0001558370-20-008841 | 10-Q | XBRL Viewer

Stockholders' Equity - Weighted-Average assumptions (Details) - $ / shares	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Weighted-average assumptions
Expected term	6 years 3 months	6 years 3 months
Expected volatility	84.39%	71.14%
Risk-free interest rate	1.45%	2.55%
Expected dividend yield	0.00%	0.00%
2013 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award
Weighted-average fair value of the options granted	$ 3.19	$ 7.20

Balance Sheets - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 149,844,590	$ 158,201,441
Prepaid expenses and other current assets	3,513,405	4,326,322
Total current assets	153,357,995	162,527,763
Property and equipment, net	708,159	822,920
Prepaid research and development expenses	1,560,607	1,560,607
Deposits	52,320	52,320
Operating lease right-of-use asset	2,673,656	3,006,069
Total assets	158,352,737	167,969,679
Current liabilities:
Accounts payable	1,371,308	1,435,660
Accrued expenses	7,479,793	8,710,790
Operating lease liabilities	850,188	804,126
Total current liabilities	9,701,289	10,950,576
Noncurrent accrued expenses	515,144
Noncurrent operating lease liabilities	2,383,808	2,818,516
Total liabilities	12,600,241	13,769,092
Stockholders' equity:
Preferred stock; $0.001 par value; 5,000,000 shares authorized, no shares issued and outstanding at June 30, 2020 and December 31, 2019
Common stock; $0.001 par value; 100,000,000 shares authorized; 46,714,698 shares issued and outstanding at June 30, 2020; 43,466,933 shares issued and outstanding at December 31, 2019	46,713	43,465
Additional paid-in capital	425,890,066	412,599,772
Accumulated deficit	(280,184,283)	(258,442,650)
Total stockholders' equity	145,752,496	154,200,587
Total liabilities and stockholders' equity	$ 158,352,737	$ 167,969,679

Unaudited Statements of Stockholders' Equity - USD ($)	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Balance at Dec. 31, 2018	$ 43,159	$ 405,972,075	$ (200,550,739)	$ 205,464,495
Balance, shares at Dec. 31, 2018	43,160,751
Exercise of options	$ 33	106,288		106,321
Exercise of options, shares	32,439
Stock-based compensation		2,901,839		2,901,839
Net loss			(29,913,712)	(29,913,712)
Balance at Jun. 30, 2019	$ 43,192	408,980,202	(230,464,451)	178,558,943
Balance, shares at Jun. 30, 2019	43,193,190
Balance at Mar. 31, 2019	$ 43,179	407,385,052	(214,634,636)	192,793,595
Balance, shares at Mar. 31, 2019	43,180,169
Exercise of options	$ 13	75,755		75,768
Exercise of options, shares	13,021
Stock-based compensation		1,519,395		1,519,395
Net loss			(15,829,815)	(15,829,815)
Balance at Jun. 30, 2019	$ 43,192	408,980,202	(230,464,451)	178,558,943
Balance, shares at Jun. 30, 2019	43,193,190
Balance at Dec. 31, 2019	$ 43,465	412,599,772	(258,442,650)	154,200,587
Balance, shares at Dec. 31, 2019	43,466,933
Issuance of common stock, net of issuance costs	$ 3,127	9,571,010		9,574,137
Issuance of common stock, net of issuance costs, shares	3,126,709
Exercise of options	$ 121	135,462		135,583
Exercise of options, shares	121,056
Stock-based compensation		3,583,822		3,583,822
Net loss			(21,741,633)	(21,741,633)
Balance at Jun. 30, 2020	$ 46,713	425,890,066	(280,184,283)	145,752,496
Balance, shares at Jun. 30, 2020	46,714,698
Balance at Mar. 31, 2020	$ 43,581	414,551,776	(266,105,254)	148,490,103
Balance, shares at Mar. 31, 2020	43,582,979
Issuance of common stock, net of issuance costs	$ 3,127	9,571,010		9,574,137
Issuance of common stock, net of issuance costs, shares	3,126,709
Exercise of options	$ 5	5,607		5,612
Exercise of options, shares	5,010
Stock-based compensation		1,761,673		1,761,673
Net loss			(14,079,029)	(14,079,029)
Balance at Jun. 30, 2020	$ 46,713	$ 425,890,066	$ (280,184,283)	$ 145,752,496
Balance, shares at Jun. 30, 2020	46,714,698

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Significant Accounting Policies

6 Months Ended

Jun. 30, 2020

Significant Accounting Policies

Significant Accounting Policies

2. Significant Accounting Policies

Basis of Accounting

The accompanying financial statements were prepared based on the accrual method of accounting in accordance with U.S. generally accepted accounting principles (GAAP).

Unaudited Financial Statements

The accompanying balance sheet as of June 30, 2020, statements of operations and comprehensive loss and stockholders’ equity for the three and six months ended June 30, 2020 and 2019 and statements of cash flows for the six months ended June 30, 2020 and 2019 are unaudited. These unaudited financial statements have been prepared in accordance with the rules and regulations of the United States Securities and Exchange Commission (the SEC) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete annual financial statements. These financial statements should be read in conjunction with the audited financial statements and the accompanying notes for the year ended December 31, 2019 contained in the Company’s Annual Report on Form 10-K filed with the SEC on February 28, 2020. The unaudited interim financial statements have been prepared on the same basis as the annual financial statements and in the opinion of management reflect all adjustments (consisting of normal recurring adjustments) necessary to state fairly the Company’s financial position as of June 30, 2020 and its results of operations and changes in its stockholders’ equity for the three and six months ended June 30, 2020 and 2019 and its cash flows for the six months ended June 30, 2020 and 2019. The December 31, 2019 balance sheet included herein was derived from audited financial statements, but does not include all disclosures including notes required by GAAP for complete annual financial statements. The financial data and other information

disclosed in these notes to the financial statements related to the three and six months ended June 30, 2020 and 2019 are unaudited. Interim results are not necessarily indicative of results for an entire year or for any future period.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Although actual results could differ from those estimates, management does not believe that such differences would be material.

Fair Value Measurements

The Company had no assets or liabilities that were measured using quoted prices for similar assets and liabilities or significant unobservable inputs (Level 2 and Level 3 assets and liabilities, respectively) as of June 30, 2020 and December 31, 2019. The carrying value of cash held in money market funds of $147.8 million and $156.2 million as of June 30, 2020 and December 31, 2019, respectively, is included in cash and cash equivalents and approximates market values based on quoted market prices (Level 1 inputs).

Concentration of Credit Risk

Credit risk represents the risk that the Company would incur a loss if counterparties failed to perform pursuant to the terms of their agreements. Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents. Cash and cash equivalents consist of money market funds with major financial institutions in the United States. These funds may be redeemed upon demand and, therefore, bear minimal risk. The Company does not anticipate any losses on such balances.

Revenue Recognition

The Company applies Accounting Standards Codification, or ASC, Topic 606, Revenue from Contracts with Customers (Topic 606), to all contracts with customers, except for contracts that are within the scope of other standards, such as leases, insurance, collaboration arrangements and financial instruments. Under Topic 606, an entity recognizes revenue when its customer obtains control of promised goods or services in an amount that reflects the consideration which the entity expects to receive in exchange for those goods and 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 the customer(s); (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. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods and services it transfers to the customer. At contract inception, the Company assesses the goods or services promised within each contract that falls under the scope of Topic 606, determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.

The Company enters into licensing agreements which are within the scope of Topic 606, under which it licenses certain of its drug candidates’ rights to third parties. The terms of these arrangements typically include payment of one or more of the following: non-refundable, up-front license fees; development, regulatory and commercial milestone payments; and royalties on net sales of the licensed product, if and when earned. See Note 9 for additional information regarding a license agreement entered into during the six months ended June 30, 2020.

