0001126234-20-000118 | 10-Q | XBRL Viewer

Cover Page - shares	9 Months Ended
Cover Page - shares	Sep. 30, 2020	Nov. 06, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2020
Document Transition Report	false
Entity File Number	001-35342
Entity Registrant Name	LUMOS PHARMA, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	42-1491350
Entity Address, Address Line One	4200 Marathon Blvd #200
Entity Address, City or Town	Austin
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	78756
City Area Code	512
Local Phone Number	215-2630
Title of 12(b) Security	Common Stock
Trading Symbol	LUMO
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		8,297,058
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0001126234
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 105,575	$ 4,952
Prepaid expenses and other current assets	3,230	82
Income tax receivable	174	0
Other receivables	26,176	35
Total current assets	135,155	5,069
Non-current assets:
Property and equipment, net	594	84
Right-of-use asset	439	373
Total non-current assets	1,033	457
Total assets	136,188	5,526
Current liabilities:
Accounts payable	137	365
Accrued expenses	6,293	709
Current portion of lease liability	535	189
Total current liabilities	6,965	1,263
Long-term liabilities:
Royalty obligation payable to Iowa Economic Development Authority	6,000	0
Lease liability	35	191
Deferred tax liability	4,653	0
Total long-term liabilities	10,688	191
Total liabilities	17,653	1,454
Stockholders' equity:
Undesignated preferred stock, $— par value: Authorized shares - 5,000,000 at September 30, 2020 and December 31, 2019, respectively; issued and outstanding shares - 0 at September 30, 2020 and December 31, 2019	0	0
Common stock, $0.01 par value: Authorized shares - 75,000,000 and 36,000,000 at September 30, 2020 and December 31, 2019, respectively; issued and outstanding 8,293,312 and 1,177,933 at September 30, 2020 and December 31, 2019, respectively	83	12
Additional paid-in capital	182,028	202
Accumulated deficit	(63,576)	(59,677)
Total stockholders' equity (deficit)	118,535	(59,463)
Total liabilities, redeemable convertible preferred stock and stockholders' equity	136,188	5,526
Series A redeemable convertible preferred stock
Long-term liabilities:
Redeemable convertible preferred stock:	0	21,904
Series B redeemable convertible preferred stock
Long-term liabilities:
Redeemable convertible preferred stock:	$ 0	$ 41,631

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2020	Dec. 31, 2019
Blank check preferred stock, par value (in dollars per share)	$ 0	$ 0
Blank check preferred stock, authorized shares	5,000,000	5,000,000
Blank check preferred stock, issued shares	0	0
Blank check preferred stock, outstanding shares	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized shares	75,000,000	36,000,000
Common stock, issued shares	8,293,312	1,177,933
Common stock, outstanding shares	8,293,312	1,177,933
Series A redeemable convertible preferred stock
Redeemable convertible preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Redeemable convertible preferred stock, shares authorized	0	978,849
Redeemable convertible preferred stock, shares issued	0	978,849
Redeemable convertible preferred stock, shares outstanding	0	978,849
Series B redeemable convertible preferred stock
Redeemable convertible preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Redeemable convertible preferred stock, shares authorized	0	1,989,616
Redeemable convertible preferred stock, shares issued	0	1,989,616
Redeemable convertible preferred stock, shares outstanding	0	1,989,616

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Statement [Abstract]
Total revenues	$ 74	$ 0	$ 128	$ 0
Operating expenses:
Research and development	2,075	1,202	6,743	4,538
General and administrative	5,156	1,496	12,634	2,893
Total operating expenses	7,231	2,698	19,377	7,431
Loss from operations	(7,157)	(2,698)	(19,249)	(7,431)
Other income and expense:
Other income, net	6,322	0	6,482	23
Interest income	168	29	246	65
Interest expense	0	0	(48)	0
Other income, net	6,490	29	6,680	88
Net loss before taxes	(667)	(2,669)	(12,569)	(7,343)
Income tax benefit	2,432	0	9,321	0
Net income (loss)	1,765	(2,669)	(3,248)	(7,343)
Accretion of preferred stock to current redemption value	0	(766)	(651)	(2,274)
Net income (loss) attributable to common shareholders	$ 1,765	$ (3,435)	$ (3,899)	$ (9,617)
Net income (loss) per share of common stock
Basic (in dollars per share)	$ 0.21	$ (2.56)	$ (0.62)	$ (7.15)
Diluted (in dollars per share)	$ 0.21	$ (2.56)	$ (0.62)	$ (7.15)
Weighted average number of common shares outstanding
Basic (in shares)	8,293,312	1,343,483	6,267,576	1,344,755
Diluted (in shares)	8,486,804	1,343,483	6,267,576	1,344,755
Revenue, Product and Service [Extensible List]			us-gaap:LicenseAndServiceMember

Condensed Consolidated Statement of Changes in Redeemable Convertible Preferred Stock and Stockholders' Equity - USD ($)	Total	Preferred Stock Series A redeemable convertible preferred stock	Preferred Stock Series B redeemable convertible preferred stock	Common Stock	Treasury Stock, at cost	Additional Paid-in Capital	Accumulated Deficit
Balance at beginning of period (in shares) at Dec. 31, 2018		978,849	1,989,616	1,345,402
Balance at beginning of period (in shares) at Dec. 31, 2018
Balance at beginning of period at Dec. 31, 2018	$ (46,919,000)	$ 20,903,000	$ 39,592,000	$ 1,000	$ 0	$ 12,000	$ (46,932,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation	48,000					48,000
Accretion of preferred stock to current redemption value	750,000	$ (247,000)	$ (503,000)				750,000
Net income (loss)	(2,105,000)						(2,105,000)
Balance at end of period (in shares) at Mar. 31, 2019		978,849	1,989,616	1,345,402
Balance at end of period (in shares) at Mar. 31, 2019					0
Balance at end of period at Mar. 31, 2019	(49,726,000)	$ 21,150,000	$ 40,095,000	$ 1,000	$ 0	60,000	(49,787,000)
Balance at beginning of period (in shares) at Dec. 31, 2018		978,849	1,989,616	1,345,402
Balance at beginning of period (in shares) at Dec. 31, 2018
Balance at beginning of period at Dec. 31, 2018	(46,919,000)	$ 20,903,000	$ 39,592,000	$ 1,000	$ 0	12,000	(46,932,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(7,343,000)
Balance at end of period (in shares) at Sep. 30, 2019		978,849	1,989,616	1,168,792
Balance at end of period (in shares) at Sep. 30, 2019					176,623
Balance at end of period at Sep. 30, 2019	(56,404,000)	$ 21,652,000	$ 41,117,000	$ 1,000	$ 0	144,000	(56,549,000)
Balance at beginning of period (in shares) at Mar. 31, 2019		978,849	1,989,616	1,345,402
Balance at beginning of period (in shares) at Mar. 31, 2019					0
Balance at beginning of period at Mar. 31, 2019	(49,726,000)	$ 21,150,000	$ 40,095,000	$ 1,000	$ 0	60,000	(49,787,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation	40,000					40,000
Accretion of preferred stock to current redemption value	758,000	$ (250,000)	$ (508,000)				758,000
Net income (loss)	(2,569,000)						(2,569,000)
Balance at end of period (in shares) at Jun. 30, 2019		978,849	1,989,616	1,345,402
Balance at end of period (in shares) at Jun. 30, 2019					0
Balance at end of period at Jun. 30, 2019	(53,013,000)	$ 21,400,000	$ 40,603,000	$ 1,000	$ 0	100,000	(53,114,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accretion of preferred stock to current redemption value (pre-merger)		$ 252,000	$ 514,000
Share-based compensation	44,000					44,000
Exercise of stock options and restricted stock vested (in shares)				13
Treasury stock purchase, at cost (in shares)				(176,623)
Treasury stock purchase, at cost (in shares)					176,623
Accretion of preferred stock to current redemption value	766,000						766,000
Net income (loss)	(2,669,000)						(2,669,000)
Balance at end of period (in shares) at Sep. 30, 2019		978,849	1,989,616	1,168,792
Balance at end of period (in shares) at Sep. 30, 2019					176,623
Balance at end of period at Sep. 30, 2019	(56,404,000)	$ 21,652,000	$ 41,117,000	$ 1,000	$ 0	144,000	(56,549,000)
Balance at beginning of period (in shares) at Dec. 31, 2019		978,849	1,989,616	1,177,933
Balance at beginning of period (in shares) at Dec. 31, 2019
Balance at beginning of period at Dec. 31, 2019	(59,463,000)	$ 21,904,000	$ 41,631,000	$ 12,000	$ 0	202,000	(59,677,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accretion of preferred stock to current redemption value (pre-merger)	(651,000)	$ 216,000	$ 435,000				(651,000)
Issuance of common stock to former stockholders of NewLink upon merger (in shares)				4,146,405
Issuance of common stock to former stockholders of NewLink upon merger	116,949,000			$ 41,000		116,908,000
Conversion of preferred stock into common stock upon merger (in shares)		(978,849)	(1,989,616)	2,968,465
Conversion of preferred stock into common stock upon merger	64,186,000	$ (22,120,000)	$ (42,066,000)	$ 30,000		64,156,000
Share-based compensation	177,000					177,000
Net income (loss)	340,000						340,000
Balance at end of period (in shares) at Mar. 31, 2020		0	0	8,292,803
Balance at end of period (in shares) at Mar. 31, 2020					0
Balance at end of period at Mar. 31, 2020	121,538,000	$ 0	$ 0	$ 83,000	$ 0	181,443,000	(59,988,000)
Balance at beginning of period (in shares) at Dec. 31, 2019		978,849	1,989,616	1,177,933
Balance at beginning of period (in shares) at Dec. 31, 2019
Balance at beginning of period at Dec. 31, 2019	(59,463,000)	$ 21,904,000	$ 41,631,000	$ 12,000	$ 0	202,000	(59,677,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(3,248,000)
Balance at end of period (in shares) at Sep. 30, 2020		0	0	8,293,312
Balance at end of period (in shares) at Sep. 30, 2020					0
Balance at end of period at Sep. 30, 2020	118,535,000	$ 0	$ 0	$ 83,000	$ 0	182,028,000	(63,576,000)
Balance at beginning of period (in shares) at Mar. 31, 2020		0	0	8,292,803
Balance at beginning of period (in shares) at Mar. 31, 2020					0
Balance at beginning of period at Mar. 31, 2020	121,538,000	$ 0	$ 0	$ 83,000	$ 0	181,443,000	(59,988,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation	274,000					274,000
Sales of shares under stock purchase plan	6,000					6,000
Sales of shares under stock purchase plan (in shares)				509
Net income (loss)	(5,353,000)						(5,353,000)
Balance at end of period (in shares) at Jun. 30, 2020		0	0	8,293,312
Balance at end of period (in shares) at Jun. 30, 2020					0
Balance at end of period at Jun. 30, 2020	116,465,000	$ 0	$ 0	$ 83,000	$ 0	181,723,000	(65,341,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation	305,000					305,000
Net income (loss)	1,765,000						1,765,000
Balance at end of period (in shares) at Sep. 30, 2020		0	0	8,293,312
Balance at end of period (in shares) at Sep. 30, 2020					0
Balance at end of period at Sep. 30, 2020	$ 118,535,000	$ 0	$ 0	$ 83,000	$ 0	$ 182,028,000	$ (63,576,000)

