0001558370-21-006266 | 10-Q | XBRL Viewer

Net (Loss) Income Per Share Attributable to Common Stockholders (Tables)

3 Months Ended

Mar. 31, 2021

Net (Loss) Income Per Share Attributable to Common Stockholders

Summary of computation of basic and diluted net loss per share attributable to common stockholders

The computation for basic and diluted EPS were as follows (in thousands, except share and per share data):


	Three months ended
	March 31,
	2021		2020
(Loss) income (Numerator):
Net (loss) income for basic and diluted EPS	$	(16,533)	$	9,733
Shares (Denominator):
Weighted-average number of common shares outstanding		27,597,426		27,506,927
Effect of dilutive common stock equivalents		—		1,841,688
Weighted-average shares for diluted EPS		27,597,426		29,348,615

Basic EPS	$	(0.60)	$	0.35
Diluted EPS	$	(0.60)	$	0.33

Summary of shares excluded from the computation of diluted net loss per share


	March 31,
	2021		2020
Outstanding options to purchase common stock		4,340,135	3,000
Total		4,340,135	3,000

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2021

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 March 31, 2021 and December 31, 2020:


	March 31, 2021
					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	$	19,185	$	19,185	$	—	$	—
Marketable securities:
Corporate bonds		231,709		—		231,709		—
Total	$	250,894	$	19,185	$	231,709	$	—


	December 31, 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	$	11,155	$	11,155	$	—	$	—
Marketable securities:
Corporate bonds		243,679		—		243,679		—
Commercial paper		6,997		—		6,997		—
Total	$	261,831	$	11,155	$	250,676	$	—

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2021
Commitments and Contingencies
Commitments and Contingencies	10. Commitments and Contingencies Legal Proceedings On September 21, 2020, a putative stockholder class action was filed in the U.S. District Court for the Southern District of New York styled Ye Zhou v. NextCure, Inc., et. al., Case 1:20-cv-0772 (S.D.N.Y.). On February 26, 2021, the Lead Plaintiff filed a consolidated amended complaint that asserts claims against us, certain of our officers and members of our board of directors, and the underwriters in our May 2019 initial public offering and November 2019 underwritten secondary public offering. The complaint alleges that the defendants violated provisions of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the Securities Act of 1933, as amended, with respect to statements made regarding our lead product candidate, NC318, and the FIND-IO platform. The complaint seeks unspecified damages on behalf of a purported class of purchasers of our securities between May 8, 2019 and July 14, 2020. Defendants filed a motion to dismiss the consolidated amended complaint on April 27, 2021 and discovery is stayed pending resolution of that motion. On March 24, 2021, a purported shareholder derivative lawsuit was filed in the U.S. District Court for the District of Maryland, Southern Division, styled Zach Liu v. Richman et. al., Case:21-cv-00754, alleging breaches of fiduciary duty by officers and/or directors, unjust enrichment, abuse of control, gross mismanagement, waste of corporate assets, and violations of the Exchange Act and the Securities Act of 1933. The Complaint seeks unspecified damages, attorneys’ fees and costs, declaratory relief, corporate governance changes, and restitution. The deadline to respond to the Complaint is May 24, 2021 but we anticipate either stipulating to, or moving for, a stay of proceedings pending resolution of the Ye Zhou action. The Company intends to vigorously defend the Ye Zhou and Liu actions and believes these cases are without merit. Based on the Company’s assessment of the facts underlying these claims, the uncertainty of litigation, and the preliminary stage of these cases, the Company cannot estimate the reasonably possible loss or range of loss that may result from these actions.

Stock-Based Compensation

3 Months Ended

Mar. 31, 2021

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 March 31, 2021, 2,589,208 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, 2020	3,112,376	$	16.95	8.2	$	10,810
Granted	1,313,150	$	12.49
Exercised	(35,615)	$	1.78
Forfeited	(49,776)	$	29.26
Outstanding as of March 31, 2021	4,340,135	$	15.59	8.6	$	8,779
Vested and expected to vest as of March 31, 2021	4,340,135	$	15.59	8.6	$	8,779
Exercisable as of March 31, 2021	1,521,940	$	10.77	8.4	$	6,689

(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 March 31, 2021 and December 31, 2020.

