Cash and cash equivalents	$	80,726	$	—	$	—


Total assets	$	80,726	$	—	$	—

Liabilities:
Warrant liability	$	—	$	—	$	220
Total liabilities	$	—	$	—	$	220

	December 31, 2020
	Level 1		Level 2		Level 3
	(in thousands)
Assets:
Cash and cash equivalents	$	28,593	$	—	$	—
U.S. Treasury securities	—		5,515		—

Total assets	$	28,593	$	5,515	$	—

Liabilities:
Warrant liability	$	—	$	—	$	198
Total liabilities	$	—	$	—	$	198

The fair value of the available-for-sale securities and cash and cash equivalents is based on the following inputs for U.S. Treasury securities: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data including TRACE® reported trades.

There have been no changes to our valuation methods during the year ended December 31, 2021. We had no available-for-sale securities that were classified as Level 3 at any point during the year ended December 31, 2021.

Warrant liability relates to potential future warrants that may be issued. The fair value of the warrant liability on the date of the commitment and on each re-measurement date for those warrants classified as liabilities was estimated using the Monte Carlo simulation model, which involves a series of simulated future stock price paths over the remaining life of the commitment. The fair value is estimated by taking the average of the fair values under each of many Monte Carlo simulations. The fair value estimate is affected by our stock price, as well as estimated future financing needs, including timing and sources of the financing and subjective variables including expected stock price volatility over the remaining life of the commitment and risk-free interest rate. Due to the nature of these inputs, the valuation of the warrants is considered a Level 3 measurement. The fair value of the warrant liability as of December 31, 2021 and December 31, 2020 has been included in other liabilities on our consolidated balance sheet. See Note 9 for further discussions of the accounting for the warrants.

The carrying amounts reflected in the consolidated balance sheets for prepaid expenses and other current assets, other assets, accounts payable and accrued expenses and other current liabilities approximate their fair value due to their short-term maturities.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Prepaid Expenses and Other Current Assets

12 Months Ended

Dec. 31, 2021

Prepaid Expense and Other Assets, Current [Abstract]

Prepaid Expenses and Other Current Assets

6. Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist of the following:


	December 31,
	2021		2020
	(in thousands)
Prepaid expenses	$	1,143	$	1,528

Other current assets	399		234
Restricted cash, current portion	—		150

Total prepaid expenses and other current assets	$	1,542	$	1,912

Property and Equipment

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Property and Equipment

7. Property and Equipment

Property and equipment consist of the following:


	December 31,
	2021		2020
	(in thousands)

Computer equipment and software	$	1,904	$	1,893
Furniture and fixtures	446		446
Leasehold improvements	1,743		1,743
	4,093		4,082
Less accumulated depreciation	(2,852)		(2,372)
	$	1,241	$	1,710

Accrued Expenses and Other Current Liabilities

12 Months Ended

Dec. 31, 2021

Payables and Accruals [Abstract]

Accrued Expenses and Other Current Liabilities

8. Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following:


	December 31,
	2021		2020
	(in thousands)
Accrued clinical	$	4,998	$	3,168
Accrued compensation and benefits	2,835		2,385
Accrued development	755		343
Liability related to sale of future royalties, net, current portion	897		848
Operating lease liability, current portion	519		489
Other	976		832
Total accrued expenses	$	10,980	$	8,065

Liabilities Related to Sale of Future Royalties

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

9. Liabilities Related to Sale of Future Royalties

HCR Agreement

In 2016, we and Verastem Inc., or Verastem, entered into an amended and restated license agreement, or the Verastem Agreement, under which we granted to Verastem an exclusive worldwide license in oncology indications for the research, development, commercialization, and manufacture of duvelisib, or Copiktra®, an oral, dual inhibitor of PI3K delta and gamma, and products containing duvelisib, which we refer to as Licensed Products. In September 2020, Verastem completed a disposition of its rights, title, and interest in and to duvelisib to Secura Bio, Inc., or Secura Bio, whereby Secura Bio assumed all liabilities and obligations under the Verastem Agreement. We now refer to the Verastem Agreement as the Secura Bio Agreement.

Secura Bio is obligated to pay us royalties on worldwide net sales of Licensed Products ranging from the mid-single digits to the high-single digits, a portion of which we are obligated to share with Takeda Pharmaceuticals Company Limited, or Takeda, as described in Note 11.

In March 2019, we entered into a royalty purchase agreement, or the HCR Agreement, with HealthCare Royalty Partners III, L.P., or HCR, providing for the acquisition by HCR of our interest in certain royalty payments based on worldwide annual net sales of Licensed Products under the Secura Bio Agreement for gross proceeds of $30.0 million, which is non-refundable. After sharing with Takeda in accordance with the Takeda Amendment, as defined in Note 11, we retained $22.5 million in gross proceeds, or approximately $20.9 million in net proceeds. Under the HCR Agreement, HCR obtained the right to receive the royalty payments up to agreed upon thresholds of royalties, the amount of which depends on when the aggregate royalties received by HCR reach specified thresholds. If the specified threshold has been met through royalty payments from Secura Bio or if we elect to make a payment to meet the threshold amount, the HCR Agreement will automatically terminate and all rights to the royalty stream under the HCR Agreement will revert back to us. If the specified threshold has not been achieved by June 30, 2025, the HCR Agreement will continue through the term of the Secura Bio Agreement.

