0001628280-22-004491 | 10-K | XBRL Viewer | Neoleukin Therapeutics INC

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Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2019		37,996,849
Beginning balance at Dec. 31, 2019	$ 141,687		$ 441,216	$ (299,529)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock and pre funded warrants, net of commissions and offering expenses (in shares)		3,262,471
Issuance of common stock and pre funded warrants, net of commissions and offering expenses	71,320		71,320
Common stock issued upon exercises of stock options (in shares)		882,624
Common stock issued upon exercises of stock options	5,665		5,665
Common stock issued upon vesting of restricted stock units (in shares)		36,000
Issuance of shares under Employee Stock Purchase Plan (in shares)		18,352
Issuance of common stock under Employee Stock Purchase Plan	199		199
Stock-based compensation	5,622		5,622
Net loss	(33,277)			(33,277)
Ending balance (in shares) at Dec. 31, 2020		42,196,296
Ending balance at Dec. 31, 2020	$ 191,216		524,022	(332,806)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued upon exercises of stock options (in shares)	124,928	124,928
Common stock issued upon exercises of stock options	$ 411		411
Common stock issued upon vesting of restricted stock units (in shares)		84,500
Issuance of shares under Employee Stock Purchase Plan (in shares)		51,747
Issuance of common stock under Employee Stock Purchase Plan	372		372
Stock-based compensation	11,557		11,557
Net loss	(60,692)			(60,692)
Ending balance (in shares) at Dec. 31, 2021		42,457,471
Ending balance at Dec. 31, 2021	$ 142,864		$ 536,362	$ (393,498)

Consolidated Statements of Cash Flows (Parenthetical) $ in Millions	12 Months Ended
	Dec. 31, 2021 USD ($)
Statement of Cash Flows [Abstract]
Commissions	$ 4.6

Accounts payable and other liabilities (Tables)

12 Months Ended

Dec. 31, 2021

Payables and Accruals [Abstract]

Schedule of Accounts Payable and Other Liabilities

Accrued liabilities consist of the following (in thousands):


	December 31,
	2021		2020
Trade accounts payable	$	526	$	1,323
Accrued clinical and preclinical expenses	2,399		1,687
Accrued compensation and vacation	3,263		3,244
Other accrued liabilities	1,227		927
	$	7,415	$	7,181

Income taxes - Schedule of Income Tax Recovery (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Statutory federal income tax rate	(21.00%)	(21.00%)
Foreign rate differential	0.00%	(0.10%)
Stock-based compensation	2.00%	1.80%
Disposal of Aquinox Canada	0.00%	(5.20%)
Change in valuation allowance	21.20%	26.50%
Expiration of NOLs (section 382)	0.00%	0.50%
Tax credits	(2.20%)	(2.50%)
Income tax recovery	0.00%	0.00%

Other income, net (Tables)

12 Months Ended

Dec. 31, 2021

Other Income and Expenses [Abstract]

Schedule of Other Income, Net

Other income is presented for all periods (in thousands):


	December 31
	2021		2020
Interest income	$	19	$	490
Foreign exchange gains (losses)	(1)		5
Other expenses	(12)		(44)
	$	6	$	451

Leases - Supplemental Balance Sheet Information Related to Leases (Details)	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Weighted average remaining lease term—finance leases	2 years 8 months 12 days	2 years 5 months 12 days
Weighted average remaining lease term—operating leases	6 years 10 months 9 days	7 years 11 months 19 days
Weighted average discount rate—finance leases	6.98%	7.11%
Weighted average discount rate—operating leases	12.42%	12.88%

Property and equipment, net (Tables)

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

Property and equipment, net consist of the following (in thousands):


	December 31, 2021
	Cost		Accumulated Amortization		Net Book Value
Laboratory equipment	$	6,237	$	1,006	$	5,231
Furniture, fixtures, and IT equipment	1,850		629		1,221
	$	8,087	$	1,635	$	6,452


	December 31, 2020
	Cost		Accumulated Amortization		Net Book Value
Laboratory equipment	$	3,402	$	426	$	2,976
Furniture, fixtures, and IT equipment	753		159		594
	$	4,155	$	585	$	3,570

Leases - Additional Information (Details) $ in Thousands	1 Months Ended	12 Months Ended
Leases - Additional Information (Details) $ in Thousands	Jun. 30, 2020 USD ($) ft²	Dec. 31, 2021 USD ($) ft² option	Dec. 31, 2020 USD ($)	Jan. 31, 2020 USD ($)
Lessee, Lease, Description [Line Items]
Tenant improvement allowance		$ 9,500
Increase in right-of-use-asset		0	$ 169
Increase in lease liability		(687)	598
Termination fees for lease termination	$ 500
Loss on termination of lease	300
Loss on disposal of property and equipment	$ 200	0	180
Operating lease right-of-use asset		10,766	10,154
Finance lease right-of-use asset		$ 200	$ 300
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]		Property and equipment, net	Property and equipment, net
Standby Letters of Credit
Lessee, Lease, Description [Line Items]
Security deposit				$ 500
Washington
Lessee, Lease, Description [Line Items]
Number of options to extend lease \| option		2
Lease agreement extended period		5 years
Washington \| Office space, principal executive offices and laboratory
Lessee, Lease, Description [Line Items]
Lease agreement, square feet of office space \| ft²		33,300
Number of options to extend lease \| option		2
Lease agreement extended period		5 years
Washington \| Office space, former principal executive offices and laboratory
Lessee, Lease, Description [Line Items]
Lease agreement, square feet of office space \| ft²		6,272
Washington \| Office space, additional offices and laboratory
Lessee, Lease, Description [Line Items]
Renewal term		28 months
Increase in right-of-use-asset		$ 1,600
Increase in lease liability		$ 1,600
Canada
Lessee, Lease, Description [Line Items]
Lease agreement, square feet of office space \| ft²	10,946

Property and equipment, net - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 1.1	$ 0.6

Basis of presentation and summary of significant accounting policies

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Basis of presentation and summary of significant accounting policies

(a) Basis of presentation

The accompanying consolidated financial statements are presented in United States (“U.S.”) dollars and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The financial results are presented on a consolidated basis. All intercompany transactions are eliminated on consolidation.

In July 2020, the Company sold all of the issued and outstanding capital stock of Aquinox Pharmaceuticals (Canada) (“Aquinox Canada”) to an unrelated third party, as further described in Note 13, Sale of Aquinox Canada. On December 31, 2020, Neoleukin Corporation, the Company's wholly owned subsidiary, was merged into the Company. As a result, the Company has consisted of a single operating company without any subsidiaries since December 31, 2020.

(b) Use of estimates and assumptions

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of expenses during the reporting period. Significant areas requiring estimates include valuation and recognition of stock-based compensation, the incremental borrowing rate utilized in the measurement of operating and finance lease liabilities, estimated useful lives utilized in the amortization and depreciation of property, plant and equipment and intangible assets, and pre-clinical, clinical, and other accruals. Actual results could differ from those estimates.

At contract inception, the Company determines if the contract is or contains a lease. Lease liabilities are recognized on the lease commencement date based on the estimated present value of lease payments over the lease term. To determine the present value of the lease payments, the Company utilizes its estimated incremental borrowing rate based on information available at the lease commencement date as the interest rate implicit in the lease is typically not readily determinable. The related right-of-use assets are recorded net of any lease incentives received. Variable lease cost primarily includes building operating expenses as charged to the Company by its landlords and payments for lessor-owned assets that are not covered by a tenant improvement allowance.

The Company includes options to extend the lease in its lease liability and right-of-use asset when it is reasonably certain that it will exercise that option. None of the Company's options to extend the rental term of any of its existing leases were considered reasonably certain as of December 31, 2021.

For leases of office space, the Company has elected to not separate the lease components from the non-lease components.

For leases of office space with a lease term of 12 months or less and which do not include an option to purchase the underlying asset, the Company has elected to recognize the lease payments in the statement of operations on a straight-line basis over the lease term.

(d) Cash, cash equivalents, and restricted cash

All highly liquid investments with maturities of three months or less at the date of acquisition are considered to be cash equivalents.

Restricted cash, included in Other non-current assets in the consolidated balance sheets, includes cash deposits the Company maintains with its bank as collateral for the irrevocable letters of credits related to its lease obligations.

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows (in thousands):


	December 31,
	2021		2020
Cash and cash equivalents	$	142,467	$	192,556
Restricted cash	878		878
Total cash, cash equivalents, and restricted cash	$	143,345	$	193,434

(e) Property and equipment

Property and equipment are recorded at cost and are amortized using the straight-line basis over a range of three to seven years. Expenditures for maintenance and repairs are expensed as incurred.

The Company reviews the carrying value of property and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition, and other economic factors. Based on management’s assessment there were no indicators of impairment of property and equipment as of December 31, 2021 and 2020.

(f) Earnings (loss) per share

Basic net loss per share is calculated by dividing the net loss by the weighted average number of shares of common stock outstanding for the period, without consideration for common stock equivalents. Common stock equivalents are included in the calculation of diluted earnings per share only in periods of net income. Such common stock equivalents are excluded in the calculation of diluted net loss per share in periods of net loss as inclusion of such amounts would be anti-dilutive. Outstanding pre-funded warrants as of December 31, 2021 and 2020 of 12,663,010 are considered outstanding as of their issuance date and are included in the basic and diluted net loss per share calculation because they are fully vested and exercisable at any time for a nominal cash consideration.

