0001564590-21-044038 | 10-Q | XBRL Viewer | Eledon Pharmaceuticals INC

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2021	Aug. 09, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Trading Symbol	ELDN
Entity Registrant Name	ELEDON PHARMACEUTICALS, INC.
Entity Central Index Key	0001404281
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		14,306,614
Entity File Number	001-36620
Entity Tax Identification Number	20-1000967
Entity Address, Address Line One	19900 MacArthur Blvd.,
Entity Address, Address Line Two	Suite 550
Entity Address, City or Town	Irvine
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92612
City Area Code	(949)
Local Phone Number	238-8090
Document Quarterly Report	true
Document Transition Report	false
Entity Incorporation, State or Country Code	DE
Title of 12(b) Security	Common Stock, $0.001 par value
Security Exchange Name	NASDAQ
Entity Interactive Data Current	Yes

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 101,133	$ 114,195
Prepaid expenses and other current assets	1,449	1,435
Total current assets	102,582	115,630
Operating lease asset, net	267	138
Goodwill	48,648	48,648
In-process research and development	32,386	32,386
Other assets	422	383
Total assets	184,305	197,185
Current liabilities:
Accounts payable	857	1,366
Current operating lease liability	179	144
Accrued expenses and other liabilities	1,641	973
Total current liabilities	2,677	2,483
Deferred tax liabilities	3,017	4,106
Non-current operating lease liability	90
Total liabilities	5,784	6,589
Commitments and contingencies (Note 5)
Stockholders’ equity:
Common stock, $0.001 par value, 200,000,000 shares authorized at June 30, 2021 and December 31, 2020; 14,306,614 and 15,160,397 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively	14	15
Additional paid-in capital	274,783	270,974
Accumulated deficit	(96,276)	(80,393)
Total stockholders’ equity	178,521	190,596
Total liabilities and stockholders’ equity	184,305	197,185
Series X1 Non-voting Convertible Preferred Stock [Member]
Stockholders’ equity:
Preferred stock, value
Series X Preferred Stock [Member]
Stockholders’ equity:
Preferred stock, value

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Operating expenses
Research and development	$ 4,242	$ 832	$ 9,895	$ 2,480
General and administrative	3,729	1,269	7,081	2,999
Restructuring expense		490		490
Total operating expenses	7,971	2,591	16,976	5,969
Loss from operations	(7,971)	(2,591)	(16,976)	(5,969)
Other income (expense), net	(1)	5	4	35
Warrant inducement expense				(4,829)
Loss before income tax benefit	(7,972)	(2,586)	(16,972)	(10,763)
Income tax benefit	(588)		(1,089)
Net loss and comprehensive loss	$ (7,384)	$ (2,586)	$ (15,883)	$ (10,763)
Net loss per share, basic and diluted	$ (0.50)	$ (2.74)	$ (1.07)	$ (11.31)
Weighted-average common shares outstanding, basic and diluted	14,815,731	943,419	14,823,348	951,352

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Series X1 Preferred Stock [Member]
Beginning Balance at Dec. 31, 2019	$ 9,465	$ 1	$ 67,046	$ (57,582)
Beginning Balance, Shares at Dec. 31, 2019		720,408
Issuance of common stock in connection with exercise of warrants, net of issuance costs	$ 5,191		5,191
Issuance of common stock in connection with exercise of warrants, net of issuance costs, Shares		383,234
Issuance of common stock in connection with conversion of preferred stock, shares	(3,285)	182,500
Issuance of common stock in connection with vesting of restricted stock units, Shares		1,389
Cancellation of common stock in connection with exchange for preferred stock, Shares	3,796	(210,889)
Warrant inducement expense	$ 4,829		4,829
Stock-based compensation	634		634
Net loss and other comprehensive loss	(10,763)			(10,763)
Ending Balance at Jun. 30, 2020	$ 9,356	$ 1	77,700	(68,345)
Ending Balance, Shares at Jun. 30, 2020	511	1,076,642
Beginning Balance at Mar. 31, 2020	$ 11,745	$ 1	77,503	(65,759)
Beginning Balance, Shares at Mar. 31, 2020	3,796	892,753
Issuance of common stock in connection with conversion of preferred stock, shares	(3,285)	182,500
Issuance of common stock in connection with vesting of restricted stock units, Shares		1,389
Stock-based compensation	$ 197		197
Net loss and other comprehensive loss	(2,586)			(2,586)
Ending Balance at Jun. 30, 2020	$ 9,356	$ 1	77,700	(68,345)
Ending Balance, Shares at Jun. 30, 2020	511	1,076,642
Beginning Balance at Dec. 31, 2020	$ 190,596	$ 15	270,974	(80,393)
Temporary Equity, Beginning Balance, Shares at Dec. 31, 2020					108,070
Beginning Balance, Shares at Dec. 31, 2020		15,160,397
Cancellation of common stock in connection with exchange for preferred stock, Shares	6,204	(344,666)
Cancellation of common stock in connection with exchange for warrants		$ (1)	1
Cancellation of common stock in connection with exchange for warrants, Shares		(509,117)
Stock-based compensation	$ 3,808		3,808
Net loss and other comprehensive loss	(15,883)			(15,883)
Ending Balance at Jun. 30, 2021	$ 178,521	$ 14	274,783	(96,276)
Temporary Equity, Ending Balance, Shares at Jun. 30, 2021					108,070
Ending Balance, Shares at Jun. 30, 2021	6,204	14,306,614
Beginning Balance at Mar. 31, 2021	$ 183,871	$ 14	272,749	(88,892)
Temporary Equity, Beginning Balance, Shares at Mar. 31, 2021					108,070
Beginning Balance, Shares at Mar. 31, 2021	6,204	14,306,614
Stock-based compensation	$ 2,034		2,034
Net loss and other comprehensive loss	(7,384)			(7,384)
Ending Balance at Jun. 30, 2021	$ 178,521	$ 14	$ 274,783	$ (96,276)
Temporary Equity, Ending Balance, Shares at Jun. 30, 2021					108,070
Ending Balance, Shares at Jun. 30, 2021	6,204	14,306,614

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Operating activities
Net loss	$ (15,883)	$ (10,763)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		4
Amortization of operating lease asset	90	88
Warrant inducement expense		4,829
Stock-based compensation	3,808	634
Deferred tax liabilities	(1,089)
Changes in operating assets and liabilities:
Prepaid expenses and other assets	(53)	311
Accounts payable and accrued expenses	609	(233)
Operating lease liability	(94)	(88)
Net cash used in operating activities	(12,612)	(5,218)
Financing activities
Proceeds from exercise of warrants, net		5,191
Offering costs in connection with PIPE transaction	(450)
Net cash (used in) provided by financing activities	(450)	5,191
Net change in cash and cash equivalents	(13,062)	(27)
Cash and cash equivalents at beginning of period	114,195	8,791
Cash and cash equivalents at end of period	101,133	$ 8,764
Supplemental disclosure of non-cash investing and financing activities
Common stock exchanged for warrants	1
Increase in operating lease asset and liability due to lease modification	$ 219

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and Article 8 of Regulation S-X requirements as set forth by the Securities and Exchange Commission (“SEC”) for interim financial information and reflect all adjustments and disclosures, which are, in the opinion of management, of a normal and recurring nature, and considered necessary for a fair presentation of the financial information contained herein. Pursuant to these rules and regulations, the unaudited condensed consolidated financial statements do not include all information and notes necessary for a complete presentation of results of operations and comprehensive loss, financial position, and cash flows in conformity with GAAP.

The accompanying unaudited condensed consolidated financial statements and notes should be read in conjunction with the audited financial statements and accompanying notes of Eledon for the year ended December 31, 2020 included in the Annual Report on Form 10-K filed by the Company with the SEC on March 31, 2021. The results of operations and comprehensive loss for the three and six months ended June 30, 2021 are not necessarily indicative of results expected for the full fiscal year or any other future period.