We recognized the receipt of the $30.0 million payment from HCR as a liability, net of debt discount and issuance costs of approximately $2.4 million. As the basis for our determination, we considered, in accordance with the relevant accounting guidance, the potential for the royalty stream to revert back to us if specified royalty thresholds have been met and our right to terminate the HCR Agreement by making a payment to achieve the threshold. We are not obligated to repay any of the proceeds received under the HCR Agreement. In order to determine the amortization of the liability, we are required to estimate the total amount of future net royalty payments to be made to HCR over the term of the HCR Agreement. The total threshold of net royalties to be paid, less the net proceeds received, will be recorded as interest expense over the life of the liability. We impute interest on the unamortized portion of the liability using the effective interest method. Interest and debt discount amortization expense is reflected as non-cash interest expense in the Consolidated Statements of Operations and Comprehensive Loss. Over the course of the HCR Agreement, the actual interest rate will be affected by the amount and timing of royalty revenue recognized and changes in forecasted royalty revenue. On a quarterly basis, we reassess the effective interest rate and adjust the rate prospectively as needed.

The following table shows the activity within the liability account for the years ended December 31, 2021 and 2020:


	December 31,
	2021		2020
	(in thousands)
Liability related to sale of future royalties - beginning balance	$	28,869	$	29,626


Non-cash royalty revenue	(984)		(910)
Non-cash interest expense recognized	153		153
Liability related to sale of future royalties, net - ending balance	$	28,038	$	28,869
Less: current portion	(897)		(848)
Liability related to sale of future royalties, net, less current portion	$	27,141	$	28,021

As royalties are due to HCR by Secura Bio, the balance of the recognized liability will be effectively repaid over the life of the HCR Agreement. There are a number of factors that could materially affect the amount and timing of royalty payments from Secura Bio, none of which are within our control.

BVF Agreement

On January 8, 2020, or the BVF Closing Date, we entered into a funding agreement, or the BVF Funding Agreement, with BVF Partners, L.P., or BVF, and Royalty Security, LLC, a wholly owned subsidiary of BVF, or the Buyer. BVF was subsequently replaced as a party to the BVF Funding Agreement with Royalty Security Holdings, LLC. The BVF Funding Agreement provides for the acquisition by the Buyer of our interest in all royalty payments based on worldwide annual net sales of a clinical-stage product candidate IPI-926, or patidegib, part of the hedgehog inhibitor program we licensed to PellePharm Inc., or PellePharm, in 2013, or the BVF Licensed Product, excluding relevant Trailing Mundipharma Royalties, as defined in Note 11, which is related to patidegib. We refer to all BVF Licensed Product royalties owed to us less Trailing Mundipharma Royalties as the Royalty or Royalties. Such Royalties are owed to us pursuant to the PellePharm Agreement, as defined in Note 11, entered into by and between us and PellePharm. The Buyer and BVF are affiliates of Biotechnology Value Fund, L.P., which beneficially owned approximately 30% of our common stock at the time of the transaction. Effective February 17, 2021, Biotechnology Value Fund, L.P. is no longer considered our related party.

Pursuant to the BVF Funding Agreement, we received a non-refundable payment of $20.0 million, or the Upfront Purchase Price, less certain transaction expenses. We transferred to the Buyer (i) the Royalty, (ii) the PellePharm Agreement (subject to our rights to milestone payments and rights to equity in PellePharm under the PellePharm Agreement), and (iii) certain patent rights established in the BVF Funding Agreement, with (i), (ii), and (iii) together referred to as Transferred Assets. We preserved our rights under the PellePharm Agreement to receive potential regulatory, commercial, and success-based milestone payments. We have the option to terminate the BVF Funding Agreement by purchasing 100% of the outstanding equity interests of the Buyer under specified terms for a specified amount under the BVF Funding Agreement through January 8, 2023. In addition, the BVF Funding Agreement may be terminated by mutual written agreement between us and the Buyer.

We recognized the proceeds received under the BVF Funding Agreement as a related party liability that will be amortized using the effective interest method over the life of the arrangement. We recorded the receipt of the $20.0 million Upfront Purchase Price as a liability, net of debt issuance costs of approximately $0.4 million and warrant liability of $0.3 million. The related party liability has been reclassified to liabilities related to sale of future royalties since Biotechnology Value Fund, L.P. is no longer considered our related party. We are not obligated to repay any of the proceeds received under the BVF Funding Agreement. In order to determine the amortization of the liability, we are required to estimate the total amount of potential future net royalty payments to be made by PellePharm to the Buyer over the term of the BVF Funding Agreement. The total estimated net royalties to be paid, less the net proceeds received, will be recorded as interest expense over the life of the liability. Interest and debt discount amortization expense is reflected as non-cash related party interest expense as of December 31, 2020 and non-cash interest expense as of December 31, 2021 in our Consolidated Statements of Operations and Comprehensive Loss. Over the course of the BVF Funding Agreement, the actual interest rate will be affected by the amount and timing of royalty revenue recognized, if any, and changes in forecasted royalty revenue. There are a number of factors that could materially affect the amount and timing of royalty payments from PellePharm, none of which are within our control. On a quarterly basis, we will reassess the effective interest rate and adjust the rate prospectively as needed.