(g) Intangible assets subject to amortization

Long-lived intangible assets are recorded at the acquired cost and amortized using the straight-line method over their estimated useful life.

The intangible asset is tested for impairment when events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. The Company recognizes an impairment loss when carrying amount is not recoverable and the estimated fair value of the intangible asset is less than its carrying value. Based on management’s assessment there were no indicators of impairment of intangible assets as of December 31, 2021 and 2020.

(h) Income taxes

The Company accounts for income taxes using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the differences between events that have been recognized in the Company’s consolidated financial statements and the tax bases of assets and liabilities and tax carryforwards recognized at enacted tax rates. The measurement of deferred tax assets is reduced, if necessary, to the amount more likely than not to be realized by a valuation allowance.

Investment tax credits relating to scientific research and experimental development are accounted for as a reduction in operating expenses. They are recorded in the period when there is reasonable assurance the credits will be realized. If investment tax credit amounts subsequently received are less or more than originally recorded, the difference is treated as a change in estimate.

(i) Research and development costs

Research and development costs are charged to expense as incurred and include items such as: employee related expenses, including salaries, stock-based compensation, and benefits, expenses incurred under agreements with contract research organizations that conduct clinical trials and preclinical studies, the cost of acquiring, developing, and manufacturing clinical trial materials, facilities, and other expenses, which include direct and allocated expenses for rent and maintenance of facilities, and other supplies and costs associated with clinical trials, preclinical activities, and regulatory operations.

Development costs are expensed in the period incurred unless management believes a development project meets generally accepted accounting criteria for deferral and amortization. No product development expenditures have been deferred to date. The Company records costs for certain development activities based on management’s evaluation of the progress to completion of specific tasks or information provided to the Company by vendors on their actual costs incurred. Payments for these activities are based on the terms of the individual arrangements, which may differ from the pattern of costs incurred, and are reflected in the consolidated financial statements as prepaid or accrued expense.

(j) Accounting for stock-based compensation

The Company has issued stock options and restricted stock units (“RSUs”). The Company measures the cost of services received in exchange for an award of equity instruments based on the grant-date fair value of the award. The cost of such award is recognized on a straight-line basis over the requisite service period, which is generally the vesting period. Awards subject to performance-based vesting requirements are expensed utilizing a graded vesting model if achievement of the performance criteria is determined to be probable. The Company accounts for forfeitures as they occur. The Company utilizes newly issued shares to satisfy option exercises, the vesting of RSUs, and Employee Stock Purchase Plan purchases.

The Company estimates the fair value of options using the Black-Scholes option pricing model on the grant date. This approximation uses assumptions regarding a number of inputs that requires management to make significant estimates and judgments. The expected term represents the period that the Company’s stock-based awards are expected to be outstanding. As the Company does not have sufficient historical experience for determining the expected term of the stock option awards granted, the Company has based its expected term for awards issued to employees on the simplified method, which represents the average period from vesting to the expiration of the stock option. In addition, the Company does not have sufficient trading history for the Company’s common stock, and therefore, the expected stock price volatility for the Company’s common stock was estimated by taking the average historical price volatility for industry peers. The Company has never declared or paid any cash dividends to common stockholders and does not presently plan to pay cash dividends in the foreseeable future. Consequently, the Company used an expected dividend yield of zero. The risk-free interest rate was based on the yields of treasury securities with maturities similar to the expected term of the options for each option group.

The fair value of each RSU is measured using the closing price of the Company’s common stock on the date of grant.

(k) Segment reporting

The Company operates in one segment, the research and development of de novo protein therapeutics using sophisticated computational algorithms and methods to address unmet medical needs. The Company's primary areas of focus are in oncology, inflammation, and autoimmunity. The Company’s operations and its assets are held in the United States.

(l) Fair value of financial instruments

The carrying amounts of certain of the Company’s financial instruments, including cash and cash equivalents, restricted cash, receivables, accounts payable, and other liabilities, approximate their fair values because of their nature and/or short maturities.

At December 31, 2021, and December 31, 2020, the Company had $140.9 million and $108.3 million in money market funds, respectively. Money market funds are level one financial instruments as they are valued at the closing price reported by the fund sponsor from an actively traded exchange.

(m) Concentration of credit risk

Financial instruments, which potentially subject the Company to significant concentrations of credit risk, consist primarily of cash and cash equivalents. Cash and cash equivalents are invested in accordance with the Company’s investment policy. The primary objective for the Company’s investment portfolio is the preservation of capital and maintenance of liquidity and includes guidelines on the quality of financial instruments and defines allowable investments that the Company believes minimizes the exposure to concentration of credit risk.

(n) Recently issued and recently adopted accounting standards

In December 2019, the FASB issued ASU 2019-12 “Simplifying the Accounting for Income Taxes”. The objective of the standard is to improve areas of GAAP by removing certain exceptions permitted by ASC Topic 740-- Income Taxes and clarifying existing guidance to facilitate consistent application. ASU 2019-12 is effective for fiscal years and interim periods beginning after December 15, 2020. The Company adopted this standard on January 1, 2021 on a prospective basis. The adoption of ASU 2019-12 did not have a material impact on the Company's financial condition, results of operations, cash flows, and financial statement disclosures.

Stockholders' equity - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 11,557	$ 5,622
Research and development expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	5,095	1,999
General and administrative expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 6,462	$ 3,623

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Operating activities
Net loss	$ (60,692)	$ (33,277)
Adjustments to reconcile net loss used in operating activities:
Stock-based compensation	11,557	5,622
Depreciation and amortization	1,306	785
Amortization of right-of-use asset	971	1,036
Loss on disposal of property and equipment	0	180
Write-off of right-of-use asset upon lease termination	0	113
Changes in operating assets and liabilities:
Other current assets and non-current assets	129	(2,481)
Accounts payable and accrued liabilities	(142)	3,018
Operating lease right-of-use assets	0	(169)
Operating lease liabilities	(687)	598
Net cash used in operating activities	(47,558)	(24,575)
Investing activities
Purchases of property and equipment	(3,263)	(2,219)
Net cash used in investing activities	(3,263)	(2,219)
Financing activities
Proceeds from issuance of common stock and pre-funded warrants, net of commissions of $4.6 million	0	71,675
Payment of offering costs	0	(355)
Proceeds from exercise of stock options	411	5,665
Proceeds from issuance of common stock under Employee Stock Purchase Plan	372	199
Payment on finance lease obligations	(51)	(49)
Net cash provided by financing activities	732	77,135
Net change in cash, cash equivalents, and restricted cash during the year	(50,089)	50,341
Cash, cash equivalents, and restricted cash at beginning of year	193,434	143,093
Cash, cash equivalents, and restricted cash at end of year	143,345	193,434
Supplemental disclosure of non-cash investing and financing activities:
Operating lease liabilities arising from obtaining right-of-use asset	1,584	10,364
Purchase of property and equipment unpaid at period end	$ 412	$ 36

Property and equipment, net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Cost	$ 8,087	$ 4,155
Accumulated Amortization	1,635	585
Net Book Value	6,452	3,570
Laboratory equipment
Property, Plant and Equipment [Line Items]
Cost	6,237	3,402
Accumulated Amortization	1,006	426
Net Book Value	5,231	2,976
Furniture, fixtures, and IT equipment
Property, Plant and Equipment [Line Items]
Cost	1,850	753
Accumulated Amortization	629	159
Net Book Value	$ 1,221	$ 594

Sale of Aquinox Canada (Details) - USD ($) $ in Thousands		12 Months Ended
Sale of Aquinox Canada (Details) - USD ($) $ in Thousands	Jul. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Subsidiary, Sale of Stock [Line Items]
Gain on sale of Aquinox Canada		$ 0	$ 7,826
Acqinox Canada
Subsidiary, Sale of Stock [Line Items]
Consideration from sale of assets	$ 8,200
Gain on sale of Aquinox Canada	7,800
Transaction cost on sale of asset	$ 400

Leases (Tables)

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Schedule of Components of Lease Expense

The components of the lease expense were as follows (in thousands):


	December 31,
	2021		2020
Finance lease cost
Amortization of right-of-use asset	$	49	$	46
Interest on lease liabilities	12		14
Operating lease cost	2,535		2,368
Short term lease cost	40		348
Variable lease cost	2,161		321
Total net lease cost	$	4,797	$	3,097

Supplemental Balance Sheet Information Related to Leases

Supplemental balance sheet information related to leases is as follows:


	December 31,
	2021	2020
Weighted average remaining lease term—finance leases	2.70 years	2.45 years
Weighted average remaining lease term—operating leases	6.86 years	7.97 years
Weighted average discount rate—finance leases	6.98%	7.11%
Weighted average discount rate—operating leases	12.42%	12.88%

Supplemental Cash flow Information Related to Leases

Supplemental cash flow information related to leases was as follows (in thousands):


	December 31,
	2021		2020
Cash paid for amounts included in the measurement of operating lease liabilities	$	2,249	$	460
Cash paid for amounts included in the measurement of finance lease liabilities	$	63	$	60

