0000950170-24-125499 | 10-Q | XBRL Viewer

Loan Payable	9 Months Ended
Sep. 30, 2024
Debt Disclosure [Abstract]
Loan Payable	6. LOAN PAYABLE On January 15, 2021, the Company entered into a loan agreement with Oxford Finance LLC (the “Lender”) to borrow a term loan amount of up to $35,000 to be funded in three tranches. The company has only drawn Tranche A in the amount of $15,000 which was wired to the Company on January 15, 2021. Tranche B of $10,000 expired on March 31, 2022. Tranche C of $10,000 is available at the Lender’s option. On December 23, 2022, in connection with and following the Company’s merger with Millendo Therapeutics, Inc. (“Millendo”), the Company entered into a First Amendment to the loan agreement. The amendment modified the agreement as follows: (i) each of the Company and Millendo Therapeutics US, Inc., a Delaware corporation and wholly owned non-operating subsidiary of the Company created in connection with the merger (“Millendo US”), were joined as co-borrowers under the Loan Agreement; (ii) the interest-only repayment period was extended through December 31, 2023 (which interest-only period may be further extended through June 30, 2024 under certain circumstances); and (iii) a security interest in all of the assets of the Company and Millendo, in addition to the existing interest the Lender had in TempestTx, including any intellectual property, was granted to the Lender. In addition, the Lender permitted a one-time prepayment in the amount of $5.0 million, which the Company paid on December 23, 2022. Following the amendment to the loan agreement, the term loan matures on August 1, 2025 and has an annual floating interest rate of 7.15% which is an Index Rate plus 7.10%. Index Rate is the greater of (i) 1-Month CME Term SOFR or (ii) 0.05%. In the fourth quarter of 2023, the Company achieved the circumstances necessary to extend the interest-only repayment period through June 30, 2024. Monthly principal payments of $733 began on July 1, 2024 and the Company paid the first principal payment to the Lender in July 2024. Related to this borrowing, the Company recorded loan discounts totaling $898 and paid $95 of debt issuance costs. These amounts would be amortized as additional interest expense over the life of the loan. As of September 30, 2024, the balance of the loan payable (net of debt issuance costs) was $8.5 million. The carrying value of the loan approximates fair value (Level 2). For the three and nine months ended September 30, 2024, total interest expense was $329 and $1,069, respectively. For the three and nine months ended September 30, 2023, total interest expense was $373 and $1,072, respectively.

Loan Payable

9 Months Ended

Sep. 30, 2024

6. LOAN PAYABLE

On January 15, 2021, the Company entered into a loan agreement with Oxford Finance LLC (the “Lender”) to borrow a term loan amount of up to $35,000 to be funded in three tranches. The company has only drawn Tranche A in the amount of $15,000 which was wired to the Company on January 15, 2021. Tranche B of $10,000 expired on March 31, 2022. Tranche C of $10,000 is available at the Lender’s option.

On December 23, 2022, in connection with and following the Company’s merger with Millendo Therapeutics, Inc. (“Millendo”), the Company entered into a First Amendment to the loan agreement. The amendment modified the agreement as follows: (i) each of the Company and Millendo Therapeutics US, Inc., a Delaware corporation and wholly owned non-operating subsidiary of the Company created in connection with the merger (“Millendo US”), were joined as co-borrowers under the Loan Agreement; (ii) the interest-only repayment period was extended through December 31, 2023 (which interest-only period may be further extended through June 30, 2024 under certain circumstances); and (iii) a security interest in all of the assets of the Company and Millendo, in addition to the existing interest the Lender had in TempestTx, including any intellectual property, was granted to the Lender. In addition, the Lender permitted a one-time prepayment in the amount of $5.0 million, which the Company paid on December 23, 2022.

Following the amendment to the loan agreement, the term loan matures on August 1, 2025 and has an annual floating interest rate of 7.15% which is an Index Rate plus 7.10%. Index Rate is the greater of (i) 1-Month CME Term SOFR or (ii) 0.05%. In the fourth quarter of 2023, the Company achieved the circumstances necessary to extend the interest-only repayment period through June 30, 2024. Monthly principal payments of $733 began on July 1, 2024 and the Company paid the first principal payment to the Lender in July 2024. Related to this borrowing, the Company recorded loan discounts totaling $898 and paid $95 of debt issuance costs. These amounts would be amortized as additional interest expense over the life of the loan. As of September 30, 2024, the balance of the loan payable (net of debt issuance costs) was $8.5 million. The carrying value of the loan approximates fair value (Level 2).

For the three and nine months ended September 30, 2024, total interest expense was $329 and $1,069, respectively. For the three and nine months ended September 30, 2023, total interest expense was $373 and $1,072, respectively.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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+ Details

Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2024

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of Stock Options

The following shows the stock option activities for the nine months ended September 30, 2024 and 2023:


	Total Options Outstanding			Weighted-Average Exercise Price
Balance—December 31, 2023		3,554,112		$	7.28
Granted		887,675			3.99
Exercised		(81,699	)		1.91
Cancelled and forfeited		(208,376	)		8.23
Balance—September 30, 2024		4,151,712			6.64

Balance—December 31, 2022		1,553,041		$	6.66
Granted		679,150			1.29
Exercised		(413	)		1.23
Cancelled and forfeited		(50,193	)		4.36
Balance—September 30, 2023		2,181,585			5.04

Summary of Information About Stock Options Outstanding

The following table summarizes information about stock options outstanding at September 30, 2024:


	Shares		Weighted Average Remaining Contractual Life (In Years)		Weighted Average Exercise Price		Aggregate Intrinsic Value
Options outstanding		4,151,712		8.43	$	6.64	$	78,906
Vested and expected to vest		4,151,712		8.43	$	6.64	$	78,906
Exercisable		1,179,884		7.20	$	5.88	$	32,877

Schedule of Stock Based Compensation Expense

The following table summarizes the components of stock-based compensation expense recognized in the Company’s condensed consolidated statement of operations for the three and nine months ended September 30, 2024:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Research and development	$	559	$	173	$	1,665	$	465
General and administrative		775		390		2,307		984
Total	$	1,334	$	563	$	3,972	$	1,449