In determining the appropriate amount of revenue to be recognized as it fulfills its obligation under each of its agreements, the Company performs the five steps under Topic 606 described above. As part of the accounting for these arrangements, the Company must develop assumptions that require judgment to determine the stand-alone selling price, which may include forecasted revenues, development timelines, reimbursement of personnel costs, discount rates and probabilities of technical and regulatory success.

Licensing of Intellectual Property: If the license to the Company’s intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenue from non-refundable, up-front fees allocated to the license when the license is transferred to the licensee and the licensee is able to use and benefit from the license. For licenses that are bundled with other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, up-front fees. The Company evaluates the measure of progress each reporting period, and, if necessary, adjusts the measure of performance and related revenue recognition.

Milestone Payments: At the inception of each arrangement that includes development milestone payments, the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal will not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the control of the Company or the licensee, such as regulatory approvals, are not considered probable of being achieved until those approvals are received. The transaction price is then allocated to each performance obligation on a relative stand-alone selling price basis, for which the Company recognizes revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, the Company re-evaluates the probability of achievement of such development milestones and any related constraint and, if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect license, collaboration and other revenues and earnings in their period of adjustment.

Royalties: For arrangements that include sales-based royalties, including milestone payments based on the level of sales, and for which the license is deemed to be the predominant item to which royalties relate, the Company recognizes revenue at the later of (i) when the related sales occur or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). To date, the Company has not recognized any royalty revenue from its license agreements.

Manufacturing and Supply: The promises under the Company’s agreements may include clinical and commercial manufacturing products to be provided by the Company to the counterparty. The services are generally determined to be distinct from the other promises or performance obligations identified in the arrangement. The Company recognizes the transaction price allocated to these services as revenue at a point in time when transfer of control of the related products to the customer occurs.

Research and Development Costs (Including Accruals for Clinical Trial Expenses)

Except for payments made in advance of services, research and development costs are expensed as incurred. Research and development costs primarily consist of employee-related expenses, including salaries and benefits, expenses incurred under agreements with contract research organizations (CROs), investigative sites and consultants that conduct the Company's clinical trials, the cost of acquiring and manufacturing clinical trial materials, including costs incurred under agreements with contract manufacturing organizations (CMOs), and other allocated expenses, stock-based compensation expense, and costs associated with non-clinical activities and regulatory approvals.

Clinical trial expenses are a significant component of research and development expenses, and the Company outsources a significant portion of these clinical trial activities to third parties. Third-party clinical trial expenses include investigator fees, site and patient costs, CRO costs, and costs for central laboratory testing and data management. The accrual for site and patient costs includes inputs such as estimates of patient enrollment, patient cycles incurred, clinical site activations, and other pass-through costs. These inputs are required to be estimated due to a lag in receiving the actual clinical information from third parties. Payments for these activities are based on the terms of the individual arrangements, which may differ from the pattern of costs incurred, and are reflected on the balance sheets as a prepaid asset or accrued expenses. These third-party agreements are generally cancellable, and related costs are recorded as research and development expenses as incurred. Non-refundable advance clinical payments for goods or services that will be used or rendered for future research and development activities are recorded as a prepaid asset and recognized as expense as the related goods are delivered or the related services are performed. When evaluating the adequacy of the accrued expenses, management assessments include: (i) an evaluation by the project manager of the work that has been completed during the period; (ii) measurement of progress prepared internally and/or provided by the third-party service

provider; (iii) analyses of data that justify the progress; and (iv) the Company’s judgment. Significant judgments and estimates may be made in determining the accrued balances at the end of any reporting period. Actual results could differ from the estimates made. The Company’s historical clinical accrual estimates have not been materially different from the actual costs. Clinical trial accruals that are due longer than one year are classified as noncurrent accrued expenses.

Stock-Based Compensation

Stock-based payments are accounted for in accordance with the provisions of ASC 718, Compensation—Stock Compensation. The fair value of stock-based payments is estimated, on the date of grant, using the Black-Scholes-Merton model. The resulting fair value is recognized ratably over the requisite service period, which is generally the vesting period of the option. The Company accounts for forfeitures as they occur and does not make an estimate of expected forfeitures at the time of grant.

The Company has elected to use the Black-Scholes-Merton option pricing model to value any options granted. The Company will reconsider use of the Black-Scholes-Merton model if additional information becomes available in the future that indicates another model would be more appropriate or if grants issued in future periods have characteristics that prevent their value from being reasonably estimated using this model.

A discussion of management’s methodology for developing some of the assumptions used in the valuation model follows:

Expected Dividend Yield—The Company has never declared or paid dividends and has no plans to do so in the foreseeable future.

Expected Volatility—Volatility is a measure of the amount by which a financial variable such as share price has fluctuated (historical volatility) or is expected to fluctuate (expected volatility) during a period. Effective January 1, 2020, the Company bases the expected volatility on the historical volatility of the Company’s publicly traded common stock. Prior to January 1, 2020, the Company utilized the historical volatilities of a peer group (e.g., several public entities of similar size, complexity, and stage of development), along with the Company’s historical volatility since its initial public offering, to determine its expected volatility.

Risk-Free Interest Rate—This is the U.S. Treasury rate for the week of each option grant during the year, having a term that most closely resembles the expected life of the option.

Expected Term—This is a period of time that the options granted are expected to remain unexercised. Options granted have a maximum term of 10 years. The Company estimates the expected life of the option term to be 6.25 years. The Company uses a simplified method to calculate the average expected term.

Net Loss Per Common Share

Basic net loss per common share is determined by dividing net loss by the weighted-average number of common shares outstanding during the period, without consideration of common stock equivalents. Diluted net loss per share is computed by dividing net loss by the weighted-average number of common stock equivalents outstanding for the period. The treasury stock method is used to determine the dilutive effect of the Company’s stock options and restricted stock units.

The following potentially dilutive securities outstanding have been excluded from the computation of diluted weighted-average common shares outstanding, as they would be anti-dilutive:


	Three and Six Months Ended June 30,
	2020	2019
Stock options and restricted stock units	6,429,701	5,073,149

Comprehensive Loss

Comprehensive loss comprises net loss and other changes in equity that are excluded from net loss. For the three and six months ended June 30, 2020 and 2019, the Company’s net loss equaled comprehensive net loss and, accordingly, no additional disclosure is presented.

Recently Issued Accounting Standards

Adopted Accounting Standards

In November 2018, the Financial Accounting Standard Board (FASB) issued Accounting Standards Update (ASU) No. 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606. The Company adopted this update as of January 1, 2020. The amendment clarifies that certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606 when the collaborative arrangement participant is a customer in the context of a unit of account. In those situations, all the guidance in Topic 606 should be applied, including recognition, measurement, presentation and disclosure requirements. The amendment also adds unit-of-account guidance in Topic 808 to align with the guidance in Topic 606 (that is, a distinct good or service) when an entity is assessing whether the collaborative arrangement or a part of the arrangement is within the scope of Topic 606. Lastly, the amendment requires that in a transaction with a collaborative arrangement participant that is not directly related to sales to third parties, presenting the transaction together with revenue recognized under Topic 606 is precluded if the collaborative arrangement participant is not a customer. The adoption of the standard had no effect on the Company’s operating results, cash flows or financial position.

Accounting Standards Not Yet Adopted

With the exception of the new standard discussed above, there have been no new accounting pronouncements that have significance, or potential significance, to the Company’s financial statements.

