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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2020	Aug. 05, 2020
[DocumentAndEntityInformationAbstract]
Entity Registrant Name	NextCure, Inc.
Entity Central Index Key	0001661059
Document Type	10-Q
Document Period End Date	Jun. 30, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		27,552,751

CONDENSED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 25,050	$ 34,091
Marketable securities	284,285	300,514
Restricted cash	1,706	1,706
Prepaid expenses and other current assets	4,029	3,684
Total current assets	315,070	339,995
Property and equipment, net	14,831	12,090
Other assets	3,588	4,083
Total assets	333,489	356,168
Current liabilities:
Accounts payable	2,435	1,861
Accrued liabilities	4,118	4,871
Deferred rent, current portion	142	215
Term loan, current portion	1,667	1,667
Deferred revenue, current portion		6,428
Total current liabilities	8,362	15,042
Deferred rent, net of current portion	571	359
Term loan, net of current portion	2,639	3,333
Deferred revenue, net of current portion		15,950
Total liabilities	11,572	34,684
Stockholders’ equity
Preferred stock; par value of $0.001 per share, 10,000,000 shares authorized at June 30, 2020 and December 31, 2019. No shares issued and outstanding at June 30, 2020 and December 31, 2019
Common stock, par value of $0.001 per share; 100,000,000 shares authorized at June 30, 2020 and December 31, 2019, 27,520,650 and 27,499,260 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively	28	27
Additional paid-in capital	405,763	402,529
Accumulated other comprehensive income (loss)	1,935	(38)
Accumulated deficit	(85,809)	(81,034)
Total stockholders’ equity	321,917	321,484
Total liabilities, preferred stock and stockholders’ equity	$ 333,489	$ 356,168

CONDENSED BALANCE SHEETS - (Parenthetical) - $ / shares	Jun. 30, 2020	Dec. 31, 2019
CONDENSED BALANCE SHEETS
Preferred stock, par value per share	$ 0.001	$ 0.001
Preferred stock, number of shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value per share	$ 0.001	$ 0.001
Common stock, number of shares authorized	100,000,000	100,000,000
Common stock, shares issued	27,520,650	27,499,260
Common stock, shares outstanding	27,520,650	27,499,260

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenue:
Revenue		$ 1,402	$ 22,378	$ 2,759
Revenue, Product and Service [Extensible List]			nxtc:RelatedPartyMember
Operating expenses:
Research and development	$ 11,130	7,643	$ 21,708	14,156
General and administrative	4,671	2,714	8,259	4,373
Total operating expenses	15,801	10,357	29,967	18,529
Loss from operations	(15,801)	(8,955)	(7,589)	(15,770)
Other income, net	1,293	734	2,814	1,394
Net loss	$ (14,508)	$ (8,221)	$ (4,775)	$ (14,376)
Loss per share
Net loss per common share—basic and diluted (in dollars per share)	$ (0.53)	$ (0.61)	$ (0.17)	$ (1.92)
Shares used in the calculation of loss per share
Weighted average number of common shares —basic and diluted (in shares)	27,518,129	13,498,393	27,512,528	7,472,298
Comprehensive Loss:
Net loss	$ (14,508)	$ (8,221)	$ (4,775)	$ (14,376)
Unrealized gain on marketable securities	2,478		1,935
Total comprehensive loss	$ (12,030)	$ (8,221)	$ (2,840)	$ (14,376)