Principles of Consolidation

Eledon, a Delaware corporation, owns 100% of the issued and outstanding common stock or other ownership interest in Anelixis Therapeutics, LLC, a Delaware corporation, and Otic Pharma, Ltd., a private limited company organized under the laws of the State of Israel (“Otic”). Otic owns 100% of the issued and outstanding common stock or other ownership interest in its U.S. subsidiary, Otic Pharma, Inc.

The functional currency of the Company’s foreign subsidiary is the U.S. Dollar; however, certain expenses, assets and liabilities are transacted at the local currency. These transactions are translated from the local currency into U.S. Dollars at exchange rates during or at the end of the reporting period. The activities of the Company’s foreign subsidiary are not significant to the condensed consolidated financial statements.

All significant intercompany accounts and transactions among the entities have been eliminated from the condensed consolidated financial statements.

Liquidity and Financial Condition

The Company has experienced recurring net losses and negative cash flows from operating activities since its inception. The Company recorded a net loss of $7.4 million and $15.9 million for the three and six months ended June 30, 2021, respectively. As of June 30, 2021, the Company had cash and cash equivalents of $101.1 million, working capital of $99.9 million and an accumulated deficit of $96.3 million. Due to continuing research and development activities, the Company expects to continue to incur net losses into the foreseeable future. In order to continue these activities, the Company will need to raise additional funds through public or private debt and equity financings or strategic collaboration and licensing arrangements. The Company’s ability to raise additional capital in the equity and debt markets is dependent on a number of factors, including, but not limited to, the market demand for the Company’s common stock, which itself is subject to a number of development and business risks and uncertainties, as well as the uncertainty that the Company would be able to raise such additional capital at a price or on terms that are favorable to the Company. If the Company issues equity or convertible debt securities to raise additional funding, its existing stockholders may experience dilution, it may incur significant financing costs, and the new equity or convertible debt securities may have rights, preferences and privileges senior to those of its existing stockholders. If the Company issues debt securities to raise additional funding, it would incur additional debt service obligations, it could become subject to additional restrictions limiting its ability to operate its business, and it may be required to further encumber its assets.

At the time of issuance of the condensed consolidated financial statements for the three and six months ended June 30, 2021, the Company’s management performed an analysis and concluded that the Company had sufficient cash resources to meet its anticipated cash needs through at least the next 12 months from the date of issuance of the accompanying condensed consolidated financial statements.

Use of Estimates

The preparation of the Company’s condensed consolidated financial statements in conformity with GAAP requires management to make informed estimates and assumptions that affect the reported amounts of assets, liabilities and expenses and the disclosure of contingent assets and liabilities in the Company’s unaudited condensed consolidated financial statements and accompanying notes. The most significant estimates in the Company’s consolidated financial statements relate to stock-based transactions, accruals for liabilities, fair value of assets acquired and liabilities assumed in a business combination, impairment of long lived assets, including goodwill, and other matters that affect the condensed consolidated financial statements and related disclosures. Actual results could differ materially from those estimates under different assumptions or conditions and the differences may be material to the condensed consolidated financial statements.

Cash and Cash Equivalents

Cash represents cash deposits held at financial institutions. The Company considers all liquid investments purchased with an original maturity of three months or less and that can be liquidated without prior notice or penalty to be cash equivalents. Cash equivalents are held for the purpose of meeting short-term liquidity requirements, rather than for investment purposes. The Company had $9.2 million of cash equivalents at June 30, 2021 and December 31, 2020.

Concentration of Credit Risk and Other Risks and Uncertainties

As of June 30, 2021 and December 31, 2020, all of the Company’s long-lived assets were located in the United States.

Financial instruments that are subject to concentration of credit risk consist primarily of cash equivalents. The Company’s policy is to invest cash in institutional money market funds to limit the amount of credit exposure. At times, the Company maintains cash equivalents in short‑term money market funds and it has not experienced any losses on its cash equivalents.

The Company’s products will require approval from the U.S. Food and Drug Administration (“FDA”) and foreign regulatory agencies before commercial sales can commence. There can be no assurance that the Company’s products will receive any of these required approvals. The denial or delay of such approvals may impact the Company’s business in the future. In addition, after approval by the FDA, there is still an ongoing risk of adverse events that did not appear during the product approval process.

The Company is subject to risks common to companies in the pharmaceutical industry, including, but not limited to, new technological innovations, clinical development risk, establishment of appropriate commercial partnerships, protection

of proprietary technology, compliance with government and environmental regulations, uncertainty of market acceptance of products, product liability, the volatility of its stock price and the need to obtain additional financing.

Our facilities and equipment, including those of our suppliers and vendors, may be affected by natural or man-made disasters. Our administrative office is based in Irvine, California and we manage all our research and development activities through third parties that are located throughout the world. We have taken precautions to safeguard our facilities, equipment and systems, including insurance, health and safety protocols, and off-site storage of computer data. However, our facilities and systems, as well as those of our third-party suppliers and vendors, may be vulnerable to earthquakes, fire, storm, health emergencies, including the ongoing COVID-19 pandemic, power loss, telecommunications failures, physical and software break-ins, software viruses and similar events which could cause substantial delays in our operations, damage or destroy our equipment or inventory, and cause us to incur additional expenses and delay research and development activities. In addition, the insurance coverage we maintain may not be adequate to cover our losses in any circumstance and may not continue to be available to use on acceptable terms, or at all.

Reportable Segments

Operating segments under GAAP are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the Chief Operating Decision Maker (“CODM”), or decision-making group, in deciding how to allocate resources and in assessing performance. The CODM is the Company’s Chief Executive Officer and the Company has determined that it operates in one business segment, which is the development of products for therapeutic medicines selectively targeting critical pathways associated with the underlying molecular pathogenesis for patients with severe inflammation and autoimmune diseases.

Research and Development Expenses

Research and development expenses include personnel and facility-related expenses, outside contracted services including clinical trial costs, manufacturing and process development costs, research costs and other consulting services and non-cash stock-based compensation. Research and development costs are expensed as incurred. Amounts due under contracts with third parties may be either fixed fee or fee for service, and may include upfront payments, monthly payments and payments upon the completion of milestones or receipt of deliverables. Non-refundable advance payments under agreements are capitalized and expensed as the related goods are delivered or services are performed.

The Company contracts with third parties to perform various clinical trial activities in the on-going development of potential products. The financial terms of these agreements are subject to negotiation, vary from contract to contract and may result in uneven payment flows to its vendors. Payments under the contracts depend on factors such as the achievement of certain events, successful enrollment of patients, and completion of portions of the clinical trial or similar conditions. The Company’s accrual for clinical trials is based on estimates of the services received and efforts expended pursuant to contracts with clinical trial centers and clinical research organizations. These contracts may be terminated by the Company upon written notice and the Company is generally only liable for actual effort expended by the organizations to the date of termination, although in certain instances the Company may be further responsible for termination fees and penalties, as well as reasonable shutdown costs. The Company estimates its research and development expenses and the related accrual as of each balance sheet date based on the facts and circumstances known to the Company at that time. There have been no material adjustments to the Company’s prior‑period accrued estimates for clinical trial activities through June 30, 2021.

Net Loss Per Share

Basic net loss per common share is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares and potentially dilutive securities outstanding for the period determined using the treasury-stock and if-converted methods. For purposes of the diluted net loss per share calculation, preferred stock, convertible notes and accrued interest, stock options, warrants and restricted stock units are considered to be potentially dilutive securities and are excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive. Therefore, basic and diluted net loss per share was the same for the periods presented due to the Company’s net loss position. Basic weighted average shares outstanding for the three and six months ended June 30, 2021 include 509,117 shares underlying warrants to purchase common shares. As the shares underlying these warrants can be issued for little consideration (an exercise price per share equal to $0.001 per share), these shares are deemed to be issued for purposes of basic earnings per share.