License and Collaboration Agreements

6 Months Ended

Jun. 30, 2020

License and Collaboration Agreements

License and Collaboration Agreements

9. License and Collaboration Agreements

In January 2020, the Company entered into a collaboration and license agreement (the Agreement) with Apollomics (Hong Kong), Limited (Apollomics) for the development, manufacture and commercialization of products derived from two of the Company’s compounds, GMI-1271 and GMI-1687 (the Products) for therapeutic and prophylactic uses (the Field) in China, Taiwan, Hong Kong and Macau (the Territory). Under the terms of the Agreement, the Company granted Apollomics:

●

an exclusive license, with the right to sublicense, to develop, manufacture and have manufactured, distribute, market, promote, sell, have sold, offer for sale, import, label, package and otherwise the Products in the Field in the Territory; and

●

a non-exclusive license to conduct preclinical research with respect to Products in the Field outside of the Territory for the purposes of developing such Products for use in the Territory.

Additionally, the Company and Apollomics entered into a manufacturing and supply agreement pursuant to which the Company will manufacture and supply the Products at agreed upon prices. Apollomics has the option to begin manufacture of the Products after appropriate material transfer requirements are met. There were no Products delivered to Apollomics during the six months ended June 30, 2020.

The Company evaluated the Agreement under the provisions of ASC 606 and identified two performance obligations under this revenue arrangement: the (i) delivery of functional licenses and (ii) manufacture and supply of the Products. The initial transaction price consists of a $9.0 million non-refundable up-front payment which was allocated to the delivered functional licenses and recognized in full as revenue in the first quarter of 2020 given that the performance obligation was satisfied upon inception. The Agreement contains various forms of variable consideration, including (i) up to $75.0 million in development milestones based on achievement of certain clinical and regulatory events, (ii) up to $105.0 million of sales-based commercial milestones based on achievement of certain annual net sales targets, (iii) sales-

based royalties at specified percentages of net sales ranging from the high single digits to 15%, and (iv) manufacture and supply of clinical and commercial Products. The Company has fully constrained the development milestone consideration using the most likely amount method and will recognize that revenue when it is probable that recognition of revenue related to the milestone will not result in a significant reversal in amounts recognized in future periods, and as such have been excluded from the transaction price. The Company will recognize revenue related to the sales-based commercial and royalty milestones and royalties at the later of (i) when the related sales occur or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied), as they were determined to relate predominantly to the licenses granted to Apollomics and, therefore, have been excluded from the transaction price. Lastly, the Company has determined that the consideration for the manufacturing and supply is all variable and is fully constrained. Variable consideration allocated to manufacturing and supply will be recognized at a point in time when the Product is delivered and when the title to the Product is transferred to the customer pursuant to the agreement. The Company reassesses the transaction price in each reporting period and upon the occurrence of a change in circumstances or final resolution of any particular event.

Significant Accounting Policies (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Share-based Compensation
Expected term	6 years 3 months	6 years 3 months
Level 1
Fair Value Measurements
Carrying value of cash held in money market fund	$ 147.8		$ 156.2
Level 2
Fair Value Measurements
Assets measured at fair value levels 2 or 3	0.0		0.0
Liabilities measured at fair value levels 2 or 3	0.0		0.0
Level 3
Fair Value Measurements
Assets measured at fair value levels 2 or 3	0.0		0.0
Liabilities measured at fair value levels 2 or 3	$ 0.0		$ 0.0
Maximum
Share-based Compensation
Expiration period	10 years

Stockholders Equity (Tables)

6 Months Ended

Jun. 30, 2020

Weighted-Average Fair Value of Options Granted


	Six Months Ended June 30,
	2020	2019
Expected term	6.25 years	6.25 years
Expected volatility	84.39%	71.14%
Risk-free interest rate	1.45%	2.55%
Expected dividend yield	0%	0%

Stock-Based Compensation Expense


	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Research and development expense	$	747,006	$	578,843	$	1,483,037	$	1,086,665
General and administrative expense		1,014,667		940,552		2,100,785		1,815,174
Total stock-based compensation expense	$	1,761,673	$	1,519,395	$	3,583,822	$	2,901,839

2003 Stock Incentive Plan

Company's Stock Option Activity

A summary of the Company’s stock option activity under the 2003 Plan for the six months ended June 30, 2020 is as follows:


				WEIGHTED-	AGGREGATE
		WEIGHTED-		AVERAGE	INTRINSIC
		AVERAGE		REMAINING	VALUE
	OUTSTANDING	EXERCISE		CONTRACTUAL	(IN
	OPTIONS	PRICE		TERM (YEARS)	THOUSANDS)
Outstanding as of December 31, 2019	382,337	$	1.33	1.3
Options exercised	(121,056)		1.12
Options forfeited	—		—
Outstanding, Vested and Exercisable as of June 30, 2020	261,281		1.43	1.0	$	608

2013 Equity Incentive Plan

Company's Stock Option Activity

A summary of the Company’s stock option activity under the 2013 Plan for the six months ended June 30, 2020 is as follows:


				WEIGHTED-	AGGREGATE
		WEIGHTED-		AVERAGE	INTRINSIC
		AVERAGE		REMAINING	VALUE
	OUTSTANDING	EXERCISE		CONTRACTUAL	(IN
	OPTIONS	PRICE		TERM (YEARS)	THOUSANDS)
Outstanding as of December 31, 2019	4,399,606	$	10.43	6.8
Options granted	1,473,100		4.49
Options exercised	—		—
Options forfeited	(57,054)		9.33
Outstanding as of June 30, 2020	5,815,652		8.93	7.1	$	101
Vested or expected to vest as of June 30, 2020	5,815,652		8.93	7.1	$	101
Exercisable as of June 30, 2020	3,318,444		9.69	5.7	$	—

Summary of RSU Activity

The following is a summary of RSU activity under the 2013 Plan for the six months ended June 30, 2020:



		Weighted-Average
	Number of Shares	Grant Date
	Underlying RSUs	Fair Value
Unvested at December 31, 2019	324,550	$	4.53
Granted	—		—
Forfeited	(12,382)		4.53
Vested	—		—
Unvested at June 30, 2020	312,168		4.53

Inducement Plan

Company's Stock Option Activity

A summary of the Company’s stock option activity under the Inducement Plan for the six months ended June 30, 2020 is as follows:


				WEIGHTED-	AGGREGATE
		WEIGHTED-		AVERAGE	INTRINSIC
		AVERAGE		REMAINING	VALUE
	OUTSTANDING	EXERCISE		CONTRACTUAL	(IN
	OPTIONS	PRICE		TERM (YEARS)	THOUSANDS)
Outstanding as of December 31, 2019	—	$	—	—
Options granted	40,600		2.06
Options exercised	—		—
Options forfeited	—		—
Outstanding as of June 30, 2020	40,600		2.06	9.8	$	69
Vested or expected to vest as of June 30, 2020	40,600		2.06	9.8	$	69
Exercisable as of June 30, 2020	—		—	—	$	—

Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2020

Significant Accounting Policies

Potentially dilutive securities outstanding


	Three and Six Months Ended June 30,
	2020	2019
Stock options and restricted stock units	6,429,701	5,073,149

Stockholders' Equity

6 Months Ended

Jun. 30, 2020

Stockholders' Equity

Stockholders' Equity

7. Stockholders’ Equity

At-The-Market Sales Facility

On September 28, 2017, the Company entered into an at-the-market sales agreement (the September 2017 Sales Agreement) with Cowen and Company, LLC to sell up to $100.0 million of the Company’s common stock registered under a shelf registration statement filed with the U.S. Securities and Exchange Commission in September 2017. During the quarter ended June 30, 2020, the Company issued and sold 3,126,709 shares of common stock under the at-the-market sales agreement. The shares were sold at a weighted average price per share of $3.16, for aggregate net proceeds of $9.6 million, after deducting commissions and offering expenses. There were no shares sold under the September 2017 Sales Agreement during the six months ended June 30, 2019. As of June 30, 2020, $70.1 million remained available to be sold under the terms of the September 2017 Sales Agreement. The shelf registration statement under which the shares to be sold under the September 2017 Sales Agreement are registered expires on October 6, 2020.