CONDENSED STATEMENTS OF PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) - USD ($) $ in Thousands	Preferred Stock Series A Preferred Stock	Preferred Stock Series B Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit	Total
Balance at the beginning at Dec. 31, 2018			$ 1	$ 352		$ (47,297)	$ (46,944)
Balance at the beginning (in shares) at Dec. 31, 2018			1,374,812
Balance at the beginning at Dec. 31, 2018	$ 71,000	$ 91,223
Balance at the beginning (in shares) at Dec. 31, 2018	68,181,819	56,828,851
Increase (Decrease) in Stockholders' Deficit
Stock based compensation				383			383
Issuance of common stock				4			4
Issuance of common stock (in shares)			4,697
Net loss						(6,155)	(6,155)
Balance at the end at Mar. 31, 2019			$ 1	739		(53,452)	(52,712)
Balance at the end (in shares) at Mar. 31, 2019			1,379,509
Balance at the end at Mar. 31, 2019	$ 71,000	$ 91,223
Balance at the end (in shares) at Mar. 31, 2019	68,181,819	56,828,851
Balance at the beginning at Dec. 31, 2018			$ 1	352		(47,297)	(46,944)
Balance at the beginning (in shares) at Dec. 31, 2018			1,374,812
Balance at the beginning at Dec. 31, 2018	$ 71,000	$ 91,223
Balance at the beginning (in shares) at Dec. 31, 2018	68,181,819	56,828,851
Increase (Decrease) in Stockholders' Deficit
Net loss							(14,376)
Balance at the end at Jun. 30, 2019			$ 23	240,245		(61,673)	178,595
Balance at the end (in shares) at Jun. 30, 2019			22,714,765
Balance at the beginning at Mar. 31, 2019			$ 1	739		(53,452)	(52,712)
Balance at the beginning (in shares) at Mar. 31, 2019			1,379,509
Balance at the beginning at Mar. 31, 2019	$ 71,000	$ 91,223
Balance at the beginning (in shares) at Mar. 31, 2019	68,181,819	56,828,851
Increase (Decrease) in Stockholders' Deficit
Stock based compensation				412			412
Issuance of common stock			$ 1	42			43
Issuance of common stock (in shares)			24,687
Initial public offering, net of issuance costs of $9.4M			$ 6	76,844			76,850
Initial public offering, net of issuance costs of $9.4M (in shares)			5,750,000
Conversion of preferred stock to common stock	$ (71,000)	$ (91,223)	$ 15	162,208			162,223
Conversion of preferred stock to common stock (in shares)	(68,181,819)	(56,828,851)	15,560,569
Net loss						(8,221)	(8,221)
Balance at the end at Jun. 30, 2019			$ 23	240,245		(61,673)	178,595
Balance at the end (in shares) at Jun. 30, 2019			22,714,765
Balance at the beginning at Dec. 31, 2019			$ 27	402,529	$ (38)	(81,034)	$ 321,484
Balance at the beginning (in shares) at Dec. 31, 2019			27,499,260				27,499,260
Increase (Decrease) in Stockholders' Deficit
Stock based compensation				1,008			$ 1,008
Issuance of common stock			$ 1	36			37
Issuance of common stock (in shares)			17,142
Unrealized (loss) gain on marketable securities, net of tax $0					(505)		(505)
Net loss						9,733	9,733
Balance at the end at Mar. 31, 2020			$ 28	403,573	(543)	(71,301)	331,757
Balance at the end (in shares) at Mar. 31, 2020			27,516,402
Balance at the beginning at Dec. 31, 2019			$ 27	402,529	(38)	(81,034)	$ 321,484
Balance at the beginning (in shares) at Dec. 31, 2019			27,499,260				27,499,260
Increase (Decrease) in Stockholders' Deficit
Net loss							$ (4,775)
Balance at the end at Jun. 30, 2020			$ 28	405,763	1,935	(85,809)	$ 321,917
Balance at the end (in shares) at Jun. 30, 2020			27,520,650				27,520,650
Balance at the beginning at Mar. 31, 2020			$ 28	403,573	(543)	(71,301)	$ 331,757
Balance at the beginning (in shares) at Mar. 31, 2020			27,516,402
Increase (Decrease) in Stockholders' Deficit
Stock based compensation				2,187			2,187
Issuance of common stock				3			3
Issuance of common stock (in shares)			4,248
Unrealized (loss) gain on marketable securities, net of tax $0					2,478		2,478
Net loss						(14,508)	(14,508)
Balance at the end at Jun. 30, 2020			$ 28	$ 405,763	$ 1,935	$ (85,809)	$ 321,917
Balance at the end (in shares) at Jun. 30, 2020			27,520,650				27,520,650

CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities:
Net loss	$ (4,775)	$ (14,376)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,538	1,145
Stock-based compensation	3,195	795
Changes in operating assets and liabilities:
Prepaid expenses and other assets	(543)	(2,815)
Accounts payable	574	(493)
Accrued liabilities	(753)	(182)
Deferred rent	139
Deferred revenue	(22,378)	(1,759)
Net cash used in operating activities	(23,003)	(17,685)
Cash flows from investing activities:
Maturities of marketable securities	71,565
Purchase of marketable securities	(53,364)
Purchase of property and equipment	(4,279)	(2,067)
Net cash provided by (used in) investing activities	13,922	(2,067)
Cash flows from financing activities:
Proceeds from initial public offering, net of issuance costs		77,264
Proceeds from issuances of common stock	40	43
Proceeds from the term loan		4,540
Payments of the term loan	(694)
Net cash (used in) provided by financing activities	(654)	81,847
Net (decrease) increase in cash, cash equivalents and restricted cash	(9,735)	62,095
Cash, cash equivalents and restricted cash—beginning of period	39,130	135,633
Cash, cash equivalents and restricted cash—end of period	29,395	197,728
Supplemental disclosures of cash flow information:
Cash paid for interest	85	80
Supplemental disclosures of noncash investing and financing activities:
Purchase of property and equipment included in accrued liabilities	$ 809	75
Deferred financing costs included in accrued liabilities		154
Conversion of convertible preferred stock into common stock		$ 162,223