The following table shows the activity within the liability account for the years ended December 31, 2021 and 2020:


	December 31,
	2021		2020
	(in thousands)
Liability related to sale of future royalties - beginning balance	$	21,559	$	—
Proceeds from sale of future royalties	—		20,000
Debt discount and issuance costs	—		(428)
Warrant liability	—		(305)
Non-cash interest expense recognized	27		2,292
Liability related to sale of future royalties, net - ending balance	$	21,586	$	21,559

For so long as we have not exercised an option to repurchase the Buyer’s equity interest under the BVF Funding Agreement, (a) if, during the 36-month period following the BVF Closing Date, we issue a specified number of shares of our common stock, which we refer to as the Warrant Threshold, and (b) any shares in excess of the Warrant Threshold are issued for consideration to us of less than $3.75 per share (as adjusted for any stock splits, reverse stock splits or other similar recapitalization events), or the Threshold Price, then we are obligated to issue to BVF warrants to purchase a number of shares of our common stock. Such warrants would equal 50% of the number of qualifying shares at an exercise price equal to 1.5 times the price per share of such qualifying shares issued. The requirement to issue warrants to BVF does not apply to certain issuances of our common stock. As of December 31, 2021, the Warrant Threshold has been met and any future qualifying shares of our common stock issued below the Price Threshold will result in warrants to purchase our common stock to be issued to BVF. No warrants have been issued to BVF as of December 31, 2021.

We determined that the commitment to issue warrants represents a freestanding financial instrument and accounted for it as a liability as of the BVF Closing Date. The fair value of the warrant liability was estimated using the Monte Carlo simulation model. The fair value of the warrant liability as of December 31, 2021 has been included in other liabilities on our consolidated balance sheet. We will re-measure the warrant liability at each reporting date. Changes in fair value of the warrant liability are included in investment and other income (expense) in our consolidated statements of operations and comprehensive loss. See Note 5 for further discussions of the fair value of the warrants.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 470
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 470
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-Subparagraph (h)
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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-Section 50
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-Subparagraph (g)
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-Publisher FASB
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Commitments and Contingencies

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

10. Commitments and Contingencies

On April 5, 2019, we entered into a lease agreement, or the Lease, with Sun Life Assurance Company of Canada, or the Landlord, effective April 3, 2019, or the Commencement Date, for the lease of approximately 10,097 square feet of office space at 1100 Massachusetts Avenue, Cambridge, Massachusetts, or the Leased Premises. The term of the Lease commenced on the Commencement Date and expires on August 1, 2024, or the Expiration Date, approximately five years after the Rent Commencement Date as defined below.

Beginning August 1, 2019, or the Rent Commencement Date, the total base rent of the Lease was $47,961 per month and increases by approximately 3% on each anniversary of the Rent Commencement Date until the Expiration Date. In addition to the base rent, we are also responsible for our share of the operating expenses, insurance, real estate taxes and certain capital costs, and we are responsible for utility expenses in the Leased Premises, all in accordance with the terms of the Lease. Pursuant to the terms of the Lease, we provided a security deposit in the form of a letter of credit in the initial amount of $300,000, which was reduced to $150,000 during the year ended December 31, 2021 in accordance with the terms of the Lease. The initial security deposit plus the associated bank fee of $15,000 is included in our consolidated balance sheet as prepaid expenses and other current assets and restricted cash, less current portion as of December 31, 2020. The remaining portion of the security deposit plus the associated bank fee of $7,500 is included in our consolidated balance sheet as restricted cash as of December 31, 2021. The Landlord provided a lease incentive allowance of $0.6 million to fund certain improvements to be made by us to the Leased Premises.

Subject to certain conditions specified in the Lease, we have the right to extend the term of the Lease for two years, if we provide notice to the Landlord not earlier than twelve months, nor later than nine months, prior to expiration of the Lease. The base rent for the extension term shall be equal to the greater of the base rent in effect for the last year of the initial lease term or a fair market base rent determined according to the terms of the Lease.

The Lease contains customary provisions allowing the Landlord to, among other things, accelerate payments under the Lease or terminate the Lease in its entirety if we fail to remedy a default of any of our obligations under the Lease within specified time periods or upon our bankruptcy or insolvency.

We have recorded a right-of-use asset and lease liability related to our data center lease and the Lease. The lease of our data center expired during the year ended December 31, 2021. The following is a summary of our current lease included in the respective balance sheet classifications:


	December 31,
	2021		2020
Assets	(in thousands)
Operating lease right-of-use assets	$	1,064	$	1,419
Liabilities
Accrued expenses and other current liabilities	$	519	$	489
Operating lease liability	917		1,436
Total lease liabilities	$	1,436	$	1,925

As of December 31, 2021, the weighted average term remaining on our lease is 2.6 years, and the weighted average discount rate is 10%. As of December 31, 2020, the weighted average term remaining on our leases was 3.5 years, and the weighted average discount rate was 10%.

Operating lease costs, including variable costs, of $0.7 million were incurred during both the years ended December 31, 2021 and 2020. Cash paid for amounts included in the measurement of lease liabilities were $0.7 million during both the years ended December 31, 2021 and 2020.

