Takeda Asset Purchase and Stock Purchase Agreements (Tables)

6 Months Ended

Jun. 30, 2022

Series A Convertible Preferred Stock

Business Acquisition [Line Items]

Summary of Fair Value of Series A Convertible Preferred Stock Using Black-Scholes Option-pricing Model

Pursuant to the APA, in October 2021, the Company paid Millennium an upfront payment of $10 million in cash and issued to Millennium 1,000,000 shares of its Series A preferred stock as referenced below. In determining the total purchase consideration paid to Millennium, the Series A preferred stock shares were classified as level 3 in the valuation hierarchy due to the presence of significant unobservable inputs, and were valued upon issuance at $40.9 million using the Black-Scholes option-pricing model and the following assumptions:

		Description
Credit spread	12.4%	Allowance for counterparty credit risk of the Company given the liquidation preference and obligation to issue more shares as the stock price decreases
Expected term	0.7 years	Weighted average remaining term, as determined upon Issuance date
Volatility	55%	Based on the Company's trading history for its common stock over the estimated term to the mandatory pricing date
Risk-free interest rate	0.08%	Based on the U.S. constant maturity treasury yield curve at the time of Issuance over the expected term
Common stock price	$40.80	The Company's closing common stock price on October 15, 2021 (as adjusted for the Reverse Stock Split)

The new Series A preferred stock was recorded at $22.3 million and was classified as level 3 in the valuation hierarchy due to the presence of significant unobservable inputs. The new Series A preferred stock was valued at the time of the amendment using the Black-Scholes option-pricing model and the following key assumptions:

		Description
Credit spread	22.4%	Allowance for counterparty credit risk of the Company given the liquidation preference and obligation to issue more shares as the stock price decreases
Expected term	0.9 years	Weighted average remaining term, as determined upon Amendment date
Volatility	55%	Blended volatility
Risk-free interest rate	1.95%	Based on the U.S. constant maturity treasury yield curve at the time of Amendment over the expected term
Common stock price	$4.44	The Company's closing common stock price on May 23, 2022 (as adjusted for the Reverse Stock Split)