Share-based Payment Arrangement, Employee

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of Grant Date Fair Value

The fair value of employee and non-employee stock options was estimated using the following assumptions for the nine months ended September 30, 2024 and 2023:


	2024			2023
Expected term (in years)	5.5 - 6.1			5.5 - 6.1
Expected volatility	109% - 124%			109% - 111%
Risk-free interest rate	3.5% - 4.7%			3.4% - 3.9%
Dividends		—	%		—	%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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+ Details

Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023
Statement of Stockholders' Equity [Abstract]
Stock issuance costs	$ 112	$ 261	$ 8	$ 30

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present the Company’s fair value hierarchy for assets measured at fair value on a recurring basis:


	As of September 30, 2024
	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	22,116	$	—	$	—	$	22,116
Total	$	22,116	$	—	$	—	$	22,116

	As of December 31, 2023
	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	39,230	$	—	$	—	$	39,230
Total	$	39,230	$	—	$	—	$	39,230

Loan Payable - Narrative (Details) $ in Thousands			3 Months Ended		9 Months Ended
Loan Payable - Narrative (Details) $ in Thousands	Dec. 23, 2022 USD ($)	Jan. 15, 2021 USD ($) Tranche	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)
Debt Instrument [Line Items]
Long-term debt			$ 8,500		$ 8,500
Term Loan
Debt Instrument [Line Items]
Loan mature date	Aug. 01, 2025
Number of tranches \| Tranche		3
Debt instrument interest term					the interest-only repayment period was extended through December 31, 2023 (which interest-only period may be further extended through June 30, 2024 under certain circumstances)
Prepayment amount	$ 5,000
Annual floating interest rate	7.15%
Debt instrument, basis spread on variable rate	7.10%
Thershold index rate	0.05%
Monthly principal payments	$ 733
Loan discounts		$ 898
Payments of debt issuance costs		95
Interest expense			$ 329	$ 373	$ 1,069	$ 1,072
Term Loan \| Maximum
Debt Instrument [Line Items]
Loan amount		35,000
Tranche A Term Loan
Debt Instrument [Line Items]
Loan amount		15,000
Tranche B Term Loan
Debt Instrument [Line Items]
Loan amount		$ 10,000
Loan mature date		Mar. 31, 2022
Tranche C Term Loan
Debt Instrument [Line Items]
Loan amount		$ 10,000

Retirement Plan

9 Months Ended

Sep. 30, 2024

Retirement Benefits [Abstract]

Retirement Plan

9. RETIREMENT PLAN

The Company participates in a qualified 401(k) Plan sponsored by its professional service organization. The retirement plan is a defined contribution plan covering eligible employees. Participants may contribute a portion of their annual compensation limited to a maximum annual amount set by the Internal Revenue Service. During the three and nine months ended September 30, 2024, the Company contributed $38 and $132 to the 401(k) Plan, respectively. During the three and nine months ended September 30, 2023, the Company contributed $31 and $122 to the 401(k) Plan, respectively.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
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+ Details

Retirement Plan - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Retirement Benefits [Abstract]
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 38	$ 31	$ 132	$ 122

Commitments and Contingencies

9 Months Ended

Sep. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

5. COMMITMENTS AND CONTINGENCIES

Facilities Lease Agreements

In January 2022, the Company entered into a new 8-year office lease agreement for a 20,116 square feet facility in Brisbane, California (“Brisbane Lease”). The lease commenced in December 2022.

As of September 30, 2024 and December 31, 2023, the balance of the operating lease right of use assets were $8,904 and $9,952, respectively, and the related operating lease liability were $9,234 and $10,112, respectively, as shown in the accompanying consolidated balance sheets.

Rent expense was $486 and $1,758 for the three and nine months ended September 30, 2024, respectively. Rent expense was $685 and $2,054 for the three and nine months ended September 30, 2023, respectively.

As of September 30, 2024, future minimum lease payments under the Company's operating lease liabilities were as follows:



Year Ending	Total Commitment
2024 (excluding nine months ended September 30, 2024)	$	449
2025		1,861
2026		1,926
2027		1,994
2028 and beyond		6,410
Total minimum lease payments		12,640
Less: imputed interest		(3,406	)
Present value of operating lease obligations		9,234
Less: current portion		(828	)
Noncurrent operating lease obligations	$	8,406

Related to this Brisbane Lease agreement, the Company entered into a letter of credit with a bank to deposit $388 in a separate account that is classified as restricted cash to serve as security rent deposit. This amount is included in other noncurrent assets in the accompanying consolidated balance sheets as of September 30, 2024.

Balance Sheet Components - Summary of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Property and equipment	$ 2,298	$ 1,865
Less accumulated depreciation	(1,366)	(1,025)
Property and equipment-net	932	840
Computer equipment and software
Property, Plant and Equipment [Line Items]
Property and equipment	192	169
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment	328	328
Lab equipment
Property, Plant and Equipment [Line Items]
Property and equipment	1,485	1,133
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment	$ 293	$ 235

Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 22,116	$ 39,230
Total	22,116	39,230
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	22,116	39,230
Total	22,116	39,230
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	0	0
Total	0	0
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	0	0
Total	$ 0	$ 0

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Stockholders' Equity - Narrative (Details) - $ / shares		9 Months Ended
Stockholders' Equity - Narrative (Details) - $ / shares	Oct. 10, 2023	Sep. 30, 2024	Dec. 31, 2023
Class of Stock [Line Items]
Common stock, shares authorized		100,000,000	100,000,000
Preferred stock, shares authorized		5,000,000	5,000,000
Common stock, par value (in dollars per share)		$ 0.001	$ 0.001
Common stock, shares issued		26,565,886	22,045,255
Common stock, shares outstanding		26,565,886	22,045,255
Preferred stock, shares outstanding		0	0
O 2023 Q4 Dividends [Member]
Class of Stock [Line Items]
Dividend record date	Oct. 23, 2023
O 2026 Q4 Dividends [Member]
Class of Stock [Line Items]
Approve date of rights plan		Oct. 10, 2026
Series A Junior Participating Preferred Purchase Rights \| Rights Plan
Class of Stock [Line Items]
Common stock, par value (in dollars per share)	$ 0.001
Number of shares purchase from preferred stock	0.000001
Preferred stock, par or stated value per share	$ 0.001
Preferred stock price per share	$ 25