Schedule of Company's Operating Lease Liability

At December 31, 2021, the future payments under the Company’s operating and finance lease liabilities were as follows (in thousands):


	Finance Lease		Operating Lease
2022	$	64	$	2,657
2023	64		2,718
2024	4		2,781
2025	4		2,845
2026	1		2,806
Thereafter	—		5,391
Total undiscounted lease payments	137		19,198
Less: imputed interest	(15)		(6,336)
Total lease liabilities	122		12,862
Less: current portion	(55)		(1,166)
Non-current lease liabilities—December 31, 2021	$	67	$	11,696

Schedule of Company's Finance Lease Liability

At December 31, 2021, the future payments under the Company’s operating and finance lease liabilities were as follows (in thousands):


	Finance Lease		Operating Lease
2022	$	64	$	2,657
2023	64		2,718
2024	4		2,781
2025	4		2,845
2026	1		2,806
Thereafter	—		5,391
Total undiscounted lease payments	137		19,198
Less: imputed interest	(15)		(6,336)
Total lease liabilities	122		12,862
Less: current portion	(55)		(1,166)
Non-current lease liabilities—December 31, 2021	$	67	$	11,696

Basis of presentation and summary of significant accounting policies (Tables)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Schedule of Cash and Cash Equivalents


	December 31,
	2021		2020
Cash and cash equivalents	$	142,467	$	192,556
Restricted cash	878		878
Total cash, cash equivalents, and restricted cash	$	143,345	$	193,434

Restrictions on Cash and Cash Equivalents


	December 31,
	2021		2020
Cash and cash equivalents	$	142,467	$	192,556
Restricted cash	878		878
Total cash, cash equivalents, and restricted cash	$	143,345	$	193,434

Stockholders' equity - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Number of Shares
Options outstanding at beginning of period (in shares)	6,846,289
Options granted (in shares)	3,346,049
Options exercised (in shares)	(124,928)
Options cancelled/forfeited (in shares)	(1,103,465)
Options outstanding at end of period (in shares)	8,963,945	6,846,289
Options exercisable, Number of options (in shares)	3,665,224
Weighted Average Exercise Price
Options outstanding at beginning of period (in dollars per share)	$ 6.42
Options granted (in dollars per share)	8.70
Options exercised (in dollars per share)	3.28
Options cancelled/forfeited (in dollars per share)	7.31
Options outstanding at end of period (in dollars per share)	7.20	$ 6.42
Options exercisable, Weighted average exercise price (in dollars per share)	$ 5.99
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Options outstanding, Weighted average remaining contractual life (in years)	8 years 3 months 25 days	8 years 8 months 15 days
Options exercisable, Weighted average remaining contractual life (in years)	7 years 5 months 12 days
Options outstanding at beginning of period, Aggregate intrinsic value (in dollars)	$ 53,127
Options outstanding at end of period, Aggregate intrinsic value (in dollars)	6,912	$ 53,127
Options exercisable, Aggregate intrinsic value (in dollars)	$ 4,729

Accounts payable and other liabilities - Schedule of Accounts Payable and Other Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Payables and Accruals [Abstract]
Trade accounts payable	$ 526	$ 1,323
Accrued clinical and preclinical expenses	2,399	1,687
Accrued compensation and vacation	3,263	3,244
Other accrued liabilities	1,227	927
Accounts payable and other liabilities	$ 7,415	$ 7,181

License and patent agreements	12 Months Ended
License and patent agreements	Dec. 31, 2021
License Agreement [Abstract]
License and patent agreements	License and patent agreements On July 8, 2019, Neoleukin Therapeutics, Inc., or Former Neoleukin, entered into an exclusive license agreement with the University of Washington ("UW"), under which UW (on behalf of itself and Stanford University) granted the Company an exclusive worldwide license under certain patent rights, to make, have made, use, offer to sell, sell, offer to lease or lease, import, export or otherwise offer to dispose of licensed products in all fields of use, and a nonexclusive worldwide license to use certain know-how. The foregoing licenses are sublicensable by the Company without UW’s consent, subject to certain limited conditions. The Exclusive License Agreement was amended effective as of July 24, 2020 to, among other things, (i) add a jointly owned de novo cytokine antagonist to the agreement, (ii) specify royalties, milestone payments and sublicense consideration payments payable by Neoleukin for certain jointly licensed products, (iii) specify the term for achievement of performance milestones for certainly jointly licensed products, and (iv) terminate UW’s right to participate in equity financings. The Exclusive License Agreement was amended a second time, effective as of December 15, 2021 to, among other things, add a second jointly owned patent application family directed to de novo cytokine antagonists to the agreement subject to the same terms of the first jointly owned patent application family. As consideration for the licensed rights, Former Neoleukin issued 536,813 shares of common stock to UW. These shares were exchanged for 188,974 shares of common stock of the Company and 4,197 shares of non-voting convertible preferred stock on the completion of the merger of Former Neoleukin into the Company in August 2019. Such convertible preferred shares were subsequently converted into 419,700 shares of common stock in November 2019. Furthermore, the Company is required to pay; (i) an annual maintenance fee starting in January 2022 (but excluding any year in which minimum annual royalties are paid); (ii) up to $0.9 million in combined development and regulatory milestone payments with respect to each distinct class of licensed product; (iii) up to $10.0 million in combined commercial milestone payments based on cumulative net sales of licensed products within each distinct class of licensed products, beginning when cumulative net sales of the class of licensed products equals or exceeds $100.0 million, with the majority payable when cumulative net sales of the class of licensed products equals or exceeds $1.0 billion; (iv) a low single-digit royalty on net sales of licensed products sold by the Company and its sublicensees, which may be subject to reductions, and subject to minimum annual royalty payments following the first commercial sale of a licensed product; (v) a certain percentage of any sublicense consideration (other than royalties) the Company receives from sublicensees, based on the stage of development at the time the sublicense is executed; and (vi) a certain percentage of consideration the Company receives from an acquisition of the Company or its assets based on the stage of development at the relevant time. The Company is obligated to pay royalties on a country-by-country basis until the expiration of the last valid claim within the licensed patent rights in such country. The agreement will expire upon the expiration of the last valid claim within the licensed patent rights. The Company may terminate the agreement upon prior written notice to UW. UW may terminate the agreement by a specified number of days’ notice if the Company permanently ceases operations, becomes insolvent or similar, or if the Company challenges the validity of the licensed patent rights. In addition, UW may terminate the agreement for material breach that is not cured within a specified number of days, which cure period is to be at least doubled if the Company is proceeding diligently to cure the default.

Nature of operations	12 Months Ended
Nature of operations	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of operations	Nature of operationsNeoleukin Therapeutics, Inc. (“Neoleukin” or the “Company”) is a biopharmaceutical company creating next generation immunotherapies for cancer, inflammation, and autoimmunity using de novo protein design technology. Neoleukin uses sophisticated computational methods to design proteins that demonstrate specific pharmaceutical properties that provide potentially superior therapeutic benefit over native proteins. The Company’s lead product candidate, NL-201, is a combined IL-2 and IL-15 agonist designed to eliminate alpha receptor binding.

Intangible asset, net (Tables)

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Asset

The following table summarizes intangible asset (in thousands):


	December 31,
	2021		2020
Cost	$	659	$	659
Accumulated amortization	(531)		(312)
Net intangible asset	$	128	$	347

Income taxes - Additional Information (Details) - USD ($) $ in Thousands		12 Months Ended
	Jul. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Income Taxes Disclosure [Line Items]
Gain on sale of Aquinox Canada		$ 0	$ 7,826
Net operating losses carried forward for tax purposes		108,200	58,100
Operating loss carryforwards subject to expiration		1,700
Operating loss carryforwards not subject to expiration		106,500
Increase (decrease) in valuation allowance		12,900	(42,900)
Research Tax Credit Carryforward
Income Taxes Disclosure [Line Items]
Tax credits for research and development		$ 2,400	$ 1,000
Acqinox Canada
Income Taxes Disclosure [Line Items]
Gain on sale of Aquinox Canada	$ 7,800
Tax attributes no longer reflected in deferred tax assets and valuation allowance	$ 51,700

Income taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Income Tax Recovery

Income tax recovery varies from the amounts that would be computed by applying the expected U.S. federal income tax rate (21%) as shown in the following table:


	December 31,
	2021		2020
Statutory federal income tax rate	(21.0)	%	(21.0)	%
Foreign rate differential	—		(0.1)
Stock-based compensation	2.0		1.8
Disposal of Aquinox Canada	—		(5.2)
Change in valuation allowance	21.2		26.5
Expiration of NOLs (section 382)	—		0.5
Tax credits	(2.2)		(2.5)
Income tax recovery	—	%	—	%

Schedule of Net (Loss) Income Before Taxes


Net loss before taxes (in thousands):	Years Ended December 31,
	2021		2020
Canada	$	—	$	(522)
U.S.	(60,692)		(32,755)
Total	$	(60,692)	$	(33,277)

Components of Deferred Income Tax Assets

The significant components of the deferred income tax assets are as follows (in thousands):


	December 31,
	2021		2020
Deferred tax assets:
U.S. net operating losses	$	22,863	$	12,328
Research and development deductions and credits	2,414		1,040
Intangibles	457		422
Lease liability	2,701		2,513
Stock-based compensation	1,695		717
Other	186		162
Total deferred tax assets:	30,316		17,182
Deferred income tax liabilities
Right-of-use assets	2,261		2,132
Other	287		157
Total deferred tax liabilities	2,548		2,289
Net deferred income tax assets	27,768		14,893
Less: valuation allowance	(27,768)		(14,893)
Deferred tax assets, net of valuation allowance	$	—	$	—

Net loss per common stock - Schedule of Securities Excluded From Computation of Earnings Per Share (Details) - shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from computation of earnings per share (in shares)	9,149,391	7,057,310
Outstanding stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from computation of earnings per share (in shares)	8,963,945	6,848,289
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from computation of earnings per share (in shares)	132,000	186,500
Shares issuable under 2020 ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from computation of earnings per share (in shares)	53,446	22,521

Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

The Company enters into lease arrangements for its facilities as well as certain equipment, classified either as operating or finance leases.