The weighted average grant date fair value of stock options granted to employees for the three months ended March 31, 2021 was $8.57. The aggregate intrinsic value of stock options exercised during the three months ended March 31, 2021 was $0.3 million. As of March 31, 2021, there was $31.1 million of total unrecognized compensation expense related to unvested options under the Plans that will be recognized over a weighted-average period of approximately 2.7 years.

The aggregate grant date fair value of stock options and restricted stock vested during the three months ended March 31, 2021 and 2020 was approximately $6.4 million and $30.3 million, respectively.

Stock-based compensation expense was classified on the statements of operations as follows for the three months ended March 31, 2021 and 2020:


	Three Months Ended
	March 31,
(in thousands)	2021		2020
Research and development	$	958	$	452
General and administrative		1,550		556
Total stock-based compensation expense	$	2,508	$	1,008

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:


	Three Months Ended
	March 31,
	2021		2020
Expected term	6.1	years	6.1	years
Expected volatility	79.7	%	69.7	%
Risk free interest rate	0.8 - 1.4	%	0.6 - 1.0	%
Expected dividend yield	—	%	—	%

Stock-Based Compensation - Stock based compensation expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Stock based compensation expense
Total stock-based compensation expense	$ 2,508	$ 1,008
Research and development
Stock based compensation expense
Total stock-based compensation expense	958	452
General and administrative
Stock based compensation expense
Total stock-based compensation expense	$ 1,550	$ 556

Marketable Securities

3 Months Ended

Mar. 31, 2021

Marketable Securities

Marketable Securities

4. Marketable Securities

Marketable securities consist of the following:


	March 31, 2021
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
(in thousands)	Cost		Gain		Loss		Fair Value
Corporate bonds	$	231,530	$	337	$	(158)	$	231,709
Total	$	231,530	$	337	$	(158)	$	231,709


	December 31, 2020
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
(in thousands)	Cost		Gain		Loss		Fair Value
Corporate bonds	$	242,900	$	854	$	(75)	$	243,679
Commercial paper		6,997		—		—		6,997
Total	$	249,897	$	854	$	(75)	$	250,676

The Company uses the specific identification method when calculating realized gains and losses. For the three months ended March 31, 2021 and 2020, respectively, the Company recorded approximately $54,000 and $64,000 in realized gains on available-for-sale securities, which is included in other income, net on the condensed statements of operations.

The Company reviewed all of the investments which were in a loss position at the respective balance sheet dates, as well as the remainder of the portfolio. The Company has analyzed the unrealized losses and determined that market conditions were the primary factor driving these changes. After analyzing the securities in an unrealized loss position, the portion of these losses that relate to changes in credit quality is insignificant. The Company does not intend to sell these securities, nor is it more likely than not that the Company will be required to sell them prior to the end of their contractual terms. Furthermore, the Company does not believe that these securities expose the Company to undue market risk or counterparty credit risk.

The following table summarizes maturities of the Company’s investments available-for-sale as of March 31, 2021:


	March 31, 2021
			Fair
(in thousands)	Cost		Value
Maturities:
Within 1 year	$	115,920	$	116,233
Between 1 to 2 years		115,610		115,476
Total investments available for sale	$	231,530	$	231,709

The Company has classified all of its investments available-for-sale, including those with maturities beyond one year, as current assets on the accompanying condensed balance sheets based on the highly-liquid nature of these investment securities and because these investment securities are considered available for use in current operations.