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2021			2020			2021			2020
	(In thousands, except share and per share data)
Net loss used in the calculation of basic and diluted loss per share	$	(7,384	)	$	(2,586	)	$	(15,883	)	$	(10,763	)
Net loss per share, basic and diluted	$	(0.50	)	$	(2.74	)	$	(1.07	)	$	(11.31	)
Weighted-average number of common shares, basic and diluted		14,815,731			943,419			14,823,348			951,352

The computation of diluted earnings per share excludes stock options, warrants, and restricted stock units that are anti-dilutive. As of June 30, 2021 and 2020, common share equivalents of 5,089,938 shares and 457,442 shares were anti-dilutive, respectively.

Stock-based Compensation

The Company recognizes compensation expense for all stock-based awards based on the grant-date estimated fair value.

The fair value of stock options is determined using the Black-Scholes option pricing model, using assumptions that are subjective and require significant judgment and estimation by management. The risk-free rate assumption was based on observed yields from governmental zero-coupon bonds with an equivalent term. The expected volatility assumption was based on historical volatilities of a group of comparable industry companies whose share prices are publicly available. The peer group was developed based on companies in the pharmaceutical industry. The expected term of stock options represents the weighted-average period that the stock options are expected to be outstanding. Because the Company does not have historical exercise behavior, it determined the expected life assumption using the simplified method for options granted to employees, which is an average of the options ordinary vesting period and the contractual term. For stock options granted to the board of directors, the Company determined the expected life assumption using the simplified method as the starting point with an average period of twelve (12) months added to take into account for the extended range of time of 12 to 18 months vested stock options granted to board of directors may be exercised upon termination. The expected dividend assumption was based on the Company’s history and expectation of dividend payouts. The Company has not paid and does not expect to pay dividends at any time in the foreseeable future. The Company recognizes forfeitures on an actual basis and as such did not estimate forfeitures to calculate stock-based compensation.

Restricted Stock Units (“RSU”) and Performance-Based Restricted Stock Units (“PRSU”) are measured and recognized based on the quoted market price of our common stock on the date of grant.

In March 2020, the Board of Directors approved an increase of 28,816 shares issuable under the 2014 Stock Incentive Plan (the “2014 Plan”) and 7,204 shares issuable under the 2014 Employee Stock Purchase Plan (the “ESPP”).

On December 18, 2020, the Company held the Special Meeting, whereby the Company’s stockholders approved the 2020 Long Term Incentive Plan (the “2020 Plan”). The aggregate number of shares of stock available for issuance under the 2020 Plan will initially be 4,860,000 shares of Common Stock, which represents approximately 15% of the total issued and outstanding shares of the Company’s common stock as of the record date of the Special Meeting (calculated on an as-converted basis and without regard to the potential application of beneficial ownership conversion limitations on the Preferred Stock) and may be increased by the number of shares under the 2014 Plan that expire, terminate or are otherwise surrendered, cancelled, forfeited or repurchased by the Company. Based on projected utilization rates, the Board of Directors currently intends that the initial shares under the 2020 Plan will be sufficient to fund the Company’s equity compensation needs for approximately 3 years.

The 2014 Plan was closed to new grants following the approval of the 2020 plan, and therefore, there were no longer any shares reserved for issuance under the 2014 Plan as of December 31, 2020. The number of shares reserved for issuance under the 2020 Plan and ESPP was 4,135,044 and 24,077 shares, respectively, as of June 30, 2021.

Reclassifications

Certain reclassifications of prior period amounts have been made to conform to the current period presentation.

Recently Adopted Accounting Pronouncements

No new accounting pronouncement issued or effective during the fiscal period had or is expected to have a material impact on the Company’s condensed consolidated financial statements or disclosures.

Commitments and Contingencies

6 Months Ended

Jun. 30, 2021

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 5. Commitments and Contingencies

Operating Leases

The Company leases office space under various operating leases. Total rental expense for all operating leases in the accompanying condensed consolidated statements of operations and comprehensive loss was $63,000 and $47,000 for the three months ended June 30, 2021 and 2020, respectively, and $126,000 and $93,000 for the six months ended June 30, 2021 and 2020, respectively.

The Company has an operating lease for 5,197 square feet of office space in Irvine, California, which was set to expire on September 30, 2021. On May 3, 2021, the Company extended the term of the lease through December 31, 2022 by amending the office lease effective October 1, 2021. Additionally, the Company had operating leases for four serviced office spaces in Burlington, Massachusetts that expired on June 30, 2021, which have been converted to monthly leases. The Burlington, Massachusetts office leases are considered short-term leases and are not recorded on the condensed consolidated balance sheet.

The Company determines if a contract contains a lease at inception. Our office leases have a remaining term ranging from one month to eighteen months and do not include options to extend the leases for additional periods.

Operating lease assets and liabilities are recognized at the lease commencement date. Operating lease liabilities represent the present value of lease payments not yet paid. Operating lease assets represent our right to use an underlying asset and are based upon the operating lease liabilities as adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives, and impairment of operating lease assets. To determine the present value of lease payments not yet paid, we estimate incremental secured borrowing rates corresponding to the maturities of the leases. As we have no outstanding debt nor committed credit facilities, secured or otherwise, we estimate this rate based on prevailing financial market conditions, comparable company and credit analysis, and management’s judgment.

Our Irvine lease contains rent escalations over the lease term. We recognize expense for these leases on a straight-line basis over the lease term. Additionally, tenant incentives used to fund leasehold improvements are recognized when earned and reduce our right-of-use asset related to the lease. These are amortized through the right-of-use asset as reductions of expense over the lease term. Our lease agreement does not contain any material residual value guarantees or material restrictive covenants.

While we do not currently have any lease agreement with lease and non-lease components, we elected to account for lease and non-lease components as separate components.

We have elected the short-term lease recognition exemption for all applicable classes of underlying assets. Short-term disclosures include only those leases with a term greater than one month and 12 months or less, and expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less, that do not include an option to purchase the underlying asset that we are reasonably certain to exercise, are not recorded on the condensed consolidated balance sheet.

The components of lease expense were as follows:

	Six Months Ended June 30, 2021
Operating lease cost^(a)	$	98
^(a)Includes variable operating lease expenses, which are immaterial

Other information related to leases was as follows (in thousands, except lease term and discount rate):

	Six Months Ended June 30, 2021
Supplemental Cash Flows Information
Cash paid for amounts included in the measurement of lease liability:
Operating cash flows from operating lease	$	97
Remaining lease term
Operating lease	1.5
Discount rate
Operating lease		3.18	%

Future payments under noncancelable operating leases having initial or remaining terms of one year or more are as follows for the remaining fiscal year and thereafter (in thousands):

Years ending

2021 (remainder of)	$	94
2022		181
Total minimum lease payments		275
Less imputed interest		(6	)
Present value of lease liabilities		269
Less current portion		(179	)
	$	90

Grants and Licenses

ALS Therapy Development Foundation, Inc. License Agreement

In May 2015, Anelixis executed a License Agreement (the “Agreement”), which is an exclusive patent rights agreement with ALS Therapy Development Foundation, Inc. (“ALSTDI”) for certain patents and “know-how” of ALSTDI. This agreement continues until the licensee terminates the agreement with ninety days written notice. The Agreement requires license fees payable to ALSTDI, subject to the achievement of certain milestones and other conditions.

The first and second milestones of the Agreement are the dosing of the first subjects in a first toxicity study in non-human primates and the dosing of the first patient in a Phase I Clinical Trial, respectively. Both of these milestones were achieved as of December 31, 2018 and 2017. The fee due for the achievement of these milestones was $1,000,000 each. During 2018 and 2017, Anelixis issued $1,000,000 worth of its common stock in lieu of making a cash payment. There were no milestones achieved during the six months ended June 30, 2021 and the year ended December 31, 2020.