The Company has an operating lease agreement, as amended by the execution of two subsequent amendments, for approximately 33,300 square feet of office space in Seattle, Washington for the Company’s principal executive offices, a laboratory for research and development, and related uses. In January 2020, the Company issued an irrevocable letter of credit in the amount of $0.5 million for the security deposit in accordance with the terms of the lease. The lease term commenced on January 15, 2020 and payments of rent obligations began on February 1, 2021. The lease is scheduled to expire on February 1, 2029, with the option to extend the lease for two five-year terms. The lease provides for a tenant improvement allowance of up to $9.5 million, which is included in the base rent, and has been fully utilized as of December 31, 2021. The Company will also be responsible for the payment of additional rent to cover the Company’s share of the annual operating, tax expenses, and utilities costs for the building.

The Company has an operating lease agreement for approximately 6,272 square feet of laboratory and office space in Seattle, Washington, for research and development and related uses. In March 2021, the Company executed an amendment to this lease pursuant to which the contractual lease term was extended through September 30, 2026, unless terminated earlier, with the option to extend the lease for an additional 28-month term. The execution of this amendment was accounted for as a modification to the lease due to the extension of the lease term and an increase in lease payments, and the Company recorded an increase in the lease liability and related right-of-use asset of $1.6 million.

On June 30, 2020, the Company terminated its lease agreement for 10,946 square feet of office space in Vancouver, Canada. The lease termination resulted in an extinguishment of the lease liability and the write-off of the related right-of-use asset. After incurring additional expenses included in the termination fee of $0.5 million, the Company recognized a loss of $0.3 million on the termination of the lease, which was recorded in general and administrative expenses in June 2020. In addition, the Company wrote-off leasehold improvements and other property and equipment associated with the lease and incurred a loss on disposal of $0.2 million in June 2020.

As of December 31, 2021, and December 31, 2020, the Company’s operating lease right-of-use assets were $10.8 million and $10.2 million, respectively. As of December 31, 2021, and December 31, 2020, the Company's finance lease right-of use-assets, included within property and equipment on the consolidated balance sheet, were $0.2 million and $0.3 million, respectively.

The components of the lease expense were as follows (in thousands):


	December 31,
	2021		2020
Finance lease cost
Amortization of right-of-use asset	$	49	$	46
Interest on lease liabilities	12		14
Operating lease cost	2,535		2,368
Short term lease cost	40		348
Variable lease cost	2,161		321
Total net lease cost	$	4,797	$	3,097

Supplemental balance sheet information related to leases is as follows:


	December 31,
	2021	2020
Weighted average remaining lease term—finance leases	2.70 years	2.45 years
Weighted average remaining lease term—operating leases	6.86 years	7.97 years
Weighted average discount rate—finance leases	6.98%	7.11%
Weighted average discount rate—operating leases	12.42%	12.88%

Supplemental cash flow information related to leases was as follows (in thousands):


	December 31,
	2021		2020
Cash paid for amounts included in the measurement of operating lease liabilities	$	2,249	$	460
Cash paid for amounts included in the measurement of finance lease liabilities	$	63	$	60

The calculation of the present value of the operating lease payments for the Blaine lease did not include the option to extend the lease for two five-year terms.

At December 31, 2021, the future payments under the Company’s operating and finance lease liabilities were as follows (in thousands):


	Finance Lease		Operating Lease
2022	$	64	$	2,657
2023	64		2,718
2024	4		2,781
2025	4		2,845
2026	1		2,806
Thereafter	—		5,391
Total undiscounted lease payments	137		19,198
Less: imputed interest	(15)		(6,336)
Total lease liabilities	122		12,862
Less: current portion	(55)		(1,166)
Non-current lease liabilities—December 31, 2021	$	67	$	11,696

Leases

The Company enters into lease arrangements for its facilities as well as certain equipment, classified either as operating or finance leases.

The components of the lease expense were as follows (in thousands):


	December 31,
	2021		2020
Finance lease cost
Amortization of right-of-use asset	$	49	$	46
Interest on lease liabilities	12		14
Operating lease cost	2,535		2,368
Short term lease cost	40		348
Variable lease cost	2,161		321
Total net lease cost	$	4,797	$	3,097

Supplemental balance sheet information related to leases is as follows:


	December 31,
	2021	2020
Weighted average remaining lease term—finance leases	2.70 years	2.45 years
Weighted average remaining lease term—operating leases	6.86 years	7.97 years
Weighted average discount rate—finance leases	6.98%	7.11%
Weighted average discount rate—operating leases	12.42%	12.88%

Supplemental cash flow information related to leases was as follows (in thousands):


	December 31,
	2021		2020
Cash paid for amounts included in the measurement of operating lease liabilities	$	2,249	$	460
Cash paid for amounts included in the measurement of finance lease liabilities	$	63	$	60

The calculation of the present value of the operating lease payments for the Blaine lease did not include the option to extend the lease for two five-year terms.

At December 31, 2021, the future payments under the Company’s operating and finance lease liabilities were as follows (in thousands):


	Finance Lease		Operating Lease
2022	$	64	$	2,657
2023	64		2,718
2024	4		2,781
2025	4		2,845
2026	1		2,806
Thereafter	—		5,391
Total undiscounted lease payments	137		19,198
Less: imputed interest	(15)		(6,336)
Total lease liabilities	122		12,862
Less: current portion	(55)		(1,166)
Non-current lease liabilities—December 31, 2021	$	67	$	11,696

Net loss per common stock

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Net loss per common stock

The Company excluded the following potentially dilutive shares from diluted net loss per share as the effect would have been anti-dilutive for all periods presented:


	December 31,
	2021	2020
Outstanding stock options	8,963,945	6,848,289
Restricted stock units	132,000	186,500
Shares issuable under 2020 ESPP	53,446	22,521
	9,149,391	7,057,310

Stockholders' equity (Tables)

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Schedule of Stock Option Activity

A summary of the Company's stock option activity and related information for the year ended December 31, 2021 is as follows:


	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (In Years)	Aggregate Intrinsic Value (In Thousands)
Outstanding at December 31, 2020	6,846,289	$	6.42	8.71	$	53,127
Options granted	3,346,049	$	8.70
Options exercised	(124,928)	$	3.28
Options cancelled/forfeited	(1,103,465)	$	7.31
Outstanding at December 31, 2021	8,963,945	$	7.20	8.32	$	6,912
Exercisable as of December 31, 2021	3,665,224	$	5.99	7.45	$	4,729

Schedule of Weighted Average Assumptions

The fair value of stock options granted is estimated using the Black-Scholes option pricing model with the following weighted average assumptions:


	December 31,
	2021		2020
Expected volatility	89	%	93	%
Expected dividends	0	%	0	%
Expected terms (years)	6.03		6.02
Risk free rate	0.93	%	0.42	%

Schedule of RSU Activity

A summary of the Company's restricted stock unit activity and related information for the year ended December 31, 2021 is as follows:


	Number of Shares	Weighted Average Grant Date Fair Value
Non-vested at December 31, 2020	186,500	$	8.19
Restricted stock units granted	70,000	$	12.94
Restricted stock units vested	(84,500)	$	7.20
Restricted stock units forfeited	(40,000)	$	12.70
Non-vested at December 31, 2021	132,000	$	9.97

Summary of Stock-based Compensation Expense

Stock-based compensation expense is classified in the consolidated statements of operations as follows (in thousands):


	December 31,
	2021		2020
Research and development expenses	$	5,095	$	1,999
General and administrative expenses	6,462		3,623
Total stock-based compensation expense	$	11,557	$	5,622

Intangible asset, net

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible asset, net

The following table summarizes intangible asset (in thousands):


	December 31,
	2021		2020
Cost	$	659	$	659
Accumulated amortization	(531)		(312)
Net intangible asset	$	128	$	347

Intangible asset, net includes an assembled workforce that was acquired in 2019 and is being amortized over its expected life. Amortization expense was $0.2 million for each of the years ended December 31, 2021 and 2020. The amortization period has been established as 3 years based on management's judgement. The Company will recognize $0.1 million of amortization expense in fiscal year 2022.