Net (Loss) Income Per Share Attributable to Common Stockholders - Other (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income (loss) (Numerator):
Net (loss) income for basic and diluted EPS	$ (16,533)	$ 9,733
Shares (Denominator):
Weighted-average number of common shares outstanding (in shares)	27,597,426	27,506,927
Effect of dilutive common stock equivalents (in shares)		1,841,688
Weighted-average shares for diluted EPS (in shares)	27,597,426	29,348,615
Basic EPS (in dollars per share)	$ (0.60)	$ 0.35
Diluted EPS (in dollars per share)	$ (0.60)	$ 0.33

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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

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+ Details

Former Agreement with Eli Lilly and Company (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($)
Collaborative Arrangements
Revenue from former research and development arrangement	$ 22,378
Lilly Agreement
Collaborative Arrangements
Revenue from former research and development arrangement	$ 22,400

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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+ Details

Restricted Cash

3 Months Ended

Mar. 31, 2021

Restricted Cash.

Restricted Cash

3. Restricted Cash

The Company is required, as a condition of its $5.0 million term loan (the “Term Loan”), to maintain cash collateral on deposit in a segregated money market bank account equal to the principal portion of the Term Loan, as determined on a quarterly basis. The bank may restrict withdrawals or transfers by or on behalf of the Company that would violate this requirement. The required Term Loan reserve totaled $3.1 million and $3.5 million as of March 31, 2021 and December 31, 2020, respectively. These amounts are presented in part as restricted cash and in part as other assets on the accompanying condensed balance sheets.

The following table reconciles cash and cash equivalents and restricted cash per the balance sheet to the condensed statement of cash flows:


	March 31,		December 31,
(in thousands)	2021		2020
Cash and cash equivalents	$	36,527	$	32,772
Restricted cash (including $1,386 and $1,806 in other assets as of March 31, 2021 and December 31, 2020, respectively)		3,092		3,512
Total	$	39,619	$	36,284

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2021

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, 2020	3,112,376	$	16.95	8.2	$	10,810
Granted	1,313,150	$	12.49
Exercised	(35,615)	$	1.78
Forfeited	(49,776)	$	29.26
Outstanding as of March 31, 2021	4,340,135	$	15.59	8.6	$	8,779
Vested and expected to vest as of March 31, 2021	4,340,135	$	15.59	8.6	$	8,779
Exercisable as of March 31, 2021	1,521,940	$	10.77	8.4	$	6,689

Summary of stock based compensation expense recorded


	Three Months Ended
	March 31,
(in thousands)	2021		2020
Research and development	$	958	$	452
General and administrative		1,550		556
Total stock-based compensation expense	$	2,508	$	1,008

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


	Three Months Ended
	March 31,
	2021		2020
Expected term	6.1	years	6.1	years
Expected volatility	79.7	%	69.7	%
Risk free interest rate	0.8 - 1.4	%	0.6 - 1.0	%
Expected dividend yield	—	%	—	%

CONDENSED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 36,527	$ 32,772
Marketable securities	231,709	250,676
Restricted cash	1,706	1,706
Prepaid expenses and other current assets	3,109	2,824
Total current assets	273,051	287,978
Property and equipment, net	15,470	15,809
Other assets	2,438	2,857
Total assets	290,959	306,644
Current liabilities:
Accounts payable	2,017	3,901
Accrued liabilities	4,295	4,627
Deferred rent, current portion	209	130
Term loan, current portion	1,667	1,667
Total current liabilities	8,188	10,325
Deferred rent, net of current portion	2,223	792
Term loan, net of current portion	1,389	1,806
Total liabilities	11,800	12,923
Stockholders’ equity
Preferred stock; par value of $0.001 per share; 10,000,000 shares authorized at March 31, 2021 and December 31, 2020, no shares issued and outstanding at March 31, 2021 and December 31, 2020
Common stock, par value of $0.001 per share; 100,000,000 shares authorized at March 31, 2021 and December 31, 2020; 27,604,417 and 27,568,802 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively	28	28
Additional paid-in capital	413,122	410,551
Accumulated other comprehensive income	179	779
Accumulated deficit	(134,170)	(117,637)
Total stockholders’ equity	279,159	293,721
Total liabilities and stockholders’ equity	$ 290,959	$ 306,644