The Agreement was amended and restated in February 2020, and a first amendment to the restated license agreement was executed in September 2020. As amended in September 2020, the remaining milestone payments for a first licensed product total $6.0 million. In the event that the Company develops a second licensed product, the Company is obligated to pay up to $2.5 million in additional milestone payments.

In addition to the milestone payments, the Company is required to pay ALSTDI an amended annual license maintenance fee of $100,000 beginning on the earlier of January 1, 2022, the Company’s first sublicense, or change in control, as defined in the Agreement.

Furthermore, the Company shall pay ALSTDI fees based on reaching certain levels of annual net sales of any product produced with the patent rights. A royalty in the low single digits will be due on aggregate net sales. Upon the first calendar year of reaching $500 million in aggregate net sales, the Company shall pay ALS TDI a one-time milestone payment of $15,000,000. Upon the first calendar year of reaching $1 billion in aggregate net sales, the Company is obligated to pay ALSTDI a one-time milestone payment of $30,000,000.

Israeli Innovation Authority Grant

From 2012 through 2015, the Company received grants in the amount of approximately $537,000 from the Israeli Innovation Authority (previously the Office of Chief Scientist) of the Israeli Ministry of Economy and Industry designated for investments in research and development. The grants are linked to the U.S. Dollar and bear annual interest of LIBOR. The grants are to be repaid out of royalties from sales of the products developed by the Company from its investments in research and development. Because the Company has not yet earned revenues related to these investments and cannot estimate potential royalties, no liabilities related to these grants have been recorded as of each period presented. Repayment of the grant is contingent upon the successful completion of the Company’s research and development programs and generating sales. The Company has no obligation to repay these grants, if the research and development program fails, is unsuccessful or aborted or if no sales are generated. The Company has not yet generated sales as of June 30, 2021; therefore, no liability was recorded for the repayment in the accompanying condensed consolidated financial statements.

Legal Matters

The Company may be involved in various lawsuits and claims arising in the ordinary course of business, including actions with respect to intellectual property, employment, and contractual matters. In connection with these matters, the Company assesses, on a regular basis, the probability and range of possible loss based on the developments in these matters. A liability is recorded in the financial statements if it is believed to be probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Because litigation is inherently unpredictable and unfavorable results could occur, assessing contingencies is highly subjective and requires judgments about future events. The Company regularly reviews outstanding legal matters to determine the adequacy of the liabilities accrued and related disclosures. The amount of ultimate loss may differ from these estimates. Each matter presents its own unique circumstances, and prior litigation does not necessarily provide a reliable basis on which to predict the outcome, or range of outcomes, in any individual proceeding. Because of the uncertainties related to the occurrence, amount, and range of loss on any pending litigation or claim, the Company does not consider a liability probable and is currently unable to predict their ultimate outcome, and, with respect to any pending litigation or claim where no liability has been accrued, to make a meaningful estimate of the reasonably possible loss or range of loss that could result from an unfavorable outcome. In the event that opposing litigants in outstanding litigation proceedings or claims ultimately succeed at trial and any subsequent appeals on their claims, any potential loss or charges in excess of any established accruals, individually or in the aggregate, could have a material adverse effect on the Company’s business, financial condition, results of operations, and/or cash flows in the period in which the unfavorable outcome occurs or becomes probable, and potentially in future periods.

Legal Proceedings

We are not currently a party to any material legal proceedings. We may, however, in the ordinary course of business face various claims brought by third parties or government regulators and we may, from time to time, make claims or take legal actions to assert our rights, including claims relating to our directors, officers, stockholders, intellectual property rights, employment matters and the safety or efficacy of our products.

Indemnification

In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnification. The Company’s exposure under these agreements is unknown because it involves future claims that may be made against the Company but have not yet been made. To date, the Company has not paid any claims or been required to defend any action related to its indemnification obligations. However, the Company may record charges in the future because of these indemnification obligations. No amounts associated with such indemnifications have been recorded to date.

Contingencies

From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of business activities. The Company accrues a liability for such matters when it is probable that future expenditures will be made, and such expenditures can be reasonably estimated. There have been no contingent liabilities requiring accrual at June 30, 2021.

Stockholders' Equity

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

Stockholders' Equity

Note 6. Stockholders’ Equity

Equity Distribution Agreement

On March 31, 2021, the Company filed a prospectus and prospectus supplement (the “2021 Prospectus”) under which the Company may offer and sell, from time to time, pursuant to an equity distribution agreement with Jeffries LLC, up to $75.0 million in shares of its common stock. During the six months ended June 30, 2021, no shares were sold under the 2021 Prospectus.

Common Stock Warrants

As of June 30, 2021, a total of 846,939 warrants were exercisable into common stock. The shares of common stock underlying the warrants are registered for offer and sale under the Securities Act of 1933, as amended (the “Securities Act”), pursuant to the Company’s effective registration statements on Form S-1.

The following table shows the warrant activity:

	Rollforward of Warrant Activity
	Registered direct warrants, placement agent		Private placement warrants		Private placement warrants, placement agent		Warrants exchanged for common stock		Total
Balance as of December 31, 2020		9,581		319,064		9,177		—		337,822
Issued		—		—		—		509,117		509,117
Exercised		—		—		—		—		—
Cancelled/Expired		—		—		—		—		—
Balance as of June 30, 2021		9,581		319,064		9,177		509,117		846,939

Preferred Stock Warrants

As of June 30, 2021, 55,853.875 warrants were exercisable into Series X¹ Preferred Stock. Each share of Series X¹ Preferred Stock is convertible into approximately 55.5556 shares of common stock.

The following table shows the warrant activity:

	Rollforward of Warrant Activity
		Warrants assumed and replaced in acquisition		Total
Balance as of December 31, 2020			55,583.875		55,583.875
Assumed and replaced			—		—
Exercised			—		—
Cancelled/Expired			—		—
Balance as of June 30, 2021			55,583.875		55,583.875

Exchange Agreements

On December 31, 2020, the Company entered into an exchange agreement (the “Series X Exchange Agreement”) with Biotechnology Value Fund, L.P., Biotechnology Value Fund II, L.P., Biotechnology Value Trading Fund OS, L.P. , MSI BVF SPV, L.L.C. (collectively, the “BVF Exchanging Stockholders”) and Cormorant Global Healthcare Master Fund, LP (together with the BVF Exchanging Stockholders, the “Series X Exchanging Stockholders”), pursuant to which the Series X Exchanging Stockholders exchanged (the “Series X Exchange”) 344,666 shares of the Company’s common stock for 6,203.98 shares of Series X Convertible Preferred Stock.

In addition, on December 31, 2020 the Company entered into an exchange agreement (the “Warrant Exchange Agreement,” and together with the Series X Exchange Agreement, the “Exchange Agreements”) with the BVF Exchanging Stockholders, pursuant to which the BVF Exchanging Stockholders exchanged (the “Warrant Exchange,” and together with the Series X Exchange, “the Exchanges”) 509,117 shares of the Common Stock for one or more pre-funded warrants to purchase an aggregate of 509,117 shares of the Common Stock at a nominal exercise price (the “Warrants”).

The Company recorded the shares of Series X Convertible Preferred Stock and Warrants issuable as preferred stock and warrant subscriptions at December 31, 2020 since the physical settlement of the Exchanges was made on January 5, 2021, whereby the transfer agent recorded the exchange of common stock for the issuance of preferred stock and warrants.

Following the Exchanges, the Company had 6,203.98 shares of Series X Preferred Stock outstanding, which are convertible into 344,663 shares of Common Stock (after rounding for fractional shares).

As of June 30, 2021, a total of 509,117 warrants were available for exercise. The shares of common stock underlying the registered direct placement agent warrants are registered for offer and sale under the Securities Act, pursuant to the Company’s effective registration statements on Form S-1.