Net Loss Per Share - Summary of Basis in Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Numerator:
Net Income (Loss)	$ (10,556)	$ (9,570)	$ (7,904)	$ (6,786)	$ (7,581)	$ (7,636)	$ (28,030)	$ (22,003)
Denominator:
Weighted-average common shares outstanding	25,806,825			14,121,805			23,537,453	14,059,008
Weighted-average shares used in computing basic net loss per share	25,806,825			14,121,805			23,537,453	14,059,008
Weighted-average shares used in computing diluted net loss per share	25,806,825			14,121,805			23,537,453	14,059,008
Net loss per share attributable to common stockholders - basic	$ (0.41)			$ (0.48)			$ (1.19)	$ (1.57)
Net loss per share attributable to common stockholders - diluted	$ (0.41)			$ (0.48)			$ (1.19)	$ (1.57)

- Definition

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

+ References

+ Details

- Definition

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

+ References

+ Details

- Definition

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

+ References

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+ Details

Balance Sheet Components - Schedule of Prepaid Expenses and Other Current Asset (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Prepaid expenses	$ 811	$ 700
Prepaid research and development costs	240	337
Other current assets	385	96
Total	$ 1,436	$ 1,133

Fair Value Measurements

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements

3. FAIR VALUE MEASUREMENTS

The following tables present the Company’s fair value hierarchy for assets measured at fair value on a recurring basis:


	As of September 30, 2024
	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	22,116	$	—	$	—	$	22,116
Total	$	22,116	$	—	$	—	$	22,116

	As of December 31, 2023
	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	39,230	$	—	$	—	$	39,230
Total	$	39,230	$	—	$	—	$	39,230

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

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-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2E
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
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-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
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-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (e)
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-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 940
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478119/940-820-50-1

+ Details

Balance Sheet Components - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accrued other liabilities	$ 1,020	$ 626
Accrued clinical trial liability	439	1,047
Total	$ 1,459	$ 1,673

Balance Sheet Components (Tables)

9 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Prepaid Expenses and Other Current Asset

Prepaid expenses and other current assets consist of the following:


	September 30, 2024		December 31, 2023
Prepaid expenses	$	811	$	700
Prepaid research and development costs		240		337
Other current assets		385		96
Total	$	1,436	$	1,133

Summary of Property and Equipment, Net

Property and equipment, net, consists of the following:


	September 30, 2024			December 31, 2023
Computer equipment and software	$	192		$	169
Furniture and fixtures		328			328
Lab equipment		1,485			1,133
Leasehold improvements		293			235
Property and equipment		2,298			1,865
Less accumulated depreciation		(1,366	)		(1,025	)
Property and equipment—net	$	932		$	840

Schedule of Accrued Liabilities

Accrued liabilities consist of the following:


	September 30, 2024		December 31, 2023
Accrued other liabilities	$	1,020	$	626
Accrued clinical trial liability		439		1,047
Total	$	1,459	$	1,673

Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Net of discount and issuance costs, Current	$ 122	$ 112
Net of discount and issuance costs	$ 0	$ 164
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	26,565,886	22,045,255
Common stock, shares outstanding	26,565,886	22,045,255

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Operating expenses:
Research and development	$ 7,557	$ 4,221	$ 17,734	$ 13,315
General and administrative	2,994	2,371	10,374	8,328
Loss from operations	(10,551)	(6,592)	(28,108)	(21,643)
Other income (expense), net:
Interest expense	(329)	(373)	(1,069)	(1,072)
Interest income and other income (expense), net	324	179	1,147	712
Total other income (expense), net	(5)	(194)	78	(360)
Provision for income taxes	0	0	0	0
Net loss	$ (10,556)	$ (6,786)	$ (28,030)	$ (22,003)
Net loss per share of common stock, RSUs and pre-funded warrants, basic	$ (0.41)	$ (0.48)	$ (1.19)	$ (1.57)
Net loss per share of common stock, RSUs and pre-funded warrants, diluted	$ (0.41)	$ (0.48)	$ (1.19)	$ (1.57)
Weighted-average shares of common stock, RSUs and pre-funded warrants outstanding, basic	25,806,825	14,121,805	23,537,453	14,059,008
Weighted-average shares of common stock, RSUs and pre-funded warrants outstanding, diluted	25,806,825	14,121,805	23,537,453	14,059,008

Commitments and Contingencies - Narrative (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)	Jan. 31, 2022 USD ($) a
Loss Contingencies [Line Items]
Operating lease right-of-use assets	$ 8,904		$ 8,904		$ 9,952
Letter of Credit
Loss Contingencies [Line Items]
Borrowing capacity						$ 388
Brisbane, California
Loss Contingencies [Line Items]
Term of contract						8 years
Area of property (in sqft) \| a						20,116
South San Francisco, California
Loss Contingencies [Line Items]
Operating lease right-of-use assets	8,904		8,904		9,952
Present value of operating lease obligations	9,234		9,234		$ 10,112
Rent expense	$ 486	$ 685	$ 1,758	$ 2,054

Stock-Based Compensation - Summary of Stock Options (Details) - $ / shares	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Outstanding at beginning (in shares)	3,554,112	1,553,041
Granted (in shares)	887,675	679,150
Exercised (in shares)	(81,699)	(413)
Cancelled and forfeited (in shares)	(208,376)	(50,193)
Outstanding at end (in shares)	4,151,712	2,181,585
Outstanding at beginning (in dollars per share)	$ 7.28	$ 6.66
Granted (in dollars per share)	3.99	1.29
Exercised (in dollars per share)	1.91	1.23
Cancelled and forfeited (in dollars per share)	8.23	4.36
Outstanding at end (in dollars per share)	$ 6.64	$ 5.04