As of December 31, 2021, future minimum lease payments of our operating lease liabilities are as follows:


	Operating Leases
	(in thousands)
2022	$	640
2023	658
2024	334
Total future minimum lease payments	1,632
Less: imputed interest	(196)
Total lease liability	$	1,436

Strategic Agreements

12 Months Ended

Dec. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Strategic Agreements

11. Strategic Agreements

We have worldwide development and commercialization rights to eganelisib, subject to certain obligations to our licensor, Takeda Pharmaceutical Company Limited, or Takeda, as described in more detail below. Additionally, we are obligated to pay Mundipharma International Corporation Limited, or Mundipharma, and Purdue Pharmaceutical Products L.P., or Purdue, a 4% royalty in the aggregate on worldwide net sales of products that were previously subject to our strategic alliance with Mundipharma and Purdue that was terminated in 2012. Such products include eganelisib; duvelisib, the PI3K delta and gamma inhibitor that we licensed to Verastem in 2016, the rights to which Verastem sold to Secura Bio in 2020; and IPI-926, or patidegib, part of the hedgehog inhibitor program we licensed to PellePharm in 2013. We refer to such royalties as Trailing Mundipharma Royalties. After Mundipharma and Purdue have recovered approximately $260.0 million in royalty payments from all products that were previously subject to the strategic alliance, which represents the funding paid to us for research and development services performed by us under this strategic alliance, the Trailing Mundipharma Royalties will be reduced to a 1% royalty on net sales in the United States of such products. As of December 31, 2021, Mundipharma and Purdue have recovered $2.2 million.

PellePharm

In June 2013, we entered into a license agreement with PellePharm, under which we granted PellePharm exclusive global development and commercialization rights to our hedgehog inhibitor program, including patidegib. We refer to our license agreement with PellePharm as the PellePharm Agreement and products covered by the PellePharm Agreement as Hedgehog Products. We assessed this arrangement in accordance with ASC 606 and concluded that at the date of contract inception there was only one performance obligation, consisting of the license, which was satisfied at contract inception.

Under the PellePharm Agreement, PellePharm is obligated to pay us up to $9.0 million in remaining regulatory and commercial-based milestone payments through the first commercial sale of a Hedgehog Product. PellePharm is also obligated to pay us up to $37.5 million in success-based milestone payments upon the achievement of certain annual net sales thresholds, as well as a share of certain revenue received by PellePharm in the event that PellePharm sublicenses its rights under the PellePharm Agreement and tiered royalties on annual net sales of Hedgehog Products subject to specified conditions. The remaining milestones have not been recognized as they represent variable consideration that is constrained. In making this assessment, we considered numerous factors, including the fact that achievement of the milestones is outside of our control and contingent upon the future success of clinical trials, PellePharm’s actions, and the receipt of regulatory approval. As the single performance obligation was previously satisfied, all regulatory and commercial-based milestones will be recognized as revenue in full in the period in which the constraint is removed. Any consideration related to sales-based milestone payments, including royalties, will be recognized when the related sales occur as these amounts have been determined to relate predominantly to the license granted to PellePharm and therefore are recognized at the later of when the performance obligation is satisfied, or the related sales occur.

PellePharm is also obligated to pay us tiered royalties on annual net sales of Hedgehog Products, which are subject to reduction after a certain aggregate funding threshold has been achieved. On January 8, 2020, we entered into the BVF Funding Agreement, as further described in Note 9, pursuant to which we sold our interest in all royalty payments based on worldwide annual net sales of the BVF Licensed Product, excluding Trailing Mundipharma Royalties related to patidegib.

Takeda

In July 2010, we entered into a development and license agreement with Intellikine, Inc., or Intellikine, under which we obtained rights to discover, develop and commercialize pharmaceutical products targeting the gamma and/or delta isoforms of PI3K, including eganelisib and duvelisib. In January 2012, Intellikine was acquired by Takeda. In December 2012, we amended and restated our development and license agreement with Takeda and further amended the agreement in July 2014, September 2016, July 2017, and March 2019. We refer to the amended and restated development and license agreement, as amended, as the Takeda Agreement.

Duvelisib

Pursuant to the Takeda Agreement, prior to March 4, 2019, we were obligated to share equally with Takeda all revenue arising from certain qualifying transactions for duvelisib, including the Secura Bio Agreement, subject to certain exceptions including revenue we receive as reimbursement for duvelisib research and development expenses. On March 4, 2019, we entered into the fourth amendment to the Takeda Agreement, or the Takeda Amendment. Pursuant to the Takeda Amendment, Takeda agreed (i) to the sale of certain royalty payments based on worldwide annual net sales of Licensed Products under the Secura Bio Agreement to HCR, (ii) to forego its rights to an equal share of the royalties due from Secura Bio during the term of the HCR Agreement, and (iii) not to seek any payment from HCR with respect to the royalties owed to Takeda. As consideration for the Takeda Amendment, we paid Takeda $6.7 million representing 25% of the $30.0 million in gross proceeds we received from the closing of the HCR Agreement, net of 25% of the expenses incurred by us in connection with the HCR Agreement. In addition, we agreed to pay Takeda 25% of the royalties that would have been payable to us by Secura Bio but for the consummation of the HCR Agreement, which we refer to as the Interim Obligation. During each of the years ended December 31, 2021 and 2020, we recognized $0.2 million of Interim Obligation amounts owed to Takeda as royalty expense.

We have the right to extinguish the Interim Obligation by payment to Takeda of an amount equal to (i) the $6.7 million payment multiplied by the multiple set forth in the table below corresponding to the time period in which such extinguishing payment is made, minus (ii) any payments made to Takeda pursuant to the Interim Obligation:


Time Period	Multiple
From the Takeda Amendment Effective Date until June 30, 2022	145	%
From July 1, 2022 through June 30, 2023	155	%
From July 1, 2023 through June 30, 2024	165	%
From July 1, 2024 through June 30, 2025	175	%

The Interim Obligation shall expire upon the termination of the HCR Agreement and the reversion of related royalties to us, at which time our obligations to share the royalties payable under the Secura Bio Agreement equally with Takeda shall be reinstated.

