View Filing Data

Cover Page - shares	3 Months Ended
Cover Page - shares	Mar. 31, 2020	Jun. 22, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Period End Date	Mar. 31, 2020
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Document Quarterly Report	true
Entity Registrant Name	AYALA PHARMACEUTICALS, INC.
Entity Central Index Key	0001797336
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Common Stock, Shares Outstanding		12,779,284
Title of 12(b) Security	Common Stock
Trading Symbol	AYLA
Security Exchange Name	NASDAQ
Entity Incorporation, State or Country Code	DE
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Address, Country	IL

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
CURRENT ASSETS:
Cash and cash equivalents	$ 10,055	$ 16,725
Short-term restricted bank deposits	81	83
Trade receivables	1,001	469
Prepaid expenses and other current assets	313	417
Total current assets	11,450	17,694
LONG-TERM ASSETS:
Other assets	274	283
Deferred offering costs	2,050	656
Property and equipment, net	1,388	1,421
Total long-term assets	3,712	2,360
Total current assets	15,162	20,054
CURRENT LIABILITIES:
Trade payables	3,362	2,922
Other Accounts payables	3,104	2,380
Total current liabilities	6,466	5,302
LONG TERM LIABILITIES:
Long-term rent liability	548	299
Total long-term liabilities	548	299
Convertible preferred stock, $0.01 par value:
Redeemable convertible preferred stock	53,373	53,373
STOCKHOLDERS' DEFICIT:
Common Stock of $0.01 par value per share; 20,000,000 shares authorized at December 31, 2019 and March 31, 2020; 5,064,722 shares issued at December 31, 2019 and March 31, 2020; 4,998,874 and 5,003,380 shares outstanding at December 31, 2019 and March 31, 2020, respectively	51	51
Additional paid-in capital	2,063	1,770
Accumulated deficit	(47,339)	(40,741)
Total stockholders' deficit	(45,225)	(38,920)
Total liabilities, convertible preferred stock, and stockholders' deficit	15,162	20,054
Series A Preferred Stock [Member]
Convertible preferred stock, $0.01 par value:
Redeemable convertible preferred stock	23,823	23,823
Series B Preferred Stock [Member]
Convertible preferred stock, $0.01 par value:
Redeemable convertible preferred stock	$ 29,550	$ 29,550

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Common stock par value	$ 0.01	$ 0.01
Common stock shares authorized	20,000,000	20,000,000
Common stock shares issued	5,064,722	5,064,722
Common stock shares outstanding	5,003,380	4,998,874
Series A Preferred Stock [Member]
Temporary stock par value	$ 0.01	$ 0.01
Temporary stock shares authorized	3,700,000	3,700,000
Temporary stock shares issued	3,679,778	3,679,778
Temporary stock shares outstanding	3,679,778	3,679,778
Liquidation preference value	$ 23,919	$ 23,919
Series B Preferred Stock [Member]
Temporary stock par value	$ 0.01	$ 0.01
Temporary stock shares authorized	4,500,000	4,500,000
Temporary stock shares issued	3,750,674	3,750,674
Temporary stock shares outstanding	3,750,674	3,750,674
Liquidation preference value	$ 29,668	$ 29,668

Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Comprehensive Income [Abstract]
Revenues from license agreement	$ 1,001	$ 265
Cost of revenue	(1,001)	(265)
Gross profit
Research and development	5,128	2,752
General and administrative	1,311	848
Operating loss	(6,439)	(3,600)
Financial (loss) income, net	(38)	136
Loss before income tax	(6,477)	(3,464)
Taxes on income	(121)	(75)
Net loss attributable to common stockholders	$ (6,598)	$ (3,539)
Net loss per share attributable to common stockholders, basic and diluted	$ (1.32)	$ (0.71)
Weighted average common shares outstanding, basic and diluted	4,999,563	4,960,936