Cover - shares	9 Months Ended
Cover - shares	Sep. 30, 2024	Nov. 08, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	001-35890
Entity Registrant Name	Tempest Therapeutics, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	45-1472564
Entity Address, Address Line One	2000 Sierra Point Parkway
Entity Address, Address Line Two	Suite 400
Entity Address, City or Town	Brisbane
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94005
City Area Code	(415)
Local Phone Number	798-8589
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		43,642,072
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Entity Central Index Key	0001544227
Common Stock
Document Information [Line Items]
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	TPST
Security Exchange Name	NASDAQ
Series A Junior Participating Preferred Purchase Rights
Document Information [Line Items]
Title of 12(b) Security	Series A Junior Participating Preferred Purchase Rights
No Trading Symbol Flag	true
Security Exchange Name	NASDAQ

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation—The unaudited interim Condensed Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been omitted. These unaudited interim Condensed Consolidated Financial Statements should be read in conjunction with the Company’s audited Consolidated Financial Statements and notes included in the company’s Annual Report on Form 10-K for the year ended December 31, 2023.
Unaudited Interim Financial Statement	The Company has prepared the accompanying Condensed Consolidated Financial Statements on the same basis as the audited financial statements, and the unaudited interim financial statements include, in the Company’s opinion, all adjustments, consisting only of normal recurring adjustments that the Company considers necessary for a fair presentation of its financial position and results of operations for these periods.
Use of Estimates	Use of Estimates—The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates and assumptions, including those related to research and development accruals, recoverability of long-lived assets, right-of-use assets, lease obligations, stock-based compensation and income taxes uncertainties and valuation allowances. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from those estimates.

Stockholders' Equity

9 Months Ended

Sep. 30, 2024

Temporary Equity Disclosure [Abstract]

Stockholders' Equity

7. STOCKHOLDERS' EQUITY

Common Stock

As of September 30, 2024 and December 31, 2023, the Company was authorized to issue 100,000,000 shares of common stock and 5,000,000 shares of preferred stock, each with a par value of $0.001 per share. Of the common stock shares authorized, 26,565,886 and 22,045,255 were issued and outstanding at September 30, 2024 and December 31, 2023, respectively. There were no shares subject to repurchase due to remaining vesting requirements. Common stockholders are entitled to dividends as declared by the Company’s board of directors (the “Board of Directors”), subject to rights of holders of all classes of stock outstanding having priority rights as to dividends. There was no preferred stock issued nor outstanding as of September 30, 2024 and December 31, 2023.

Common stockholders are entitled to dividends as declared by the Board of Directors, subject to rights of holders of all classes of stock outstanding having priority rights as to dividends. There have been no dividends declared to date. The holders of each share of common stock are entitled to one vote. Except for effecting or validating certain specific actions intended to protect the preferred stockholders, the holders of common stock vote together with preferred stockholders and have the right to elect one member of the Board of Directors.

Rights Plan

On October 10, 2023, the Board of Directors adopted a limited duration stockholder rights plan (the “Rights Plan”), effective immediately, and declared a dividend of one preferred share purchase right (each, a “Right” and collectively, the “Rights”) for each outstanding share of the common stock, par value $0.001 per share (the “Common Shares”), of the Company. The dividend was effective as of October 23, 2023 (the “Record Date”) with respect to stockholders of record on that date. The Rights will also attach to new Common Shares issued after the Record Date. Each Right entitles the registered holder to purchase from the Company one one-thousandth of a share of Series A Junior Participating Preferred Stock, par value $0.001 per share, (the “Preferred Shares”), of the Company at a price of $25.00 per one one-thousandth of a Preferred Share, subject to adjustment. The descriptions and terms of the Rights are set forth in a Rights Agreement, dated as of October 10, 2023 (the “Original Rights Agreement”), between the Company and Computershare Trust Company, NA. On October 9, 2024, the Company entered into Amendment No. 1 to the Original Rights Agreement (together with the Original Rights Agreement, the “Rights Agreement”). The amendment extends the expiration date until immediately following the Company’s 2025 Annual Meeting of Stockholders, or, if the Company’s stockholders approve the Rights Plan, on October 10, 2026, unless the Rights are earlier redeemed or exchanged by the Company. The Company does not have any obligation under the Rights Agreement to seek stockholder approval for the Rights Agreement. The Rights Agreement otherwise remains unmodified and in full force and effect in accordance with its terms.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-14

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 505
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478448/946-505-50-6

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
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-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480237/815-40-50-6

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Name Accounting Standards Codification
-Section S99
-Paragraph 1
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480008/505-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
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-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 505
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/505/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Name Accounting Standards Codification
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-14

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Name Accounting Standards Codification
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-URI https://asc.fasb.org/1943274/2147481112/505-10-50-18

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-18

+ Details

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Future Minimum Rental Payments under Operating Leases with Noncancelable Terms

As of September 30, 2024, future minimum lease payments under the Company's operating lease liabilities were as follows:



Year Ending	Total Commitment
2024 (excluding nine months ended September 30, 2024)	$	449
2025		1,861
2026		1,926
2027		1,994
2028 and beyond		6,410
Total minimum lease payments		12,640
Less: imputed interest		(3,406	)
Present value of operating lease obligations		9,234
Less: current portion		(828	)
Noncurrent operating lease obligations	$	8,406