Subsequent to June 30, 2020, the Company has issued and sold an additional 1,010,033 shares of common stock under the September 2017 Sales Agreement at a weighted average price per share of $4.65, for aggregate net proceeds of $4.6 million, after deducting commissions and offering expenses.

2003 Stock Incentive Plan

The 2003 Stock Incentive Plan (the 2003 Plan) provided for the grant of incentives and nonqualified stock options and restricted stock awards. The exercise price for incentive stock options must be at least equal to the fair value of the common stock on the grant date. Unless otherwise stated in a stock option agreement, 25% of the shares subject to an option grant will vest upon the first anniversary of the vesting start date and thereafter at the rate of one forty-eighth of the option shares per month as of the first day of each month after the first anniversary. Upon termination of employment by reasons other than death, cause, or disability, any vested options shall terminate 60 days after the termination date. Stock options terminate 10 years from the date of grant. The 2003 Plan expired on May 21, 2013.

A summary of the Company’s stock option activity under the 2003 Plan for the six months ended June 30, 2020 is as follows:


				WEIGHTED-	AGGREGATE
		WEIGHTED-		AVERAGE	INTRINSIC
		AVERAGE		REMAINING	VALUE
	OUTSTANDING	EXERCISE		CONTRACTUAL	(IN
	OPTIONS	PRICE		TERM (YEARS)	THOUSANDS)
Outstanding as of December 31, 2019	382,337	$	1.33	1.3
Options exercised	(121,056)		1.12
Options forfeited	—		—
Outstanding, Vested and Exercisable as of June 30, 2020	261,281		1.43	1.0	$	608

As of June 30, 2020, outstanding options under the 2003 Plan were fully expensed and all shares underlying outstanding options were fully vested. Total intrinsic value of the options exercised during the six months ended June 30, 2020 and 2019 was $468,458 and $129,250, respectively, and total cash received for options exercised was $135,583 and $12,320 during the six months ended June 30, 2020 and 2019, respectively.

2013 Equity Incentive Plan

The Company’s board of directors adopted, and its stockholders approved, its 2013 Equity Incentive Plan (the 2013 Plan) effective on January 9, 2014. The 2013 Plan provides for the grant of incentive stock options within the meaning of Section 422 of the Internal Revenue Code to the Company’s employees and its parent and subsidiary corporations’ employees, and for the grant of nonstatutory stock options, restricted stock awards, restricted stock unit awards, stock appreciation rights, performance stock awards and other forms of stock compensation to its employees, including officers, consultants and directors. The 2013 Plan also provides for the grant of performance cash awards to the Company’s employees, consultants and directors. Unless otherwise stated in a stock option agreement, 25% of the shares

subject to an option grant will typically vest upon the first anniversary of the vesting start date, with the balance of the shares vesting in a series of thirty-six successive equal monthly installments as of the first day of each month measured from the first anniversary of the vesting start date. Upon termination of employment by reasons other than death, cause, or disability, any vested options will terminate 90 days after the termination date, unless otherwise set forth in a stock option agreement. Stock options generally terminate 10 years from the date of grant.

Authorized Shares

The maximum number of shares of common stock that initially could be issued under the 2013 Plan was 1,000,000 shares, plus any shares subject to stock options or similar awards granted under the 2003 Plan that expire or terminate without having been exercised in full or are forfeited or repurchased by the Company. The number of shares of common stock reserved for issuance under the 2013 Plan automatically increases on January 1 of each year until January 1, 2023, by 3% of the total number of shares of common stock outstanding on December 31 of the preceding calendar year, or a lesser number of shares as may be determined by the Company’s board of directors. The maximum number of shares that may be issued pursuant to exercise of incentive stock options under the 2013 Plan is 20,000,000 shares. As of January 1, 2020, the number of shares of common stock that may be issued under the 2013 Plan was automatically increased by 1,304,007 shares, representing 3% of the total number of shares of common stock outstanding on December 31, 2019, increasing the number of shares of common stock available for issuance under the 2013 Plan to 6,466,823 shares.

Shares issued under the 2013 Plan may be authorized but unissued or reacquired shares of common stock. Shares subject to stock awards granted under the 2013 Plan that expire or terminate without being exercised in full, or that are paid out in cash rather than in shares, will not reduce the number of shares available for issuance under the 2013 Plan. Additionally, shares issued pursuant to stock awards under the 2013 Plan that the Company repurchases or that are forfeited, as well as shares reacquired by the Company as consideration for the exercise or purchase price of a stock award or to satisfy tax withholding obligations related to a stock award, will become available for future grant under the 2013 Plan.

A summary of the Company’s stock option activity under the 2013 Plan for the six months ended June 30, 2020 is as follows:


				WEIGHTED-	AGGREGATE
		WEIGHTED-		AVERAGE	INTRINSIC
		AVERAGE		REMAINING	VALUE
	OUTSTANDING	EXERCISE		CONTRACTUAL	(IN
	OPTIONS	PRICE		TERM (YEARS)	THOUSANDS)
Outstanding as of December 31, 2019	4,399,606	$	10.43	6.8
Options granted	1,473,100		4.49
Options exercised	—		—
Options forfeited	(57,054)		9.33
Outstanding as of June 30, 2020	5,815,652		8.93	7.1	$	101
Vested or expected to vest as of June 30, 2020	5,815,652		8.93	7.1	$	101
Exercisable as of June 30, 2020	3,318,444		9.69	5.7	$	—

As of June 30, 2020, there was $12,644,390 of total unrecognized compensation expense related to unvested options under the 2013 Plan that will be recognized over a weighted-average period of approximately 2.5 years. There were no options exercised under the 2013 Plan during the six months ended June 30, 2020. Total intrinsic value of the options exercised during the six months ended June 30, 2019 was $97,429 and total cash received for options exercised was $94,001 during the six months ended June 30, 2019. The total fair value of shares underlying options which vested in the six months ended June 30, 2020 and 2019 was $5,014,602 and $4,395,888, respectively.

A restricted stock unit (RSU) is a stock award that entitles the holder to receive shares of the Company’s common stock as the award vests. The fair value of each RSU is based on the closing price of the Company’s common stock on the date of grant. As of June 30, 2020, there was $858,158 of total unrecognized compensation expense associated with outstanding RSU grants that will be recognized over a weighted-average period of approximately 1.2 years.

The following is a summary of RSU activity under the 2013 Plan for the six months ended June 30, 2020:



		Weighted-Average
	Number of Shares	Grant Date
	Underlying RSUs	Fair Value
Unvested at December 31, 2019	324,550	$	4.53
Granted	—		—
Forfeited	(12,382)		4.53
Vested	—		—
Unvested at June 30, 2020	312,168		4.53

Inducement Plan

In January 2020, the Company’s board of directors adopted the GlycoMimetics, Inc. Inducement Plan (the Inducement Plan). The Inducement Plan provides for the grant of nonstatutory stock options, restricted stock awards, restricted stock unit awards, stock appreciation rights and other forms of stock awards to individuals not previously an employee or director of the Company as an inducement for such individuals to join the Company. Unless otherwise stated in an applicable stock option agreement, one-fourth of the shares subject to an option grant under the Inducement Plan will typically vest upon the first anniversary of the vesting start date, with the balance of the shares vesting in a series of thirty-six successive equal monthly installments as of the first day of each month measured from the first anniversary of the vesting start date, subject to the new employee’s continued service with the Company through the applicable vesting dates. Upon termination of employment by reasons other than death, cause or disability, any vested options will terminate 90 days after the termination date, unless otherwise set forth in a stock option agreement. Stock options generally terminate 10 years from the date of grant. There were 500,000 shares of common stock reserved under the Inducement Plan at its adoption date.