Nature of the Business	6 Months Ended
Nature of the Business	Jun. 30, 2020
Nature of the Business
Nature of the Business	1. Nature of the Business Organization NextCure, Inc. (“NextCure” or the “Company”) was incorporated in Delaware in September 2015 and is headquartered in Beltsville, Maryland. The Company is a clinical-stage biopharmaceutical company committed to discovering and developing novel, first‑in‑class immunomedicines to treat cancer and other immune‑related diseases by restoring normal immune function. Through its proprietary Functional, Integrated, NextCure Discovery in Immuno‑Oncology (“FIND‑IO”) platform, the Company studies various immune cells in order to discover and understand targets and structural components of immune cells and their functional impact in order to develop immunomedicines. Since inception, the Company has devoted substantially all of its efforts and financial resources to organizing and staffing the Company, identifying business development opportunities, raising capital, securing intellectual property rights related to the Company’s product candidates, building and optimizing the Company’s manufacturing capabilities and conducting discovery, research and development activities for the Company’s product candidates, discovery programs and its FIND‑IO platform. Initial Public Offering On May 13, 2019, the Company closed its initial public offering (“IPO”), in which the Company issued and sold 5,750,000 shares of common stock at a public offering price of $15.00 per share, for net proceeds to the Company of approximately $77.0 million after deducting underwriting discounts and commissions of $6.0 million and offering expenses of approximately $3.4 million. In preparation for the IPO, on May 3, 2019, the Company effected a one-for-8.0338 reverse stock split of its issued and outstanding common stock. The par value and authorized shares of common stock were not adjusted as a result of the reverse stock split. All share and per share information presented in the accompanying financial statements has been adjusted to reflect the reverse common stock split on a retroactive basis for all applicable periods and as of all applicable dates presented. Upon the closing of the IPO, on May 13, 2019, all outstanding shares of the Company’s convertible preferred stock automatically converted into 15,560,569 shares of common stock at the applicable conversion ratio then in effect. Subsequent to the closing of the IPO, there were no shares of preferred stock outstanding. Upon the closing of the IPO, on May 13, 2019, the Company’s certificate of incorporation was amended and restated to provide for 100,000,000 authorized shares of common stock with a par value of $0.001 per share and 10,000,000 authorized shares of preferred stock with a par value of $0.001 per share. Liquidity The Company has not generated any revenue to date from product sales and does not expect to generate any revenues from product sales in the foreseeable future. Through June 30, 2020, the Company has funded its operations primarily with proceeds from public offerings of its common stock, private placements of its preferred stock and upfront fees received under the Company’s former agreement with Eli Lilly and Company (Note 6). The Company expects to incur additional operating losses and negative operating cash flows for the foreseeable future. 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, including clinical trial sites. 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 restrictions on business operations, travel and gatherings 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 have placed significant strain on the Company’s clinical trial sites, raised concerns around monitoring patient safety, and caused enrollment to slow in the Phase 2 portion of the ongoing Phase 1/2 monotherapy clinical trial of the Company’s lead product candidate, NC318. However, the COVID-19 infection rates continue to rise, especially in the United States, which could continue to negatively affect 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.

Summary of Significant Accounting Policies	6 Months Ended
Summary of Significant Accounting Policies	Jun. 30, 2020
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies There have been no material changes to the significant accounting policies previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Basis of Presentation The unaudited condensed financial statements include the accounts of NextCure, Inc. and have been prepared by the Company in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these condensed financial statements should be read in conjunction with the Company’s audited financial statements and the notes thereto the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 (the “Annual Report”). Unaudited Financial Information In the opinion of management, the information furnished reflects certain adjustments, all of which are of a normal and recurring nature and are necessary for a fair presentation of the Company’s financial position as of the reported balance sheet date and of the Company’s results for the reported interim periods. The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. The results of operations for interim periods are not necessarily indicative of results to be expected for the full year or any other interim 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, the disclosure of assets and liabilities as of the date of the condensed 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. Recently Issued Accounting Pronouncements The Company qualifies as an emerging growth company (“EGC”) as defined under the Jumpstart Our Business Startups Act (the “JOBS Act”). Using exemptions provided under the JOBS Act provided to EGCs, the Company has elected to defer compliance with new or revised financial accounting standards until it is required to comply with such standards. In February 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update No. 2016-02, Leases (“ASU 2016-02”). The new guidance will require lessees to record most leases on their balance sheets and recognize the related expenses on their income statements in a manner similar to current practice. ASU 2016-02 states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The standard is effective for the Company for fiscal years beginning after December 15, 2020 and interim periods within fiscal years beginning after December 15, 2021, assuming the Company remains an EGC. The Company continues to determine if it will elect to use the practical expedients permitted by the guidance and continues to gather data required to comply with the guidance. Based on the work completed to date, the Company is considering the implications of adopting the new standard, including the discount rate to be used in valuing new and existing leases and all applicable financial statement disclosures required by the new guidance. The Company is continuing to evaluate the effect of adoption and anticipates that it will result in the recognition of additional assets and corresponding liabilities related to the existing leases on its balance sheet. The Company is assessing potential impacts on its internal controls, business processes, and accounting policies related to both the implementation of, and ongoing compliance with, the new guidance. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 will require credit losses to be reported using an expected losses model rather than the incurred losses model that is currently used and will require additional disclosures related to credit risks. For available-for-sale debt securities with unrealized losses, this standard will require allowances to be recorded instead of reducing the amortized cost of the investment. ASU 2016-13 will be effective for non-EGCs for fiscal years beginning December 15, 2019 and interim periods within those fiscal years, and will be effective for the Company for fiscal years beginning after December 15, 2022 and interim periods within those fiscal years, assuming the Company remains an EGC. Early adoption is permitted. The Company is currently evaluating the effects the adoption of ASU 2016-13 may have on its financial statements. The Company considers the applicability and impact of all ASUs issued by the FASB. All other ASUs issued subsequent to the filing of the Company’s Annual Report were assessed and determined to be either inapplicable or not expected to have a material impact on the Company’s financial position or results of operations.

