Convertible Preferred Stock and Stockholders Equity (Deficit)

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Convertible Preferred Stock and Stockholders Equity (Deficit)

5. Convertible Preferred Stock and Stockholders’ Equity (Deficit)

Convertible Preferred Stock

In connection with the completion of the Company’s IPO in February 2021, all outstanding shares of the Company’s convertible preferred stock automatically converted into 20,549,478 shares of common stock. Prior to its automatic conversion in the Company’s initial public offering, the Company classified its convertible preferred stock outside of permanent equity since such stock was contractually redeemable outside of the Company’s control.

Stock Split

On January 27, 2021, the Company’s Board of Directors approved a 1.8249-for-1 stock split of the Company’s outstanding common shares. On January 29, 2021, the Company amended its Amended and Restated Certificate of Incorporation to affect the stock split. The stock split resulted in an adjustment to the preferred share conversion price to reflect a proportional increase in the number of common shares to be issued upon conversion. The accompanying consolidated financial statements and notes to consolidated financial statements give retroactive effect to the stock split for all periods presented.

Restricted Stock

In 2017, the Company entered into a Strategy & Business Advisor Agreement (“the Agreement”) with Xontogeny LLC (“Xontogeny”), which is a related party due to significant ownership of the Company’s capital stock, which provided for the grant of 3,090,924 shares of common stock to Xontogeny in exchange for the provision of advisory services for a three-year period. The shares of common stock vested over an approximate three-year period and were fully vested as of December 31, 2020. During the year ended December 31, 2020, the Company recognized non-cash compensation expense of $39,000 in general and administrative expense related to the vesting of the shares of common stock. For accounting purposes, unvested restricted stock awards are not considered issued and outstanding and therefore were not reflected as issued and outstanding in the accompanying consolidated Statements of Convertible Preferred Stock and Stockholders’ Deficit until the awards vested.