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Operating activities:
Net loss	$ (28,030)	$ (22,003)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense	340	296
Stock-based compensation expense	3,972	1,449
Non-cash lease expense	1,048	1,268
Non-cash interest and other expense, net	154	142
Changes in operating assets and liabilities:
Prepaid expenses and other assets	49	152
Accounts payable	852	28
Accrued expenses and other liabilities	(355)	(1,281)
Interest payable	(30)	9
Operating lease liabilities	(878)	(1,242)
Cash used in operating activities	(22,878)	(21,182)
Investing activities:
Purchase of property and equipment	(432)	(163)
Cash used in investing activities	(432)	(163)
Financing activities:
Proceeds from the issuance of common stock in connection with at-the-market offering, net of issuance costs	8,439	1,253
Repayment of loan	(2,199)
Proceeds from the issuance of common stock under equity plan awards	308
Cash provided by financing activities	6,548	1,253
Net decrease in cash, cash equivalents and restricted cash	(16,762)	(20,092)
Cash, cash equivalents and restricted cash at beginning of period	39,673	31,598
Cash, cash equivalents and restricted cash at end of period	22,911	11,506
Supplemental disclosure of cash flow information:
Cash paid for interest	954	927
Cash paid for business taxes	$ 21	152
Property and equipment in accounts payable		$ 3

Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands				3 Months Ended	9 Months Ended
	Jan. 01, 2024	Jun. 15, 2023	Jun. 17, 2022	Sep. 30, 2024	Sep. 30, 2024	Sep. 30, 2023	Jun. 21, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, purchase price of common stock, percent					110.00%
Share-based compensation arrangement by share-based payment award, award vesting period					4 years
Share-based compensation arrangement by share-based payment award, expiration period					10 years
Granted (in shares)					887,675	679,150
Granted (in dollars per share)					$ 3.99	$ 1.29
2019 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, percentage of outstanding stock maximum			1.50%
Share-based compensation arrangement by share-based payment award, shares issued in period	330,678			59,454	93,477
Common stock, capital shares reserved for future issuance				469,337	469,337
Share-based compensation arrangement by share-based payment award, maximum number of shares available for grant per year			500,000
Amended and Restated 2023 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, percentage of outstanding stock maximum		4.00%
Share-based compensation arrangement by share-based payment award, period of automatic increase to outstanding stock maximum		10 years
Share-based compensation arrangement by share-based payment award, shares issued in period	881,810
Common stock, capital shares reserved for future issuance				508,017	508,017
2023 Inducement Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, capital shares reserved for future issuance				933,450	933,450
Individuals who were not Previously Employees or Directors Of Company \| 2023 Inducement Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, capital shares reserved for future issuance							1,150,000
Share-based Payment Arrangement, Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)					887,675	679,150
Granted (in dollars per share)					$ 3.36	$ 1.08
Share-based payment arrangement, nonvested award, option, cost not yet recognized, amount				$ 13,648	$ 13,648	$ 2,576
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition					2 years 10 months 24 days	2 years 2 months 12 days

Commitments and Contingencies - Future Minimum Rental Payments under Operating Leases with Noncancelable Terms (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Loss Contingencies [Line Items]
Less: current portion	$ (828)	$ (952)
Noncurrent operating lease obligations	8,406	$ 9,160
Brisbane, California and Ann Arbor Michigan
Loss Contingencies [Line Items]
2024 (excluding nine months ended September 30, 2024)	449
2025	1,861
2026	1,926
2027	1,994
2028 and beyond	6,410
Total minimum lease payments	12,640
Less: imputed interest	(3,406)
Present value of operating lease obligations	9,234
Less: current portion	(828)
Noncurrent operating lease obligations	$ 8,406

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 22,116	$ 39,230
Prepaid expenses and other current assets	1,436	1,133
Total current assets	23,552	40,363
Property and equipment-net	932	840
Operating lease right-of-use assets	8,904	9,952
Other noncurrent assets	448	448
Total assets	33,836	51,603
Current liabilities:
Accounts payable	1,697	845
Accrued expenses	1,459	1,673
Current loan payable (net of discount and issuance costs of $122 and $112, respectively)	8,504	4,285
Current operating lease liabilities	828	952
Accrued compensation	1,402	1,543
Interest payable	83	113
Total current liabilities	13,973	9,411
Loan payable (net of discount and issuance costs of nil and $164, respectively)	0	6,264
Noncurrent operating lease obligations	8,406	9,160
Total liabilities	22,379	24,835
Commitments and contingencies (Note 5)
Stockholders' equity:
Common stock, $0.001 par value; 100,000,000 shares authorized; 26,565,886 and 22,045,255 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively	27	22
Additional paid-in capital	204,723	192,009
Accumulated deficit	(193,293)	(165,263)
Total stockholders’ equity	11,457	26,768
Total liabilities and stockholders’ equity	$ 33,836	$ 51,603

Net Loss Per Share - Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings	4,157,748	2,312,621
Employee Stock Option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings	4,151,712	2,181,585
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings		125,000
Common stock warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings	6,036	6,036

Stock-Based Compensation - Summary of Information About Stock Options Outstanding (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	4,151,712	3,554,112	2,181,585	1,553,041
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	8 years 5 months 4 days
Outstanding (in dollars per share)	$ 6.64	$ 7.28	$ 5.04	$ 6.66
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value	$ 78,906
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number	4,151,712
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term	8 years 5 months 4 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Exercise Price	$ 6.64
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value	$ 78,906
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	1,179,884
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	7 years 2 months 12 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price	$ 5.88
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value	$ 32,877

Balance Sheet Components

9 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet Components

4. BALANCE SHEET COMPONENTS

Prepaid expenses and other current assets consist of the following:


	September 30, 2024		December 31, 2023
Prepaid expenses	$	811	$	700
Prepaid research and development costs		240		337
Other current assets		385		96
Total	$	1,436	$	1,133

Property and equipment, net, consists of the following:


	September 30, 2024			December 31, 2023
Computer equipment and software	$	192		$	169
Furniture and fixtures		328			328
Lab equipment		1,485			1,133
Leasehold improvements		293			235
Property and equipment		2,298			1,865
Less accumulated depreciation		(1,366	)		(1,025	)
Property and equipment—net	$	932		$	840

Depreciation expense for the three and nine months ended September 30, 2024 was $98 and $340, respectively. Depreciation expense for the three and nine months ended September 30, 2023 was $88 and $296, respectively.