Marketable Securities

6 Months Ended

Jun. 30, 2020

Marketable Securities

Marketable Securities

4. Marketable Securities

Marketable securities consist of the following:


	June 30, 2020
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gain		Loss		Fair Value
(in thousands)
Agency bonds (government sponsored enterprises)	$	24,366	$	83	$	—	$	24,449
Corporate bonds		251,022		1,858		(6)		252,874
Commercial paper		6,962		—		—		6,962
Total	$	282,350	$	1,941	$	(6)	$	284,285


	December 31, 2019
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
(in thousands)	Cost		Gain		Loss		Fair Value
Short-term marketable securities:
U.S. treasury securities	$	4,991	$	—	$	—	$	4,991
Agency bonds (government sponsored enterprises)		24,437		15		(1)		24,451
Corporate bonds		271,124		103		(155)		271,072
Total	$	300,552	$	118	$	(156)	$	300,514

As of June 30, 2020, no marketable securities are considered to be other-than-temporarily impaired. The Company uses the specific identification method when calculating realized gains and losses. For the three and six months ended June 30, 2020, respectively, the Company recorded approximately $4,000 and $68,000 in realized gains on available-for-sale securities, which is included in other income, net on the condensed statement of operations.

Fair Value Measurements

6 Months Ended

Jun. 30, 2020

Fair Value Measurements

Fair Value Measurements

5. Fair Value Measurements

The Company has certain financial assets recorded at fair value, which have been classified as Level 1, 2 or 3 within the fair value hierarchy as described in the accounting standards for fair value measurements.

Level 1—Quoted market prices in active markets for identical assets or liabilities.

Level 2—Inputs other than Level 1 inputs that are either directly or indirectly observable, such as quoted market prices, interest rates and yield curves.

Level 3—Unobservable inputs developed using estimates of assumptions developed by the Company, which reflect those that a market participant would use.

To the extent the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair values requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized as Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

The following tables set forth the fair value of the Company’s financial assets by level within the fair value hierarchy as of June 30, 2020 and December 31, 2019:


	June 30, 2020
					Significant
			Quoted Prices in		Other
			Active Markets or		Observable		Significant
			Identical Assets		Inputs		Unobservable
(in thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Cash equivalents:
Money market funds	$	9,956	$	9,956	$	—	$	—
Marketable securities:
Agency bonds		24,449		—		24,449		—
Corporate bonds		252,874		—		252,874		—
Commercial paper		6,962		—		6,962
Total	$	294,241	$	9,956	$	284,285	$	—


	December 31, 2019
					Significant
			Quoted Prices in		Other
			Active Markets or		Observable		Significant
			Identical Assets		Inputs		Unobservable
(in thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Cash equivalents:
Money market funds	$	19,341	$	19,341	$	—	$	—
Marketable securities:
U.S. treasury securities		4,991		—		4,991		—
Agency bonds		24,451		—		24,451		—
Corporate bonds		271,072		—		271,072		—
Total	$	319,855	$	19,341	$	300,514	$	—

The Company did not transfer any assets measured at fair value on a recurring basis between levels during the three and six months ended June 30, 2020 and 2019.

- Definition

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

+ References + Details

Stock-Based Compensation

6 Months Ended

Jun. 30, 2020

Stock-Based Compensation

Stock-Based Compensation

7. Stock‑Based Compensation

Employee Equity Plans

The NextCure, Inc. 2015 Omnibus Incentive Plan (the “2015 Plan”) was adopted in December 2015 and provides for the grant of awards of stock options, restricted stock awards, unrestricted stock awards and restricted stock units to employees, consultants and directors of the Company.

The NextCure, Inc. 2019 Omnibus Incentive Plan (the “2019 Plan”) became effective on May 8, 2019, the date on which the Company’s Registration Statement on Form S-1 filed in connection with the IPO was declared effective (the “Effective Date”). The Company’s board of directors (the “Board”) determined not to make additional awards under the 2015 Plan following the effectiveness of the 2019 Plan. The 2019 Plan provides for the grant of awards of stock options, stock appreciation rights, restricted stock, restricted stock units, deferred stock units, unrestricted stock, dividend equivalent rights, other equity-based awards and cash bonus awards to the Company’s officers, employees, non-employee directors and other key persons (including consultants).