Accounts payable and other liabilities

12 Months Ended

Dec. 31, 2021

Payables and Accruals [Abstract]

Accounts payable and other liabilities

Accrued liabilities consist of the following (in thousands):


	December 31,
	2021		2020
Trade accounts payable	$	526	$	1,323
Accrued clinical and preclinical expenses	2,399		1,687
Accrued compensation and vacation	3,263		3,244
Other accrued liabilities	1,227		927
	$	7,415	$	7,181

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Current assets
Cash and cash equivalents	$ 142,467	$ 192,556
Other current assets	1,522	1,966
Total current assets	143,989	194,522
Property and equipment, net	6,452	3,570
Operating lease right-of-use asset	10,766	10,154
Intangible asset, net	128	347
Other non-current assets	1,928	1,926
Total assets	163,263	210,519
Current liabilities
Accounts payable and other liabilities	7,415	7,181
Operating lease liability	1,166	659
Finance lease liability	55	49
Total current liabilities	8,636	7,889
Non-current operating lease liability	11,696	11,306
Non-current finance lease liability	67	108
Total liabilities	20,399	19,303
Stockholders’ equity
Common stock, $0.000001 par value - authorized, 100,000,000 as of December 31, 2021 and December 31, 2020; issued and outstanding, 42,457,471 as of December 31, 2021 and 42,196,296 as of December 31, 2020.	0	0
Preferred stock, $0.000001 par value - authorized, 5,000,000 as of December 31, 2021 and December 31, 2020; issued and outstanding, 0 as of December 31, 2021 and December 31, 2020	0	0
Additional paid-in capital	536,362	524,022
Accumulated deficit	(393,498)	(332,806)
Total stockholders’ equity	142,864	191,216
Total liabilities and stockholders’ equity	$ 163,263	$ 210,519

Income taxes - Components of Deferred Income Tax Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Deferred tax assets:
U.S. net operating losses	$ 22,863	$ 12,328
Research and development deductions and credits	2,414	1,040
Intangibles	457	422
Lease liability	2,701	2,513
Stock-based compensation	1,695	717
Other	186	162
Total deferred tax assets:	30,316	17,182
Deferred income tax liabilities
Right-of-use assets	2,261	2,132
Other	287	157
Total deferred tax liabilities	2,548	2,289
Net deferred income tax assets	27,768	14,893
Less: valuation allowance	(27,768)	(14,893)
Deferred tax assets, net of valuation allowance	$ 0	$ 0

License and patent agreements - Additional Information (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Nov. 30, 2019	Dec. 31, 2021	Dec. 31, 2019
License and patent agreements [Line Items]
Convertible preferred stock, Shares issued upon conversion (in shares)	419,700
University Of Washington
License and patent agreements [Line Items]
License arrangements, amounts of development milestones payment		$ 0.9
License arrangements, amounts payable based on net sales		10.0
License and maintenance \| University Of Washington
License and patent agreements [Line Items]
Shares issued for service (in shares)			536,813
License and maintenance \| Common stock \| University Of Washington
License and patent agreements [Line Items]
Stock issued for acquisition (in shares)			188,974
License and maintenance \| Minimum \| University Of Washington
License and patent agreements [Line Items]
Revenue from contract with customer, excluding assessed tax		100.0
License and maintenance \| Maximum \| University Of Washington
License and patent agreements [Line Items]
Revenue from contract with customer, excluding assessed tax		$ 1,000.0
Non-voting convertible preferred stock \| License and maintenance \| University Of Washington
License and patent agreements [Line Items]
Stock issued for acquisition (in shares)			4,197

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.000001	$ 0.000001
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	42,457,471	42,196,296
Common stock, shares outstanding (in shares)	42,457,471	42,196,296
Preferred stock, par value (in dollars per share)	$ 0.000001	$ 0.000001
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Operating loss
Research and development	$ 39,162	$ 24,344
General and administrative	21,536	17,210
Gain on sale of Aquinox Canada	0	(7,826)
Total operating loss	60,698	33,728
Other income, net	6	451
Net loss	$ (60,692)	$ (33,277)
Net loss per share - basic (in dollars per share)	$ (1.10)	$ (0.64)
Net loss per share - diluted (in dollars per share)	$ (1.10)	$ (0.64)
Basic weighted average number of shares outstanding (in shares)	55,041,662	51,825,022
Diluted weighted average common shares outstanding (in shares)	55,041,662	51,825,022

Income taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income taxes

Income tax recovery varies from the amounts that would be computed by applying the expected U.S. federal income tax rate (21%) as shown in the following table:


	December 31,
	2021		2020
Statutory federal income tax rate	(21.0)	%	(21.0)	%
Foreign rate differential	—		(0.1)
Stock-based compensation	2.0		1.8
Disposal of Aquinox Canada	—		(5.2)
Change in valuation allowance	21.2		26.5
Expiration of NOLs (section 382)	—		0.5
Tax credits	(2.2)		(2.5)
Income tax recovery	—	%	—	%


Net loss before taxes (in thousands):	Years Ended December 31,
	2021		2020
Canada	$	—	$	(522)
U.S.	(60,692)		(32,755)
Total	$	(60,692)	$	(33,277)

Deferred income tax assets and liabilities result from the temporary differences between the amount of assets and liabilities recognized for financial statement and income tax purposes. The significant components of the deferred income tax assets are as follows (in thousands):


	December 31,
	2021		2020
Deferred tax assets:
U.S. net operating losses	$	22,863	$	12,328
Research and development deductions and credits	2,414		1,040
Intangibles	457		422
Lease liability	2,701		2,513
Stock-based compensation	1,695		717
Other	186		162
Total deferred tax assets:	30,316		17,182
Deferred income tax liabilities
Right-of-use assets	2,261		2,132
Other	287		157
Total deferred tax liabilities	2,548		2,289
Net deferred income tax assets	27,768		14,893
Less: valuation allowance	(27,768)		(14,893)
Deferred tax assets, net of valuation allowance	$	—	$	—

On July 31, 2020, the Company sold all issued and outstanding capital stock of its Canadian subsidiary, Aquinox Canada, to an unrelated third party for cash consideration. As of the date of sale, Aquinox Canada’s remaining assets included intellectual property and other assets developed through past research and development activities, all of which had no book value. The transaction resulted in a net gain on sale of $7.8 million. The sale of Aquinox Canada triggered a significant capital loss carryforward for tax purposes. However, most of the capital loss carryforward is limited by the prior ownership change under Section 382. The remaining unlimited portion of the capital loss carryforward will be subject to a full valuation allowance as the Company has determined that it is more likely than not that the benefit of the loss will not be realized. After the sale, Aquinox Canada's tax attributes of $51.7 million including the net operating losses, scientific research and experimental development expenditures and investment tax credits are no longer reflected in the deferred tax assets and valuation allowance.

At December 31, 2021 and December 31, 2020, the Company had U.S. federal net operating losses ("NOL") carryforwards for tax purposes of approximately $108.2 million and $58.1 million, respectively, which were available to reduce taxable income. Of the $108.2 million of federal NOL carryforwards, $1.7 million will expire between the years 2028 and 2037 and the remaining $106.5 million are indefinite. The Company also has U.S. federal research & development tax credits of $2.4 million and $1.0 million as of December 31, 2021 and December 31, 2020, respectively, that begin to expire in 2039. The Company completed a formal study under IRC Section 382 through 2019 to determine the U.S. tax attributes available for use. The U.S. attributes disclosed reflect the conclusion of that study. However, subsequent ownership changes may further affect the limitation in future years.

The Company maintains a full valuation allowance on its net U.S. deferred tax assets. The assessment regarding whether a valuation allowance is required considers both positive and negative evidence when determining whether it is more likely than not that deferred tax assets are recoverable. In making this assessment, significant weight is given to evidence that can be objectively verified. In its evaluation, the Company considered its cumulative losses and its forecasted losses in the near-term as significant negative evidence. Therefore, the Company determined that the negative evidence outweighed the positive evidence and a full valuation allowance on its assets will be maintained. The Company will continue to assess the realizability of its assets going forward and will adjust the valuation allowance as needed. The valuation allowance increased by $12.9 million for the year ended December 31, 2021. The increase is primarily due to an increase in U.S. net operating losses and research and development tax credits. The valuation allowance decreased by $42.9 million for the year ended December 31, 2020. The decrease is primarily due to the sale of Aquinox Canada and the write-off of the related tax attributes, and partially offset by an increase in U.S. net operating losses and research and development tax credits.

The Company applies judgment in the determination of the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. As of December 31, 2021, the Company had no uncertain tax positions.

The Company currently files income tax returns in the United States, the jurisdictions in which the Company believes that it is subject to tax. Further, while the statute of limitations in each jurisdiction where an income tax return has been filed generally limits the examination period, as a result of loss carryforwards, the limitation period for examination generally does not expire until several years after the loss carryforwards are utilized. Other than routine audits by tax authorities for tax credits and tax refunds that the Company has claimed, the Company is not aware of any other material income tax examination currently in progress by any taxing jurisdiction.