Income Taxes - (Details) - USD ($)	3 Months Ended
Income Taxes - (Details) - USD ($)	Mar. 31, 2021	Mar. 31, 2020
Income Taxes
Provision or benefit from income taxes	$ 0	$ 0

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Marketable Securities (Tables)

3 Months Ended

Mar. 31, 2021

Marketable Securities

Schedule of marketable securities

Marketable securities consist of the following:


	March 31, 2021
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
(in thousands)	Cost		Gain		Loss		Fair Value
Corporate bonds	$	231,530	$	337	$	(158)	$	231,709
Total	$	231,530	$	337	$	(158)	$	231,709


	December 31, 2020
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
(in thousands)	Cost		Gain		Loss		Fair Value
Corporate bonds	$	242,900	$	854	$	(75)	$	243,679
Commercial paper		6,997		—		—		6,997
Total	$	249,897	$	854	$	(75)	$	250,676

Schedule of available-for-sale maturities


	March 31, 2021
			Fair
(in thousands)	Cost		Value
Maturities:
Within 1 year	$	115,920	$	116,233
Between 1 to 2 years		115,610		115,476
Total investments available for sale	$	231,530	$	231,709

CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit	Total
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
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 on marketable securities, net of tax $0			(505)		(505)
Net (loss) income				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, 2020	$ 28	410,551	779	(117,637)	$ 293,721
Balance at the beginning (in shares) at Dec. 31, 2020	27,568,802				27,568,802
Increase (Decrease) in Stockholders' Deficit
Stock based compensation		2,508			$ 2,508
Issuance of common stock		63			63
Issuance of common stock (in shares)	35,615
Unrealized loss on marketable securities, net of tax $0			(600)		(600)
Net (loss) income				(16,533)	(16,533)
Balance at the end at Mar. 31, 2021	$ 28	$ 413,122	$ 179	$ (134,170)	$ 279,159
Balance at the end (in shares) at Mar. 31, 2021	27,604,417				27,604,417

- Definition

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

+ References

+ Details

- Definition

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

+ References + Details

CONDENSED BALANCE SHEETS - (Parenthetical) - $ / shares	Mar. 31, 2021	Dec. 31, 2020
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	27,604,417	27,568,802
Common stock, shares outstanding	27,604,417	27,568,802

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2021	May 05, 2021
Cover Abstract
Document Type	10-Q
Document Period End Date	Mar. 31, 2021
Entity Registrant Name	NextCure, Inc.
Entity Central Index Key	0001661059
Title of 12(b) Security	Common Stock, $0.001 par value per share
Trading Symbol	NXTC
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		27,609,863
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false

Former Agreement with Eli Lilly and Company	3 Months Ended
Former Agreement with Eli Lilly and Company	Mar. 31, 2021
Former Agreement with Eli Lilly and Company
Former Agreement with Eli Lilly and Company	6. Former 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 $22.4 million for the three months ended March 31, 2020. Effective with the termination of the agreement, no further quarterly research and development support payments are payable to the Company.

Stock-Based Compensation - Assumptions (Details)	3 Months Ended
Stock-Based Compensation - Assumptions (Details)	Mar. 31, 2021	Mar. 31, 2020
Fair value assumptions
Expected term	6 years 1 month 6 days	6 years 1 month 6 days
Expected volatility	79.70%	69.70%
Expected dividend yield	0.00%	0.00%
Minimum
Fair value assumptions
Risk free interest rate	0.80%	0.60%
Maximum
Fair value assumptions
Risk free interest rate	1.40%	1.00%