Consolidated Statements of Changes in Convertible Preferred Stock and Stockholders' Deficit - USD ($) $ in Thousands	Total	Series A Preferred Stock [Member]	Series B Preferred Stock [Member]	Preferred Stock [Member] Convertible Preferred Stock [Member]	Preferred Stock [Member] Convertible Preferred Stock [Member] Series A Preferred Stock [Member]	Preferred Stock [Member] Convertible Preferred Stock [Member] Series B Preferred Stock [Member]	Preferred Stock [Member] Convertible Preferred Stock [Member] Receipts on Series B Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]
Beginning balance, Preferred Stock , Shares at Dec. 31, 2018					3,679,778	3,097,343
Beginning balance, Preferred Stock at Dec. 31, 2018				$ 46,210	$ 23,823	$ 24,387	$ (2,000)
Issuance of Series B Preferred Stock, net, Shares						151,179
Issuance of Series B Preferred Stock, net				3,191		$ 1,191	$ 2,000
Ending balance, Preferred Stock , Shares at Mar. 31, 2019					3,679,778	3,248,522
Ending balance, Preferred Stock at Mar. 31, 2019				49,401	$ 23,823	$ 25,578
Beginning balance, Common Stock, Shares at Dec. 31, 2018								4,959,667
Beginning balance at Dec. 31, 2018	$ (21,859)							$ 50	$ 1,040	$ (22,949)
Exercise of stock options, Shares								750
Exercise of stock options	4								4
Share based compensation ,Shares								1,229
Share based compensation	209								209
Net loss	(3,539)									(3,539)
Ending balance, Common Stock, Shares at Mar. 31, 2019								4,961,646
Ending Balance at Mar. 31, 2019	(25,185)							$ 50	1,253	(26,488)
Beginning balance, Preferred Stock , Shares at Dec. 31, 2019		3,679,778	3,750,674		3,679,778	3,750,674
Beginning balance, Preferred Stock at Dec. 31, 2019	53,373	$ 23,823	$ 29,550	53,373	$ 23,823	$ 29,550
Ending balance, Preferred Stock , Shares at Mar. 31, 2020		3,679,778	3,750,674		3,679,778	3,750,674
Ending balance, Preferred Stock at Mar. 31, 2020	53,373	$ 23,823	$ 29,550	$ 53,373	$ 23,823	$ 29,550
Beginning balance, Common Stock, Shares at Dec. 31, 2019								4,998,874
Beginning balance at Dec. 31, 2019	(38,920)							$ 51	1,770	(40,741)
Share based compensation ,Shares								4,506
Share based compensation	293								293
Net loss	(6,598)									(6,598)
Ending balance, Common Stock, Shares at Mar. 31, 2020								5,003,380
Ending Balance at Mar. 31, 2020	$ (45,225)							$ 51	$ 2,063	$ (47,339)

Consolidated Statements of Changes in Convertible Preferred Stock and Stockholders' Deficit (Parenthetical) - Maximum [Member] $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($) shares
Employee stock options \| $	$ 1
Common Stock [Member]
Share based payment arrangement \| shares	1

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (6,598)	$ (3,539)
Adjustments to reconcile net loss to net cash used in operating activities:
Shared based compensation	293	209
Depreciation	53	20
Increase (decrease) in prepaid expenses and other current assets	115	(187)
Increase in trade receivables	(532)	(265)
Increase in trade payable	49	864
Increase in long term rent liability	249
Decrease in other accounts payable	(20)	(664)
Net cash used in operating activities	(6,391)	(3,562)
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in (proceeds from maturities) of long-term deposits	202	(112)
Purchase of property and equipment	(20)	(206)
Net cash provided by (used in) investing activities	182	(318)
CASH FLOWS FROM FINANCING ACTIVITIES:
Deferred offering costs	(261)
Exercise of stock options		4
Issuance of convertible preferred stock, net		3,191
Net cash (used in) provided by financing activities	(261)	3,195
Decrease in cash and cash equivalents and short-term restricted bank deposits	(6,470)	(685)
Cash and cash equivalents and short-term restricted bank deposits at beginning of the year	16,808	26,097
Cash and cash equivalents and short-term restricted bank deposits at end of the year	10,338	25,412
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES
Non-cash deferred offering costs	1,133
Supplemental disclosures of cash flow information:
Cash received for interest	24	131
Tax Paid in cash	$ 40	$ 10