Stock-Based Compensation

Total stock-based compensation expense was recognized in our condensed consolidated statements of operations and comprehensive loss as follows (in thousands):

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2021		2020		2021		2020
Research and development	$	785	$	49	$	1,470	$	203
General and administrative		1,249		148		2,338		431
Total stock-based compensation	$	2,034	$	197	$	3,808	$	634

Business Acquisition

6 Months Ended

Jun. 30, 2021

Business Combinations [Abstract]

Business Acquisition

Note 7. Business Acquisition

On September 14, 2020, the Company acquired Anelixis pursuant to that certain Agreement and Plan of Merger, dated September 14, 2020 (the “Merger Agreement”), by and among Eledon, Nautilus Merger Sub 1, Inc., a Delaware corporation and wholly owned subsidiary of Eledon (“First Merger Sub”), Nautilus Merger Sub 2, LLC, a Delaware limited liability company and wholly owned subsidiary of Eledon (“Second Merger Sub”), and Anelixis. Pursuant to the Merger Agreement, First Merger Sub merged with and into Anelixis, pursuant to which Anelixis was the surviving entity and became a wholly owned subsidiary of Eledon (the “First Merger”). Immediately following the First Merger, Anelixis merged with and into Second Merger Sub, pursuant to which Second Merger Sub was the surviving entity (the “Second Merger,” together with the First Merger, the “Merger”). The Merger is intended to qualify as a tax-free reorganization for U.S. federal income tax purposes. Following the acquisition of Anelixis, the Company has continued to maintain its corporate headquarters in Southern California and maintain research and development facilities in the Boston area.

Under the terms of the Merger Agreement, at the closing of the Merger, Eledon issued to the stockholders of Anelixis 175,488 shares of the common stock of Eledon, par value $0.001 per share and 140,026 shares of newly designated Series X¹ Preferred Stock. Subject to stockholder approval, each share of Series X¹ Preferred Stock is convertible into approximately 55.5556 shares of common stock. The preferences, rights and limitations applicable to the Series X¹ Preferred Stock are set forth in the Certificate of Designation, as filed with the SEC.

In addition to the common stock and preferred stock issued, certain outstanding warrants issued and equity awards granted by Anelixis were not settled upon completion of the merger, and instead were assumed and then replaced with Eledon warrants and equity awards. The amounts for the assumed and replaced warrants and equity awards attributed to pre-merger services are included in other consideration amounts transferred and added to goodwill.

The Company determined that FASB Accounting Standards Codification Topic 805 (“ASC 805”), Business Combinations, is the authoritative guidance in accounting for this transaction and for determining whether Anelixis was a dormant, non-operating entity that would not meet the definition of a business under ASC 805. If Anelixis was not an operating entity, the acquisition would instead be considered a capital transaction and equivalent to the issuance of shares by Eledon for the net monetary assets of Anelixis accompanied by a recapitalization. Conversely, if Anelixis was determined to be a business, the acquisition method of accounting would apply and the difference between the acquisition date fair value of

the total consideration transferred and the aggregate values assigned to the assets acquired and liabilities assumed would be recorded as goodwill.

The Company evaluated the terms of the Merger Agreement and the transaction under the applicable accounting guidance and determined that Anelixis satisfied the definition of a business under ASC 805 and as further clarified by ASU 2017-01. Based on this analysis, the Company accounted for the acquisition of Anelixis as a business combination under the acquisition method of accounting as it had determined that Anelixis’ assets acquired in the transaction included an input and a substantive process that together significantly contributed to the ability to create outputs. Additionally, the Company was determined to be both the legal and accounting acquirer as it had issued equity interests to acquire all of Anelixis’ equity interests. Goodwill generated from the acquisition was primarily attributable to the expected synergies from combining operations and expanding market potential, together with certain intangible assets that do not qualify for separate recognition. None of the approximately $48.6 million in goodwill is expected to be deductible for tax purposes.

Concurrently and in connection with the execution of the Merger Agreement, the Company entered into the Purchase Agreement with certain institutional and accredited investors. Pursuant to the Stock Purchase Agreement, the Company agreed to sell an aggregate of approximately 199,112 shares of Series X¹ Preferred Stock for an aggregate purchase price of approximately $99.1 million in the Financing (collectively, the “Financing”). Eledon had commitments for an additional $9.0 million in equity financing that was contingent upon the satisfaction of certain incremental closing conditions, including stockholders’ approval of the issuance of the Company’s common stock upon the conversion of the Company’s Series X¹ Preferred Stock and the effective registration of its common stock. The merger was a pre-requisite in order for the Financing to transpire; without the merger, those certain institutional and accredited investors would not have purchased the Company’s Series X¹ convertible preferred stock.

On December 18, 2020, the Company held the Special Meeting, whereby the Company’s stockholders approved the issuance of the Company’s common stock, upon conversion of the Company’s Series X¹ Preferred Stock, par value $0.001 per share, issued in September 2020. As a result, approximately 231,068 shares of Series X¹ Preferred Stock were converted into 12,837,056 shares of the Company’s common stock. As of June 30, 2021 and December 31, 2020, approximately 108,070 shares of Series X¹ Preferred Stock remain outstanding.

On December 23, 2020, the Company sold 1,004,111 shares of its common stock for gross proceeds of $9.0 million that was contingent upon the satisfaction of certain incremental closing conditions, as described above.

Acquisition Consideration

The following table summarizes the fair value of purchase price consideration to acquire Anelixis (in thousands):

Description	Amount
Fair value of purchase consideration:
Common shares issued (1)	$	1,194
Preferred shares issued (2)		69,723
Options assumed (3)		2,950
Warrants assumed (3)		12,944
Total purchase consideration	$	86,811

(1)

The fair value of common shares issued in the merger is based on 175,488 shares issued on the September 14, 2020 acquisition date at the closing price of the Company's common stock of $6.80 per share.

(2)

The fair value of preferred shares issued in the merger is based on the amount per share of Series X¹ preferred stock in the September 2020 Purchase Agreement.

(3)

The fair value of the options and warrants assumed and replaced in the merger is based on applying the Black-Scholes valuation method using appropriate inputs of volatility rates ranging from 82% to 83%, expected terms of 5.0 to 5.9 years and risk-free rates of 0.27% to 0.45%.

Purchase Price Allocation

The following is an allocation of purchase price as of the September 14, 2020 acquisition closing date based upon an estimate of the fair value of the assets acquired and the liabilities assumed by the Company in the acquisition (in thousands):

Description	Amount
Cash and cash equivalents	$	11,035
Prepaid expenses and other current assets		26
Other non-current assets		11
Accounts payable		(580	)
Accrued expenses and other liabilities		(205	)
Deferred tax liability		(4,510	)
Net identifiable assets acquired		5,777

Goodwill		48,648
Identifiable intangible assets		32,386
Net assets acquired	$	86,811

Acquisition costs of approximately $2.9 million were included in general and administrative expenses in the Company’s consolidated statements of operations and comprehensive loss for the year ended December 31, 2020.

Deferred Income Taxes

The net deferred tax liability was based upon the difference between the estimated book basis and tax basis of net assets acquired and an estimate for the final pre-acquisition net operating losses of Anelixis.

Identifiable Intangible Assets

Through its acquisition of Anelixis, the Company acquired intangible assets that consisted of in-process research and development (“IPR&D”) with an estimated fair value of $32.4 million, related to its clinical development program of AT-1501. The estimated fair value of the IPR&D was determined by management based on external valuation specialists’ analysis of replacement costs to recreate AT-1501 in its current clinical stage. The replacement cost method contemplates the cost to recreate the utility of AT-1501 but in a form that is not a replica of AT-1501. In this method, the replacement cost is determined and reduced for depreciation of the asset. In this context, depreciation has three components: (i) physical deterioration, (ii) functional obsolescence, and (iii) economic obsolescence.