The number of shares of common stock reserved for issuance under the 2019 Plan is 2,900,000 plus the number of shares of stock related to awards outstanding under the 2015 Plan that subsequently terminate by expiration or forfeiture, cancellation or otherwise without the issuance of such shares. The number of shares reserved for issuance under the 2019 Plan automatically increase each January 1st during the term of the 2019 Plan by 4% of the number of shares of the Company’s common stock outstanding on December 31st of the preceding calendar year or such lesser number of shares determined by the Board.

As of June 30, 2020, 2,748,100 shares were reserved for future grant under the 2019 Plan.

Stock options granted under the 2015 Plan and 2019 Plan (together, the “Plans”) to employees generally vest over four years and expire after ten years.

A summary of stock option activity for awards under the Plans is presented below:


	Options Outstanding and Exercisable
				Weighted
		Weighted		Average	Aggregate
		Average		Remaining	Intrinsic
	Number of	Exercise		Contractual	Value(1)
	Shares	Price		Life (Years)	(in thousands)
Outstanding as of December 31, 2019	2,170,212	$	6.51	8.6	$	113,295
Granted	1,041,358	$	39.07	9.9		—
Exercised	(21,390)	$	2.61	7.6		—
Cancelled	(259)	$	7.63	8.7		—
Forfeited	(27,663)	$	19.89	9.3		—
Outstanding as of June 30, 2020	3,162,258	$	17.14	9.1	$	32,315
Vested and expected to vest as of June 30, 2020	3,162,258	$	17.14	—	$	32,315
Exercisable as of June 30, 2020	1,008,066	$	4.75	—	$	16,820

(1)

The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying options and the estimated fair value of the common stock for the options that were in the money at June 30, 2020 and December 31, 2019.

The weighted average grant date fair value of stock options granted to employees for the six months ended June 30, 2020 was $24.46. The aggregate intrinsic value of stock options exercised during the six months ended June 30, 2020 was $0.4 million. As of June 30, 2020, there was $28.8 million of total unrecognized compensation expense related to unvested options under the Plans that will be recognized over a weighted-average period of approximately three years.

The aggregate grant date fair value of stock options and restricted stock vested during the six months ended June 30, 2020 and December 31, 2019 was approximately $31.6 million and $7.6 million, respectively.

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				Six Months Ended
	June 30,				June 30,
(in thousands)	2020		2019		2020		2019
Research and development	$	896	$	151	$	1,348	$	300
General and administrative		1,291		261		1,847		495
Total stock-based compensation expense	$	2,187	$	412	$	3,195	$	795

The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model using the assumptions in the following table for options issued during the period indicated:


	Six Months Ended
	June 30,
	2020		2019
Expected term	5.5 - 6.08	years	6.08	years
Expected volatility	69.7 - 81.1	%	69.7	%
Risk free interest rate	0.3 - 1.0	%	1.96	%
Expected dividend yield	—	%	—	%

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2020
Summary of Significant Accounting Policies
Basis of Presentation and Unaudited Financial Information	There have been no material changes to the significant accounting policies previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Basis of Presentation The unaudited condensed financial statements include the accounts of NextCure, Inc. and have been prepared by the Company in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these condensed financial statements should be read in conjunction with the Company’s audited financial statements and the notes thereto the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 (the “Annual Report”). Unaudited Financial Information In the opinion of management, the information furnished reflects certain adjustments, all of which are of a normal and recurring nature and are necessary for a fair presentation of the Company’s financial position as of the reported balance sheet date and of the Company’s results for the reported interim periods. The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. The results of operations for interim periods are not necessarily indicative of results to be expected for the full year or any other interim period.
Use of Estimates	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, the disclosure of assets and liabilities as of the date of the condensed 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.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements The Company qualifies as an emerging growth company (“EGC”) as defined under the Jumpstart Our Business Startups Act (the “JOBS Act”). Using exemptions provided under the JOBS Act provided to EGCs, the Company has elected to defer compliance with new or revised financial accounting standards until it is required to comply with such standards. In February 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update No. 2016-02, Leases (“ASU 2016-02”). The new guidance will require lessees to record most leases on their balance sheets and recognize the related expenses on their income statements in a manner similar to current practice. ASU 2016-02 states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The standard is effective for the Company for fiscal years beginning after December 15, 2020 and interim periods within fiscal years beginning after December 15, 2021, assuming the Company remains an EGC. The Company continues to determine if it will elect to use the practical expedients permitted by the guidance and continues to gather data required to comply with the guidance. Based on the work completed to date, the Company is considering the implications of adopting the new standard, including the discount rate to be used in valuing new and existing leases and all applicable financial statement disclosures required by the new guidance. The Company is continuing to evaluate the effect of adoption and anticipates that it will result in the recognition of additional assets and corresponding liabilities related to the existing leases on its balance sheet. The Company is assessing potential impacts on its internal controls, business processes, and accounting policies related to both the implementation of, and ongoing compliance with, the new guidance. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 will require credit losses to be reported using an expected losses model rather than the incurred losses model that is currently used and will require additional disclosures related to credit risks. For available-for-sale debt securities with unrealized losses, this standard will require allowances to be recorded instead of reducing the amortized cost of the investment. ASU 2016-13 will be effective for non-EGCs for fiscal years beginning December 15, 2019 and interim periods within those fiscal years, and will be effective for the Company for fiscal years beginning after December 15, 2022 and interim periods within those fiscal years, assuming the Company remains an EGC. Early adoption is permitted. The Company is currently evaluating the effects the adoption of ASU 2016-13 may have on its financial statements. The Company considers the applicability and impact of all ASUs issued by the FASB. All other ASUs issued subsequent to the filing of the Company’s Annual Report were assessed and determined to be either inapplicable or not expected to have a material impact on the Company’s financial position or results of operations.