- 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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 740
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (b)
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI http://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Leases - Schedule of Company's Operating and Finance Lease Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Finance Lease
2022	$ 64
2023	64
2024	4
2025	4
2026	1
Thereafter	0
Total undiscounted lease payments	137
Less: imputed interest	(15)
Total lease liabilities	122
Less: current portion	(55)	$ (49)
Non-current lease liabilities—December 31, 2021	67	108
Operating Lease
2022	2,657
2023	2,718
2024	2,781
2025	2,845
2026	2,806
Thereafter	5,391
Total undiscounted lease payments	19,198
Less: imputed interest	(6,336)
Total lease liabilities	12,862
Less: current portion	(1,166)	(659)
Non-current lease liabilities—December 31, 2021	$ 11,696	$ 11,306

401(k) plan	12 Months Ended
401(k) plan	Dec. 31, 2021
Retirement Benefits [Abstract]
401(k) plan	401(k) planIn May 2020, the Company established a 401(k) plan that allows full-time employees to contribute a portion of their salary, subject to statutory limits. The Company makes matching cash contributions up to a pre-defined annual maximum contribution per employee per year. During the years ended December 31, 2021 and December 31, 2020, the Company’s total expense for the matching contributions was immaterial.

Basis of presentation and summary of significant accounting policies - Cash and cash equivalents and restricted cash (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Cash and cash equivalents	$ 142,467	$ 192,556
Restricted cash	878	878
Total cash, cash equivalents, and restricted cash	$ 143,345	$ 193,434	$ 143,093

Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Finance lease cost
Amortization of right-of-use asset	$ 49	$ 46
Interest on lease liabilities	12	14
Operating lease cost	2,535	2,368
Short term lease cost	40	348
Variable lease cost	2,161	321
Total net lease cost	$ 4,797	$ 3,097

Stockholders' equity - Additional Information (Details) $ / shares in Units, $ in Thousands			12 Months Ended
	Jan. 01, 2022 shares	Jul. 07, 2020 USD ($) $ / shares shares	Dec. 31, 2021 USD ($) d offering $ / shares shares	Dec. 31, 2020 USD ($) $ / shares shares	Nov. 04, 2021 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, shares authorized (in shares)			100,000,000	100,000,000
Common stock, par value (in dollars per share) \| $ / shares			$ 0.000001	$ 0.000001
Common stock, shares issued (in shares)			42,457,471	42,196,296
Common stock, shares outstanding (in shares)			42,457,471	42,196,296
Outstanding pre-funded warrants (in shares)			12,663,010	12,663,010
Class of Warrant or Right, Notice Period \| d			61
Exercise price (in dollars per share) \| $ / shares			$ 0.000001
Proceeds from issuance of common stock \| $		$ 71,300	$ 0	$ 71,675
Public offering \| $		$ 4,900
Preferred stock, shares authorized (in shares)			5,000,000	5,000,000
Preferred stock, par value (in dollars per share) \| $ / shares			$ 0.000001	$ 0.000001
Preferred stock, shares issued (in shares)			0	0
Preferred stock, shares outstanding (in shares)			0	0
Options outstanding (in shares)			8,963,945	6,846,289
Options exercised (in shares)			124,928
Common stock issued upon exercise of options aggregate intrinsic value \| $			$ 1,300	$ 6,000
Weighted-average grant date fair value of options granted (in dollars per share) \| $ / shares			$ 6.37	$ 8.70
Stock-based compensation expense \| $			$ 11,557	$ 5,622
Restricted stock units forfeited (in shares)			25,000
Unrecognized stock-based compensation cost (in dollars per share) \| $			$ 29,600
Unrecognized stock-based compensation cost, weighted-average period recognized (in years)			2 years 10 months 2 days
Proceeds from ESPP \| $			$ 372	$ 199
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			1 year
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			4 years
2014 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares of common stock that may be issued (in shares)			11,264,787
Shares of common stock reserved for issuance percentage			4.00%
Award expiration period (in years)			10 years
Shares available to be granted (in shares)			5,040,300	6,037,532
2014 Plan \| Subsequent Event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional shares authorized (in shares)	2,204,819
Equity Incentive Plan 2006
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding (in shares)			23,958
Common stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Sale of shares under public offering (in shares)				3,262,471
Options exercised (in shares)			124,928	882,624
Issuance of shares under Employee Stock Purchase Plan (in shares)			51,747	18,352
Performance-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted (in shares)			50,000
Restricted stock units vested (in shares)			25,000
Stock-based compensation expense \| $			$ 300
Pre-funded warrants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding pre-funded warrants (in shares)			12,663,010
Exercise price (in dollars per share) \| $ / shares		$ 0.000001
Maximum percentage of outstanding stock per stockholder			9.99%
Number of common stock in prefunded warrants (in shares)		1,737,529
Pre funded warrant issued (in dollars per share) \| $ / shares		$ 15.249999
Shares issuable under 2020 ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Sale of shares under public offering (in dollars per share) \| $ / shares			$ 9.53
Issuance of shares under Employee Stock Purchase Plan (in shares)			22,972
Shares issuable under 2020 ESPP \| 2020 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Sale of shares under public offering (in dollars per share) \| $ / shares			$ 5.33	$ 10.84
ESPP common stock reserved for issuance (in shares)			759,936
ESPP max contribution rate			15.00%
ESPP purchase price of common stock, percent of market price			85.00%
ESPP number of offerings per year \| offering			2
ESPP offering period			6 months
Issuance of shares under Employee Stock Purchase Plan (in shares)			28,775	18,352
Proceeds from ESPP \| $			$ 400	$ 200
Public Stock Offering
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Sale of shares under public offering (in shares)		3,262,471
Sale of shares under public offering (in dollars per share) \| $ / shares		$ 15.25
Equity Offering Sales Agreement
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum value \| $					$ 40,000

Other income, net - Schedule of Other Income Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Other Income and Expenses [Abstract]
Interest income	$ 19	$ 490
Foreign exchange gains (losses)	(1)	5
Other expenses	(12)	(44)
Other income, net	$ 6	$ 451

Sale of Aquinox Canada	12 Months Ended
Sale of Aquinox Canada	Dec. 31, 2021
Subsidiary Sale Of Stock [Abstract]
Sale of Aquinox Canada	Sale of Aquinox CanadaOn July 31, 2020, the Company sold all issued and outstanding capital stock of its Canadian subsidiary, Aquinox Canada, to an unrelated third party for cash consideration of $8.2 million. The Company concluded that the sale did not meet the criteria for discontinued operations reporting as it did not represent a strategic shift that had a major effect on the Company’s operations and financial results. As of the date of sale, Aquinox Canada’s remaining assets included intellectual property and other assets developed through past research and development activities, all of which had no book value. The transaction resulted in a net gain on sale of $7.8 million, after deducting $0.4 million in transaction costs, which is recorded as a reduction of operating loss in the Company’s consolidated statement of operations. The sale of Aquinox Canada triggered a significant capital loss carryforward for tax purposes. However, the deferred tax asset related to the capital loss carryforward will be subject to a full valuation allowance as the Company has determined that it is more likely than not that the benefit of the loss will not be realized. Refer to Note 10, Income taxes for further information.