Eganelisib

Pursuant to the Takeda Agreement, we are obligated to pay Takeda $3.0 million in a remaining success-based development milestone payment and up to $165.0 million in remaining regulatory and commercial-based milestone payments for one product candidate other than duvelisib, which could be eganelisib.

Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

12. Income Taxes

We did not have any income tax expense for the years ended December 31, 2021 or 2020.

Our income tax expense for the years ended December 31, 2021 and 2020 differed from the expected U.S. federal statutory income tax expense as set forth below:


	Years Ended December 31,
	2021		2020
	(in thousands)
Expected federal tax benefit	$	(9,505)	$	(8,503)
Permanent differences	191		211
State taxes, net of the deferred federal benefit	(3,024)		(2,563)
Tax credit carryforwards	(1,416)		(837)
Adjustments to deferred tax assets and deferred tax liabilities	226		852


Other	(93)		69
Change in valuation allowance	13,621		10,771
Income tax expense (benefit)	$	—	$	—

The significant components of our deferred tax assets and liabilities are as follows:


	Years Ended December 31,
	2021		2020
	(in thousands)
Deferred tax assets (liabilities):
Net operating loss carryforwards	$	164,969	$	151,752
Tax credit carryforwards	44,302		42,645

Intangible assets	15,151		17,028
Accrued expenses	1,255		645
Stock-based compensation	5,109		4,976
Sale of future royalties	13,557		13,742
Other	22		(44)
Valuation allowance	(244,365)		(230,744)
Net deferred tax assets	$	—	$	—

We have recorded a valuation allowance against our deferred tax assets in each of the years ended December 31, 2021, and 2020 because we believe that it is more likely than not that these assets will not be realized. The valuation allowance increased by approximately $13.6 million during the year ended December 31, 2021 primarily as a result of the increase in our unbenefited net operating loss for the current period. The valuation allowance increased by approximately $10.8 million during the year ended December 31, 2020 primarily as a result of the increase in our unbenefited net operating loss for the period and the BVF Agreement which created a deferred tax asset in the year due to the inclusion of the royalty sale proceeds in taxable income for 2020.

Subject to the limitations described below, at December 31, 2021, we have cumulative net operating loss carryforwards of approximately $631.3 million and $512.6 million available to reduce federal and state taxable income, respectively. For federal purposes, the net operating loss carryforwards have begun to expire and will continue to expire through 2037 for losses incurred before January 1, 2018. Federal losses generated after December 31, 2017 do not expire. As of December 31, 2021, we have approximately $106.6 million of federal losses that do not expire. The state net operating loss carryforwards begin to expire in 2031 and continue to expire through 2041. In addition, we have cumulative federal and state tax credit carryforwards of $36.3 million and $10.2 million, respectively, available to reduce federal and state income taxes which expire through 2041 and 2036, respectively. Our net operating loss carryforwards and tax credit carryforwards are limited as a result of certain ownership changes, as defined under Sections 382 and 383 of the Internal Revenue Code. This limits the annual amount of these tax attributes that can be utilized to offset future taxable income or tax liabilities. The amount of the annual limitation is determined based on our value immediately prior to an ownership change. Subsequent ownership changes may affect the limitation in future years. The net operating losses and tax credit carryforwards that have and will expire unused in the future as a result of Section 382 and 383 limitations have been excluded from the amounts disclosed above. The latest Section 382 study was performed through December 31, 2018. Ownership changes after that date could further reduce the Company’s ability to utilize the net operating loss and other attribute carryforwards.

At December 31, 2021 and 2020, we had no unrecognized tax benefits. As of December 31, 2021 and 2020, we had no accrued interest or penalties related to uncertain tax positions and no amounts have been recognized in our Consolidated Statements of Operations and Comprehensive Loss. We will recognize interest and penalties related to uncertain tax positions in income tax expense. For all years through December 31, 2021, we generated research credits but have not conducted a study to document the qualified activities. This study may result in an adjustment to our research and development credit carryforwards; however, until a study is completed and any adjustment is known, no amounts are being presented as an uncertain tax position. A full valuation allowance has been provided against our research and development credits and, if an adjustment is required, this adjustment would be offset by an adjustment to the deferred tax asset established for the research and development credit carryforwards and the valuation allowance.

We file U.S. federal and Massachusetts state income tax returns. The statute of limitations for assessment by the Internal Revenue Service, or IRS, and state tax authorities is closed for tax years prior to 2018, although carryforward attributes that were generated prior to tax year 2018 may still be adjusted upon examination by the IRS or state tax authorities if they either have been or will be used in a future period.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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+ Details