Marketable Securities (Tables)

6 Months Ended

Jun. 30, 2020

Marketable Securities

Schedule of marketable securities

Marketable securities consist of the following:


	June 30, 2020
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gain		Loss		Fair Value
(in thousands)
Agency bonds (government sponsored enterprises)	$	24,366	$	83	$	—	$	24,449
Corporate bonds		251,022		1,858		(6)		252,874
Commercial paper		6,962		—		—		6,962
Total	$	282,350	$	1,941	$	(6)	$	284,285


	December 31, 2019
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
(in thousands)	Cost		Gain		Loss		Fair Value
Short-term marketable securities:
U.S. treasury securities	$	4,991	$	—	$	—	$	4,991
Agency bonds (government sponsored enterprises)		24,437		15		(1)		24,451
Corporate bonds		271,124		103		(155)		271,072
Total	$	300,552	$	118	$	(156)	$	300,514

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2020

Fair Value Measurements

Summary of fair value of the Company’s financial assets

The following tables set forth the fair value of the Company’s financial assets by level within the fair value hierarchy as of June 30, 2020 and December 31, 2019:


	June 30, 2020
					Significant
			Quoted Prices in		Other
			Active Markets or		Observable		Significant
			Identical Assets		Inputs		Unobservable
(in thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Cash equivalents:
Money market funds	$	9,956	$	9,956	$	—	$	—
Marketable securities:
Agency bonds		24,449		—		24,449		—
Corporate bonds		252,874		—		252,874		—
Commercial paper		6,962		—		6,962
Total	$	294,241	$	9,956	$	284,285	$	—


	December 31, 2019
					Significant
			Quoted Prices in		Other
			Active Markets or		Observable		Significant
			Identical Assets		Inputs		Unobservable
(in thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Cash equivalents:
Money market funds	$	19,341	$	19,341	$	—	$	—
Marketable securities:
U.S. treasury securities		4,991		—		4,991		—
Agency bonds		24,451		—		24,451		—
Corporate bonds		271,072		—		271,072		—
Total	$	319,855	$	19,341	$	300,514	$	—

Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2020

Stock-Based Compensation

Summary of stock option activity


	Options Outstanding and Exercisable
				Weighted
		Weighted		Average	Aggregate
		Average		Remaining	Intrinsic
	Number of	Exercise		Contractual	Value(1)
	Shares	Price		Life (Years)	(in thousands)
Outstanding as of December 31, 2019	2,170,212	$	6.51	8.6	$	113,295
Granted	1,041,358	$	39.07	9.9		—
Exercised	(21,390)	$	2.61	7.6		—
Cancelled	(259)	$	7.63	8.7		—
Forfeited	(27,663)	$	19.89	9.3		—
Outstanding as of June 30, 2020	3,162,258	$	17.14	9.1	$	32,315
Vested and expected to vest as of June 30, 2020	3,162,258	$	17.14	—	$	32,315
Exercisable as of June 30, 2020	1,008,066	$	4.75	—	$	16,820

Summary of stock based compensation expense recorded


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands)	2020		2019		2020		2019
Research and development	$	896	$	151	$	1,348	$	300
General and administrative		1,291		261		1,847		495
Total stock-based compensation expense	$	2,187	$	412	$	3,195	$	795

Summary of assumptions used in the Black Scholes option pricing model for stock options granted


	Six Months Ended
	June 30,
	2020		2019
Expected term	5.5 - 6.08	years	6.08	years
Expected volatility	69.7 - 81.1	%	69.7	%
Risk free interest rate	0.3 - 1.0	%	1.96	%
Expected dividend yield	—	%	—	%

Nature of the Business - (Details) $ / shares in Units, $ in Thousands			6 Months Ended
	May 13, 2019 USD ($) $ / shares shares	May 03, 2019	Jun. 30, 2019 USD ($) $ / shares	Jun. 30, 2020 $ / shares shares	Dec. 31, 2019 $ / shares shares
Nature of the Business
Reverse stock split ratio		0.1245
Proceeds from issuance of shares, net \| $			$ 77,264
Common stock, shares outstanding	15,560,569			27,520,650	27,499,260
Preferred stock, shares outstanding	0			0	0
Common stock, number of shares authorized	100,000,000			100,000,000	100,000,000
Common stock, par value per share \| $ / shares	$ 0.001		$ 0.001	$ 0.001	$ 0.001
Preferred stock, number of shares authorized	10,000,000			10,000,000	10,000,000
Preferred stock, par value per share \| $ / shares	$ 0.001			$ 0.001	$ 0.001
IPO
Nature of the Business
Issuance of common stock (in shares)	5,750,000
Share price \| $ / shares	$ 15.00
Proceeds from issuance of shares, net \| $	$ 77,000
Underwriting discounts and commissions \| $	6,000
Offering expenses \| $	$ 3,400