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash Flows From Operating Activities
Net loss	$ (3,248)	$ (7,343)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation	756	132
Depreciation and amortization	375	23
Gain on sale of priority review voucher	(6,300)	0
In-process research and development charge	426	0
Benefit for deferred taxes	(4,848)	0
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	(495)	(123)
Other receivables	224	0
Accounts payable and accrued expenses	(2,907)	954
Net cash used in operating activities	(16,017)	(6,357)
Cash Flows From Investing Activities
Cash acquired in connection with merger	84,179	0
Proceeds from sale of priority review voucher, net	32,500	0
Purchase of equipment	(18)	0
Net cash provided by investing activities	116,661	0
Cash Flows From Financing Activities
Sales of shares under stock purchase plan	6	0
Principal payments on notes payable	(27)	0
Net cash used in financing activities	(21)	0
Net increase (decrease) in cash and cash equivalents	100,623	(6,357)
Cash and cash equivalents at beginning of period	4,952	14,022
Cash and cash equivalents at end of period	$ 105,575	$ 7,665

Description of Business	9 Months Ended
Description of Business	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Description of Business Organization and Nature of operations Lumos Pharma, Inc. is a clinical-stage biopharmaceutical company. References in this Quarterly Report to “us,” “we,” “our,” “the Company,” or “Lumos” are to Lumos Pharma, Inc. and its wholly-owned subsidiaries. With our principal executive offices located in Austin, Texas and additional executive and administrative offices located in Ames, Iowa, we are engaged in advancing our clinical program and focused on identifying, acquiring, developing, and commercialization of novel products and new therapies for people with rare diseases on a global level, for which there is currently a significant unmet need for safe and effective therapies. Our common stock is listed on the NASDAQ Global Select Market (“NASDAQ”) and trades under the ticker symbol “LUMO.” The Company entered into a business combination (the “Merger”) between the Company, formerly known as NewLink Genetics Corporation (“NewLink”), Cyclone Merger Sub, Inc. (“Merger Sub”), a wholly owned subsidiary of NewLink, and Lumos Pharma, Inc., which has since been renamed “Lumos Pharma Sub, Inc.” (“Private Lumos”). The Merger closed on March 18, 2020, and Merger Sub merged with and into Private Lumos, with Private Lumos surviving as a wholly-owned subsidiary of the Company. Immediately prior to the closing of the Merger, the shares of NewLink common stock were adjusted with a reverse split ratio of 1‑for‑9. Under the terms of the Merger, Private Lumos stockholders received an aggregate of 4,146,398 shares of NewLink common stock (after giving effect to the reverse split) for each share of outstanding common stock, Series A Preferred Stock and Series B Preferred Stock of Private Lumos converted at an exchange ratio of 0.1308319305, 0.0873621142 and 0.1996348626, respectively. Immediately following the reverse stock split and the completion of the Merger, there were 8,292,803 shares of the Company’s common stock outstanding, of which approximately 50% was held by each of Private Lumos and NewLink security holders. The Merger was accounted for as a reverse asset acquisition. Private Lumos was deemed to be the accounting acquirer for accounting purposes and NewLink the accounting acquiree. Accordingly, for accounting purposes: (i) the assets acquired and liabilities assumed were recorded based on their estimated fair values on the Merger date, (ii) the reported historical operating results of the combined company prior to the Merger will be those of Private Lumos and not of NewLink after retroactively giving effect to the common stock exchange ratio, reverse stock split and change in par value for all periods presented, and (iii) for periods prior to the transaction, shareholders’ authorized capital of the combined company is presented based on the historical authorized capital of NewLink. After the consummation of the Merger, the combined company has focused its efforts on the development of Private Lumos’ sole product candidate, secretagogue ibutamoren (“LUM-201”), a potential oral therapy for pediatric growth hormone deficiency (“PGHD”) and other rare endocrine disorders. Liquidity and Risks The Company has historically devoted substantially all of its efforts toward research and development and has never earned revenue from commercial sales of its products. Management expects to continue to incur additional substantial losses in the foreseeable future as a result of the Company’s research and development activities. However, the Company believes that its existing cash and cash equivalents of approximately $105.6 million as of September 30, 2020 will be sufficient to allow the Company to fund its operations through read out of the Phase 2b clinical trial for a subset of patients with PGHD indication under its LUM-201 product candidate and for at least 12 months from the filing date of this Quarterly Report. If available liquidity becomes insufficient to meet the Company’s obligations as they come due, our future operations will be reliant on additional equity or financing arrangements. There can be no assurances that, in the event that the Company requires additional financing, such financing will be available on terms which are favorable to the Company, or at all. If the Company is unable to raise additional funding to meet its working capital needs in the future, it will be forced to delay or reduce the scope of its research programs and/or limit or cease its operations. The pandemic caused by an outbreak of a new strain of coronavirus (“COVID-19”), has resulted, and is likely to continue to result, in significant national and global economic disruption and may adversely affect the Company’s operations. The Company is actively monitoring the potential impact of COVID-19, if any, on the carrying value of certain assets and its continued operations. To date, we have experienced limited delays related to clinical trials as clinical sites adapt their procedures to caring for patients during a pandemic, however, we have not incurred impairment of any assets as a result of COVID-19. The extent to which these events may impact the Company’s business, clinical development, regulatory efforts, and the value of its common stock, will depend on future developments, which are highly uncertain and cannot be predicted at this time. The duration and intensity of these impacts and resulting disruption to the Company’s operations is uncertain and the Company will continue to evaluate the impact that these events could have on the operations, financial position, and the results of operations and cash flows during fiscal year 2020.