Goodwill

Under the acquisition method of accounting, goodwill of approximately $48.6 million would be generated after accounting for Anelixis’ assets acquired, liabilities assumed, and intangible assets identified and valued.

Pro Forma Information (Unaudited)

The following unaudited pro forma combined financial information is presented to illustrate the estimated effects of the Merger based on the historical financial statements and accounting records of Eledon and Anelixis after giving effect to the Merger and the Merger-related pro forma adjustments.

Three Months Ended

June 30,

Six Months Ended

June 30,

2020

Net loss and other comprehensive loss

(3,430

)

(13,727

)

The unaudited pro forma combined statements of operations for the three and six months ended June 30, 2020 combine the historical statements of operations of Eledon and Anelixis, giving effect to the Merger as if it had occurred on January 1, 2020, the first day of the fiscal year ended December 31, 2020.

The unaudited pro forma combined financial information has been presented for informational purposes only. The unaudited pro forma combined financial information does not purport to represent the actual results of operations that Eledon and Anelixis would have achieved had the companies been combined during the periods presented in the unaudited pro forma combined financial statements and is not intended to project the future results of operations that the combined company may achieve after the Merger. The unaudited pro forma combined financial information does not reflect any potential cost savings that may be realized as a result of the Merger and also does not reflect any restructuring or integration-related costs to achieve those potential cost savings.

Additionally, the unaudited pro forma combined financial information does not reflect any merger-related expenses, which totaled approximately $9,000 and $39,000 during the three and six months ended June 30, 2020. There were no merger related expenses during the periods ended June 30, 2021.

Anelixis has not recognized any revenue since its acquisition by the Company.

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Basis of Presentation

Principles of Consolidation

All significant intercompany accounts and transactions among the entities have been eliminated from the condensed consolidated financial statements.

Liquidity and Financial Condition

Use of Estimates

Cash and Cash Equivalents

Concentration of Credit Risk and Other Risks and Uncertainties

As of June 30, 2021 and December 31, 2020, all of the Company’s long-lived assets were located in the United States.

Reportable Segments

Research and Development Expenses

Net Loss Per Share

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2021			2020			2021			2020
	(In thousands, except share and per share data)
Net loss used in the calculation of basic and diluted loss per share	$	(7,384	)	$	(2,586	)	$	(15,883	)	$	(10,763	)
Net loss per share, basic and diluted	$	(0.50	)	$	(2.74	)	$	(1.07	)	$	(11.31	)
Weighted-average number of common shares, basic and diluted		14,815,731			943,419			14,823,348			951,352

Stock-based Compensation

The Company recognizes compensation expense for all stock-based awards based on the grant-date estimated fair value.

Restricted Stock Units (“RSU”) and Performance-Based Restricted Stock Units (“PRSU”) are measured and recognized based on the quoted market price of our common stock on the date of grant.

Reclassifications

Certain reclassifications of prior period amounts have been made to conform to the current period presentation.

Recently Adopted Accounting Pronouncements

Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2021

Commitments And Contingencies Disclosure [Abstract]

Components of Lease Expense

The components of lease expense were as follows:

	Six Months Ended June 30, 2021
Operating lease cost^(a)	$	98
^(a)Includes variable operating lease expenses, which are immaterial

Schedule of Other Information Related to Leases

Other information related to leases was as follows (in thousands, except lease term and discount rate):

	Six Months Ended June 30, 2021
Supplemental Cash Flows Information
Cash paid for amounts included in the measurement of lease liability:
Operating cash flows from operating lease	$	97
Remaining lease term
Operating lease	1.5
Discount rate
Operating lease		3.18	%

Schedule of Future Payments Under Noncancelable Operating Leases

Future payments under noncancelable operating leases having initial or remaining terms of one year or more are as follows for the remaining fiscal year and thereafter (in thousands):

Years ending

2021 (remainder of)	$	94
2022		181
Total minimum lease payments		275
Less imputed interest		(6	)
Present value of lease liabilities		269
Less current portion		(179	)
	$	90

Stockholders' Equity (Tables)

6 Months Ended

Jun. 30, 2021

Class Of Stock [Line Items]

Schedule of Stock-Based Compensation Expense Recognized

Total stock-based compensation expense was recognized in our condensed consolidated statements of operations and comprehensive loss as follows (in thousands):

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2021		2020		2021		2020
Research and development	$	785	$	49	$	1,470	$	203
General and administrative		1,249		148		2,338		431
Total stock-based compensation	$	2,034	$	197	$	3,808	$	634

Common Stock Warrants [Member]

Class Of Stock [Line Items]

Schedule of Warrant Activity

The following table shows the warrant activity:

	Rollforward of Warrant Activity
	Registered direct warrants, placement agent		Private placement warrants		Private placement warrants, placement agent		Warrants exchanged for common stock		Total
Balance as of December 31, 2020		9,581		319,064		9,177		—		337,822
Issued		—		—		—		509,117		509,117
Exercised		—		—		—		—		—
Cancelled/Expired		—		—		—		—		—
Balance as of June 30, 2021		9,581		319,064		9,177		509,117		846,939

Preferred Stock Warrants [Member]

Class Of Stock [Line Items]

Schedule of Warrant Activity

The following table shows the warrant activity:

	Rollforward of Warrant Activity
		Warrants assumed and replaced in acquisition		Total
Balance as of December 31, 2020			55,583.875		55,583.875
Assumed and replaced			—		—
Exercised			—		—
Cancelled/Expired			—		—
Balance as of June 30, 2021			55,583.875		55,583.875

Business Acquisition (Tables)

6 Months Ended

Jun. 30, 2021

Business Combinations [Abstract]

Summary of Fair Value of Purchase Price Consideration

The following table summarizes the fair value of purchase price consideration to acquire Anelixis (in thousands):

Description	Amount
Fair value of purchase consideration:
Common shares issued (1)	$	1,194
Preferred shares issued (2)		69,723
Options assumed (3)		2,950
Warrants assumed (3)		12,944
Total purchase consideration	$	86,811

(1)

(2)

The fair value of preferred shares issued in the merger is based on the amount per share of Series X¹ preferred stock in the September 2020 Purchase Agreement.

(3)

Summary of Estimate of Fair Value of Assets Acquired and Liabilities Assumed

Description	Amount
Cash and cash equivalents	$	11,035
Prepaid expenses and other current assets		26
Other non-current assets		11
Accounts payable		(580	)
Accrued expenses and other liabilities		(205	)
Deferred tax liability		(4,510	)
Net identifiable assets acquired		5,777

Goodwill		48,648
Identifiable intangible assets		32,386
Net assets acquired	$	86,811

Schedule of Unaudited Pro Forma Combined Financial Information

Three Months Ended

June 30,

Six Months Ended

June 30,

2020

Net loss and other comprehensive loss

(3,430

)

(13,727

)