Basis of presentation and summary of significant accounting policies (Policies)	12 Months Ended
	Dec. 31, 2021
Accounting Policies [Abstract]
Basis of presentation	Basis of presentationThe accompanying consolidated financial statements are presented in United States (“U.S.”) dollars and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The financial results are presented on a consolidated basis. All intercompany transactions are eliminated on consolidation. In July 2020, the Company sold all of the issued and outstanding capital stock of Aquinox Pharmaceuticals (Canada) (“Aquinox Canada”) to an unrelated third party, as further described in Note 13, Sale of Aquinox Canada. On December 31, 2020, Neoleukin Corporation, the Company's wholly owned subsidiary, was merged into the Company. As a result, the Company has consisted of a single operating company without any subsidiaries since December 31, 2020.
Use of estimates and assumptions	Use of estimates and assumptionsThe preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of expenses during the reporting period. Significant areas requiring estimates include valuation and recognition of stock-based compensation, the incremental borrowing rate utilized in the measurement of operating and finance lease liabilities, estimated useful lives utilized in the amortization and depreciation of property, plant and equipment and intangible assets, and pre-clinical, clinical, and other accruals. Actual results could differ from those estimates.
Leases	Leases At contract inception, the Company determines if the contract is or contains a lease. Lease liabilities are recognized on the lease commencement date based on the estimated present value of lease payments over the lease term. To determine the present value of the lease payments, the Company utilizes its estimated incremental borrowing rate based on information available at the lease commencement date as the interest rate implicit in the lease is typically not readily determinable. The related right-of-use assets are recorded net of any lease incentives received. Variable lease cost primarily includes building operating expenses as charged to the Company by its landlords and payments for lessor-owned assets that are not covered by a tenant improvement allowance. The Company includes options to extend the lease in its lease liability and right-of-use asset when it is reasonably certain that it will exercise that option. None of the Company's options to extend the rental term of any of its existing leases were considered reasonably certain as of December 31, 2021. For leases of office space, the Company has elected to not separate the lease components from the non-lease components. For leases of office space with a lease term of 12 months or less and which do not include an option to purchase the underlying asset, the Company has elected to recognize the lease payments in the statement of operations on a straight-line basis over the lease term.
Cash, cash equivalents, and restricted cash	Cash, cash equivalents, and restricted cash All highly liquid investments with maturities of three months or less at the date of acquisition are considered to be cash equivalents. Restricted cash, included in Other non-current assets in the consolidated balance sheets, includes cash deposits the Company maintains with its bank as collateral for the irrevocable letters of credits related to its lease obligations.
Property and equipment	Property and equipment Property and equipment are recorded at cost and are amortized using the straight-line basis over a range of three to seven years. Expenditures for maintenance and repairs are expensed as incurred. The Company reviews the carrying value of property and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition, and other economic factors. Based on management’s assessment there were no indicators of impairment of property and equipment as of December 31, 2021 and 2020.
Earnings (loss) per share	Earnings (loss) per shareBasic net loss per share is calculated by dividing the net loss by the weighted average number of shares of common stock outstanding for the period, without consideration for common stock equivalents. Common stock equivalents are included in the calculation of diluted earnings per share only in periods of net income. Such common stock equivalents are excluded in the calculation of diluted net loss per share in periods of net loss as inclusion of such amounts would be anti-dilutive. Outstanding pre-funded warrants as of December 31, 2021 and 2020 of 12,663,010 are considered outstanding as of their issuance date and are included in the basic and diluted net loss per share calculation because they are fully vested and exercisable at any time for a nominal cash consideration.
Intangible assets subject to amortization	Intangible assets subject to amortization Long-lived intangible assets are recorded at the acquired cost and amortized using the straight-line method over their estimated useful life. The intangible asset is tested for impairment when events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. The Company recognizes an impairment loss when carrying amount is not recoverable and the estimated fair value of the intangible asset is less than its carrying value. Based on management’s assessment there were no indicators of impairment of intangible assets as of December 31, 2021 and 2020.
Income taxes	Income taxes The Company accounts for income taxes using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the differences between events that have been recognized in the Company’s consolidated financial statements and the tax bases of assets and liabilities and tax carryforwards recognized at enacted tax rates. The measurement of deferred tax assets is reduced, if necessary, to the amount more likely than not to be realized by a valuation allowance. Investment tax credits relating to scientific research and experimental development are accounted for as a reduction in operating expenses. They are recorded in the period when there is reasonable assurance the credits will be realized. If investment tax credit amounts subsequently received are less or more than originally recorded, the difference is treated as a change in estimate.
Research and development costs	Research and development costsResearch and development costs are charged to expense as incurred and include items such as: employee related expenses, including salaries, stock-based compensation, and benefits, expenses incurred under agreements with contract research organizations that conduct clinical trials and preclinical studies, the cost of acquiring, developing, and manufacturing clinical trial materials, facilities, and other expenses, which include direct and allocated expenses for rent and maintenance of facilities, and other supplies and costs associated with clinical trials, preclinical activities, and regulatory operations. Development costs are expensed in the period incurred unless management believes a development project meets generally accepted accounting criteria for deferral and amortization. No product development expenditures have been deferred to date. The Company records costs for certain development activities based on management’s evaluation of the progress to completion of specific tasks or information provided to the Company by vendors on their actual costs incurred. Payments for these activities are based on the terms of the individual arrangements, which may differ from the pattern of costs incurred, and are reflected in the consolidated financial statements as prepaid or accrued expense.
Accounting for stock-based compensation	Accounting for stock-based compensation The Company has issued stock options and restricted stock units (“RSUs”). The Company measures the cost of services received in exchange for an award of equity instruments based on the grant-date fair value of the award. The cost of such award is recognized on a straight-line basis over the requisite service period, which is generally the vesting period. Awards subject to performance-based vesting requirements are expensed utilizing a graded vesting model if achievement of the performance criteria is determined to be probable. The Company accounts for forfeitures as they occur. The Company utilizes newly issued shares to satisfy option exercises, the vesting of RSUs, and Employee Stock Purchase Plan purchases. The Company estimates the fair value of options using the Black-Scholes option pricing model on the grant date. This approximation uses assumptions regarding a number of inputs that requires management to make significant estimates and judgments. The expected term represents the period that the Company’s stock-based awards are expected to be outstanding. As the Company does not have sufficient historical experience for determining the expected term of the stock option awards granted, the Company has based its expected term for awards issued to employees on the simplified method, which represents the average period from vesting to the expiration of the stock option. In addition, the Company does not have sufficient trading history for the Company’s common stock, and therefore, the expected stock price volatility for the Company’s common stock was estimated by taking the average historical price volatility for industry peers. The Company has never declared or paid any cash dividends to common stockholders and does not presently plan to pay cash dividends in the foreseeable future. Consequently, the Company used an expected dividend yield of zero. The risk-free interest rate was based on the yields of treasury securities with maturities similar to the expected term of the options for each option group. The fair value of each RSU is measured using the closing price of the Company’s common stock on the date of grant.
Segment reporting	Segment reportingThe Company operates in one segment, the research and development of de novo protein therapeutics using sophisticated computational algorithms and methods to address unmet medical needs. The Company's primary areas of focus are in oncology, inflammation, and autoimmunity. The Company’s operations and its assets are held in the United States.
Fair value of financial instruments	Fair value of financial instrumentsThe carrying amounts of certain of the Company’s financial instruments, including cash and cash equivalents, restricted cash, receivables, accounts payable, and other liabilities, approximate their fair values because of their nature and/or short maturities.
Concentration of credit risk	Concentration of credit riskFinancial instruments, which potentially subject the Company to significant concentrations of credit risk, consist primarily of cash and cash equivalents. Cash and cash equivalents are invested in accordance with the Company’s investment policy. The primary objective for the Company’s investment portfolio is the preservation of capital and maintenance of liquidity and includes guidelines on the quality of financial instruments and defines allowable investments that the Company believes minimizes the exposure to concentration of credit risk.
Recently issued and recently adopted accounting standards	Recently issued and recently adopted accounting standardsIn December 2019, the FASB issued ASU 2019-12 “Simplifying the Accounting for Income Taxes”. The objective of the standard is to improve areas of GAAP by removing certain exceptions permitted by ASC Topic 740-- Income Taxes and clarifying existing guidance to facilitate consistent application. ASU 2019-12 is effective for fiscal years and interim periods beginning after December 15, 2020. The Company adopted this standard on January 1, 2021 on a prospective basis. The adoption of ASU 2019-12 did not have a material impact on the Company's financial condition, results of operations, cash flows, and financial statement disclosures.

Stockholders' equity - Schedule of Weighted Average Assumptions (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Equity [Abstract]
Expected volatility	89.00%	93.00%
Expected dividends	0.00%	0.00%
Expected terms (years)	6 years 10 days	6 years 7 days
Risk free rate	0.93%	0.42%

Stockholders' equity

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Stockholders' equity

Stockholders’ equity

(a) Common stock and pre-funded warrants

The Company is authorized to issue 100,000,000 shares of common stock with a par value of $0.000001 per share as of December 31, 2021. As of December 31, 2021, and 2020, the total number of shares of common stock issued and outstanding was 42,457,471, and 42,196,296, respectively.

The Company had pre-funded warrants outstanding to purchase an aggregate of 12,663,010 shares of common stock as of December 31, 2021. The pre-funded warrants are exercisable at any time, with 61 days' notice, for an exercise price of $0.000001, except that the pre-funded warrants cannot be exercised by the holders if, after giving effect thereto, the holders would beneficially own more than 9.99% of the outstanding common stock, subject to certain exceptions. The holders of the pre-funded warrants will not have the right to vote on any matter except to the extent required by Delaware law.

On November 4, 2021, the Company entered into an ATM “at-the-market” Equity Offering Sales Agreement (the “Sales Agreement”) with BofA Securities, Inc., as agent (“BofA”), pursuant to which the Company may offer and sell, from time to time through BofA, shares of the Company’s common stock, having an aggregate offering price of up to $40.0 million. The offer and sale of the shares will be made pursuant to a shelf registration statement on Form S-3 and the related prospectus filed on December 11, 2020, and declared effective by the SEC on December 21, 2020, as supplemented by a prospectus supplement dated November 4, 2021. The Company has no obligation to sell any such shares under the Sales Agreement. As of December 31, 2021, no sales of common stock had been made pursuant to the Sales Agreement.

On July 7, 2020, the Company completed an underwritten public offering of 3,262,471 shares of its common stock at a price of $15.25 per share and pre-funded warrants to purchase 1,737,529 shares of its common stock at a price of $15.249999 per prefunded warrant. The pre-funded warrants can be exercised at any time after issuance for an exercise price of $0.000001 per share. The aggregate net proceeds received by the Company from the offering were $71.3 million, net of underwriting discounts, commissions, and offering costs of approximately $4.9 million.

(b) Preferred stock

The Company is authorized to issue 5,000,000 shares of preferred stock with a par value of $0.000001 per share. As of December 31, 2021 and 2020, 0 shares of preferred stock were issued or outstanding.

The 2014 Equity Incentive Plan (“2014 Plan”), as amended and restated on May 13, 2021, became effective in March 2014 and is the successor to and continuation of the Joint Canadian Stock Option Plan (the “2006 Plan”). No further grants will be made under the 2006 Plan. The 2014 Plan provides for the grant of stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance stock awards, performance cash awards, and other forms of equity awards to employees, directors, and consultants.