A summary of the Company’s stock option activity under the Inducement Plan for the six months ended June 30, 2020 is as follows:


				WEIGHTED-	AGGREGATE
		WEIGHTED-		AVERAGE	INTRINSIC
		AVERAGE		REMAINING	VALUE
	OUTSTANDING	EXERCISE		CONTRACTUAL	(IN
	OPTIONS	PRICE		TERM (YEARS)	THOUSANDS)
Outstanding as of December 31, 2019	—	$	—	—
Options granted	40,600		2.06
Options exercised	—		—
Options forfeited	—		—
Outstanding as of June 30, 2020	40,600		2.06	9.8	$	69
Vested or expected to vest as of June 30, 2020	40,600		2.06	9.8	$	69
Exercisable as of June 30, 2020	—		—	—	$	—

As of June 30, 2020, there was $56,002 of total unrecognized compensation expense related to unvested options under the Inducement Plan that will be recognized over a weighted-average period of approximately 3.8 years. There were no options vested or exercised under the Inducement Plan during the six months ended June 30, 2020.

The weighted-average fair value of the options granted during the six months ended June 30, 2020 and 2019 was $3.19 per share and $7.20 per share, respectively, applying the Black-Scholes-Merton option pricing model utilizing the following weighted-average assumptions:


	Six Months Ended June 30,
	2020	2019
Expected term	6.25 years	6.25 years
Expected volatility	84.39%	71.14%
Risk-free interest rate	1.45%	2.55%
Expected dividend yield	0%	0%

Stock-based compensation expense was classified on the statements of operations as follows for the three and six months ended June 30, 2020 and 2019:


	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Research and development expense	$	747,006	$	578,843	$	1,483,037	$	1,086,665
General and administrative expense		1,014,667		940,552		2,100,785		1,815,174
Total stock-based compensation expense	$	1,761,673	$	1,519,395	$	3,583,822	$	2,901,839

Accrued Expenses (Tables)

6 Months Ended

Jun. 30, 2020

Accrued Expenses

Summary of Accrued Expenses


	June 30,		December 31,
	2020		2019
Accrued research and development expenses	$	4,241,613	$	5,149,697
Accrued bonuses		2,035,080		2,677,288
Accrued consulting and other professional fees		354,465		320,935
Accrued employee benefits		694,718		351,966
Other accrued expenses		153,917		210,904
Accrued expenses	$	7,479,793	$	8,710,790

Income Taxes

6 Months Ended

Jun. 30, 2020

Income Taxes

Income Taxes

8. Income Taxes

The Company has not recorded any tax provision or benefit for the six months ended June 30, 2020 and 2019. The Company has provided a valuation allowance for the full amount of its net deferred tax assets since realization of any future benefit from deductible temporary differences, net operating loss carryforwards and research and development credits is not more-likely-than-not to be realized at June 30, 2020 and December 31, 2019.

Stockholders' Equity - Stock-Based Compensation Expense (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Stock-based compensation expense
Total stock-based compensation expense	$ 1,761,673	$ 1,519,395	$ 3,583,822	$ 2,901,839
Research and Development
Stock-based compensation expense
Total stock-based compensation expense	747,006	578,843	1,483,037	1,086,665
General and Administrative Expense.
Stock-based compensation expense
Total stock-based compensation expense	$ 1,014,667	$ 940,552	$ 2,100,785	$ 1,815,174

Stockholders' Equity - Company's Stock Option Activity (Details) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2020 USD ($) $ / shares shares	Dec. 31, 2019 $ / shares shares
OUTSTANDING OPTIONS
Options granted	40,600
WEIGHTED-AVERAGE EXERCISE PRICE
Options granted \| $ / shares	$ 2.06
2003 Stock Incentive Plan
OUTSTANDING OPTIONS
Outstanding at beginning of period	382,337
Options exercised	(121,056)
Outstanding at end of period	261,281	382,337
WEIGHTED-AVERAGE EXERCISE PRICE
Outstanding at beginning of period \| $ / shares	$ 1.33
Options granted \| $ / shares	1.12
Outstanding at end of period \| $ / shares	$ 1.43	$ 1.33
VESTED AND EXPECTED TO VEST
Weighted-Average Remaining Contractual Term	1 year	1 year 3 months 18 days
Aggregate Intrinsic Value (in thousands) \| $	$ 608
2013 Equity Incentive Plan
OUTSTANDING OPTIONS
Outstanding at beginning of period	4,399,606
Options granted	1,473,100
Options exercised	0
Options forfeited	(57,054)
Outstanding at end of period	5,815,652	4,399,606
WEIGHTED-AVERAGE EXERCISE PRICE
Outstanding at beginning of period \| $ / shares	$ 10.43
Options granted \| $ / shares	4.49
Options forfeited \| $ / shares	9.33
Outstanding at end of period \| $ / shares	$ 8.93	$ 10.43
VESTED AND EXPECTED TO VEST
Outstanding options	5,815,652
Weighted-Average Exercise Price \| $ / shares	$ 8.93
Weighted-Average Remaining Contractual Term	7 years 1 month 6 days
Aggregate Intrinsic Value (in thousands) \| $	$ 101
ADDITIONAL DISCLOSURES
Outstanding options exercisable at end of period	3,318,444
Weighted-average exercise price exercisable at end of period \| $ / shares	$ 9.69
Weighted-average contractual term (years) exercisable at end of period	5 years 8 months 12 days
Weighted-average contractual term outstanding	7 years 1 month 6 days	6 years 9 months 18 days
Aggregate intrinsic value (in thousands) outstanding at end of period \| $	$ 101

License and Collaboration Agreements - Additional Information (Details) - Apollomics, Inc. $ in Millions	1 Months Ended
	Jan. 31, 2020 USD ($)
Research and License Agreements
Up-front payment received	$ 9.0
Milestones based on achievement of certain clinical and regulatory events	75.0
Milestone payment upon achievement of specified net sales thresholds for all licensed products	$ 105.0
Maximum
Research and License Agreements
Tiered percentage of annual net sales	15.00%

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2020	Jul. 30, 2020
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2020
Entity File Number	001-36177
Entity Registrant Name	GlycoMimetics, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	06-1686563
Entity Address, Address Line One	9708 Medical Center Drive
Entity Address, City or Town	Rockville
Entity Address, State or Province	MD
Entity Address, Postal Zip Code	20850
City Area Code	240
Local Phone Number	243-1201
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	GLYC
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		47,724,731
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001253689
Current Fiscal Year End Date	--12-31
Amendment Flag	false

Leases - Maturities of lease liability (Details)	Jun. 30, 2020 USD ($)
Maturities of lease liability due
July 1, 2020 - December 31, 2020	$ 530,979
2021	1,077,420
2022	1,104,356
2023	940,793
Thereafter
Total	3,653,548
Present value adjustment	(419,552)
Present value of lease payments	$ 3,233,996

Property and Equipment (Tables)

6 Months Ended

Jun. 30, 2020

Property and Equipment

Summary of Property and Equipment useful lives

Property and equipment, net consists of the following:


	June 30,		December 31,
	2020		2019
Furniture and fixtures	$	345,712	$	345,712
Laboratory equipment		1,417,952		1,409,526
Office equipment		16,755		11,085
Computer equipment		309,024		302,009
Leasehold improvements		616,133		616,133
Property and equipment		2,705,576		2,684,465
Less accumulated depreciation		(1,997,417)		(1,861,545)
Property and equipment, net	$	708,159	$	822,920

Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2020	Dec. 31, 2019
Balance Sheets
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	46,714,698	43,466,933
Common stock, shares outstanding	46,714,698	43,466,933

Description of the Business

6 Months Ended

Jun. 30, 2020

Description of the Business

Description of the Business

1. Description of the Business

GlycoMimetics, Inc. (the Company), a Delaware corporation headquartered in Rockville, Maryland, was incorporated in April 2003. The Company is a clinical-stage biotechnology company focused on the discovery and development of novel glycomimetic drugs to address unmet medical needs resulting from diseases in which carbohydrate biology plays a key role. Glycomimetics are molecules that mimic the structure of carbohydrates involved in important biological processes. Using its expertise in carbohydrate chemistry and knowledge of carbohydrate biology, the Company is developing a pipeline of proprietary glycomimetics that inhibit disease-related functions of carbohydrates, such as the roles they play in inflammation, cancer and infection.