Summary of Significant Accounting Policies - Additional Information (Detail)			3 Months Ended		6 Months Ended
	Dec. 18, 2020 shares	Sep. 14, 2020	Jun. 30, 2021 USD ($) $ / shares shares	Jun. 30, 2020 USD ($)	Jun. 30, 2021 USD ($) Segment $ / shares shares	Jun. 30, 2020 USD ($) shares	Dec. 31, 2020 USD ($) shares	Mar. 31, 2020 shares	Dec. 31, 2019 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Net loss \| $			$ (7,384,000)	$ (2,586,000)	$ (15,883,000)	$ (10,763,000)
Cash and cash equivalents \| $			101,133,000	$ 8,764,000	101,133,000	$ 8,764,000	$ 114,195,000		$ 8,791,000
Working capital \| $			99,900,000		99,900,000
Accumulated deficit \| $			(96,276,000)		$ (96,276,000)		(80,393,000)
Cash, cash equivalents and restricted cash, maturity period					three months or less
Cash equivalents \| $			$ 9,200,000		$ 9,200,000		$ 9,200,000
Number of operating business segments \| Segment					1
Warrants exercise price \| $ / shares			$ 0.001		$ 0.001
Antidilutive securities excluded from computation of earnings per share, amount					5,089,938	457,442
2014 Stock Incentive Plan [Member]
Summary Of Significant Accounting Policies [Line Items]
Increase in number of shares of common stock authorized for issuance								28,816
Common stock, number of shares reserved for issuance							0
2014 Employee Stock Purchase Plan [Member]
Summary Of Significant Accounting Policies [Line Items]
Increase in number of shares of common stock authorized for issuance								7,204
Common stock, number of shares reserved for issuance			24,077		24,077
2020 Plan [Member]
Summary Of Significant Accounting Policies [Line Items]
Common stock, number of shares reserved for issuance	4,860,000		4,135,044		4,135,044
Percentage of issued and outstanding shares of common stock	15.00%
Equity compensation period	3 years
Stock Options [Member] \| Board of Directors [Member]
Summary Of Significant Accounting Policies [Line Items]
Expected life assumption using simplified method, description					For stock options granted to the board of directors, the Company determined the expected life assumption using the simplified method as the starting point with an average period of twelve (12) months added to take into account for the extended range of time of 12 to 18 months vested stock options granted to board of directors may be exercised upon termination.
Expected life assumption using simplified method					12 months
Stock Options [Member] \| Minimum [Member] \| Board of Directors [Member]
Summary Of Significant Accounting Policies [Line Items]
Vesting period of stock options granted					12 months
Stock Options [Member] \| Maximum [Member] \| Board of Directors [Member]
Summary Of Significant Accounting Policies [Line Items]
Vesting period of stock options granted					18 months
Warrants [Member]
Summary Of Significant Accounting Policies [Line Items]
Basic weighted average shares outstanding			509,117		509,117
Anelixis [Member] \| Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Expected life assumption using simplified method		5 years
Anelixis [Member] \| Maximum [Member]
Summary Of Significant Accounting Policies [Line Items]
Expected life assumption using simplified method		5 years 10 months 24 days
Otic Pharma [Member] \| Anelixis [Member]
Summary Of Significant Accounting Policies [Line Items]
Ownership percentage			100.00%		100.00%
Otic Pharma, Inc. [Member]
Summary Of Significant Accounting Policies [Line Items]
Ownership percentage			100.00%		100.00%

Summary of Significant Accounting Policies - Schedule of Common Share Equivalents Included from Computation of Net Loss Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Earnings Per Share [Abstract]
Net loss	$ (7,384)	$ (2,586)	$ (15,883)	$ (10,763)
Net loss per share, basic and diluted	$ (0.50)	$ (2.74)	$ (1.07)	$ (11.31)
Weighted-average number of common shares, basic and diluted	14,815,731	943,419	14,823,348	951,352

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121641772&loc=SL7669625-108580

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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-Topic 280
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

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Reference 13: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

Commitments and Contingencies - Additional Information (Detail)		3 Months Ended			6 Months Ended		12 Months Ended
	May 03, 2021	Jun. 30, 2021 USD ($)	Mar. 31, 2021	Jun. 30, 2020 USD ($)	Jun. 30, 2021 USD ($) ft² OfficeSpace Milestone	Jun. 30, 2020 USD ($)	Dec. 31, 2020 Milestone	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2015 USD ($)
Other Commitments [Line Items]
Rental expense		$ 63,000		$ 47,000	$ 126,000	$ 93,000
Debt outstanding		0			0
Indemnification obligations amount		0			0
Contingent liabilities		0			$ 0
Office of Chief Scientist of Israeli Ministry of Economy and Industry [Member]
Other Commitments [Line Items]
Grants received										$ 537,000
ALS Therapy Development Foundation, Inc. License Agreement [Member]
Other Commitments [Line Items]
Fee due for milestones achieved								$ 1,000,000	$ 1,000,000
Common stock issued in lieu of making a cash payment								$ 1,000,000	$ 1,000,000
Number of Milestones Achieved \| Milestone					0		0
Remaining milestone payments for first licensed product		6,000,000.0			$ 6,000,000.0
Annual License Maintenance Fee					100,000
ALS Therapy Development Foundation, Inc. License Agreement [Member] \| Achievement of 500 Million Aggregate Sales [Member]
Other Commitments [Line Items]
Reaching of aggregate net sales					500,000,000
Amount of one-time milestone payment		15,000,000			15,000,000
ALS Therapy Development Foundation, Inc. License Agreement [Member] \| Achievement of 1 Billion Aggregate Sales [Member]
Other Commitments [Line Items]
Reaching of aggregate net sales					1,000,000,000
Amount of one-time milestone payment		30,000,000			$ 30,000,000
Minimum [Member]
Other Commitments [Line Items]
Remaining term of office lease					1 month
Maximum [Member]
Other Commitments [Line Items]
Remaining term of office lease					18 months
Maximum [Member] \| ALS Therapy Development Foundation, Inc. License Agreement [Member]
Other Commitments [Line Items]
Development and regulatory milestone payments		$ 2,500,000			$ 2,500,000
Irvine, California [Member]
Other Commitments [Line Items]
Area of office space \| ft²					5,197
Lease expiration date	Dec. 31, 2022		Sep. 30, 2021
Effective date of lease amendment	Oct. 01, 2021
Burlington, Massachusetts [Member]
Other Commitments [Line Items]
Lease expiration date					Jun. 30, 2021
Lease expired term					Company had operating leases for four serviced office spaces in Burlington, Massachusetts that expired on June 30, 2021, which have been converted to monthly leases
Number of office spaces operating lease \| OfficeSpace					4

Stockholders' Equity - Additional Information (Detail) - USD ($)		6 Months Ended	12 Months Ended
	Dec. 23, 2020	Jun. 30, 2021	Dec. 31, 2020	Mar. 31, 2021
Series X1 Preferred Stock [Member]
Class Of Stock [Line Items]
Warrants available for exercise		55,853.875
Shares of common stock issued upon conversion of each share of preferred stock		55.5556
Series X Preferred Stock [Member]
Class Of Stock [Line Items]
Preferred shares outstanding		6,204	0
Common Stock Warrants [Member]
Class Of Stock [Line Items]
Warrants available for exercise		846,939	337,822
Common Stock [Member]
Class Of Stock [Line Items]
Common stock number of shares issued	1,004,111
Warrant Exchange Agreement and Exchange Agreements [Member] \| Series X Preferred Stock [Member]
Class Of Stock [Line Items]
Preferred shares outstanding			6,203.98
Warrant Exchange Agreement and Exchange Agreements [Member] \| Common Stock [Member] \| Series X Preferred Stock [Member]
Class Of Stock [Line Items]
Shares of common stock issued upon conversion of each share of preferred stock			344,663
Exchange Agreement [Member]
Class Of Stock [Line Items]
Warrants available for exercise		509,117
Jeffries LLC [Member] \| Equity Distribution Agreement [Member]
Class Of Stock [Line Items]
Equity distribution agreement maximum value of common shares issuable				$ 75,000,000.0
Common stock number of shares issued		0
BVF Exchanging Stockholders, Series X Exchanging Stockholders [Member] \| Series X Exchange Agreement [Member] \| Series X Preferred Stock [Member]
Class Of Stock [Line Items]
Conversion of stock, shares issued			6,203.98
BVF Exchanging Stockholders, Series X Exchanging Stockholders [Member] \| Series X Exchange Agreement [Member] \| Common Stock [Member]
Class Of Stock [Line Items]
Conversion of stock, shares converted			344,666
BVF Exchanging Stockholders \| Warrant Exchange Agreement and Exchange Agreements [Member] \| Common Stock [Member]
Class Of Stock [Line Items]
Warrants to issue shares of common stock			509,117