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2021
Income Taxes
Income Taxes	9. Income Taxes The Company did not record a provision or benefit for income taxes during the three months ended March 31, 2021 and 2020. 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 Internal Revenue Code (“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. We have not performed a detailed analysis to determine whether an ownership change under Section 382 of the IRC occurred. The effect of an ownership change would be the imposition of an annual limitation on the use of credits attributable to periods before the change and could result in a reduction in the total credits available. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (the “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 the Company’s condensed financial statements. On March 11, 2021, the American Rescue Plan Act of 2021 (“ARPA 2021”) was signed into law. ARPA 2021 included various income and payroll tax provisions. The Company has analyzed the tax provisions of ARPA 2021 and determined they have no significant financial impact to the Company’s condensed financial statements.

- Definition

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

+ References + Details

Fair Value Measurements - (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020
Fair value of the Company’s financial assets
Marketable securities	$ 231,709	$ 250,676
Assets transferred from level 1 to level 2	0		$ 0
Assets transferred from level 2 to level 1	0		$ 0
Carrying Amount
Fair value of the Company’s financial assets
Total financial assets	250,894	261,831
Fair Value \| Quoted Prices in Active Markets (Level 1)
Fair value of the Company’s financial assets
Total financial assets	19,185	11,155
Fair Value \| Significant Other Observable Inputs (Level 2)
Fair value of the Company’s financial assets
Total financial assets	231,709	250,676
Money market funds (cash equivalents) \| Carrying Amount
Fair value of the Company’s financial assets
Money market funds (cash equivalents)	19,185	11,155
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)	19,185	11,155
Corporate bonds \| Carrying Amount
Fair value of the Company’s financial assets
Marketable securities	231,709	243,679
Corporate bonds \| Fair Value \| Significant Other Observable Inputs (Level 2)
Fair value of the Company’s financial assets
Marketable securities	$ 231,709	243,679
Commercial Paper \| Carrying Amount
Fair value of the Company’s financial assets
Marketable securities		6,997
Commercial Paper \| Fair Value \| Significant Other Observable Inputs (Level 2)
Fair value of the Company’s financial assets
Marketable securities		$ 6,997

Restricted Cash (Tables)

3 Months Ended

Mar. 31, 2021

Restricted Cash.

Summary of reconciliation cash and cash equivalents and restricted cash per the balance sheet to the statement of cash flows

The following table reconciles cash and cash equivalents and restricted cash per the balance sheet to the condensed statement of cash flows:


	March 31,		December 31,
(in thousands)	2021		2020
Cash and cash equivalents	$	36,527	$	32,772
Restricted cash (including $1,386 and $1,806 in other assets as of March 31, 2021 and December 31, 2020, respectively)		3,092		3,512
Total	$	39,619	$	36,284

Marketable Securities - (Details) - USD ($)	3 Months Ended
Marketable Securities - (Details) - USD ($)	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Investments
Amortized Cost	$ 231,530,000		$ 249,897,000
Gross Unrealized Gain	337,000		854,000
Gross Unrealized Loss	(158,000)		(75,000)
Estimated Fair Value	231,709,000		250,676,000
Gross realized gains	54,000	$ 64,000
Cost Maturities:
Within 1 year	115,920,000
Between 1 to 2 years	115,610,000
Total investments available for sale	231,530,000
Fair Value Maturities:
Within 1 year	116,233,000
Between 1 to 2 years	115,476,000
Total investments available for sale	231,709,000
Corporate bonds
Investments
Amortized Cost	231,530,000		242,900,000
Gross Unrealized Gain	337,000		854,000
Gross Unrealized Loss	(158,000)		(75,000)
Estimated Fair Value	$ 231,709,000		243,679,000
Commercial Paper
Investments
Amortized Cost			6,997,000
Estimated Fair Value			$ 6,997,000