Restricted Cash (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019	Dec. 31, 2018
Restricted Cash
Face amount	$ 5,000
Restricted cash required reserve	4,300
Reconciliation of cash and cash equivalents and restricted cash per the balance sheet to the statement of cash flows
Cash and cash equivalents	25,050	$ 34,091
Restricted cash (including $2,639 and $3,333 in other assets as of June 30, 2020 and December 31, 2019, respectively)	4,345	5,039
Total	29,395	39,130	$ 197,728	$ 135,633
Other assets, restricted cash	$ 2,639	$ 3,333

Marketable Securities - (Details) - USD ($)	3 Months Ended	6 Months Ended
Marketable Securities - (Details) - USD ($)	Jun. 30, 2020	Jun. 30, 2020	Dec. 31, 2019
Investments
Amortized Cost	$ 282,350,000	$ 282,350,000	$ 300,552,000
Gross Unrealized Gain	1,941,000	1,941,000	118,000
Gross Unrealized Loss	(6,000)	(6,000)	(156,000)
Estimated Fair Value	284,285,000	284,285,000	300,514,000
Marketable securities other-than-temporarily impaired		0
Gross realized gains	4,000	68,000
U.S. treasury securities
Investments
Amortized Cost			4,991,000
Estimated Fair Value			4,991,000
Agency bonds
Investments
Amortized Cost	24,366,000	24,366,000	24,437,000
Gross Unrealized Gain	83,000	83,000	15,000
Gross Unrealized Loss			(1,000)
Estimated Fair Value	24,449,000	24,449,000	24,451,000
Corporate bonds
Investments
Amortized Cost	251,022,000	251,022,000	271,124,000
Gross Unrealized Gain	1,858,000	1,858,000	103,000
Gross Unrealized Loss	(6,000)	(6,000)	(155,000)
Estimated Fair Value	252,874,000	252,874,000	$ 271,072,000
Commercial Paper
Investments
Amortized Cost	6,962,000	6,962,000
Estimated Fair Value	$ 6,962,000	$ 6,962,000

Fair Value Measurements - (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Jun. 30, 2019	Mar. 31, 2019
Fair value of the Company’s financial assets
Marketable securities	$ 284,285		$ 300,514
Assets transferred from level 1 to level 2	0	$ 0		$ 0	$ 0
Assets transferred from level 2 to level 1	0	$ 0		$ 0	$ 0
Fair Value
Fair value of the Company’s financial assets
Total financial assets	294,241		319,855
Fair Value \| Quoted Prices in Active Markets (Level 1)
Fair value of the Company’s financial assets
Total financial assets	9,956		19,341
Fair Value \| Significant Other Observable Inputs (Level 2)
Fair value of the Company’s financial assets
Total financial assets	284,285		300,514
Money market funds (cash equivalents) \| Fair Value
Fair value of the Company’s financial assets
Money market funds (cash equivalents)	9,956		19,341
Money market funds (cash equivalents) \| Fair Value \| Quoted Prices in Active Markets (Level 1)
Fair value of the Company’s financial assets
Money market funds (cash equivalents)	9,956		19,341
U.S. treasury securities \| Fair Value
Fair value of the Company’s financial assets
Marketable securities			4,991
U.S. treasury securities \| Fair Value \| Significant Other Observable Inputs (Level 2)
Fair value of the Company’s financial assets
Marketable securities			4,991
Agency bonds \| Fair Value
Fair value of the Company’s financial assets
Marketable securities	24,449		24,451
Agency bonds \| Fair Value \| Significant Other Observable Inputs (Level 2)
Fair value of the Company’s financial assets
Marketable securities	24,449		24,451
Corporate bonds \| Fair Value
Fair value of the Company’s financial assets
Marketable securities	252,874		271,072
Corporate bonds \| Fair Value \| Significant Other Observable Inputs (Level 2)
Fair value of the Company’s financial assets
Marketable securities	252,874		$ 271,072
Commercial Paper \| Fair Value
Fair value of the Company’s financial assets
Marketable securities	6,962
Commercial Paper \| Fair Value \| Significant Other Observable Inputs (Level 2)
Fair value of the Company’s financial assets
Marketable securities	$ 6,962