Summary of Significant Accounting Policies and Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies and Recent Accounting Pronouncements	Summary of Significant Accounting Policies and Recent Accounting Pronouncements Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of Lumos and its wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”). All significant intercompany accounts and transactions are eliminated in consolidation. Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments of a normal and recurring nature considered necessary for a fair presentation have been included in the accompanying condensed consolidated financial statements. The results of operations for the interim period are not necessarily indicative of the results that will be realized for the entire fiscal year. These condensed consolidated financial statements should be read in conjunction with Private Lumos’s audited financial statements and accompanying notes thereto as of and for the year ended December 31, 2019 included in Company’s current report on Form 8-K/A as filed with the SEC on June 1, 2020. The Merger was accounted for as a reverse asset acquisition. Private Lumos is deemed to be the accounting acquirer for accounting purposes and NewLink the accounting acquiree. Accordingly, for accounting purposes: (i) the assets acquired and liabilities assumed were recorded based on their estimated fair values on the Merger date, (ii) the reported historical operating results of the combined company prior to the Merger will be those of Private Lumos and not of NewLink after retroactively giving effect to the common stock exchange ratio, reverse stock split and change in par value for all periods presented, and (iii) for periods prior to the transaction, shareholders’ authorized capital of the combined company is presented based on the historical authorized capital of NewLink. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and expenses and the disclosure of contingent assets and liabilities in the Company’s financial statements and accompanying notes. Significant management estimates that affect the reported amounts of assets and liabilities include useful lives of property and equipment, stock-based compensation, accruals for clinical trials and deferred tax assets. While we believe that the estimates and assumptions used in preparation of our condensed consolidated financial statements based on our knowledge of current events and actions that we may undertake in the future are appropriate, actual results could differ from those estimates, and any such differences may be material. Acquired In-Process Research and Development Acquired in-process research and development (“IPR&D”) expense consists of the initial up-front payments incurred in connection with the acquisition or licensing of product candidates that do not meet the definition of a business under ASC 805, Business Combinations. During the nine months ended September 30, 2020, the Company expensed the acquired in-process research and development asset of $426,000 acquired as part of the Merger as there is no future economic benefit. Asset Held for Sale Judgment is required in determining whether an asset meets the criteria for classification as "assets held for sale" in the condensed consolidated financial statements. Criteria considered by management include the existence of and commitment to a plan to dispose of the assets, the expected selling price of the assets, the expected timeframe of the completion of the anticipated sale and the period of time any amounts have been classified within assets held for sale. The Company reviews the criteria for assets held for sale each period and reclassifies such assets as appropriate. We classified the priority review voucher (“PRV”) that was carried at its original fair value less cost to sell as held for sale. The PRV was sold on July 27, 2020 (see Note 4). Share-Based Compensation Stock options and performance stock options The Company recognizes compensation costs related to stock options granted to employees and non-employees based on the estimated fair value of the awards on the date of grant. The Company estimates the grant date fair value, and the resulting stock-based compensation expense, using the Black-Scholes option-pricing model. The Company records forfeitures as they are incurred. The grant date fair value of the stock options is expensed on a straight-line basis over the applicable vesting period, which generally is four years. The fair value of performance-based stock options is recognized as compensation expense beginning at the time in which the performance conditions are deemed probable of achievement, over the remaining requisite service period. The assumptions used in Black-Scholes option-pricing model are as follows: •Expected term. The expected term of stock options represents the period that the stock options are expected to remain outstanding and is based on vesting terms, exercise term and contractual lives of the options. The expected term is based on the simplified method and is estimated as the average of the weighted average vesting term and the time to expiration as of the grant date. •Expected volatility. As the Company does not have sufficient historical stock price information to meet the expected life of the stock option grants, it uses a blended volatility based on the trading history from the common stock of a set of comparable publicly-listed biopharmaceutical companies. Volatility for employee stock purchase plan (“ESPP”) shares is equal to the Company’s historical volatility over the six-month offering period. •Risk-free interest rate. The risk-free interest rate is based on the U.S. Treasury yield with a maturity equal to the expected term of the stock options in effect at the time of grant. •Dividend yield. The expected dividend is assumed to be zero as the Company has never paid dividends and has no current plan to pay any dividends on its common stock. Restricted stock units Service-based restricted stock units are valued using the market price of our common stock on the grant date. The grant date fair value of the restricted stock units is expensed on a straight-line basis over the applicable vesting period, which generally is four years. Employee stock purchase plan Our ESPP allows employees to purchase common stock at a 15% discount from the lower of the common stock closing price on the first or last day of the offering period. The current offering period is from July 1, 2020 to December 31, 2020. We use the Black-Scholes Model to determine fair value, which incorporates assumptions as described above. The grant date fair value of the ESPP is expensed on a straight-line basis over the applicable vesting period, which generally is six months. Financial Instruments and Concentrations of Credit Risk Cash and cash equivalents, receivables, and accounts payable are recorded at cost, which approximates fair value based on the short-term nature of these financial instruments. The Company is unable to estimate the fair value of the royalty obligation based on future product sales, as the timing of payments, if any, is uncertain. Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents. Cash and cash equivalents are held by financial institutions and are federally insured up to certain limits. At times, the Company’s cash and cash equivalents balance exceeds the federally insured limits. To limit the credit risk, the Company invests its excess cash primarily in high quality securities such as money market funds. Net Income (Loss) Per Share Basic net income (loss) per share is computed by dividing net loss applicable to common stockholders by the weighted average number of common shares outstanding during the period, without consideration for common stock equivalents. Diluted net income per share reflects the potential dilution, using the treasury stock method. Recently Issued Accounting Standards From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies and adopted by us as of a specified effective date, if applicable to us. In December 2019, the FASB issued ASU 2019-12, Income Taxes (“ASC 740”), which simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC 740 related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The guidance is effective for calendar-year public business entities in 2021 and interim periods within that year. Early adoption is permitted. The Company does not expect adoption of this new guidance will have a material impact on its financial position or results of operations.

NewLink Merger

9 Months Ended

Sep. 30, 2020

Business Combinations [Abstract]

NewLink Merger

The Company completed the Merger on March 18, 2020. The Merger was accounted for as a reverse asset acquisition as NewLink did not meet the definition of a business pursuant to Topic 805, Business Combinations, as NewLink did not have the ability to generate outputs. Private Lumos was deemed to be the accounting acquirer because immediately following the Merger: (i) Lumos stockholders owned approximately 50% of outstanding common stock of the Company, (ii) the board of directors of the Company (the "Board") consists of three members designated by Private Lumos, three members designated by NewLink and the Board unanimously appointed an independent seventh member and (iii) the Company is led by Private Lumos’ then current chief executive officer and chief scientific officer, with other current members of senior management from both Private Lumos and NewLink.

For accounting purposes: (i) the assets acquired and liabilities assumed were recorded based on their estimated fair values on the Merger date, (ii) the reported historical operating results of the combined company prior to the Merger will be those of Private Lumos and not of NewLink after retroactively giving effect to the common stock exchange ratio, reverse stock split and change in par value for all periods presented, and (iii) for periods prior to the transaction, shareholders’ authorized capital of the combined company is presented based on the historical authorized capital of NewLink.

As the fair value of the NewLink net assets acquired, including the intangible assets of the PRV and IPR&D not previously reflected on NewLink’s balance sheet, were more clearly evident, fair valuing the net assets was determined to be a more reliable approach in determining the cost of net assets acquired. Except for the items noted herein, the fair value of the net assets acquired were determined to be the carrying value due to their short-term nature and ability to convert to cash. Based on most current observable inputs and trends in the market of the PRVs, we determined an estimated transaction price of the acquired PRV under the precedent transaction method to be $95.0 million, which is the observed median guideline in the range of publicly disclosed transactions of $80.0 million to $111.0 million from 2018 and through 2020. We applied a present value factor and estimated selling costs to the estimated transaction price to arrive at a fair value of the PRV. The PRV was recorded at an asset value of $87.9 million along with a corresponding liability due to Merck Sharp & Dohme Corp. (“Merck”) of $35.7 million. In addition, we recorded a deferred tax liability of $9.5 million for the step up in book basis over tax basis for the net value of the PRV. The fair value assigned to the acquired IPR&D was estimated based on the estimated expected net proceeds from the sales of these assets as intellectual property. As these assets are no longer being actively pursued in further clinical development by the Company, the IPR&D fair value of $426,000 were expensed to research and development expenses in the statement of operations for the three months ended March 31, 2020.