Significant Accounting Policies

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Significant Accounting Policies

NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES

a. General

a) Ayala Pharmaceuticals, Inc. (the “Company”) was incorporated in November 2017. The Company is a clinical stage oncology company dedicated to developing and commercializing small molecule therapeutics for patients suffering from rare and aggressive cancers, primarily in genetically defined patient populations. The Company’s current portfolio of product candidates, AL101 and AL102, target the aberrant activation of the Notch pathway with gamma secretase inhibitors.

b) In 2017, the Company entered into an exclusive worldwide license agreement with respect to AL101 and AL102.

c) The Company’s lead product candidates, AL101 and AL102, have completed preclinical and Phase 1 studies. A Phase 2 trial (ACCURACY) for AL101 in patients with recurrent/metastatic adenoid cystic carcinoma (“R/M ACC”) bearing Notch-activating mutations is ongoing.

d) The Company has a wholly-owned Israeli subsidiary, Ayala-Oncology Israel Ltd. (the “Subsidiary”), which was incorporated in November 2017.

e) Since inception, the Company has devoted its primary efforts to raising capital and research and development activities and has incurred significant operating losses and negative cash flows from operations. As of March 31, 2020, the Company had an accumulated deficit of $47.3 million and cash and cash equivalents and short term deposits of $10.1 million. From its inception through March 31, 2020, all of the Company’s financial support has been provided primarily from the sale of its convertible preferred stock.

The Company previously identified conditions and events that raise substantial doubt about its ability to continue as a going concern. As a result of the completion of the Company’s initial public offering (“IPO”) in May 2020, the Company believes that the net proceeds from the IPO, together with its cash, cash equivalents and short-term restricted bank deposits as of March 31, 2020 will be sufficient to fund its operating expenses and capital expenditure requirements into the second half of 2022. The Company has based this estimated on assumptions that may prove to be wrong, and it may use its available capital resources sooner than it currently expects. Future additional funding may not be available on terms available to the Company or at all. If the Company is unable to obtain sufficient funding, it could be required to delay its development efforts, limit activities and reduce research and development costs, which could adversely affect its business prospects.

Initial Public Offering and Related Transaction

On May 12, 2020, the Company completed the sale of shares of its common stock in its IPO. In connection with the IPO, the Company issued and sold 3,940,698 shares of common stock, including 274,022 shares associated with the partial exercise on June 4, 2020 of the underwriters’ option to purchase additional shares, at a price to the public of $15.00 per share, resulting in net proceeds to the Company of approximately $52.8 million after deducting underwriting discounts and commissions and estimated offering expenses payable by the Company. All shares issued and sold were registered pursuant to a registration statement on Form

S-1

(File

No. 333-236942),

as amended, declared effective by the

U.S. Securities and Exchange Commission (the “Commission”) on May 7, 2020

b. Basis of presentation

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for annual financial statements. In the opinion of management, all adjustments (of a normal recurring nature) considered necessary for a fair statement of the results for the interim periods presented have been included. Operating results for the interim period are not necessarily indicative of the results that may be expected for the full year.

These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2019 included in the Company’s final prospectus filed with the Commission pursuant to Rule 424(b)(4) under the Securities Act on May 11, 2020 (the “Prospectus”) in connection with its IPO. The comparative balance sheet at December 31, 2019 has been derived from the audited financial statements at that date. Except as noted below, the Company’s significant accounting policies have not changed materially from those included in Note 2 of our audited consolidated financial statements for the year ended December 31, 2019 included in our Prospectus.

c. Net loss per share

Basic and diluted loss per share (“LPS”) are computed by dividing net loss by the weighted average number of shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”), outstanding for each period.