Accrued liabilities consist of the following:


	September 30, 2024		December 31, 2023
Accrued other liabilities	$	1,020	$	626
Accrued clinical trial liability		439		1,047
Total	$	1,459	$	1,673

Organization and Description of the Business - Narrative (Details) - USD ($)				1 Months Ended	3 Months Ended			9 Months Ended
	Jun. 20, 2024	Apr. 29, 2022	Jul. 23, 2021	Nov. 08, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Class of Stock [Line Items]
Cash and cash equivalents								$ 22,116,000		$ 39,230,000
Aggregate sales price of common stock					$ 20,000	$ 1,186,000	$ 44,000
Gross proceeds from issuance of common stock								$ 8,439,000	$ 1,253,000
At-The-Market Program
Class of Stock [Line Items]
Shares issued								4,164,167
Gross proceeds from issuance of common stock								$ 8,600,000
Net proceeds from sales of common stock								8,300,000
Remained available for issuance of common stock								$ 196,400,000
At-The-Market Program \| Subsequent Event
Class of Stock [Line Items]
Shares issued				17,076,186
Gross proceeds from issuance of common stock				$ 20,500,000
Net proceeds from sales of common stock				$ 19,900,000
PIPE Financing
Class of Stock [Line Items]
Shares issued in transaction		3,149,912
Stock price (in dollars per share)		$ 2.36
Number of warrants issued		3,206,020
Consideration received		$ 14,500,000
Jefferies LLC \| At-The-Market Program
Class of Stock [Line Items]
Shares issued	9,017,110
Gross proceeds from issuance of common stock	$ 42,700,000
Net proceeds from sales of common stock	41,500,000
Jefferies LLC \| Maximum \| At-The-Market Program
Class of Stock [Line Items]
Aggregate sales price of common stock	$ 205,000,000		$ 100,000,000
Percentage of commission on sale of stock			3.00%
EcoR1 Capital, LLC and Versant Venture Capital \| PIPE Financing
Class of Stock [Line Items]
Pre-funded warrant price (in dollars per share)		2.359

Stock-Based Compensation - Grant Date Fair Value of Option (Details) - Share-based Payment Arrangement, Employee	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividends	0.00%	0.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	5 years 6 months	5 years 6 months
Expected volatility	109.00%	109.00%
Risk-free interest rate	3.50%	3.40%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 years 1 month 6 days	6 years 1 month 6 days
Expected volatility	124.00%	111.00%
Risk-free interest rate	4.70%	3.90%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Stock-Based Compensation - Stock Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 1,334	$ 563	$ 3,972	$ 1,449
Research and Development Expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	559	173	1,665	465
General and Administrative Expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 775	$ 390	$ 2,307	$ 984

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (10,556)	$ (9,570)	$ (7,904)	$ (6,786)	$ (7,581)	$ (7,636)	$ (28,030)	$ (22,003)

- Definition

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

+ References

+ Details

Net Loss Per Share (Tables)

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Summary of Basis in Diluted Net Loss Per Share

The following table sets forth the computation of the Company’s basis in diluted net loss per share for the three and nine months ended September 30, 2024 and 2023 (in thousands, except share and per share amounts):


	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Numerator:
Net loss	$	(10,556	)	$	(6,786	)	$	(28,030	)	$	(22,003	)
Denominator:
Weighted-average common shares outstanding		25,806,825			14,121,805			23,537,453			14,059,008
Weighted-average shares used in computing basic and diluted net loss per share		25,806,825			14,121,805			23,537,453			14,059,008
Net loss per share attributable to common stockholders—basic and diluted	$	(0.41	)	$	(0.48	)	$	(1.19	)	$	(1.57	)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

Based on the amounts outstanding as of

September 30, 2024 and 2023, the Company excluded the following potential common shares from the computation of diluted net loss per share attributable to common stockholders because including them would have had an anti-dilutive effect:


	As of September 30,
	2024		2023
Options to purchase common stock		4,151,712		2,181,585
Restricted stock units		—		125,000
Common stock warrants		6,036		6,036
Total		4,157,748		2,312,621

Net Loss Per Share

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Net Loss Per Share

10. NET LOSS PER SHARE


	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Numerator:
Net loss	$	(10,556	)	$	(6,786	)	$	(28,030	)	$	(22,003	)
Denominator:
Weighted-average common shares outstanding		25,806,825			14,121,805			23,537,453			14,059,008
Weighted-average shares used in computing basic and diluted net loss per share		25,806,825			14,121,805			23,537,453			14,059,008
Net loss per share attributable to common stockholders—basic and diluted	$	(0.41	)	$	(0.48	)	$	(1.19	)	$	(1.57	)

As of September 30, 2024 and 2023, the Company’s potentially dilutive securities included unvested stock warrants and stock options, which have been excluded from the computation of diluted net loss per share attributable to common stockholders as the effect would be anti-dilutive. The issuance of pre-funded warrants and vested RSUs have been included in the computation of basic and diluted net loss per share attributable to common stockholders. Based on the amounts outstanding as of


	As of September 30,
	2024		2023
Options to purchase common stock		4,151,712		2,181,585
Restricted stock units		—		125,000
Common stock warrants		6,036		6,036
Total		4,157,748		2,312,621

Balance Sheet Components - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Depreciation expense	$ 98	$ 88	$ 340	$ 296