The following table summarizes the estimated fair value of the assets acquired and liabilities assumed on March 18, 2020, the date of the Merger (in thousands):


Assets acquired:
Cash and cash equivalents	$	84,179
Prepaid and other current assets	2,999
Income tax receivable	192
Property and equipment	1,020
Economic interest in PRV	87,920
Other intangible assets	426
Other non-current assets	517
Total Assets Acquired	177,253

Liabilities assumed:
Accounts payable	285
Accrued expenses and other current liabilities	8,788
PRV-related liability owed to Merck	35,720
Royalty obligation payable to Iowa Economics Development Authority	6,000
Deferred tax liability	9,500
Other long-term liabilities	12
Total liabilities assumed	60,305
Total net assets acquired	$	116,948

License and Research Collaboration and PRV Asset Purchase Agreements	9 Months Ended
	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
License and Research Collaboration and PRV Asset Purchase Agreements	License and Research Collaboration and PRV Asset Purchase Agreements In November 2014, NewLink entered into a worldwide license and collaboration agreement (the “NewLink Merck Agreement”), with Merck, to develop and potentially commercialize its Ebola vaccine rVSV∆G-ZEBOV that it licensed from the Public Health Agency of Canada ("PHAC"). rVSV∆G-ZEBOV was also eligible to receive a PRV if approval was granted by the U.S. Food and Drug Administration (the "FDA"), with the Company entitled to 60% and Merck entitled to the remaining 40% of the PRV value obtained through sale, transfer or other disposition of the PRV. On December 20, 2019, Merck announced that the FDA approved its application for ERVEBO® (Ebola Zaire Vaccine, Live) for the prevention of disease caused by Zaire Ebola virus in individuals 18 years of age and older. On July 27, 2020, Lumos and Merck entered into the asset purchase agreement (the “PRV Asset Purchase Agreement”), whereby Lumos and Merck each agreed that Merck would purchase the PRV from the Company for $100.0 million. Merck will pay us $60 million, representing our share of the purchase price in two installments. The first installment of $34.0 million was received by us at the closing during the three months ended September 30, 2020 and the second installment of $26.0 million is due on January 11, 2021 and is recorded within other receivables on the condensed consolidated balance sheets. We recognized a gain of $6.3 million, net of $1.5 million in costs incurred, from the sale of the PRV and such gain is recorded within other income, net on the condensed consolidated statements of operations. Under the NewLink Merck Agreement, as amended, the Company has the potential to earn royalties on sales of the vaccine in certain countries, if the vaccine is successfully commercialized by Merck. However, we believe that the market for the vaccine will be limited primarily to areas in the developing world that are excluded from royalty payment or where the vaccine is donated or sold at low or no margin, and therefore we do not expect to receive material royalty payments from Merck in the foreseeable future. For the three and nine months ended September 30, 2020, the Company recognized revenues of $74,000 and $128,000, respectively, for work the Company performed in relation to ERVEBO®, as a subcontractor of Merck.

Leases

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Leases

The Company has certain facility leases with non-cancellable terms ranging between one and two years, with certain renewal options.

The Company records lease liabilities based on the present value of lease payments over the lease term using an incremental borrowing rate to discount its lease liabilities, as the rate implicit in the lease is typically not readily determinable. To compute the present value of the lease liability, the Company used a weighted-average discount rate of 5%. Certain lease agreements include renewal options that are under the Company's control. The Company includes optional renewal periods in the lease term only when it is reasonably certain that the Company will exercise its option. Prior to the Merger, NewLink had asserted it would not renew the lease terms through expiry of the lease renewal option periods. The weighted-average remaining lease term as of September 30, 2020 is less than 1.0 year.

The Company does not separate lease components from non-lease components. Variable lease payments include payments to lessors for taxes, maintenance, insurance and other operating costs as well as payments that are adjusted based on an index or rate. The Company's lease agreements do not contain any residual value guarantees or restrictive covenants.

Future minimum lease payments under the non-cancellable operating leases (with initial or remaining lease terms in excess of one year) as of September 30, 2020 are as follows (in thousands), excluding option renewals:


For the Year Ended December 31:

2020	$	188
2021	278
Total future minimum lease payments	466
Less: Imputed interest	(10)
Unamortized lease incentive	114
Total	$	570

Stock-Based Compensation

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock Options and Performance Stock Options

In 2012, Private Lumos adopted the 2012 Equity Incentive Plan (“2012 Plan”), and in 2016 it adopted the 2016 Stock Plan (“2016 Plan” and together with the 2012 Plan, the “Plans”). In connection with the Merger, all outstanding options under the Plans were assumed and such assumed options may be exercised to purchase common stock of the Company after the Merger. Subsequent to the Merger, the Plans were terminated as to future awards.

In connection with the Merger, the Company assumed NewLink’s 2009 Equity Incentive Plan which was effective since July 2009 and was subsequently amended on May 9, 2019 (the “2019 Plan”). The 2019 Plan has a 10 year term from the Board adoption date of March 22, 2019 and on January 1 of each year through January 1, 2029, in accordance with an “evergreen provision”, a number of shares of common stock in an amount equal to 3% of the total number of shares of common stock outstanding on December 31 of the preceding calendar year or such lesser amount of shares (or no shares) approved by the Board, will be added to the shares reserved under the 2019 Plan. The 2019 Plan provides for the grant of incentive stock options, nonstatutory stock options, restricted stock awards and stock appreciation rights to officers, employees, members of the Board, advisors, and consultants to the Company. As of September 30, 2020, we had 462,502 shares available for grant under the 2019 Plan.

In connection with the Merger, the Company re-valued the assumed stock options, and it did not result in a material incremental expense for the three and nine months ended September 30, 2020.

The table below summarizes the stock option activity, including options with market and performance conditions, during the nine months ended September 30, 2020:


	Number of options	Weighted average exercise price		Weighted average remaining contractual term (years)
Outstanding at beginning of period	596,312	$	30.76	5.0
Options granted	511,604	8.19
Options exercised	—	—
Options forfeited	(2,052)	20.90
Options expired	(76,834)	30.95
Outstanding at end of period	1,029,030	$	19.54	7.3
Options exercisable at end of period	444,623	$	31.93	5.3

The weighted-average assumptions used to value the stock options using the Black-Scholes option-pricing were as follows:


Risk-free interest rate						0.35% to 0.46%
Expected dividend yield						—%
Expected volatility						86.1% to 89.3%
Expected term (in years)						5.8 to 6.0
Weighted-average grant-date fair value per share						$5.87

2010 Non-Employee Directors' Stock Award Plan

In connection with the Merger, the Company assumed NewLink’s 2010 Non-Employee Directors’ Stock Award Plan (the "Directors’ Plan") which was effective on November 10, 2011. As of September 30, 2020, no shares remain available for grant under the Directors' Plan.

2010 Employee Stock Purchase Plan

In connection with the Merger, the Company assumed NewLink’s 2010 Employee Stock Purchase Plan (the "2010 Purchase Plan"), which was effective on November 10, 2011. As of September 30, 2020, 2,119 shares remain available for issuance under the 2010 Purchase Plan.

Restricted Stock Units

The table below summarizes the restricted stock units activity during the nine months ended September 30, 2020:


	Number of restricted shares	Weighted average grant date fair value
Unvested at beginning of period	210	$	312.94
Granted	73,987	7.90
Vested	(443)	159.10
Forfeited/cancelled	—	—
Unvested at end of period	73,754	$	7.86

Share-Based Compensation Expense

Stock-based compensation expenses included in the Company’s condensed consolidated statements of operations for the three and nine months ended September 30, 2020 and 2019 were (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Research and Development	$	10	$	—	$	75	$	—
General and Administrative	295		44		681		132
Total	$	305	$	44	$	756	$	132

As of September 30, 2020, we had unrecognized compensation cost of $3.7 million and the weighted-average period over which it is expected to be recognized is 3.3 years.