The calculation of diluted LPS does not include 3,679,778 shares of Series A Preferred Stock, 3,750,674 and no shares of Series B Preferred Stock and 513,165

and 652,187 options outstanding to purchase common stock as of March 31, 2019 and 2020 respectively.

d. Newly issued accounting pronouncements

In February 2016, the FASB issued ASU

2016-02—Leases,

requiring the recognition of lease assets and liabilities on the balance sheet. The standard: (a) clarifies the definition of a lease; (b) requires a dual approach to lease classification similar to current lease classifications; and (c) causes lessees to recognize leases on the balance sheet as a lease liability with a corresponding

right-of-use

asset for leases with a lease-term of more than 12 months. The standard is effective for public entities for fiscal years beginning after December 15, 2018 and for the Company for fiscal years beginning after December 15, 2020. The Company is currently evaluating the impact of adopting this new guidance on its financial statements.

In June 2018, the FASB issued ASU

No. 2018-07

Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, which is intended to reduce the cost and complexity and to improve financial reporting for nonemployee share based payment. The standard expands the scope of Topic 718, (which currently only includes share-based payments to employees) to include share-based payments issued to nonemployees for goods or services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. The standard is effective for public entities for fiscal years beginning after December 15, 2019 and nonpublic entities for fiscal years beginning after December 15, 2020. Early adoption is permitted but no earlier than a company’s adoption date of Topic 606. The Company is currently evaluating the impact of adopting this new guidance on its financial statements.

In June 2016, the FASB issued

ASU No. 2016-13 (Topic

326), Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments, which replaces the existing incurred loss impairment model with an expected credit loss model and requires a financial asset measured at amortized cost to be presented at the net amount expected to be collected. The guidance will be effective for the Company for fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the effect that

ASU 2016-13 will

have on its consolidated financial statements and related disclosures.

Revenues

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenues

NOTE 2 - REVENUES

The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers, which applies to all contracts with customers. Under Topic 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the entity performs the following five steps:

(i) identify the contract(s) with a customer;

(ii) identify the performance obligations in the contract;

(iii) determine the transaction price;

(iv) allocate the transaction price to the performance obligations in the contract; and

(v) recognize revenue when (or as) the entity satisfies a performance obligation.

At contract inception, once the contract is determined to be within the scope of Topic 606, the Company assesses the goods or services promised within the contract and determines those that are performance obligations and assesses whether each promised good or service is distinct.

Customer option to acquire additional goods or services gives rise to a performance obligation in the contract only if the option provides a material right to the customer that it would not receive without entering into that contract.

In a contract with multiple performance obligations, the Company must develop estimates and assumptions that require judgment to determine the underlying stand-alone selling price for each performance obligation, which determines how the transaction price is allocated among the performance obligations.

The Company evaluates each performance obligation to determine if it can be satisfied at a point in time or over time.

Revenue is recognized when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration the Company expects to be entitled to receive in exchange for those goods or services.

In December 2018, the Company entered into an

evaluation, option and license agreement

(the “Novartis Agreement”) with Novartis International Pharmaceutical Limited (“Novartis”) for which the

ompany is paid for its research and development costs up to $4.3 million.

The Company concluded that there is one distinct performance obligation under the Novartis Agreement: Research and development services,

obligation which is satisfied over time.

Revenue associated with the research and development services in the amount of $1.0 million was recognized in the three months ended March 31, 2020.

The Company concluded that progress towards completion of the research and development performance obligation related to the Novartis Agreement is best measured in an amount proportional to the expenses

rela

tive to

the total estimated expenses. The Company periodically reviews and updates its estimates, when appropriate, which may adjust revenue recognized for the period. The transaction price to be recognized as revenue under the Novartis Agreement consists of the reimbursable research and development costs.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Tax

3 Months Ended

Mar. 31, 2020

Income Tax Disclosure [Abstract]

Tax

NOTE 3 - TAX

Provision for income taxes was $69 and $70 for the three months ended March, 2019 and 2020, respectively. The Company’s effective

tax

rate differs from the U.S. federal statutory income tax rate of 21% primarily due to a full valuation allowance against the Company’s U.S. deferred tax asset in each period presented.