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2022		10,518,539
Beginning balance at Dec. 31, 2022	$ 18,111	$ 11	$ 153,872	$ (135,772)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock for cash, net of issuance cost (in shares)		43,161
Issuance of common stock for cash, net of issuance cost	44		44
Stock-based compensation	446		446
Net loss	(7,636)			(7,636)
Ending balance (in shares) at Mar. 31, 2023		10,561,700
Ending balance at Mar. 31, 2023	10,965	$ 11	154,362	(143,408)
Beginning balance (in shares) at Dec. 31, 2022		10,518,539
Beginning balance at Dec. 31, 2022	$ 18,111	$ 11	153,872	(135,772)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)	413
Net loss	$ (22,003)
Ending balance (in shares) at Sep. 30, 2023		14,323,405
Ending balance at Sep. 30, 2023	(1,190)	$ 14	156,571	(157,775)
Beginning balance (in shares) at Mar. 31, 2023		10,561,700
Beginning balance at Mar. 31, 2023	10,965	$ 11	154,362	(143,408)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock for cash, net of issuance cost (in shares)		537,546
Issuance of common stock for cash, net of issuance cost	1,186	$ 1	1,185
Exercise of pre-funded warrants, shares		1,484,174
Exercise of pre-funded warrants	1	$ 1
Stock-based compensation	440		440
Exercise of stock options (in shares)		413
Exercise of stock options	1		1
Net loss	(7,581)			(7,581)
Ending balance (in shares) at Jun. 30, 2023		12,583,833
Ending balance at Jun. 30, 2023	5,012	$ 13	155,988	(150,989)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock for cash, net of issuance cost (in shares)		20,961
Issuance of common stock for cash, net of issuance cost	20		20
Exercise of pre-funded warrants, shares		1,718,611
Exercise of pre-funded warrants	1	$ 1
Stock-based compensation	563		563
Net loss	(6,786)			(6,786)
Ending balance (in shares) at Sep. 30, 2023		14,323,405
Ending balance at Sep. 30, 2023	(1,190)	$ 14	156,571	(157,775)
Beginning balance (in shares) at Dec. 31, 2023		22,045,255
Beginning balance at Dec. 31, 2023	26,768	$ 22	192,009	(165,263)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock in connection with at the market offering (net of issuance costs), shares		56,288
Issuance of common stock in connection with at the market offering (net of issuance costs)	253		253
Stock-based compensation	1,318		1,318
Issuance of common stock under equity plan awards (in shares)		115,722
Issuance of common stock under equity plan award	197		197
Net loss	(7,904)			(7,904)
Ending balance (in shares) at Mar. 31, 2024		22,217,265
Ending balance at Mar. 31, 2024	20,632	$ 22	193,777	(173,167)
Beginning balance (in shares) at Dec. 31, 2023		22,045,255
Beginning balance at Dec. 31, 2023	$ 26,768	$ 22	192,009	(165,263)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)	81,699
Net loss	$ (28,030)
Ending balance (in shares) at Sep. 30, 2024		26,565,886
Ending balance at Sep. 30, 2024	11,457	$ 27	204,723	(193,293)
Beginning balance (in shares) at Mar. 31, 2024		22,217,265
Beginning balance at Mar. 31, 2024	20,632	$ 22	193,777	(173,167)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock in connection with at the market offering (net of issuance costs), shares		2,133,534
Issuance of common stock in connection with at the market offering (net of issuance costs)	4,557	$ 2	4,555
Stock-based compensation	1,320		1,320
Issuance of common stock under equity plan awards (in shares)		125,000
Net loss	(9,570)			(9,570)
Ending balance (in shares) at Jun. 30, 2024		24,475,799
Ending balance at Jun. 30, 2024	16,939	$ 24	199,652	(182,737)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock in connection with at the market offering (net of issuance costs), shares		2,030,633
Issuance of common stock in connection with at the market offering (net of issuance costs)	3,629	$ 2	3,627
Stock-based compensation	1,334		1,334
Issuance of common stock under equity plan awards (in shares)		59,454
Issuance of common stock under equity plan award	111	$ 1	110
Net loss	(10,556)			(10,556)
Ending balance (in shares) at Sep. 30, 2024		26,565,886
Ending balance at Sep. 30, 2024	$ 11,457	$ 27	$ 204,723	$ (193,293)

Organization and Description of the Business

9 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Description of the Business

1. ORGANIZATION AND DESCRIPTION OF THE BUSINESS

Description of Business

Tempest Therapeutics, Inc. (“Tempest” or the “Company”) is a clinical-stage biotechnology company moving into late-stage development with a diverse portfolio of targeted and immune-mediated product candidates with the potential to be first-in-class treatments for a wide range of cancers. Tempest’s novel programs range from early research to the lead program, amezalpat (previously known as TPST-1120), that is poised to begin a pivotal study in first-line liver cancer. Tempest is also developing other potential product candidates in its Discovery Research group. The Company is headquartered in Brisbane, California.

Liquidity and Management Plans

The accompanying financial statements have been prepared assuming the Company will continue as a going concern. The Company has incurred operating losses since inception. As of September 30, 2024, the Company had cash and cash equivalents of $22.1 million. The Company has not yet generated product sales and as a result has experienced operating losses since inception. The Company expects to incur additional losses in the future to conduct research and development and will need to raise additional capital to continue operations. The Company intends to raise such capital through the issuance of additional debt or equity including in connection with potential merger opportunities, or through business development activities. The Company’s ability to continue as a going concern is dependent upon its ability to control its variable spend over the next 12 months, while management plans to secure sources of financing and ultimately attain profitable operations. If the Company are unable to obtain adequate capital, it could be forced to cease operations. Management believes that its existing cash and cash equivalents will be sufficient to fund the Company’s cash requirements for at least 12 months following the issuance of these financial statements.

ATM Program

On July 23, 2021, the Company entered into a sales agreement with Jefferies LLC (“Jefferies”), pursuant to which the Company may sell, from time to time at its sole discretion through Jefferies, as its sales agent, shares of its common stock having, up to an aggregate sales price of $100.0 million of its common stock through Jefferies (the “Prior ATM Program”). As of June 20, 2024, the Company had sold an aggregate 9,017,110 shares of its common stock for gross proceeds of approximately $42.7 million ($41.5 million net of commissions and estimated expenses) under the Prior ATM Program. On June 20, 2024, the Company and Jefferies terminated the Prior ATM Program and entered a new Open Market Sale AgreementSM (the “Sales Agreement”) to sell shares of common stock from time to time through Jefferies acting as sales agent (the “ATM Program”). Pursuant to the prospectus supplement dated June 20, 2024 (the “Prospectus Supplement”) filed by the Company with the U.S. Securities and Exchange Commission (“SEC”), the Company will be able to offer and sell up to $205,000,000 of its shares of common stock pursuant to the Sales Agreement. The Company will pay Jefferies a commission up to 3.0% of the gross sales proceeds of any shares of its common stock sold through Jefferies under the ATM Program and also has provided Jefferies with indemnification and contribution rights. As of September 30, 2024, the Company has sold an aggregate of 4,164,167 shares of its common stock for gross proceeds of approximately $8.6 million, or $8.3 million after deducting commissions and offering expenses, pursuant to the ATM Program. As of September 30, 2024, approximately $196.4 million remained available for sale under the ATM Program. Between October 1, 2024 and November 8, 2024, the Company sold 17,076,186 shares of the Company's common stock for gross proceeds of $20.5 million, or $19.9 million after deducting commissions and estimated offering expenses, pursuant to the ATM Program.