The Company’s executive personnel have devoted substantially all of their time to date to the planning and organization of the Company, the process of hiring scientists and other personnel, initiating and overseeing research and development programs, including planned and ongoing clinical trials, and securing adequate capital for anticipated growth and operations. The Company has not commercialized any of its drug candidates or commenced commercial operations. The Company is subject to a number of risks similar to those of other companies in similar development stages, including dependence on key individuals, the need to develop commercially viable drugs, the need to successfully compete with other companies, many of whom are larger and better capitalized, and the need to obtain adequate additional financing to fund the development of its drug candidates. The Company has incurred significant operating losses since inception and has relied on its ability to fund its operations through private and public equity financings, and management expects operating losses and negative operating cash flows to continue for the foreseeable future. As the Company continues to incur losses, profitability will be dependent upon the successful development, approval and commercialization of its drug candidates and achieving a level of revenues adequate to support the Company’s cost structure. The Company may never achieve profitability, and unless and until it does, the Company will continue to need to raise additional capital. The Company believes that its currently available funds will be sufficient to fund the Company’s operations through at least 12 months from the date of the filing of this Quarterly Report. Management intends to fund future operations through additional public or private equity or debt offerings and may seek additional capital through arrangements with strategic partners or from other sources.

Stockholders' Equity - Inducement Plan - stock option activity (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2020
OUTSTANDING OPTIONS
Options granted	40,600
WEIGHTED-AVERAGE EXERCISE PRICE
Options granted	$ 2.06
Inducement Plan
OUTSTANDING OPTIONS
Options exercised	0
Outstanding at end of period	40,600
WEIGHTED-AVERAGE EXERCISE PRICE
Outstanding at end of period	$ 2.06
VESTED AND EXPECTED TO VEST
Outstanding options	40,600
Weighted-Average Exercise Price	$ 2.06
Aggregate Intrinsic Value (in thousands)	$ 69
Shares vested	0
Options exercised	0
ADDITIONAL DISCLOSURES
Weighted-average contractual term (years) exercisable at end of period	9 years 9 months 18 days
Weighted-average contractual term outstanding	9 years 9 months 18 days
Aggregate intrinsic value (in thousands) outstanding at end of period	$ 69

Significant Accounting Policies - Net Loss Per Common Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Anti-dilutive securities excluded
Anti-dilutive securities	6,429,701	5,073,149	6,429,701	5,073,149

Stockholders' Equity - Incentive Plans (Details)			3 Months Ended		6 Months Ended
Stockholders' Equity - Incentive Plans (Details)	Jan. 01, 2020 shares	Jan. 09, 2014 installment shares	Jun. 30, 2020 USD ($) shares	Jun. 30, 2019 shares	Jun. 30, 2020 USD ($) shares	Jun. 30, 2019 USD ($) shares	Dec. 31, 2019
Maximum
Incentive plans
Expiration period					10 years
2003 Stock Incentive Plan
Incentive plans
Period from date of termination that any vested options shall expire					60 days
Expiration period					10 years
Intrinsic value of options exercised \| $					$ 468,458	$ 129,250
Cash proceeds from exercise of stock options \| $					$ 135,583	12,320
Options exercised \| shares					121,056
2003 Stock Incentive Plan \| Upon first anniversary of start date
Incentive plans
Percent of shares subject to option grant that will vest					25.00%
2003 Stock Incentive Plan \| Each month after the first anniversary
Incentive plans
Percent of shares subject to option grant that will vest					2.083%
2013 Equity Incentive Plan
Incentive plans
Period from date of termination that any vested options shall expire		90 days
Expiration period		10 years
Unrecognized compensation expense related to unvested options \| $			$ 12,644,390		$ 12,644,390
Period for unrecognized compensation expense related to unvested options yet has not been recognized					2 years 6 months
Intrinsic value of options exercised \| $						97,429
Cash proceeds from exercise of stock options \| $						94,001
Options exercised \| shares					0
Fair value of shares vested \| $					$ 5,014,602	$ 4,395,888
2013 Equity Incentive Plan \| Upon first anniversary of start date
Incentive plans
Percent of shares subject to option grant that will vest		25.00%
2013 Equity Incentive Plan \| Each month after the first anniversary
Incentive plans
Number of monthly installments \| installment		36
Common Stock
Incentive plans
Options exercised \| shares			5,010	13,021	121,056	32,439
Common Stock \| 2013 Equity Incentive Plan
Authorized shares
Common stock authorized under 2013 plan \| shares	6,466,823	1,000,000
Automatic increase in number of shares reserved for issuance as a percentage of the total common stock outstanding at the end of the prior year		3.00%					3.00%
Maximum number of shares that may be issued pursuant to exercise of incentive stock \| shares		20,000,000
Increase in number of shares of common stock \| shares	1,304,007

Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2020

Significant Accounting Policies

Basis of Accounting

The accompanying financial statements were prepared based on the accrual method of accounting in accordance with U.S. generally accepted accounting principles (GAAP).

Unaudited Financial Statements

Use of Estimates

Fair Value Measurements

Concentration of Credit Risk

Revenue Recognition

Research and Development Costs (Including Accruals for Clinical Trial Expenses)

Stock-Based Compensation

A discussion of management’s methodology for developing some of the assumptions used in the valuation model follows:

Expected Dividend Yield—The Company has never declared or paid dividends and has no plans to do so in the foreseeable future.

Risk-Free Interest Rate—This is the U.S. Treasury rate for the week of each option grant during the year, having a term that most closely resembles the expected life of the option.

Net Loss Per Common Share

The following potentially dilutive securities outstanding have been excluded from the computation of diluted weighted-average common shares outstanding, as they would be anti-dilutive:


	Three and Six Months Ended June 30,
	2020	2019
Stock options and restricted stock units	6,429,701	5,073,149

Comprehensive Loss

Recently Issued Accounting Standards

Adopted Accounting Standards

Accounting Standards Not Yet Adopted

With the exception of the new standard discussed above, there have been no new accounting pronouncements that have significance, or potential significance, to the Company’s financial statements.

Prepaid Expenses and Other Current Assets - Summary of Prepaid Expenses and Other Current Assets (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Prepaid Expenses and Other Current Assets
Prepaid research and development expenses	$ 3,105,222	$ 3,838,835
Other prepaid expenses	358,821	301,534
Other receivables	49,362	185,953
Prepaid expenses and other current assets	$ 3,513,405	$ 4,326,322

Risks and Uncertainties

6 Months Ended

Jun. 30, 2020

Risks and Uncertainties

Risks and Uncertainties

10. Risks and Uncertainties

COVID-19

In March 2020, the World Health Organization declared the novel coronavirus disease 2019, or COVID-19, outbreak a pandemic. In order to mitigate the spread of COVID-19, governments have imposed unprecedented restrictions on business operations, travel and gatherings, resulting in a global economic downturn and other adverse economic and societal impacts. The COVID-19 pandemic has also overwhelmed or otherwise led to changes in the operations of many healthcare facilities.