Stockholders' Equity	12 Months Ended
Stockholders' Equity	Dec. 31, 2021
Equity [Abstract]
Stockholders' Equity	13. Stockholders’ Equity Common Stock Sales Facility On June 28, 2019, we entered into a Capital on Demand Sales Agreement with JonesTrading Institutional Services LLC, or JonesTrading, and on July 29, 2019 we amended and restated the sales agreement to add B. Riley Securities (f/k/a B. Riley FBR, Inc.), or B. Riley Securities, as a party to the agreement. On July 27, 2021, we entered into an amendment to the agreement to increase the maximum aggregate offering price of the shares of common stock that we may issue and sell from time to time under the agreement by $75.0 million to an aggregate of $95.0 million. We refer to the amended and restated sales agreement, as amended, as the ATM Sales Agreement. As of December 31, 2021, we had an aggregate of $86.8 million available for future sales. Pursuant to the ATM Sales Agreement we may offer and sell shares of our common stock from time to time through JonesTrading or B. Riley Securities, each acting as our sales agent. We have agreed to pay commissions to the sales agents for their services in acting as agents in the sale of our common stock in the amount of up to 3.0% of the gross proceeds from sales of our common stock pursuant to the ATM Sales Agreement. Sales of shares of our common stock under the ATM Sales Agreement may be made by any method that is deemed to be an “at-the-market-offering” as defined in Rule 415(a)(4) promulgated under the Securities Act of 1933, as amended. With our prior written approval, JonesTrading or B. Riley Securities may also sell the shares by any other method permitted by law, including in negotiated transactions. We and JonesTrading or B. Riley Securities may suspend or terminate the offering of shares upon notice to the other parties and subject to other conditions. During the year ended December 31, 2021, we issued and sold 89,520 shares of common stock at a weighted average price per share of $3.83 at-the-market pursuant to the ATM Sales Agreement for $0.3 million in net proceeds. During the year ended December 31, 2020, we issued and sold 6,725,691 shares of common stock at a weighted average price per share of $1.17 at-the-market pursuant to the ATM Sales Agreement for $7.7 million in net proceeds. Public Offering On February 11, 2021, we entered into a purchase agreement with Piper Sandler & Co., as representative of the underwriters named therein, pursuant to which we issued and sold to the underwriters in an underwritten public offering an aggregate of 24,150,000 shares of our common stock, including 3,150,000 shares of common stock sold in connection with the exercise in full of a 15% over-allotment option by the underwriters. The public offering price was $3.80 per share. The gross proceeds to us from this offering were approximately $91.8 million. After underwriting discounts and commissions and offering expenses, we received net proceeds from the offering of approximately $85.8 million. Warrants On February 24, 2014, we entered into a facility agreement with affiliates of Deerfield Management Company, L.P., or Deerfield. In connection with the execution of the original facility agreement, we issued to Deerfield warrants to purchase an aggregate of 1,000,000 shares of common stock at an exercise price of $13.83 per share. The warrants have dividend rights to the same extent as if the warrants were exercised into shares of common stock. The warrants expire on the seventh anniversary of their issuance and contain certain limitations that prevent the holder from acquiring shares upon exercise of a warrant that would result in the number of shares beneficially owned by the holder exceeding 9.985% of the total number of shares of common stock then issued and outstanding. During the year ended December 31, 2021, the warrants expired without being exercised.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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+ Details

Defined Contribution Benefit Plan	12 Months Ended
Defined Contribution Benefit Plan	Dec. 31, 2021
Retirement Benefits [Abstract]
Defined Contribution Benefit Plan	14. Defined Contribution Benefit Plan We sponsor a 401(k) retirement plan in which substantially all of our full-time employees are eligible to participate. Participants may contribute a percentage of their annual compensation to this plan, subject to statutory limitations. During the years ended December 31, 2021 and 2020, we matched participants’ contributions up to 6% of the participant’s pre-tax salary. Our matching contributions for the years ended December 31, 2021 and 2020 was $0.2 million in both years.

- Definition

The entire disclosure for retirement benefits.

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+ Details

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Basis of Presentation

These consolidated financial statements include the accounts of Infinity and its wholly owned subsidiaries. We have eliminated all significant intercompany accounts and transactions in consolidation.

Segment Information

Cash Equivalents and Available-For-Sale Securities

Liquidity

Concentration of Credit Risk

Property and Equipment



Computer equipment and software						3 to 5 years
Leasehold improvements						Shorter of lease term or useful life of asset

Furniture and fixtures						7 to 10 years

Impairment of Long-Lived Assets

Fair Value Measurements

Leases

Revenue Recognition

In the event of an early termination of a collaboration agreement, any contract liabilities would be recognized in the period in which all our obligations under the agreement have been fulfilled.

Research and Development Expense

Stock-based Compensation Expense

Stock-based Compensation ExpenseFor awards granted to employees, directors, non-employees, and awards granted under our 2013 Employee Stock Purchase Plan, or ESPP, we measure stock-based compensation cost at the grant date based on the estimated fair value of the award and recognize it as expense over the requisite service period on a straight-line basis. Stock-based compensation costs for non-employees are recognized as expense over the vesting period on a ratable basis. We use the Black-Scholes valuation model in determining the fair value of all equity awards. For awards with performance conditions, we estimate the likelihood of satisfaction of the performance conditions, which affects the period over which the expense is recognized. When the performance conditions related to these awards are determined to be probable, we recognize the expense over the requisite service period.

Royalty Expense

Income Taxes

Basic and Diluted Net Loss per Common Share

Basic and Diluted Net Loss per Common ShareBasic net loss per share is based upon the weighted average number of common shares outstanding during the period, excluding restricted stock that has been issued but has not yet vested. Diluted net loss per share is based upon the weighted average number of common shares outstanding during the period plus the effect of additional weighted average common equivalent shares outstanding during the period when the effect of adding such shares is dilutive. Common equivalent shares result from the assumed exercise of outstanding stock options and the exercise of outstanding warrants (the proceeds of which are then assumed to have been used to repurchase outstanding stock using the treasury stock method) and the vesting of restricted shares of common stock. In addition, the assumed proceeds under the treasury stock method include the average unrecognized compensation expense of stock options that are in-the-money. This results in the “assumed” buyback of additional shares, thereby reducing the dilutive impact of stock options. The two-class method is used for outstanding warrants as such warrants are considered to be participating securities, and this method is more dilutive than the treasury stock method.