Business Acquisition - Additional Information (Detail) - USD ($)				3 Months Ended	6 Months Ended		12 Months Ended
	Dec. 23, 2020	Dec. 18, 2020	Sep. 14, 2020	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Business Acquisition [Line Items]
Common stock, par value					$ 0.001		$ 0.001
Goodwill					$ 48,648,000		$ 48,648,000
Issuance of common stock in connection with conversion of Series X preferred stock, Shares				(3,285)		(3,285)
Business acquisition costs				$ 9,000	$ 0	$ 39,000
General and Administrative [Member]
Business Acquisition [Line Items]
Business acquisition costs							$ 2,900,000
Series X1 Non-voting Convertible Preferred Stock [Member]
Business Acquisition [Line Items]
Preferred stock, par value		$ 0.001			$ 0.001		$ 0.001
Issuance of common stock in connection with conversion of Series X preferred stock, Shares		231,068
Preferred stock, shares outstanding					108,070		108,070
Common Stock [Member]
Business Acquisition [Line Items]
Shares of common stock issued upon conversion of each share of preferred stock		12,837,056
Common Stock [Member]
Business Acquisition [Line Items]
Issuance of common stock in connection with conversion of Series X preferred stock, Shares				182,500		182,500
Shares of common stock sold	1,004,111
Proceeds from issuance of common stock	$ 9,000,000.0
Anelixis [Member]
Business Acquisition [Line Items]
Business acquisition, date of acquisition			Sep. 14, 2020
Common stock, par value			$ 0.001
Goodwill			$ 48,648,000
Estimated fair value related to clinical development program			32,386,000
Anelixis [Member] \| In-Process Research and Development [Member]
Business Acquisition [Line Items]
Estimated fair value related to clinical development program			$ 32,400,000
Anelixis [Member] \| Series X1 Preferred Stock [Member]
Business Acquisition [Line Items]
Shares Issued to stockholders of acquiree			140,026
Anelixis [Member] \| Series X1 Preferred Stock [Member] \| Stock Purchase Agreement [Member]
Business Acquisition [Line Items]
Preferred stock shares agreed to sell			199,112
Preferred stock shares aggregate purchase price			$ 99,100,000
Business combination additional commitments in equity financing			$ 9,000,000.0
Anelixis [Member] \| Common Stock [Member]
Business Acquisition [Line Items]
Shares Issued to stockholders of acquiree			175,488
Shares of common stock issued upon conversion of each share of preferred stock			55.5556

Business Acquisition - Summary of Estimate of Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020	Sep. 14, 2020
Business Acquisition [Line Items]
Goodwill	$ 48,648	$ 48,648
Anelixis [Member]
Business Acquisition [Line Items]
Cash and cash equivalents			$ 11,035
Prepaid expenses and other current assets			26
Other non-current assets			11
Accounts payable			(580)
Accrued expenses and other liabilities			(205)
Deferred tax liability			(4,510)
Net identifiable assets acquired			5,777
Goodwill			48,648
Identifiable intangible assets			32,386
Net assets acquired			$ 86,811

Prepaid Expenses and Other Current Assets - Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Prepaid Expense And Other Assets Current [Abstract]
Prepaid insurance	$ 627	$ 1,157
Prepaid clinical	641	89
Prepaid other	83	41
Insurance receivable	87	110
Other current assets	11	38
Total prepaid expenses and other current assets	$ 1,449	$ 1,435

Accrued Expenses and Other Liabilities - Schedule of Accrued Expenses and Other Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Accrued Liabilities And Other Liabilities [Abstract]
Accrued compensation and related expenses	$ 656	$ 31
Accrued severance	261	12
Accrued clinical	413	258
Accrued professional services	118	9
Accrued vacation	176	67
Accrued costs associated with PIPE financing		450
Accrued other	17	146
Total accrued expenses and other liabilities	$ 1,641	$ 973

Business Acquisition - Summary of Fair Value of Purchase Price Consideration (Detail) - Anelixis [Member] $ in Thousands	Sep. 14, 2020 USD ($)
Fair value of purchase consideration:
Total purchase consideration	$ 86,811
Stock Options [Member]
Fair value of purchase consideration:
Awards assumed	2,950
Common Stock [Member]
Fair value of purchase consideration:
Awards assumed	1,194
Preferred Stock [Member]
Fair value of purchase consideration:
Awards assumed	69,723
Warrants [Member]
Fair value of purchase consideration:
Awards assumed	$ 12,944

Business Acquisition - Summary of Fair Value of Purchase Price Consideration (Parenthetical) (Detail) - Anelixis [Member]	Sep. 14, 2020 $ / shares shares
Business Acquisition [Line Items]
Expected stock price volatility, minimum	82.00%
Expected stock price volatility, maximum	83.00%
Risk-free interest rate, minimum	0.27%
Risk-free interest rate, maximum	0.45%
Minimum [Member]
Business Acquisition [Line Items]
Expected life of option (in years)	5 years
Maximum [Member]
Business Acquisition [Line Items]
Expected life of option (in years)	5 years 10 months 24 days
Common Stock [Member]
Business Acquisition [Line Items]
Business acquisition, shares issued \| shares	175,488
Business acquisition, closing price per share \| $ / shares	$ 6.80

Description of Business - Additional Information (Detail)	Sep. 14, 2020
Anelixis [Member]
Description Of Business [Line Items]
Date of acquisition	Sep. 14, 2020

Commitments and Contingencies - Components of Lease Expense (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2021 USD ($)
Commitments And Contingencies Disclosure [Abstract]
Operating lease cost	$ 98

Commitments and Contingencies - Schedule of Other Information Related to Leases (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2021 USD ($)
Cash paid for amounts included in the measurement of lease liability:
Operating cash flows from operating lease	$ 97
Remaining lease term
Operating lease	1 year 6 months
Discount rate
Operating lease	3.18%

Commitments and Contingencies - Schedule of Future Payments Under Noncancelable Operating Leases (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Commitments And Contingencies Disclosure [Abstract]
2021 (remainder of)	$ 94
2022	181
Total minimum lease payments	275
Less imputed interest	(6)
Present value of lease liabilities	269
Less current portion	(179)	$ (144)
Non-current operating lease liability	$ 90

Stockholders' Equity - Schedule of Warrant Activity (Detail)	6 Months Ended
	Jun. 30, 2021 shares
Common Stock Warrants [Member]
Class Of Warrant Or Right [Line Items]
Beginning Balance	337,822
Issued	509,117
Exercised	0
Cancelled/Expired	0
Ending Balance	846,939
Common Stock Warrants [Member] \| Registered Direct Warrants, Placement Agent [Member]
Class Of Warrant Or Right [Line Items]
Beginning Balance	9,581
Issued	0
Exercised	0
Cancelled/Expired	0
Ending Balance	9,581
Common Stock Warrants [Member] \| Private Placement Warrants [Member]
Class Of Warrant Or Right [Line Items]
Beginning Balance	319,064
Issued	0
Exercised	0
Cancelled/Expired	0
Ending Balance	319,064
Common Stock Warrants [Member] \| Warrants Exchanged for Common Stock [Member]
Class Of Warrant Or Right [Line Items]
Beginning Balance	0
Issued	509,117
Exercised	0
Cancelled/Expired	0
Ending Balance	509,117
Common Stock Warrants [Member] \| Private Placement Warrants, Placement Agent [Member]
Class Of Warrant Or Right [Line Items]
Beginning Balance	9,177
Issued	0
Exercised	0
Cancelled/Expired	0
Ending Balance	9,177
Preferred Stock Warrants [Member]
Class Of Warrant Or Right [Line Items]
Beginning Balance	55,583.875
Assumed and replaced	0
Exercised	0
Cancelled/Expired	0
Ending Balance	55,583.875
Preferred Stock Warrants [Member] \| Warrants Assumed and Replaced in Acquisition [Member]
Class Of Warrant Or Right [Line Items]
Beginning Balance	55,583.875
Assumed and replaced	0
Exercised	0
Cancelled/Expired	0
Ending Balance	55,583.875