The impact of the COVID-19 pandemic on the Company’s business and financial performance is uncertain and depends on various factors, including the scope and duration of the pandemic, government restrictions and other actions, including relief measures, implemented to address the impact of the pandemic, and resulting impacts on the financial markets and overall economy. The imposition of “lockdown,” “social distancing” and “shelter in place” directives by state and federal governments in the United States as well as governments in other regions of the world in response to the COVID-19 pandemic, including in locations in which our Phase 3 clinical trial of uproleselan is being conducted, resulted in slowed clinical site initiation, patient recruitment and enrollment rates in April 2020. Enrollment rates more recently showed an encouraging upward trend. However, the COVID-19 infection rates continue to rise, especially in the United States, which could negatively effect enrollment going forward. The Company is unable to determine the extent of the impact of the pandemic on its operations and financial condition going forward. These developments are highly uncertain and unpredictable, and may materially adversely affect the Company’s financial position and results of operations. The Company continues to closely monitor the COVID-19 situation and any potential impact to our planned activities.

Leases (Tables)

6 Months Ended

Jun. 30, 2020

Leases

Components of lease expense and related cash flows


	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Operating lease cost	$	231,989	$	232,036	$	463,979	$	464,026
Variable lease cost		144,009		84,723		305,955		176,481
Total operating lease cost	$	375,998	$	316,759	$	769,934	$	640,507

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	260,489	$	255,493	$	520,211	$	508,880

Maturities of lease liabilities due


	Operating Lease
	Obligation
July 1, 2020 - December 31, 2020	$	530,979
2021		1,077,420
2022		1,104,356
2023		940,793
2024		—
Thereafter		—
Total		3,653,548
Present value adjustment		(419,552)
Present value of lease payments	$	3,233,996

Unaudited Statements of Operations and Comprehensive Loss - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Unaudited Statements of Operations and Comprehensive Loss
Revenue			$ 9,000,000
Costs and expenses:
Research and development expense	9,870,813	13,065,359	22,539,073	24,838,025
General and administrative expense	4,234,917	3,750,610	8,674,677	7,111,058
Total costs and expenses	14,105,730	16,815,969	31,213,750	31,949,083
Loss from operations	(14,105,730)	(16,815,969)	(22,213,750)	(31,949,083)
Interest income	26,701	986,154	472,117	2,035,371
Net loss and comprehensive loss	$ (14,079,029)	$ (15,829,815)	$ (21,741,633)	$ (29,913,712)
Basic and diluted net loss per common share (in dollars per share)	$ (0.32)	$ (0.37)	$ (0.50)	$ (0.69)
Basic and diluted weighted-average number of common shares (in shares)	43,801,251	43,183,010	43,688,420	43,174,989

Prepaid Expenses and Other Current Assets (Tables)

6 Months Ended

Jun. 30, 2020

Prepaid Expenses and Other Current Assets

Summary of Prepaid Expenses and Other Current Assets

The following is a summary of the Company’s prepaid expenses and other current assets:


	June 30,		December 31,
	2020		2019
Prepaid research and development expenses	$	3,105,222	$	3,838,835
Other prepaid expenses		358,821		301,534
Other receivables		49,362		185,953
Prepaid expenses and other current assets	$	3,513,405	$	4,326,322

Accrued Expenses - Summary of Accrued Expenses (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Accrued Expenses
Accrued research and development expenses	$ 4,241,613	$ 5,149,697
Accrued bonuses	2,035,080	2,677,288
Accrued consulting and other professional fees	354,465	320,935
Accrued employee benefits	694,718	351,966
Other accrued expenses	153,917	210,904
Accrued expenses	$ 7,479,793	$ 8,710,790

Prepaid Expenses and Other Current Assets

6 Months Ended

Jun. 30, 2020

Prepaid Expenses and Other Current Assets

Prepaid Expenses and Other Current Assets

3. Prepaid Expenses and Other Current Assets

The following is a summary of the Company’s prepaid expenses and other current assets:


	June 30,		December 31,
	2020		2019
Prepaid research and development expenses	$	3,105,222	$	3,838,835
Other prepaid expenses		358,821		301,534
Other receivables		49,362		185,953
Prepaid expenses and other current assets	$	3,513,405	$	4,326,322

Accrued Expenses

6 Months Ended

Jun. 30, 2020

Accrued Expenses

Accrued Expenses

5. Accrued Expenses

The following is a summary of the Company’s accrued expenses:


	June 30,		December 31,
	2020		2019
Accrued research and development expenses	$	4,241,613	$	5,149,697
Accrued bonuses		2,035,080		2,677,288
Accrued consulting and other professional fees		354,465		320,935
Accrued employee benefits		694,718		351,966
Other accrued expenses		153,917		210,904
Accrued expenses	$	7,479,793	$	8,710,790

Leases (Details)	6 Months Ended
Leases (Details)	Jun. 30, 2020 USD ($) lease	Dec. 31, 2019 USD ($)	May 31, 2016 USD ($)
Operating leases
Security Deposit	$ 52,320	$ 52,320
Lessee, Operating Lease, Existence of Option to Extend [true false]	true
Lessee, Operating Lease, Existence of Option to Terminate [true false]	true
Operating Lease, Right-of-Use Asset	$ 2,673,656	$ 3,006,069
Operating Lease, Liability	$ 3,233,996
Incremental borrowing rate	8.00%
Operating Lease, Weighted Average Remaining Lease Term	3 years 3 months 18 days
Number of additional operating leases entered during the period \| lease	0
Rockville Maryland
Operating leases
Security Deposit			$ 52,320

Property and Equipment (Details) - USD ($)	3 Months Ended		6 Months Ended
Property and Equipment (Details) - USD ($)	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Property, Plant and Equipment
Property and equipment	$ 2,705,576		$ 2,705,576		$ 2,684,465
Less accumulated depreciation	(1,997,417)		(1,997,417)		(1,861,545)
Property and equipment, net	708,159		708,159		822,920
Depreciation of property and equipment	67,681	$ 71,191	135,872	$ 141,631
Furniture and Fixtures
Property, Plant and Equipment
Property and equipment	345,712		345,712		345,712
Laboratory Equipment
Property, Plant and Equipment
Property and equipment	1,417,952		1,417,952		1,409,526
Office Equipment
Property, Plant and Equipment
Property and equipment	16,755		16,755		11,085
Computer Equipment
Property, Plant and Equipment
Property and equipment	309,024		309,024		302,009
Leasehold Improvements
Property, Plant and Equipment
Property and equipment	$ 616,133		$ 616,133		$ 616,133

Unaudited Statements of Cash Flows - USD ($)	6 Months Ended
Unaudited Statements of Cash Flows - USD ($)	Jun. 30, 2020	Jun. 30, 2019
Operating activities
Net loss	$ (21,741,633)	$ (29,913,712)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	135,872	141,631
Non-cash lease expense	332,413	302,843
Stock-based compensation expense	3,583,822	2,901,839
Changes in assets and liabilities:
Prepaid expenses and other current assets	812,917	(34,547)
Accounts payable	(70,944)	363,167
Accrued expenses	(1,230,997)	844,026
Noncurrent accrued expenses	515,144
Operating lease liabilities	(388,646)	(347,744)
Net cash used in operating activities	(18,052,052)	(25,742,497)
Investing activities
Purchases of property and equipment	(14,519)	(114,305)
Net cash used in investing activities	(14,519)	(114,305)
Financing activities
Proceeds from issuance of common stock, net of issuance costs	9,574,137
Proceeds from exercise of stock options	135,583	106,321
Net cash provided by financing activities	9,709,720	106,321
Net change in cash and cash equivalents	(8,356,851)	(25,750,481)
Cash and cash equivalents, beginning of period	158,201,441	209,917,595
Cash and cash equivalents, end of period	149,844,590	$ 184,167,114
Non-cash investing and financing activities
Property acquisition costs included in accounts payable	$ 6,592