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenue:
Revenue from former research and development arrangement		$ 22,378
Revenue, Product and Service [Extensible List]	nxtc:RelatedPartyMember
Operating expenses:
Research and development	$ 12,386	10,578
General and administrative	4,848	3,588
Total operating expenses	17,234	14,166
(Loss) income from operations	(17,234)	8,212
Other income, net	701	1,521
Net (loss) income	$ (16,533)	$ 9,733
(Loss) earnings per share
Basic (in dollars per share)	$ (0.60)	$ 0.35
Diluted (in dollars per share)	$ (0.60)	$ 0.33
Shares used in the calculation of (loss) earnings per share
Basic (in shares)	27,597,426	27,506,927
Diluted (in shares)	27,597,426	29,348,615
Comprehensive (loss) income:
Net (loss) income	$ (16,533)	$ 9,733
Unrealized loss on marketable securities	(600)	(543)
Total comprehensive (loss) income	$ (17,133)	$ 9,190

CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 31, 2020
Cash flows from operating activities:
Net (loss) income	$ (16,533)	$ 9,733
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Depreciation and amortization	1,105	751
Stock-based compensation	2,508	1,008
Changes in operating assets and liabilities:
Prepaid expenses and other assets	(285)	606
Accounts payable	(1,884)	402
Accrued liabilities	(332)	(812)
Deferred rent	1,510	96
Deferred revenue		(22,378)
Net cash used in operating activities	(13,911)	(10,594)
Cash flows from investing activities:
Maturities of marketable securities	56,786	30,349
Purchase of marketable securities	(38,420)	(23,531)
Purchase of property and equipment	(766)	(1,445)
Net cash provided by investing activities	17,600	5,373
Cash flows from financing activities:
Proceeds from issuances of common stock	63	37
Payments of the term loan	(417)	(277)
Net cash used in financing activities	(354)	(240)
Net increase (decrease) in cash, cash equivalents and restricted cash	3,335	(5,461)
Cash, cash equivalents and restricted cash—beginning of period	36,284	39,130
Cash, cash equivalents and restricted cash—end of period	39,619	33,669
Supplemental disclosures of cash flow information:
Cash paid for interest	$ 36	35
Supplemental disclosures of noncash investing and financing activities:
Purchase of property and equipment included in accrued liabilities		$ 156

Fair Value Measurements

3 Months Ended

Mar. 31, 2021

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 March 31, 2021 and December 31, 2020:


	March 31, 2021
					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	$	19,185	$	19,185	$	—	$	—
Marketable securities:
Corporate bonds		231,709		—		231,709		—
Total	$	250,894	$	19,185	$	231,709	$	—


	December 31, 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	$	11,155	$	11,155	$	—	$	—
Marketable securities:
Corporate bonds		243,679		—		243,679		—
Commercial paper		6,997		—		6,997		—
Total	$	261,831	$	11,155	$	250,676	$	—

The Company did not transfer any assets measured at fair value on a recurring basis between levels during the three months ended March 31, 2021 and 2020.

- 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

Nature of the Business	3 Months Ended
Nature of the Business	Mar. 31, 2021
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. 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 March 31, 2021, 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, which was terminated in March 2020 (see 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 (“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. However, the Company’s laboratories have continued operations throughout the pandemic mostly without interruption. The impact of the COVID-19 pandemic (including the impact of emerging variant strains of the COVID-19 virus) on the Company’s business and financial performance is uncertain and depends on various factors, including the scope and duration of the pandemic, the efficacy and global distribution of vaccines, 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 and other 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 initially placed significant strain on the Company’s clinical trial sites, have 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. Any rise of COVID-19 infection rates, especially in the United States, could continue to negatively affect enrollment going forward. The Company continues to closely monitor the COVID-19 situation and any potential impact to the Company’s planned activities.

Net (Loss) Income Per Share Attributable to Common Stockholders

3 Months Ended

Mar. 31, 2021

Net (Loss) Income Per Share Attributable to Common Stockholders

Net (Loss) Income Per Share Attributable to Common Stockholders

8. Net (Loss) Income Per Share Attributable to Common Stockholders

(Loss) Earnings per share

The computation of basic (loss) earnings per share ("EPS") is based on the weighted-average number of common shares outstanding, without consideration for dilutive common stock equivalents. The computation of diluted EPS is based on the weighted-average number of common shares outstanding and dilutive potential common shares, which include shares that may be issued under the stock option plan, as determined using the treasury stock method.