Comprehensive Loss

Comprehensive LossComprehensive loss is comprised of net loss and other comprehensive loss. Other comprehensive loss is comprised of unrealized holding gains and losses arising during the period on available-for-sale securities that are not other-than-temporarily impaired.

New Accounting Pronouncements

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Property and Equipment, Depreciated Periods

Property and equipment are depreciated over the following periods:



Computer equipment and software						3 to 5 years
Leasehold improvements						Shorter of lease term or useful life of asset

Furniture and fixtures						7 to 10 years

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following outstanding shares of common stock equivalents were excluded from the computation of net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive:


	At December 31,
	2021	2020
Stock options	12,689,439	12,664,664
Unvested restricted stock	50,000	—
Warrants (excluded from treasury stock method)	—	1,000,000

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation Expense, Related to All Equity Awards

Total stock-based compensation expense, related to all equity awards, comprised the following:


	Year Ended December 31,
	2021		2020
	(in thousands)
Research and development	$	830	$	383
General and administrative	1,865		1,073
Total stock-based compensation expense	$	2,695	$	1,456

Fair Value Stock Options, Weighted-Average Assumptions

We estimate the fair value of stock options at the date of grant using the Black-Scholes valuation model with the following weighted-average assumptions:


	December 31,
	2021		2020
Risk-free interest rate	0.9	%	1.0	%
Expected annual dividend yield	—		—
Expected stock price volatility	106.3	%	98.3	%
Expected term of options	5.9 years		5.7 years

Summary of Stock Option Activity

A summary of our stock option activity for the year ended December 31, 2021 is as follows:


	Stock Options	Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Life (years)	Aggregate Intrinsic Value (in millions)
Outstanding at January 1, 2021	12,664,664	$	3.51
Granted	999,040	3.32
Exercised	(531,864)	1.62
Forfeited	(221,708)	1.87
Expired	(220,693)	7.50
Outstanding at December 31, 2021	12,689,439	$	3.53	6.4	$	7.0
Exercisable at December 31, 2021	9,076,912	$	4.15	5.6	$	5.2

Cash, Cash Equivalents and Available-for-Sale Securities (Tables)

12 Months Ended

Dec. 31, 2021

Cash and Cash Equivalents [Abstract]

Summary of Cash, Cash Equivalents and Available-for-Sale Securities

The following is a summary of cash, cash equivalents and available-for-sale securities:


	December 31, 2021
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(in thousands)
Cash and cash equivalents	$	80,726	$	—	$	—	$	80,726




Total cash and cash equivalents	$	80,726	$	—	$	—	$	80,726

	December 31, 2020
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(in thousands)
Cash and cash equivalents	$	28,593	$	—	$	—	$	28,593
Available-for-sale securities:
U.S. Treasury securities due in one year or less	5,516		—		(1)		5,515

Total available-for-sale securities	5,516		—		(1)		5,515
Total cash, cash equivalents and available-for-sale securities	$	34,109	$	—	$	(1)	$	34,108

Fair Value (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Assets Carried at Fair Value Measured on Recurring Basis

The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2021 and 2020:


	December 31, 2021
	Level 1		Level 2		Level 3
	(in thousands)
Assets:
Cash and cash equivalents	$	80,726	$	—	$	—


Total assets	$	80,726	$	—	$	—

Liabilities:
Warrant liability	$	—	$	—	$	220
Total liabilities	$	—	$	—	$	220

	December 31, 2020
	Level 1		Level 2		Level 3
	(in thousands)
Assets:
Cash and cash equivalents	$	28,593	$	—	$	—
U.S. Treasury securities	—		5,515		—

Total assets	$	28,593	$	5,515	$	—

Liabilities:
Warrant liability	$	—	$	—	$	198
Total liabilities	$	—	$	—	$	198

Prepaid Expenses and Other Current Assets (Tables)

12 Months Ended

Dec. 31, 2021

Prepaid Expense and Other Assets, Current [Abstract]

Schedule of Prepaid and Other Current Assets

Prepaid expenses and other current assets consist of the following:


	December 31,
	2021		2020
	(in thousands)
Prepaid expenses	$	1,143	$	1,528

Other current assets	399		234
Restricted cash, current portion	—		150

Total prepaid expenses and other current assets	$	1,542	$	1,912

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Summary of Property and Equipment

Property and equipment consist of the following:


	December 31,
	2021		2020
	(in thousands)

Computer equipment and software	$	1,904	$	1,893
Furniture and fixtures	446		446
Leasehold improvements	1,743		1,743
	4,093		4,082
Less accumulated depreciation	(2,852)		(2,372)
	$	1,241	$	1,710

Accrued Expenses and Other Current Liabilities (Tables)

12 Months Ended

Dec. 31, 2021

Payables and Accruals [Abstract]

Summary of Accrued Expenses

Accrued expenses and other current liabilities consisted of the following:


	December 31,
	2021		2020
	(in thousands)
Accrued clinical	$	4,998	$	3,168
Accrued compensation and benefits	2,835		2,385
Accrued development	755		343
Liability related to sale of future royalties, net, current portion	897		848
Operating lease liability, current portion	519		489
Other	976		832
Total accrued expenses	$	10,980	$	8,065

Liabilities Related to Sale of Future Royalties (Tables)

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Schedule of Liability Related to Future Sale of Royalties

The following table shows the activity within the liability account for the years ended December 31, 2021 and 2020:


	December 31,
	2021		2020
	(in thousands)
Liability related to sale of future royalties - beginning balance	$	28,869	$	29,626