Income Taxes (Details) - USD ($)	6 Months Ended
Income Taxes (Details) - USD ($)	Jun. 30, 2020	Jun. 30, 2019
Income Taxes
Income tax (benefit) provision	$ 0	$ 0

Stockholders' Equity - Equity Offerings (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended	6 Months Ended
	Jul. 30, 2020	Jun. 30, 2020	Jun. 30, 2020	Jun. 30, 2019	Mar. 31, 2020	Sep. 28, 2017
Common Stock
Equity offerings
Issuance of common stock, net of issuance costs, shares		3,126,709	3,126,709
September 2017 At-The-Market \| Subsequent Event
Equity offerings
Issuance of common stock, net of issuance costs, shares	1,010,033
Weighted average price per share issued	$ 4.65
Aggregate net proceeds from stock sale	$ 4.6
September 2017 At-The-Market \| Common Stock
Equity offerings
Issuance of common stock, net of issuance costs, shares		3,126,709
Weighted average price per share issued		$ 3.16	$ 3.16
Aggregate net proceeds from stock sale		$ 9.6
Common stock available for sale under agreement					$ 70.1
Securities sold during period				0
September 2017 At-The-Market \| Common Stock \| Maximum
Equity offerings
Common stock available for sale under agreement						$ 100.0

Stockholders' Equity - Summary of RSU Activity (Details) - 2013 Equity Incentive Plan - USD ($)		6 Months Ended
	Jan. 09, 2014	Jun. 30, 2020
Restricted Stock Units information
Period for unrecognized compensation expense related to unvested options yet has not been recognized		2 years 6 months
Upon first anniversary of start date
Restricted Stock Units information
Percent of shares subject to option grant that will vest	25.00%
RSU
NUMBER OF SHARES
Unvested at beginning of period		324,550
Forfeited		(12,382)
Unvested at end of period		312,168
WEIGHTED-AVERAGE GRANT DATE FAIR VALUE
Unvested at beginning of period		$ 4.53
Forfeited		4.53
Unvested at end of period		$ 4.53
RSU \| Non-executive employees
Restricted Stock Units information
Unrecognized compensation expense related to unvested service RSUs		$ 858,158
Period for unrecognized compensation expense related to unvested options yet has not been recognized		1 year 2 months 12 days

Property and Equipment

6 Months Ended

Jun. 30, 2020

Property and Equipment

Property and Equipment

4. Property and Equipment

Property and equipment, net consists of the following:


	June 30,		December 31,
	2020		2019
Furniture and fixtures	$	345,712	$	345,712
Laboratory equipment		1,417,952		1,409,526
Office equipment		16,755		11,085
Computer equipment		309,024		302,009
Leasehold improvements		616,133		616,133
Property and equipment		2,705,576		2,684,465
Less accumulated depreciation		(1,997,417)		(1,861,545)
Property and equipment, net	$	708,159	$	822,920

Depreciation expense was $67,681 and $71,191 for the three months ended June 30, 2020 and 2019, respectively, and $135,872 and $141,631 for the six months ended June 30, 2020 and 2019, respectively.

Stockholders' Equity - Inducement Plan (Details) - Inducement Plan	1 Months Ended	6 Months Ended
	Jan. 31, 2020 installment shares	Jun. 30, 2020 USD ($)
Incentive plans
Period from date of termination that any vested options shall expire	90 days
Expiration period	10 years
Unrecognized compensation expense related to unvested options \| $		$ 56,002
Period for unrecognized compensation expense related to unvested options yet has not been recognized		3 years 9 months 18 days
Upon first anniversary of start date
Incentive plans
Vesting percentage	25.00%
Each month after the first anniversary
Incentive plans
Number of monthly installments \| installment	36
Common Stock
Incentive plans
Common stock authorized \| shares	500,000

Leases - Components of lease expense (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Components of lease expense
Operating lease cost	$ 231,989	$ 232,036	$ 463,979	$ 464,026
Variable lease cost	144,009	84,723	305,955	176,481
Total operating lease cost	375,998	316,759	769,934	640,507
Related cash flows
Operating cash flows from operating leases	$ 260,489	$ 255,493	$ 520,211	$ 508,880

Leases

6 Months Ended

Jun. 30, 2020

Leases

Leases

6. Leases

At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the circumstances present. The Company determines a lease exists if the contract conveys the right to control an identified asset for a period of time in exchange for consideration. Control is considered to exist when the lessee has the right to obtain substantially all of the economic benefits from the use of an identified asset as well as direct the right to use of that asset. Leases with a term greater than one year are recognized on the balance sheet as right-of-use assets, lease liabilities and, if applicable, long-term lease liabilities. The Company has elected not to recognize on the balance sheet leases with terms of one year or less on the lease commencement date. If a contract is considered to be a lease, the Company recognizes a lease liability based on the present value of the future lease payments over the expected lease term, with an offsetting entry to recognize a right-of-use asset.

The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes the appropriate incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a term similar to the term of the lease for which the rate is estimated. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or incentives received.

The Company leases office and research space in Rockville, Maryland under an operating lease with a term from June 15, 2015 through October 31, 2023 (the Lease) that is subject to annual rent increases. The Company has the right to sublease or assign all or a portion of the premises, subject to the conditions set forth in the Lease. The Lease may be terminated early by either the landlord or the Company in certain circumstances. In connection with the Lease, the Company received rent abatement as a lease incentive in the initial year of the Lease.

In March 2016, the Company amended the Lease (the Lease Amendment) to lease additional space as of June 1, 2016. In May 2016, the Company also paid a security deposit of $52,320 to be held until the expiration or termination of the Company’s obligations under the Lease. The term of the Lease Amendment for the additional space continues through October 31, 2023, the same date as for the premises originally leased under the Lease, subject to the Company’s renewal option set forth in the Lease. The Company’s one-time option to terminate the Lease effective as of October 31, 2020 also applies to the additional space.

The Company identified and applied the following significant assumptions in recognizing the right-of-use asset and corresponding liability for the Lease and Lease Amendment:

●

Lease term – The lease term includes both the noncancelable period and, when applicable, cancelable option periods where failure to exercise such option would result in an economic penalty. The Company’s renewal option to extend is not reasonably certain of being exercised as of June 30, 2020.

●

Incremental borrowing rate – As the Company’s lease does not provide an implicit rate, the Company used an incremental borrowing rate, or IBR, which is the rate incurred to borrow on a collateralized basis over a term similar to the term of the lease for which the rate is estimated. The Company determined the IBR to be 8.0% based on an estimated rate that considered the Company’s credit risk in the United States for a collateralized borrowing and term similar to the Lease.

As of June 30, 2020, the weighted-average remaining lease term was 3.3 years. There were no additional operating leases entered into during the six months ended June 30, 2020.

The components of lease expense and related cash flows were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Operating lease cost	$	231,989	$	232,036	$	463,979	$	464,026
Variable lease cost		144,009		84,723		305,955		176,481
Total operating lease cost	$	375,998	$	316,759	$	769,934	$	640,507

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	260,489	$	255,493	$	520,211	$	508,880

Maturities of lease liability due under these lease agreements as of June 30, 2020 were as follows:


	Operating Lease
	Obligation
July 1, 2020 - December 31, 2020	$	530,979
2021		1,077,420
2022		1,104,356
2023		940,793
2024		—
Thereafter		—
Total		3,653,548
Present value adjustment		(419,552)
Present value of lease payments	$	3,233,996