Long-Term Debt and Conversion to Royalty Obligation	9 Months Ended
Long-Term Debt and Conversion to Royalty Obligation	Sep. 30, 2020
Debt Disclosure [Abstract]
Long-Term Debt and Conversion to Royalty Obligation	Long-Term Debt and Conversion to Royalty ObligationIn March 2005, NewLink entered into a $6.0 million forgivable loan agreement with the Iowa Department of Economic Development (the “IDED”). Under the agreement, in the absence of default, there were no principal or interest payments due until the completion date for the project. This loan was converted into a royalty obligation under the terms of a settlement agreement entered into on March 26, 2012, with the Iowa Economic Development Authority, as successor in interest to the IDED. As no payments are expected in the next 12 months, the entire royalty obligation of $6.0 million, which we assumed in connection with the Merger, is considered as long-term liability as of September 30, 2020.

Income Taxes

9 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

Income Taxes

For the three and nine months ended September 30, 2020, the Company recorded a benefit of $2.4 million and $9.3 million, respectively. For the three and nine months ended September 30, 2019, the Company recorded no income tax benefit. The income tax benefit is as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Current tax benefit	$	—	$	—	$	4,473	$	—
Deferred tax benefit	2,432		—		4,848		—
Total income tax benefit	$	2,432	$	—	$	9,321	$	—

On March 25, 2020, in response to the COVID-19 pandemic, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law to provide emergency assistance to affected individuals, families, and businesses. The CARES Act provides numerous tax provisions and other stimulus measures, including temporary changes regarding the prior and future utilization of net operating losses. The CARES Act amends the net operating losses ("NOLs") provisions of the Tax Cut and Jobs Act of 2017 (the "Tax Act"), providing for a five year carryback for NOLs generated in tax years beginning after December 31, 2017 and before January 1, 2021. A tax benefit of $4.5 million related to pre-tax NOLs was carried back to each of the five taxable years to fully offset taxable income with a full receivable recorded for this amount as of March 31, 2020. The Company received the full refund in July 2020.

The income tax amount for the three and nine months ended September 30, 2020 differs from the amount that would be expected after applying the statutory U.S. federal income tax rate primarily due to the benefit of $4.5 million recorded as a result of the CARES Act. Additionally, the income tax benefit for the three and nine months ended September 30, 2020 includes $2.4 million and $4.8 million, respectively, for the release of the valuation allowance related to Private Lumos NOLs and a current period benefit for losses the Company anticipates will be offset by future income. The income tax amount for the three and nine months ended September 30, 2019 differs from the amount that would be expected after applying the statutory U.S. federal income tax rate primarily due to the full valuation allowance.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected taxable income, and tax planning strategies in making this assessment. As a result of the Merger, a deferred tax liability of $9.5 million was recorded for the step up in book basis over tax basis for the net value of the PRV which the Company sold in July 2020. A net deferred tax liability of $4.7 million is shown on the condensed consolidated balance sheets as of September 30, 2020.

Based on Section 382 ownership change analyses through March 18, 2020, as a result of the Merger, both historical NewLink and Private Lumos experienced Section 382 ownership changes on March 18, 2020.

The Company has a reserve for uncertain tax positions related to state tax matters of $0.7 million as of September 30, 2020 recorded within accrued expenses in the condensed consolidated balance sheets, which includes the accrual of interest and penalties. The Company does not expect the amount to change significantly within the next 12 months.

- Definition

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

+ References + Details

Net Income (Loss) per Share of Common Stock

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Net Income (Loss) per Share of Common Stock

Basic loss per share is based upon the weighted-average number of shares of common stock outstanding during the period, without consideration of common stock equivalents. Diluted loss per share is based upon the weighted-average number of common shares outstanding during the period plus additional weighted-average potentially dilutive common stock equivalents during the period when the effect is dilutive.

The following table presents the computation of basic and diluted income (loss) per share of common stock (in thousands, except share and per share data) and the number of unexercised stock options and restricted stock units, which are common stock equivalents, that have been excluded from the diluted net loss calculation as their effect would have been anti-dilutive for all periods presented:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Net income (loss)	$	1,765	$	(2,669)	$	(3,248)	$	(7,343)
Accretion of preferred stock to current redemption value	—		(766)		(651)		(2,274)
Net income (loss) attributable to common shareholders	$	1,765	$	(3,435)	$	(3,899)	$	(9,617)

Weighted-average shares outstanding - Basic	8,293,312		1,343,483		6,267,576		1,344,755
Add: dilutive effect stock options and restricted stock units	193,492		—		—		—
Weighted-average shares outstanding - Diluted	8,486,804		1,343,483		6,267,576		1,344,755

Net income (loss) per share - Basic	$	0.21	$	(2.56)	$	(0.62)	$	(7.15)

Net income (loss) per share - Diluted	$	0.21	$	(2.56)	$	(0.62)	$	(7.15)

Anti-dilutive stock options	394,672		291,754		1,029,030		291,754
Anti-dilutive restricted stock units	—		—		73,754		—
Total anti-dilutive common stock equivalents excluded	394,672		291,754		1,102,784		291,754

Restructuring and Severance Charges

9 Months Ended

Sep. 30, 2020

Restructuring and Related Activities [Abstract]

Restructuring and Severance Charges

Restructuring and Severance ChargesThe Company records liabilities for costs associated with exit or disposal activities in the period in which the liability is incurred. Employee severance costs are accrued when the restructuring actions are probable and estimable. Costs for one-time termination benefits in which the employee is required to render service until termination in order to receive the benefits, is

recognized ratably over the future service period. The Company also records costs incurred with contract terminations associated with restructuring activities.

On September 30, 2019, prior to the Merger, NewLink adopted a restructuring plan to reduce its headcount by approximately 60%, which consisted primarily of clinical and research and development staff, and made several changes to senior leadership in order to conserve resources.

In addition to the restructuring, Charles J. Link, Jr., M.D. retired from NewLink and the NewLink board of directors, effective August 3, 2019 and Nicholas Vahanian retired from his position as the President and member of the board of directors, effective September 27, 2019, and his employment with the company ended on November 11, 2019.

In conjunction with the restructuring and departure of former NewLink executives, NewLink recorded restructuring and severance charges of $5.6 million during the year ended December 31, 2019. The following table shows the amount accrued for restructuring activities which is recorded within accrued expenses in the condensed consolidated balance sheets (in thousands):


	Total Employee Severance Cost
Balance as of December 31, 2019	$	4,700
Expensed	—
Cash payments	4,262
Balance as of September 30, 2020	$	438