As of December 31, 2021, the maximum number of shares of common stock that may be issued under the 2014 Plan was 11,264,787. The number of shares of common stock reserved for issuance under the 2014 Plan will be increased by the number of shares subject to stock options granted under the 2006 Plan that would have otherwise returned to the 2006 Plan, such as upon the expiration or termination of a stock award prior to vesting. As of December 31, 2021, there were 23,958 shares subject to stock options granted under the 2006 Plan. Additionally, the number of shares of common stock reserved for issuance under the 2014 Plan will automatically increase on January 1 of each year, beginning on January 1, 2022 and ending on and including January 1, 2030, by 4.00% of the sum of (A) the total number of shares of capital stock and (B) the total number of shares of common stock subject to pre-funded warrants, in each case outstanding on December 31 of the preceding calendar year, or a lesser number of shares determined by the board of directors. On January 1, 2022, the number of shares of common stock reserved under the 2014 Plan was increased by 2,204,819 shares. All stock options granted pursuant to the 2014 Plan have a contractual term of ten years. All awards granted to date are equity classified and subject to either service or performance based vesting, typically over a period of one to four years.

The number of shares available to be granted under the 2014 Plan was 5,040,300 and 6,037,532 as of December 31, 2021 and 2020, respectively.

Stock options

A summary of the Company's stock option activity and related information for the year ended December 31, 2021 is as follows:


	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (In Years)	Aggregate Intrinsic Value (In Thousands)
Outstanding at December 31, 2020	6,846,289	$	6.42	8.71	$	53,127
Options granted	3,346,049	$	8.70
Options exercised	(124,928)	$	3.28
Options cancelled/forfeited	(1,103,465)	$	7.31
Outstanding at December 31, 2021	8,963,945	$	7.20	8.32	$	6,912
Exercisable as of December 31, 2021	3,665,224	$	5.99	7.45	$	4,729

During the year ended December 31, 2021, 124,928 shares of common stock were issued upon exercise of options with an aggregate intrinsic value of $1.3 million. During the year ended December 31, 2020, 882,624 shares of common stock were issued upon exercise of options with an aggregate intrinsic value of $6.0 million. The weighted-average grant date fair value of options granted during the years ended December 31, 2021 and 2020 was $6.37 and $8.70 per share, respectively.

The fair value of stock options granted is estimated using the Black-Scholes option pricing model with the following weighted average assumptions:


	December 31,
	2021		2020
Expected volatility	89	%	93	%
Expected dividends	0	%	0	%
Expected terms (years)	6.03		6.02
Risk free rate	0.93	%	0.42	%

Restricted stock units

A summary of the Company's restricted stock unit activity and related information for the year ended December 31, 2021 is as follows:


	Number of Shares	Weighted Average Grant Date Fair Value
Non-vested at December 31, 2020	186,500	$	8.19
Restricted stock units granted	70,000	$	12.94
Restricted stock units vested	(84,500)	$	7.20
Restricted stock units forfeited	(40,000)	$	12.70
Non-vested at December 31, 2021	132,000	$	9.97

During the year ended December 31, 2021, the Company granted 50,000 RSUs, which vest based on certain performance conditions in two equal tranches. Twenty-five thousand of such performance-based RSUs vested during the year ended December 31, 2021 as the related performance condition was met. Related stock-based compensation expense recognized was $0.3 million. The remaining 25,000 RSUs were forfeited prior to December 31, 2021. Each vested RSU entitles the holder to receive one share of the Company's common stock.

(d) Stock-based compensation

Stock-based compensation expense is classified in the consolidated statements of operations as follows (in thousands):


	December 31,
	2021		2020
Research and development expenses	$	5,095	$	1,999
General and administrative expenses	6,462		3,623
Total stock-based compensation expense	$	11,557	$	5,622

Total unrecognized compensation for all stock-based compensation was $29.6 million as of December 31, 2021, which is expected to be recognized over a weighted-average period of 2.84 years.

(e) Employee stock purchase plan

The Company’s 2020 Employee Stock Purchase Plan (“2020 ESPP”) was adopted by the Company’s board of directors in March 2020 and approved by the Company’s stockholders in May 2020. A total of 759,936 shares of common stock have been reserved for issuance under the 2020 ESPP.

Subject to share and dollar limits as described in the plan, the 2020 ESPP allows eligible employees to contribute, through payroll deductions, up to 15% of their earnings for the purchase of the Company’s shares of common stock at the lower of 85% of the closing price of the Company’s common stock on the first trading day of the offering period or 85% of the closing price of the Company’s common stock on the last trading day of the offering period. There are two six-month offering periods during each fiscal year, ending on May 15 and November 15.

During the year ended December 31, 2021, the Company issued 22,972 shares of common stock at a price per share of $9.53 and 28,775 of shares of common stock at a price per share of $5.33, respectively, under the 2020 ESPP. During the year ended December 31, 2020, the Company issued 18,352 shares of common stock at a price per share of $10.84. Cash received from the purchases under the 2020 ESPP for the years ended December 31, 2021 and 2020 was $0.4 million and $0.2 million, respectively. As of December 31, 2021 and 2020, employee contributions included in accounts payable and accrued liabilities in the accompanying consolidated balance sheet were immaterial.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 13
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (SX 210.3-04)
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Subparagraph (i)
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
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-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Leases - Supplemental Cash flow Information Related to Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Cash paid for amounts included in the measurement of operating lease liabilities	$ 2,249	$ 460
Cash paid for amounts included in the measurement of finance lease liabilities	$ 63	$ 60

Net loss per common stock (Tables)

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Schedule of Securities Excluded From Computation of Earnings Per Share

The Company excluded the following potentially dilutive shares from diluted net loss per share as the effect would have been anti-dilutive for all periods presented:


	December 31,
	2021	2020
Outstanding stock options	8,963,945	6,848,289
Restricted stock units	132,000	186,500
Shares issuable under 2020 ESPP	53,446	22,521
	9,149,391	7,057,310

Intangible asset, net - Summary of Intangible Asset (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Cost	$ 659	$ 659
Accumulated amortization	(531)	(312)
Net intangible asset	128	347
Amortization expense	$ 200	$ 200
Intangible asset useful life	3 years
Expected amortization expense 2022	$ 100

Property and equipment, net

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Property and equipment, net

Property and equipment, net consist of the following (in thousands):


	December 31, 2021
	Cost		Accumulated Amortization		Net Book Value
Laboratory equipment	$	6,237	$	1,006	$	5,231
Furniture, fixtures, and IT equipment	1,850		629		1,221
	$	8,087	$	1,635	$	6,452


	December 31, 2020
	Cost		Accumulated Amortization		Net Book Value
Laboratory equipment	$	3,402	$	426	$	2,976
Furniture, fixtures, and IT equipment	753		159		594
	$	4,155	$	585	$	3,570

Depreciation expense on property and equipment totaled $1.1 million and $0.6 million for the years ended December 31, 2021 and 2020, respectively.

Basis of presentation and summary of significant accounting policies - Additional Information (Details) $ in Millions	12 Months Ended
	Dec. 31, 2021 USD ($) segment shares	Dec. 31, 2020 USD ($) shares
Significant Accounting Policies [Line Items]
Outstanding pre-funded warrants (in shares) \| shares	12,663,010	12,663,010
Number of operating segments \| segment	1
Money market funds
Significant Accounting Policies [Line Items]
Money market funds \| $	$ 140.9	$ 108.3
Minimum
Significant Accounting Policies [Line Items]
Property and equipment useful life	3 years
Maximum
Significant Accounting Policies [Line Items]
Property and equipment useful life	7 years
Office \| Maximum
Significant Accounting Policies [Line Items]
Lease term	12 months

Stockholders' equity - Schedule of RSU Activity (Details)	12 Months Ended
	Dec. 31, 2021 $ / shares shares
Number of Shares
Restricted stock units forfeited (in shares)	(25,000)
Restricted stock units
Number of Shares
Non-vested beginning balance (in shares)	186,500
Restricted stock units granted (in shares)	70,000
Restricted stock units vested (in shares)	(84,500)
Restricted stock units forfeited (in shares)	(40,000)
Non-vested ending balance (in shares)	132,000
Weighted Average Grant Date Fair Value
Non-vested beginning balance (in dollars per share) \| $ / shares	$ 8.19
Restricted stock units granted (in dollars per share) \| $ / shares	12.94
Restricted stock units vested (in dollars per share) \| $ / shares	7.20
Restricted stock units forfeited (in dollars per share) \| $ / shares	12.70
Non-vested ending balance (in dollars per share) \| $ / shares	$ 9.97

Income taxes - Schedule of Net (Loss) Income Before Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Canada	$ 0	$ (522)
U.S.	(60,692)	(32,755)
Total	$ (60,692)	$ (33,277)

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
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-Subparagraph (b)
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ Details

Consolidated Statements of Stockholders' Equity (Parenthetical) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($)
Statement of Stockholders' Equity [Abstract]
Commissions and offering expenses	$ 4,930

Other income, net

12 Months Ended

Dec. 31, 2021

Other Income and Expenses [Abstract]

Other income, net

Other income is presented for all periods (in thousands):


	December 31
	2021		2020
Interest income	$	19	$	490
Foreign exchange gains (losses)	(1)		5
Other expenses	(12)		(44)
	$	6	$	451