As of March 31, 2019 and 2020, the Company provided a liability for $212 and $461

respectively, for uncertain tax positions related to various income tax matters which was classified as other long-term liabilities. As of March 31, 2019 and 2020, the Company accrued interest related to uncertain tax positions of $11 and $13, respectively. These uncertain tax positions would impact the Company’s effective tax rate, if recognized. The Company does not expect that the amounts of uncertain tax positions will change significantly within the next 12 months.

The Company files U.S. federal, various state and Israeli income tax returns. The associated tax filings remain subject to examination by applicable tax authorities for a certain length of time following the tax year to which those filings relate. In the United States and Israel, the 2017 and subsequent tax years remain subject to examination by the applicable taxing authorities as of March 31, 2020.

- 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.

+ References + Details

Subsequent Events

3 Months Ended

Mar. 31, 2020

Subsequent Events [Abstract]

Subsequent Events

NOTE 4 - SUBSEQUENT EVENTS

S-1

(File

No. 333-236942),

as amended, declared effective by the Commission on May 7, 2020. The following events occurred subsequent to March 31,2020:

•

On May 3, 2020, the board of directors approved a 1-for-2 reverse stock split effective on May 4, 2020. As a result, all values for shares of common stock, options to purchase common stock, option exercise prices and net loss per share were adjusted retroactively for all periods presented in these financial statements. Additionally, the conversion price of each share of the Company’s convertible preferred stock was adjusted to reflect this reverse stock split. In addition, pursuant to the same amendment, the number of authorized shares of common stock was increased to

200,000,000

shares; and

•

On May 12, 2020

all of the Company’s outstanding Series A preferred stock and Series B preferred stock automatically converted into 3,715,222 shares of common stock.

The table below shows, on a pro forma basis, the impact of the Company’s IPO on certain condensed consolidated balance sheet items as if the transaction occurred on May 12, 2020:


	March 31, 2020			Pro forma March 31, 2020
Cash	$	10,055		$	64,621
Deferred offering costs		2,050			—
Redeemable convertible preferred stock		53,373			—
Common stock		51			128
Additional paid-in capital		2,063			112,790
Total Stockholders’ (deficit) equity	$	(45,225	)	$	62,715

Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

General

a. General

b) In 2017, the Company entered into an exclusive worldwide license agreement with respect to AL101 and AL102.

d) The Company has a wholly-owned Israeli subsidiary, Ayala-Oncology Israel Ltd. (the “Subsidiary”), which was incorporated in November 2017.

Initial Public Offering and Related Transaction

S-1

(File

No. 333-236942),

as amended, declared effective by the

U.S. Securities and Exchange Commission (the “Commission”) on May 7, 2020

Basis of presentation

b. Basis of presentation

Net loss per share

c. Net loss per share

The calculation of diluted LPS does not include 3,679,778 shares of Series A Preferred Stock, 3,750,674 and no shares of Series B Preferred Stock and 513,165

and 652,187 options outstanding to purchase common stock as of March 31, 2019 and 2020 respectively.

Newly issued accounting pronouncements

d. Newly issued accounting pronouncements

In February 2016, the FASB issued ASU

2016-02—Leases,

right-of-use

In June 2018, the FASB issued ASU

No. 2018-07

In June 2016, the FASB issued

ASU No. 2016-13 (Topic

ASU 2016-13 will

have on its consolidated financial statements and related disclosures.