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies From time to time, claims are asserted against the Company arising in the ordinary course of business. In the opinion of management, liabilities, if any, arising from existing claims are not expected to have a material effect on the Company's earnings, financial position, or liquidity. On or about May 12, 2016, Trevor Abramson filed a putative securities class action lawsuit in the United States District Court for the Southern District of New York (the “Court for the Southern District of NY”), captioned Abramson v. NewLink Genetics Corp., et al., Case 1:16-cv-3545 (the “Securities Action”). Subsequently, the Court for the Southern District of NY appointed Michael and Kelly Nguyen as lead plaintiffs and approved their selection of Kahn, Swick & Foti, LLC as lead counsel in the Securities Action. On October 31, 2016, the lead plaintiffs filed an amended complaint asserting claims under the federal securities laws against NewLink, NewLink’s former Chief Executive Officer Charles J. Link, Jr., and NewLink’s former Chief Medical Officer and President Nicholas Vahanian, (collectively, the “Defendants”). The amended complaint alleges the Defendants made material false and/or misleading statements that caused losses to NewLink’s investors. The Defendants filed a motion to dismiss the amended complaint on July 14, 2017. On March 29, 2018, the Court for the Southern District of NY dismissed the amended complaint for failure to state a claim, without prejudice, and gave the lead plaintiffs until May 4, 2018 to file any amended complaint attempting to remedy the defects in their claims. On May 4, 2018, the lead plaintiffs filed a second amended complaint asserting claims under the federal securities laws against the Defendants. Like the first amended complaint, the second amended complaint alleges that the Defendants made material false and/or misleading statements or omissions relating to the Phase 2 and 3 trials and efficacy of the product candidate algenpantucel-L that caused losses to NewLink's investors. The lead plaintiffs do not quantify any alleged damages in the second amended complaint but, in addition to attorneys’ fees and costs, they sought to recover damages on behalf of themselves and other persons who purchased or otherwise acquired NewLink’s stock during the putative class period of September 17, 2013 through May 9, 2016, inclusive, at allegedly inflated prices and purportedly suffered financial harm as a result. The Defendants filed a motion to dismiss the second amended complaint on July 31, 2018. On February 13, 2019, the Court for the Southern District of NY dismissed the second amended complaint for failure to state a claim, with prejudice, and closed the case. On March 14, 2019, lead plaintiffs filed a notice of appeal. The briefing on lead plaintiffs' appeal was completed in early July 2019 and oral argument before the Second Circuit Court of Appeals was held on October 21, 2019. In an opinion dated July 13, 2020, the Second Circuit Court of Appeals affirmed the district court’s dismissal of the second amended complaint in part, vacated the district court’s dismissal of the second amended complaint in part, and remanded the matter to the district court for further proceedings. On August 6, 2020, the Company filed a Petition for Rehearing en banc requesting reconsideration of portions of the opinion from the Second Circuit Court of Appeals and is awaiting the Court’s determination concerning the petition. The Company intends to continue defending the Securities Action vigorously. On or about April 26, 2017, Ronald Morrow filed a shareholder derivative lawsuit on behalf of NewLink in the Court for the Southern District of NY, against NewLink’s former Chief Executive Officer Charles J. Link, Jr., NewLink’s former Chief Medical Officer and President Nicholas Vahanian, and NewLink directors Thomas A. Raffin, Joseph Saluri, Ernest J. Talarico, III, Paul R. Edick, Paolo Pucci, and Lota S. Zoth (collectively, the “Morrow Defendants”), captioned Morrow v. Link., et al., Case 1:17-cv-03039 (the “Morrow Action”). The complaint alleges that the Morrow Defendants caused NewLink to issue false statements in its 2016 proxy statement regarding risk management and compensation matters in violation of federal securities law. The complaint also asserts state law claims against the Morrow Defendants for breaches of fiduciary duties, unjust enrichment, abuse of control, insider trading, gross mismanagement, and corporate waste, alleging that the Morrow Defendants made material misstatements or omissions related to the Phase 2 and 3 trials and efficacy of the product candidate algenpantucel-L, awarded themselves excessive compensation, engaged in illegal insider trading, and grossly mismanaged NewLink. The plaintiff does not quantify any alleged damages in the complaint but seeks restitution for damages to NewLink, attorneys’ fees, costs, and expenses, as well as an order directing that proposals for strengthening board oversight be put to a vote of NewLink’s shareholders. The language for such proposals is not specified in the complaint. The plaintiff also contemporaneously filed a statement of relatedness, informing the Court for the Southern District of NY that the Morrow Action is related to Abramson v. NewLink Genetics Corp., et al., Case 1:16-cv-3545. On May 19, 2017, the plaintiff dismissed the Morrow Action without prejudice. Also on May 19, 2017, plaintiffs’ counsel in the Morrow Action filed a new shareholder derivative complaint that is substantively identical to the Morrow Action, except that the plaintiff is Rickey Ely. The latter action is captioned Ely v. Link, et al., Case 17-cv-3799 (the “Ely Action”). By agreement of the parties and order dated June 26, 2017, the Court for the Southern District of NY temporarily stayed the Ely Action until the Securities Action is dismissed or otherwise finally resolved. Under the terms of the stay, the plaintiff in the Ely Action had until March 15, 2019 (30 days after dismissal of the Securities Action with prejudice) to file an amended derivative complaint or rest upon the current derivative complaint. By further agreement of the parties, dated March 15, 2019, the Ely Action will continue to be stayed pending the outcome of the appeal in the Securities Action. If the Securities Action continues to be dismissed in its entirety following its appeal plaintiff in the Ely Action has agreed to withdraw or dismiss the action, with prejudice. The Company disputes the claims in the Ely Action and intends to defend against them vigorously.

Summary of Significant Accounting Policies and Recent Accounting Pronouncements (Policies)	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of Lumos and its wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”). All significant intercompany accounts and transactions are eliminated in consolidation.
Basis of presentation	Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments of a normal and recurring nature considered necessary for a fair presentation have been included in the accompanying condensed consolidated financial statements. The results of operations for the interim period are not necessarily indicative of the results that will be realized for the entire fiscal year. These condensed consolidated financial statements should be read in conjunction with Private Lumos’s audited financial statements and accompanying notes thereto as of and for the year ended December 31, 2019 included in Company’s current report on Form 8-K/A as filed with the SEC on June 1, 2020. The Merger was accounted for as a reverse asset acquisition. Private Lumos is deemed to be the accounting acquirer for accounting purposes and NewLink the accounting acquiree. Accordingly, for accounting purposes: (i) the assets acquired and liabilities assumed were recorded based on their estimated fair values on the Merger date, (ii) the reported historical operating results of the combined company prior to the Merger will be those of Private Lumos and not of NewLink after retroactively giving effect to the common stock exchange ratio, reverse stock split and change in par value for all periods presented, and (iii) for periods prior to the transaction, shareholders’ authorized capital of the combined company is presented based on the historical authorized capital of NewLink.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and expenses and the disclosure of contingent assets and liabilities in the Company’s financial statements and accompanying notes. Significant management estimates that affect the reported amounts of assets and liabilities include useful lives of property and equipment, stock-based compensation, accruals for clinical trials and deferred tax assets. While we believe that the estimates and assumptions used in preparation of our condensed consolidated financial statements based on our knowledge of current events and actions that we may undertake in the future are appropriate, actual results could differ from those estimates, and any such differences may be material.
Acquired In-process Research and Development	Acquired In-Process Research and Development Acquired in-process research and development (“IPR&D”) expense consists of the initial up-front payments incurred in connection with the acquisition or licensing of product candidates that do not meet the definition of a business under ASC 805, Business Combinations. During the nine months ended September 30, 2020, the Company expensed the acquired in-process research and development asset of $426,000 acquired as part of the Merger as there is no future economic benefit.
Asset Held for Sale	Asset Held for Sale Judgment is required in determining whether an asset meets the criteria for classification as "assets held for sale" in the condensed consolidated financial statements. Criteria considered by management include the existence of and commitment to a plan to dispose of the assets, the expected selling price of the assets, the expected timeframe of the completion of the anticipated sale and the period of time any amounts have been classified within assets held for sale. The Company reviews the criteria for assets held for sale each period and reclassifies such assets as appropriate. We classified the priority review voucher (“PRV”) that was carried at its original fair value less cost to sell as held for sale. The PRV was sold on July 27, 2020 (see Note 4).
Share-based Compensation	Share-Based Compensation Stock options and performance stock options The Company recognizes compensation costs related to stock options granted to employees and non-employees based on the estimated fair value of the awards on the date of grant. The Company estimates the grant date fair value, and the resulting stock-based compensation expense, using the Black-Scholes option-pricing model. The Company records forfeitures as they are incurred. The grant date fair value of the stock options is expensed on a straight-line basis over the applicable vesting period, which generally is four years. The fair value of performance-based stock options is recognized as compensation expense beginning at the time in which the performance conditions are deemed probable of achievement, over the remaining requisite service period. The assumptions used in Black-Scholes option-pricing model are as follows: •Expected term. The expected term of stock options represents the period that the stock options are expected to remain outstanding and is based on vesting terms, exercise term and contractual lives of the options. The expected term is based on the simplified method and is estimated as the average of the weighted average vesting term and the time to expiration as of the grant date. •Expected volatility. As the Company does not have sufficient historical stock price information to meet the expected life of the stock option grants, it uses a blended volatility based on the trading history from the common stock of a set of comparable publicly-listed biopharmaceutical companies. Volatility for employee stock purchase plan (“ESPP”) shares is equal to the Company’s historical volatility over the six-month offering period. •Risk-free interest rate. The risk-free interest rate is based on the U.S. Treasury yield with a maturity equal to the expected term of the stock options in effect at the time of grant. •Dividend yield. The expected dividend is assumed to be zero as the Company has never paid dividends and has no current plan to pay any dividends on its common stock. Restricted stock units Service-based restricted stock units are valued using the market price of our common stock on the grant date. The grant date fair value of the restricted stock units is expensed on a straight-line basis over the applicable vesting period, which generally is four years. Employee stock purchase plan Our ESPP allows employees to purchase common stock at a 15% discount from the lower of the common stock closing price on the first or last day of the offering period. The current offering period is from July 1, 2020 to December 31, 2020. We use the Black-Scholes Model to determine fair value, which incorporates assumptions as described above. The grant date fair value of the ESPP is expensed on a straight-line basis over the applicable vesting period, which generally is six months.
Financial Instruments	Financial Instruments and Concentrations of Credit RiskCash and cash equivalents, receivables, and accounts payable are recorded at cost, which approximates fair value based on the short-term nature of these financial instruments. The Company is unable to estimate the fair value of the royalty obligation based on future product sales, as the timing of payments, if any, is uncertain.
Concentration of Credit Risk	Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents. Cash and cash equivalents are held by financial institutions and are federally insured up to certain limits. At times, the Company’s cash and cash equivalents balance exceeds the federally insured limits. To limit the credit risk, the Company invests its excess cash primarily in high quality securities such as money market funds.
Net Income (Loss) Per Share	Net Income (Loss) Per ShareBasic net income (loss) per share is computed by dividing net loss applicable to common stockholders by the weighted average number of common shares outstanding during the period, without consideration for common stock equivalents. Diluted net income per share reflects the potential dilution, using the treasury stock method.
Recently Issued Accounting Standards	Recently Issued Accounting Standards From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies and adopted by us as of a specified effective date, if applicable to us. In December 2019, the FASB issued ASU 2019-12, Income Taxes (“ASC 740”), which simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC 740 related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The guidance is effective for calendar-year public business entities in 2021 and interim periods within that year. Early adoption is permitted. The Company does not expect adoption of this new guidance will have a material impact on its financial position or results of operations.