Stock-Based Compensation - Stock options (Details) - USD ($) $ / shares in Units, $ in Thousands		6 Months Ended	12 Months Ended
	May 03, 2019	Jun. 30, 2020	Dec. 31, 2019
2015 Plan
Number of Shares
Outstanding at the beginning (in shares)		2,170,212
Granted (in shares)		1,041,358
Exercised (in shares)		(21,390)
Cancelled (in shares)		(259)
Forfeitures (in shares)		(27,663)
Outstanding at the end (in shares)		3,162,258	2,170,212
Vested and expected to vest at the end (in shares)		3,162,258
Exercisable at the end (in shares)		1,008,066
Weighted Average Exercise Price
Outstanding at the beginning (in dollars per share)		$ 6.51
Granted (in dollars per share)		39.07
Exercised (in dollars per share)		2.61
Cancelled (in dollars per share)		7.63
Forfeited (in dollars per share)		19.89
Outstanding at the end (in dollars per share)		17.14	$ 6.51
Vested and expected to vest at the end (in dollars per share)		17.14
Exercisable at the end (in dollars per share)		$ 4.75
Weighted Average Remaining Contractual Life (Years) And Aggregate Intrinsic Value
Outstanding (in years)		9 years 1 month 6 days	8 years 7 months 6 days
Granted (in years)		9 years 10 months 24 days
Exercised (in years)		7 years 7 months 6 days
Cancelled (in years)		8 years 8 months 12 days
Forfeited (in years)		9 years 3 months 18 days
Outstanding at the beginning (in dollars)		$ 113,295
Outstanding at the end (in dollars)		32,315	$ 113,295
Vested and expected to vest at the end (in dollars)		32,315
Exercisable at the end (in dollars)		$ 16,820
Weighted average grant date fair value per share of stock options granted		$ 24.46
Aggregate intrinsic value of stock options exercised		$ 400
Aggregate grant date fair value		31,600	$ 7,600
Share Based Compensation Expense Not Recognized
Unrecognized compensation cost		$ 28,800
Compensation expense recognition period		3 years
Omnibus Incentive Plan
Stock Based Compensation
Number of shares reserved for issuance under the plan	2,900,000
Annual increase in number of share reserved for issuance (as percent)	4.00%
2015 Plan and 2019 Employee Stock Purchase Plan
Stock Based Compensation
Vesting period		4 years
Expiration period		10 years
2019 Employee Stock Purchase Plan
Stock Based Compensation
Number of shares reserved for issuance under the plan		2,748,100

Agreement with Eli Lilly and Company	6 Months Ended
Agreement with Eli Lilly and Company	Jun. 30, 2020
Agreement with Eli Lilly and Company
Agreement with Eli Lilly and Company	6. Agreement with Eli Lilly and Company On November 2, 2018, the Company entered into a multi-year research and development collaboration agreement (the “Lilly Agreement”) with Eli Lilly and Company (“Lilly”), pursuant to which the Company agreed to use its proprietary FIND-IO platform to identify novel oncology targets for additional collaborative research and drug discovery by the Company and Lilly. Effective March 3, 2020, Lilly, terminated the Lilly Agreement without cause. The Company recognized revenue under the Lilly Agreement of $ 0 million and $22.4 million for the three and six months ended June 30, 2020, respectively, and $1.4 million and $2.8 million for the three and six months ended June 30, 2019, respectively. Effective with the termination of the agreement, no further quarterly research and development support payments are payable to the Company.

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2020
Income Taxes
Income Taxes	8. Income Taxes The Company did not record a provision or benefit for income taxes during the three and six months ended June 30, 2020 and 2019. The Company continues to maintain a full valuation allowance against its deferred tax assets. The Company has evaluated the positive and negative evidence involving its ability to realize its deferred tax assets. Management has considered the Company’s history of cumulative net losses incurred since inception and its lack of any commercially ready products. It has concluded that it is more likely than not that the Company will not realize the benefits of the deferred tax assets. Management reevaluates the positive and negative evidence at each reporting period. Under the provisions of Sections 382 and 383 of the IRC, certain substantial changes in the Company’s ownership may have limited, or may limit in the future, the amount of net operating loss and research and development credit carryforwards that can be used to reduce future income taxes. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act ("CARES Act") was signed into law. The CARES Act includes various income and payroll tax provisions. The Company has analyzed the tax provisions of the CARES Act and determined they have no significant financial impact to our condensed financial statements.

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2020
Subsequent Events
Subsequent Events	9. Subsequent Events The Company has evaluated subsequent events through the issuance date of these interim condensed financial statements.

Stock-Based Compensation - Assumptions (Details)	6 Months Ended
Stock-Based Compensation - Assumptions (Details)	Jun. 30, 2020	Jun. 30, 2019
Fair value assumptions
Expected term		6 years 29 days
Expected volatility		69.70%
Risk free interest rate		1.96%
Expected dividend yield	0.00%	0.00%
Minimum
Fair value assumptions
Expected term	5 years 6 months
Expected volatility	69.70%
Risk free interest rate	0.30%
Maximum
Fair value assumptions
Expected term	6 years 29 days
Expected volatility	81.10%
Risk free interest rate	1.00%

Income Taxes - (Details) - USD ($)	3 Months Ended
Income Taxes - (Details) - USD ($)	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019
Income Taxes
Provision or benefit from income taxes	$ 0	$ 0	$ 0	$ 0