Subsequent Events (Tables)

3 Months Ended

Mar. 31, 2020

Subsequent Events [Abstract]

Summary of pro forma basis, the impact of the Company's IPO on certain condensed consolidated balance sheet

The table below shows, on a pro forma basis, the impact of the Company’s IPO on certain condensed consolidated balance sheet items as if the transaction occurred on May 12, 2020:


	March 31, 2020			Pro forma March 31, 2020
Cash	$	10,055		$	64,621
Deferred offering costs		2,050			—
Redeemable convertible preferred stock		53,373			—
Common stock		51			128
Additional paid-in capital		2,063			112,790
Total Stockholders’ (deficit) equity	$	(45,225	)	$	62,715

Significant Accounting Policies - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands			3 Months Ended
	Jun. 04, 2020	May 12, 2020	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Significant Accounting Policies [Line Items]
Accumulated deficit			$ 47,339		$ 40,741
Cash and Cash equivalents and Short Term Deposits			$ 10,100
Common stock par value			$ 0.01		$ 0.01
Subsequent Event [Member]
Significant Accounting Policies [Line Items]
Shares Issued, Price Per Share	$ 15.00	$ 15.00
Proceeds from Issuance Initial Public Offering	$ 52,800	$ 52,800
Share-based Payment Arrangement, Option [Member]
Significant Accounting Policies [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount			652,187	513,165
SeriesA Convertible Preferred Stock [Member]
Significant Accounting Policies [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount			3,679,778	3,679,778
SeriesB Convertible Preferred Stock [Member]
Significant Accounting Policies [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount			0	3,750,674
Over-Allotment Option [Member] \| Subsequent Event [Member]
Significant Accounting Policies [Line Items]
Stock Issued During Period, Shares, New Issues	274,022	274,022
IPO [Member] \| Subsequent Event [Member]
Significant Accounting Policies [Line Items]
Stock Issued During Period, Shares, New Issues		3,940,698

Revenues - Additional Information (Detail) - Novartis International Pharmaceutical Agreement [Member] - Novartis Agreement [Member] - USD ($) $ in Millions	1 Months Ended	3 Months Ended
	Dec. 31, 2019	Mar. 31, 2020
Revenue [Line Items]
Research and development costs reimbursement	$ 4.3
Revenue recognised from performance obligation		$ 1.0

Tax - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Tax Disclosure [Line Items]
Provision for income taxes	$ 70	$ 69
Federal statutory Income tax rate	21.00%	21.00%
Accrued interest uncertain tax positions	$ 13	$ 11
Other Noncurrent Liabilities [Member]
Income Tax Disclosure [Line Items]
Uncertain tax positions	$ 461	$ 212

Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	Jun. 04, 2020	May 12, 2020	May 03, 2020	Mar. 31, 2020	Dec. 31, 2019
Subsequent Event [Line Items]
Common stock shares authorized				20,000,000	20,000,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Price per share	$ 15.00	$ 15.00
Proceeds from ipo net	$ 52.8	$ 52.8
Description of the reverse stock split ratio			On May 3, 2020, the board of directors approved a 1-for-2 reverse stock split effective on May 4, 2020.
Common stock shares authorized			200,000,000
Subsequent Event [Member] \| Common Stock [Member]
Subsequent Event [Line Items]
Number of Shares Issued upon Conversion		3,715,222
Subsequent Event [Member] \| IPO [Member]
Subsequent Event [Line Items]
Stock Issued During Period, Shares, New Issues		3,940,698
Subsequent Event [Member] \| Over-Allotment Option [Member]
Subsequent Event [Line Items]
Stock Issued During Period, Shares, New Issues	274,022	274,022

Subsequent Events - Summary of pro forma basis, the impact of the Company's IPO on certain condensed consolidated balance sheet (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Proforma impact on the financial position due to iniital public offering [Line Items]
Cash	$ 10,055	$ 16,725
Deferred offering costs	2,050	656
Redeemable convertible preferred stock	53,373	53,373
Common stock	51	51
Additional paid-in capital	2,063
Total stockholders' deficit	(45,225)	$ (38,920)	$ (25,185)	$ (21,859)
Pro forma [Member]
Proforma impact on the financial position due to iniital public offering [Line Items]
Cash	64,621
Common stock	128
Additional paid-in capital	112,790
Total stockholders' deficit	$ 62,715

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References + Details