NewLink Merger (Tables)

9 Months Ended

Sep. 30, 2020

Business Combinations [Abstract]

Schedule of Acquired Net Assets

The following table summarizes the estimated fair value of the assets acquired and liabilities assumed on March 18, 2020, the date of the Merger (in thousands):


Assets acquired:
Cash and cash equivalents	$	84,179
Prepaid and other current assets	2,999
Income tax receivable	192
Property and equipment	1,020
Economic interest in PRV	87,920
Other intangible assets	426
Other non-current assets	517
Total Assets Acquired	177,253

Liabilities assumed:
Accounts payable	285
Accrued expenses and other current liabilities	8,788
PRV-related liability owed to Merck	35,720
Royalty obligation payable to Iowa Economics Development Authority	6,000
Deferred tax liability	9,500
Other long-term liabilities	12
Total liabilities assumed	60,305
Total net assets acquired	$	116,948

Leases (Tables)

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Maturity of Operating Lease Liabilities


For the Year Ended December 31:

2020	$	188
2021	278
Total future minimum lease payments	466
Less: Imputed interest	(10)
Unamortized lease incentive	114
Total	$	570

Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

Stock Option Activity

The table below summarizes the stock option activity, including options with market and performance conditions, during the nine months ended September 30, 2020:


	Number of options	Weighted average exercise price		Weighted average remaining contractual term (years)
Outstanding at beginning of period	596,312	$	30.76	5.0
Options granted	511,604	8.19
Options exercised	—	—
Options forfeited	(2,052)	20.90
Options expired	(76,834)	30.95
Outstanding at end of period	1,029,030	$	19.54	7.3
Options exercisable at end of period	444,623	$	31.93	5.3

Assumptions Used in Black-Scholes Pricing Model for New Grants

The weighted-average assumptions used to value the stock options using the Black-Scholes option-pricing were as follows:


Risk-free interest rate						0.35% to 0.46%
Expected dividend yield						—%
Expected volatility						86.1% to 89.3%
Expected term (in years)						5.8 to 6.0
Weighted-average grant-date fair value per share						$5.87

Restricted Stock Activity

The table below summarizes the restricted stock units activity during the nine months ended September 30, 2020:


	Number of restricted shares	Weighted average grant date fair value
Unvested at beginning of period	210	$	312.94
Granted	73,987	7.90
Vested	(443)	159.10
Forfeited/cancelled	—	—
Unvested at end of period	73,754	$	7.86

Share-based Compensation Expense

Stock-based compensation expenses included in the Company’s condensed consolidated statements of operations for the three and nine months ended September 30, 2020 and 2019 were (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Research and Development	$	10	$	—	$	75	$	—
General and Administrative	295		44		681		132
Total	$	305	$	44	$	756	$	132

Income Taxes (Tables)

9 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The income tax benefit is as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Current tax benefit	$	—	$	—	$	4,473	$	—
Deferred tax benefit	2,432		—		4,848		—
Total income tax benefit	$	2,432	$	—	$	9,321	$	—

Net Income (Loss) per Share of Common Stock (Tables)

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Basic and Diluted Net Loss per Common Share


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Net income (loss)	$	1,765	$	(2,669)	$	(3,248)	$	(7,343)
Accretion of preferred stock to current redemption value	—		(766)		(651)		(2,274)
Net income (loss) attributable to common shareholders	$	1,765	$	(3,435)	$	(3,899)	$	(9,617)

Weighted-average shares outstanding - Basic	8,293,312		1,343,483		6,267,576		1,344,755
Add: dilutive effect stock options and restricted stock units	193,492		—		—		—
Weighted-average shares outstanding - Diluted	8,486,804		1,343,483		6,267,576		1,344,755

Net income (loss) per share - Basic	$	0.21	$	(2.56)	$	(0.62)	$	(7.15)

Net income (loss) per share - Diluted	$	0.21	$	(2.56)	$	(0.62)	$	(7.15)

Anti-dilutive stock options	394,672		291,754		1,029,030		291,754
Anti-dilutive restricted stock units	—		—		73,754		—
Total anti-dilutive common stock equivalents excluded	394,672		291,754		1,102,784		291,754

Restructuring and Severance Charges (Tables)

9 Months Ended

Sep. 30, 2020

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs

The following table shows the amount accrued for restructuring activities which is recorded within accrued expenses in the condensed consolidated balance sheets (in thousands):


	Total Employee Severance Cost
Balance as of December 31, 2019	$	4,700
Expensed	—
Cash payments	4,262
Balance as of September 30, 2020	$	438

Description of Business (Details) $ in Thousands	Mar. 19, 2020	Mar. 18, 2020 shares	Sep. 30, 2020 USD ($) shares	Dec. 31, 2019 USD ($) shares	Sep. 30, 2019 USD ($)	Dec. 31, 2018 USD ($)
Conversion of Stock [Line Items]
Common stock, outstanding shares		8,292,803	8,293,312	1,177,933
Stock conversion ratio		0.1111
Cash and cash equivalents \| $			$ 105,575	$ 4,952	$ 7,665	$ 14,022
Private Lumos Stockholders \| NewLink Genetics
Conversion of Stock [Line Items]
Ownership percentage after transaction	0.50
Former Stockholders
Conversion of Stock [Line Items]
Ownership percentage after transaction	0.50
Common Stock
Conversion of Stock [Line Items]
Stock conversion ratio		0.1308319305
Common Stock \| Private Lumos Stockholders
Conversion of Stock [Line Items]
Aggregate shares received (in shares)		4,146,398
Series A redeemable convertible preferred stock
Conversion of Stock [Line Items]
Stock conversion ratio		0.0873621142
Series B redeemable convertible preferred stock
Conversion of Stock [Line Items]
Stock conversion ratio		0.1996348626

Summary of Significant Accounting Policies and Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2020	Sep. 30, 2020	Sep. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award
In-process research and development charge	$ 426	$ 426	$ 0
Expected dividend rate (percent)		0.00%
Award vesting period		6 months
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award
Expected dividend rate (percent)		0.00%
Award vesting period		4 years
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award
Award vesting period		4 years
ESPP
Share-based Compensation Arrangement by Share-based Payment Award
ESPP stock discount rate		15.00%

NewLink Merger (Details)		3 Months Ended	9 Months Ended
NewLink Merger (Details)	Mar. 19, 2020	Mar. 31, 2020 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Mar. 18, 2020 USD ($) director
Business Acquisition [Line Items]
Number of directors \| director					3
In-process research and development charge		$ 426,000	$ 426,000	$ 0
Private Lumos Stockholders
Business Acquisition [Line Items]
Number of directors \| director					3
Private Lumos Stockholders \| NewLink Genetics
Business Acquisition [Line Items]
Ownership percentage after transaction	0.50
Merck \| License and Collaborative Arrangement
Business Acquisition [Line Items]
Estimated transaction price					$ 95,000,000.0
Step up in basis in the PRV					9,500,000
Economic interest in PRV					87,900,000
PRV-related liability owed to Merck					35,700,000
Merck \| License and Collaborative Arrangement \| Minimum
Business Acquisition [Line Items]
Observed transaction price					80,000,000.0
Merck \| License and Collaborative Arrangement \| Maximum
Business Acquisition [Line Items]
Observed transaction price					111,000,000.0
NewLink Genetics
Business Acquisition [Line Items]
Cash and cash equivalents					84,179,000
Prepaid and other current assets					2,999,000
Income tax receivable					192,000
Property and equipment					1,020,000
Economic interest in PRV					87,920,000
Other intangible assets					426,000
Other non-current assets					517,000
Total Assets Acquired					177,253,000
Accounts payable					285,000
Accrued expenses and other current liabilities					8,788,000
PRV-related liability owed to Merck					35,720,000
Royalty obligation payable to Iowa Economics Development Authority					6,000,000
Deferred tax liability					9,500,000
Other long-term liabilities					12,000
Total liabilities assumed					60,305,000
Total net assets acquired					$ 116,948,000