Non-cash royalty revenue	(984)		(910)
Non-cash interest expense recognized	153		153
Liability related to sale of future royalties, net - ending balance	$	28,038	$	28,869
Less: current portion	(897)		(848)
Liability related to sale of future royalties, net, less current portion	$	27,141	$	28,021

The following table shows the activity within the liability account for the years ended December 31, 2021 and 2020:


	December 31,
	2021		2020
	(in thousands)
Liability related to sale of future royalties - beginning balance	$	21,559	$	—
Proceeds from sale of future royalties	—		20,000
Debt discount and issuance costs	—		(428)
Warrant liability	—		(305)
Non-cash interest expense recognized	27		2,292
Liability related to sale of future royalties, net - ending balance	$	21,586	$	21,559

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Summary of Leases

The following is a summary of our current lease included in the respective balance sheet classifications:


	December 31,
	2021		2020
Assets	(in thousands)
Operating lease right-of-use assets	$	1,064	$	1,419
Liabilities
Accrued expenses and other current liabilities	$	519	$	489
Operating lease liability	917		1,436
Total lease liabilities	$	1,436	$	1,925

Schedule of Future Minimum Lease Payments

As of December 31, 2021, future minimum lease payments of our operating lease liabilities are as follows:


	Operating Leases
	(in thousands)
2022	$	640
2023	658
2024	334
Total future minimum lease payments	1,632
Less: imputed interest	(196)
Total lease liability	$	1,436

Strategic Agreements (Tables)

12 Months Ended

Dec. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Payments Made to Counterparty, Multiplier


Time Period	Multiple
From the Takeda Amendment Effective Date until June 30, 2022	145	%
From July 1, 2022 through June 30, 2023	155	%
From July 1, 2023 through June 30, 2024	165	%
From July 1, 2024 through June 30, 2025	175	%

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Tax Benefit or Expense

Our income tax expense for the years ended December 31, 2021 and 2020 differed from the expected U.S. federal statutory income tax expense as set forth below:


	Years Ended December 31,
	2021		2020
	(in thousands)
Expected federal tax benefit	$	(9,505)	$	(8,503)
Permanent differences	191		211
State taxes, net of the deferred federal benefit	(3,024)		(2,563)
Tax credit carryforwards	(1,416)		(837)
Adjustments to deferred tax assets and deferred tax liabilities	226		852


Other	(93)		69
Change in valuation allowance	13,621		10,771
Income tax expense (benefit)	$	—	$	—

Significant Components of Deferred Tax Assets

The significant components of our deferred tax assets and liabilities are as follows:


	Years Ended December 31,
	2021		2020
	(in thousands)
Deferred tax assets (liabilities):
Net operating loss carryforwards	$	164,969	$	151,752
Tax credit carryforwards	44,302		42,645

Intangible assets	15,151		17,028
Accrued expenses	1,255		645
Stock-based compensation	5,109		4,976
Sale of future royalties	13,557		13,742
Other	22		(44)
Valuation allowance	(244,365)		(230,744)
Net deferred tax assets	$	—	$	—

Summary of Significant Accounting Policies - Additional Information (Details)	12 Months Ended
	Dec. 31, 2021 USD ($) segment institution issuer award	Dec. 31, 2020 USD ($)
Accounting Policies [Abstract]
Number of operating segments \| segment	1
Cash, cash equivalents and available-for-sale securities	$ 80,726,000	$ 34,109,000
Number of major financial institutions \| institution	2
Number of issuers of investments \| issuer	1
Number of awards with market conditions \| award	0
Reclassifications out of accumulated other comprehensive income (loss)	$ 0

Summary of Significant Accounting Policies - Property and Equipment, Depreciation Periods (Details)	12 Months Ended
	Dec. 31, 2021
Computer equipment and software \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	3 years
Computer equipment and software \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	5 years
Furniture and fixtures \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	7 years
Furniture and fixtures \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	10 years

Summary of Significant Accounting Policies - Antidilutive Securities (Details) - shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	12,689,439	12,664,664
Unvested restricted stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	50,000	0
Warrants (excluded from treasury stock method)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	0	1,000,000

Stock-Based Compensation - Additional Information (Details)	12 Months Ended
	Dec. 31, 2021 USD ($) period $ / shares shares	Dec. 31, 2020 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost, net of estimated forfeitures, related to unvested options and restricted stock \| $	$ 5,600,000
Unrecognized compensation cost, weighted-average recognition period	2 years 8 months 12 days
Weighted-average fair value per share of options granted (in dollars per share) \| $ / shares	$ 2.69	$ 1.15
Aggregate intrinsic value \| $	$ 800,000
Related income tax benefits \| $	$ 0	$ 0
Stock Incentive Plan, All Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of shares vested	25.00%
Remaining percentage of shares vested	75.00%
Vesting period, following first year of service, new employees	3 years
Stock options granted, expiration period (no later than)	10 years
2019 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock Issued pursuant to awards granted (up to) (in shares)	6,031,009
Common stock reserved for issuance upon exercise of outstanding awards (in shares)	5,226,973
Common stock that can be issued pursuant to awards granted (up to) (in shares)	2,069,146
2010 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance upon exercise of outstanding awards (in shares)	6,912,466
2013 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock offering aggregate period	24 months
Number of common stock purchase periods \| period	4
Common stock offering purchase period	6 months
Percentage of common stock purchase price	85.00%
Number of common stock purchased (in shares)	57,561	91,696
Proceeds from purchase of common stock \| $	$ 100,000	$ 100,000
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected annual dividend yield	0.00%	0.00%