The computation for basic and diluted EPS were as follows (in thousands, except share and per share data):


	Three months ended
	March 31,
	2021		2020
(Loss) income (Numerator):
Net (loss) income for basic and diluted EPS	$	(16,533)	$	9,733
Shares (Denominator):
Weighted-average number of common shares outstanding		27,597,426		27,506,927
Effect of dilutive common stock equivalents		—		1,841,688
Weighted-average shares for diluted EPS		27,597,426		29,348,615

Basic EPS	$	(0.60)	$	0.35
Diluted EPS	$	(0.60)	$	0.33

For the three months ended March 31, 2020, options to purchase 3,000 shares of the Company's common stock were excluded from the computation of diluted net income per share as their effect would have been anti-dilutive.

For the three months ended March 31, 2021, all shares of options to purchase shares of the Company’s common stock were excluded from the computation of diluted net loss per share as the effect would have been anti-dilutive. Therefore, the weighted average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same. The Company excluded the following potential common shares, presented based on amounts outstanding at period end, from the computation of diluted net loss per share attributable to common stockholders for the period indicated because including them would have had an anti-dilutive effect:


	March 31,
	2021		2020
Outstanding options to purchase common stock		4,340,135	3,000
Total		4,340,135	3,000

Summary of Significant Accounting Policies	3 Months Ended
Summary of Significant Accounting Policies	Mar. 31, 2021
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, 2020. Basis of Presentation The unaudited condensed financial statements include the accounts of NextCure 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 in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 (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, which is generally consistent with required adoption dates of private companies. In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02 (Topic 842), Leases (“ASC 842”). ASC 842 supersedes the lease recognition requirements in ASC 840, Leases. ASC 842 clarifies the definition of a lease and requires lessees to recognize right-of-use assets and lease liabilities for all leases, including those classified as operating leases under previous lease accounting guidance. For public entities, ASC 842 was effective for fiscal years beginning after December 15, 2018, including interim periods within that year. As a result of the Company having elected the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act, ASC 842 will be effective for the Company on January 1, 2022. Originally, entities were required to adopt ASC 842 using a modified retrospective transition method. However, in July 2018, the FASB issued ASU 2018-11 (Topic 842), Leases: Targeted Improvements, which provides entities with an additional transition method. Under ASU 2018-11, entities have the option of initially applying ASC 842 at the adoption date, rather than at the beginning of the earliest period presented, and recognizing the cumulative effect of applying the new standard as an adjustment to beginning retained earnings in the year of adoption while continuing to present all prior periods under previous lease accounting guidance. The Company is currently evaluating the impact of adopting this guidance on the Company’s financial statements. The Company currently expects that its operating lease commitments will be subject to the new standard and recognized as right-of-use assets and operating lease liabilities upon adoption of this standard, which will increase the total assets and total liabilities that it reports relative to such amounts presented prior to adoption. In June 2016, the FASB issued ASU 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 is 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. The Company adopted this standard early, effective January 1, 2021. The adoption of this standard did not have a material impact on the Company’s 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.

CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY (Parenthetical) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY
Unrealized loss on marketable securities, tax	$ 0	$ 0

Stock-Based Compensation - Stock options (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		12 Months Ended
	May 03, 2019	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
2015 Plan
Number of Shares
Outstanding at the beginning (in shares)		3,112,376
Granted (in shares)		1,313,150
Exercised (in shares)		(35,615)
Forfeitures (in shares)		(49,776)
Outstanding at the end (in shares)		4,340,135		3,112,376
Vested and expected to vest at the end (in shares)		4,340,135
Exercisable at the end (in shares)		1,521,940
Weighted Average Exercise Price
Outstanding at the beginning (in dollars per share)		$ 16.95
Granted (in dollars per share)		12.49
Exercised (in dollars per share)		1.78
Forfeited (in dollars per share)		29.26
Outstanding at the end (in dollars per share)		15.59		$ 16.95
Vested and expected to vest at the end (in dollars per share)		15.59
Exercisable at the end (in dollars per share)		$ 10.77
Weighted Average Remaining Contractual Life (Years) And Aggregate Intrinsic Value
Outstanding (in years)		8 years 7 months 6 days		8 years 2 months 12 days
Vested and expected to vest at the end (in years)		8 years 7 months 6 days
Exercisable at the end (in years)		8 years 4 months 24 days
Outstanding at the beginning (in dollars)		$ 10,810
Outstanding at the end (in dollars)		8,779		$ 10,810
Vested and expected to vest at the end (in dollars)		8,779
Exercisable at the end (in dollars)		$ 6,689
Weighted average grant date fair value per share of stock options granted		$ 8.57
Aggregate intrinsic value of stock options exercised		$ 300
Aggregate grant date fair value		6,400	$ 30,300
Share Based Compensation Expense Not Recognized
Unrecognized compensation cost		$ 31,100
Compensation expense recognition period		2 years 8 months 12 days
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		2,589,208

Restricted Cash (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Restricted Cash
Face amount	$ 5,000
Restricted cash required reserve	3,100	$ 3,500
Reconciliation of cash and cash equivalents and restricted cash per the balance sheet to the statement of cash flows
Cash and cash equivalents	36,527	32,772
Restricted cash (including $1,386 and $1,806 in other assets as of March 31, 2021 and December 31, 2020, respectively)	3,092	3,512
Total	39,619	36,284	$ 33,669	$ 39,130
Other assets, restricted cash	$ 1,386	$ 1,806

Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	Mar. 31, 2021
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, 2020. Basis of Presentation The unaudited condensed financial statements include the accounts of NextCure 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 in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 (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, which is generally consistent with required adoption dates of private companies. In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02 (Topic 842), Leases (“ASC 842”). ASC 842 supersedes the lease recognition requirements in ASC 840, Leases. ASC 842 clarifies the definition of a lease and requires lessees to recognize right-of-use assets and lease liabilities for all leases, including those classified as operating leases under previous lease accounting guidance. For public entities, ASC 842 was effective for fiscal years beginning after December 15, 2018, including interim periods within that year. As a result of the Company having elected the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act, ASC 842 will be effective for the Company on January 1, 2022. Originally, entities were required to adopt ASC 842 using a modified retrospective transition method. However, in July 2018, the FASB issued ASU 2018-11 (Topic 842), Leases: Targeted Improvements, which provides entities with an additional transition method. Under ASU 2018-11, entities have the option of initially applying ASC 842 at the adoption date, rather than at the beginning of the earliest period presented, and recognizing the cumulative effect of applying the new standard as an adjustment to beginning retained earnings in the year of adoption while continuing to present all prior periods under previous lease accounting guidance. The Company is currently evaluating the impact of adopting this guidance on the Company’s financial statements. The Company currently expects that its operating lease commitments will be subject to the new standard and recognized as right-of-use assets and operating lease liabilities upon adoption of this standard, which will increase the total assets and total liabilities that it reports relative to such amounts presented prior to adoption. In June 2016, the FASB issued ASU 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 is 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. The Company adopted this standard early, effective January 1, 2021. The adoption of this standard did not have a material impact on the Company’s 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.

Net (Loss) Income Per Share Attributable to Common Stockholders - Anti-dilutive effect (Details) - shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Antidilutive Securities
Antidilutive securities excluded from computation of diluted net loss per share	4,340,135	3,000
Option to purchase common stock
Antidilutive Securities
Antidilutive securities excluded from computation of diluted net loss per share	4,340,135	3,000