License and Research Collaboration and PRV Asset Purchase Agreements (Details) $ in Thousands		3 Months Ended	9 Months Ended
	Jul. 27, 2020 USD ($) installment	Sep. 30, 2020 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Mar. 18, 2020	Nov. 30, 2014
Deferred Revenue Arrangement [Line Items]
Gain on sale of priority review voucher			$ 6,300	$ 0
Merck \| License and collaboration revenue
Deferred Revenue Arrangement [Line Items]
Grant revenue		$ 74	$ 128
License and Collaborative Arrangement \| Merck
Deferred Revenue Arrangement [Line Items]
Value of PRV company is entitled to						60.00%
Value of PRV liability					40.00%
License and Collaborative Arrangement \| Merck \| Held-for-sale or Disposed of by Sale \| PRV Transfer Agreement
Deferred Revenue Arrangement [Line Items]
Value of PRV	$ 100,000
Gross proceeds from sale	$ 60,000
Number of installments \| installment	2
Cash from sale	$ 34,000
Consideration receivable	26,000
Gain on sale of priority review voucher	6,300
Costs incurred from sale	$ 1,500

Leases (Details) $ in Thousands	Sep. 30, 2020 USD ($)
Lessee, Lease, Description [Line Items]
Operating lease weighted average discount rate	5.00%
Operating lease weighted average remaining lease term	1 year
Operating Lease Liabilities Payments Due
2020	$ 188
2021	278
Total future minimum lease payments	466
Less: imputed interest	(10)
Unamortized lease incentive	114
Total	$ 570
Maximum
Lessee, Lease, Description [Line Items]
Term of operating lease contract	2 years
Minimum
Lessee, Lease, Description [Line Items]
Term of operating lease contract	1 year

Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Millions		9 Months Ended
	May 09, 2019	Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award
Unrecognized compensation cost		$ 3.7
Weighted average vesting period for non-vested option awards, in years		3 years 3 months 18 days
2009 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award
Plan term		10 years
Evergreen increase (percent)	3.00%
Number of shares remained available for issuance		462,502
2010 Non-Employee Directors' Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award
Number of shares remained available for issuance		0
2010 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award
Number of shares remained available for issuance		2,119

Stock-Based Compensation (Stock Option Activity) (Details) - Stock Option - $ / shares	6 Months Ended	9 Months Ended
	Jun. 30, 2020	Sep. 30, 2020
Number of options
Outstanding at beginning of period (in shares)	596,312	596,312
Options granted (in shares)		511,604
Options exercised (in shares)		0
Options forfeited (in shares)		(2,052)
Options expired (in shares)		(76,834)
Outstanding at end of period (in shares)		1,029,030
Weighted average exercise price
Outstanding, weighted average exercise price at beginning of period (in dollars per share)	$ 30.76	$ 30.76
Granted, weighted average exercise price (in dollars per share)		8.19
Exercised, weighted average exercise price (in dollars per share)		0
Forfeited, weighted average exercise price (in dollars per share)		20.90
Expired, weighted average exercise price (in dollars per share)		30.95
Outstanding, weighted average exercise price at end of period (in dollars per share)		$ 19.54
Options exercisable at end of period (in shares)		444,623
Exercisable, weighted average exercise price (in dollars per share)		$ 31.93
Outstanding, weighted average remaining contractual term, in years	5 years	7 years 3 months 18 days
Exercisable, weighted average remaining contractual term, in years		5 years 3 months 18 days

Stock-Based Compensation (Range of Assumptions Used) (Details)	9 Months Ended
	Sep. 30, 2020 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award
Expected dividend rate (percent)	0.00%
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award
Expected dividend rate (percent)	0.00%
Weighted-average grant-date fair value per share (in dollars per share)	$ 5.87
Stock Option \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award
Risk-free interest rate	0.35%
Expected volatility	86.10%
Expected term (in years)	5 years 9 months 18 days
Stock Option \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award
Risk-free interest rate	0.46%
Expected volatility	89.30%
Expected term (in years)	6 years

Stock-Based Compensation (Restricted Stock Activity) (Details) - Restricted Stock	9 Months Ended
	Sep. 30, 2020 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Unvested at beginning of period (in shares) \| shares	210
Granted (in shares) \| shares	73,987
Vested (in shares) \| shares	(443)
Forfeited / cancelled (in shares) \| shares	0
Unvested at end of period (in shares) \| shares	73,754
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted average grant date fair value at beginning of period (in dollars per share) \| $ / shares	$ 312.94
Weighted average grant-date fair value per share (in dollars per share) \| $ / shares	7.90
Vested, weighted average grant date fair value (in dollars per share) \| $ / shares	159.10
Forfeited/cancelled, weighted average grant date fair value (in dollars per share) \| $ / shares	0
Weighted average grant date fair value at end of period (in dollars per share) \| $ / shares	$ 7.86

Stock-Based Compensation (Allocated Share-based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense	$ 305	$ 44	$ 756	$ 132
Research and Development Expense
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense	10	0	75	0
General and Administrative Expense
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense	$ 295	$ 44	$ 681	$ 132

Long-Term Debt and Conversion to Royalty Obligation (Details) - IDED - Loans payable - USD ($) $ in Thousands	Sep. 30, 2020	Mar. 31, 2015
Debt Instrument [Line Items]
Loan available balance		$ 6,000
Outstanding balance	$ 6,000

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Current tax benefit	$ 0	$ 0	$ 4,473	$ 0
Deferred tax benefit	2,432	0	4,848	0
Total income tax benefit	2,432	$ 0	9,321	$ 0
Pre-tax NOL to be carried back	4,500		4,500
Release of valuation allowance			2,400
Benefit for losses			4,800
Deferred tax liability, PRV	9,500		9,500
Net deferred tax liability	4,700		4,700
Reserve for uncertain tax positions	$ 700		$ 700

Net Income (Loss) per Share of Common Stock (Net Income Per Share Computation) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019
Earnings Per Share [Abstract]
Net income (loss)	$ 1,765	$ (5,353)	$ 340	$ (2,669)	$ (2,569)	$ (2,105)	$ (3,248)	$ (7,343)
Accretion of preferred stock to current redemption value	0			(766)			(651)	(2,274)
Net income (loss) attributable to common shareholders	$ 1,765			$ (3,435)			$ (3,899)	$ (9,617)
Weighted-average shares outstanding - Basic (in shares)	8,293,312			1,343,483			6,267,576	1,344,755
Add: dilutive effect stock options and restricted stock units (in shares)	193,492			0			0	0
Weighted-average shares outstanding - Diluted (in shares)	8,486,804			1,343,483			6,267,576	1,344,755
Net income (loss) per share - Basic (in dollars per share)	$ 0.21			$ (2.56)			$ (0.62)	$ (7.15)
Net income (loss) per share - Diluted (in dollars per share)	$ 0.21			$ (2.56)			$ (0.62)	$ (7.15)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	394,672			291,754			1,102,784	291,754
Stock Option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	394,672			291,754			1,029,030	291,754
Restricted Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	0			0			73,754	0

Restructuring and Severance Charges - Narrative (Details) - USD ($) $ in Thousands		9 Months Ended	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2020	Dec. 31, 2019
Restructuring and Related Activities [Abstract]
Percentage reduction in force	60.00%
Expensed		$ 0	$ 5,600

Restructuring and Severance Charges - Restructuring Roll Forward (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Restructuring Reserve [Roll Forward]
Balance at beginning of period	$ 4,700
Expensed	0	$ 5,600
Cash payments	4,262
Balance at end of period	$ 438	$ 4,700