PIPE Financing

On April 29, 2022, the Company completed a private investment in public equity (“PIPE”) financing from the sale of 3,149,912 shares of its common stock at a price per share of $2.36 and, and in lieu of shares of common stock, pre-funded warrants to purchase up to 3,206,020 shares of its common stock at a price per pre-funded warrant of $2.359 to EcoR1 Capital, LLC and Versant Venture Capital (the “PIPE Investors”). Net proceeds from the PIPE financings totaled approximately $14.5 million, after deducting offering expenses. The Company entered into a registration rights agreement with the PIPE Investors pursuant to which the Company filed a registration statement with the SEC registering the resale of the 3,149,912 shares common stock and the 3,206,020 shares of common stock underlying the pre-funded warrants issued in the PIPE financing. As of September 30, 2024, all pre-funded warrants had been exercised.

Stock-Based Compensation

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

8. STOCK-BASED COMPENSATION

Equity Plans

The Board of Directors adopted the Amended and Restated 2023 Equity Incentive Plan (the “2023 Plan”) on April 30, 2023, subject to approval by the Company’s stockholders. On June 15, 2023, the Company’s stockholders approved the 2023 Plan, which amended and restated the A&R 2019 Plan and will be a successor to, and replacement of, the A&R 2019 Plan. The number of shares of the Company's common stock reserved for issuance under the 2023 Plan will automatically increase on January 1st of each year, for a period of 10 years, from January 1, 2024 continuing through January 1, 2033, by 4% of the total number of shares of the Company's common stock outstanding on December 31st of the preceding calendar year, or a lesser number of shares as may be determined by the Board of Directors. Accordingly, on January 1, 2024, the common stock reserved for issuance was increased by 881,810 shares. As of September 30, 2024, there were 508,017 shares available for future grant under the 2023 Plan.

The 2023 Plan allows the Company to grant stock awards to employees, directors and consultants of the Company, including incentive stock options (“ISOs”), non-qualified stock options (“NSOs”), stock appreciation rights, restricted stock awards, restricted stock unit awards and other stock awards.

The Board of Directors adopted the 2023 Inducement Plan (“2023 Inducement Plan”) on June 21, 2023, pursuant to which the Company reserved 1,150,000 shares of its common stock to be used exclusively for grants of awards to individuals who were not previously employees or directors of the Company, as an inducement material to the individual’s entry into employment with the Company within the meaning of Rule 5635(c)(4) of the Nasdaq Listing Rules. The 2023 Inducement Plan was approved by the Board of Directors without stockholder approval in accordance with such rule. As of September 30, 2024, there were 933,450 shares available for future grant under the 2023 Inducement Plan.

The Company measures employee and non-employee stock-based awards at grant date fair value and records compensation expense on a straight-line basis over the vesting period of the award.

Employee Stock Ownership Plan

The Millendo board of directors adopted the 2019 Employee Stock Purchase Plan on April 29, 2019, which became effective upon stockholder approval on June 11, 2019. On June 17, 2022, the Company’s stockholders approved the Amended and Restated 2019 Employee Stock Purchase Plan (the “2019 ESPP”). The 2019 ESPP enables employees to purchase shares of the Company's common stock through offerings of rights to purchase the Company's common stock to all eligible employees.

The 2019 ESPP provides that the number of shares of common stock reserved for issuance under the 2019 ESPP will automatically increase on January 1, 2023 and continuing through (and including) January 1, 2029, by the lesser of 1.5% of the total number of shares of Common Stock outstanding on December 31st of the preceding calendar year, (ii) 500,000 shares of Common Stock, or (iii) such lesser number of shares of Common Stock as determined by the Board of Directors (which may be zero). On January 1, 2024, the common stock reserved for issuance was increased by 330,678 shares.

As of September 30, 2024, 469,337 shares of common stock remained available for future issuance under the 2019 ESPP. During the three and nine months ended September 30, 2024, 59,454 and 93,477 shares of common stock were issued under the 2019 ESPP, respectively.

Stock Options

Options to purchase the Company’s common stock may be granted at a price not less than the fair market value in the case of both NSOs and ISOs, except for an options holder who owns more than 10% of the voting power of all classes of stock of the Company, in which case the exercise price shall be no less than 110% of the fair market value per share on the grant date. Stock options granted under the Plans generally vest over four years and expire no later than ten (10) years from the date of grant. Vested options can be exercised at any time.

The following shows the stock option activities for the nine months ended September 30, 2024 and 2023:


	Total Options Outstanding			Weighted-Average Exercise Price
Balance—December 31, 2023		3,554,112		$	7.28
Granted		887,675			3.99
Exercised		(81,699	)		1.91
Cancelled and forfeited		(208,376	)		8.23
Balance—September 30, 2024		4,151,712			6.64

Balance—December 31, 2022		1,553,041		$	6.66
Granted		679,150			1.29
Exercised		(413	)		1.23
Cancelled and forfeited		(50,193	)		4.36
Balance—September 30, 2023		2,181,585			5.04

The following table summarizes information about stock options outstanding at September 30, 2024:


	Shares		Weighted Average Remaining Contractual Life (In Years)		Weighted Average Exercise Price		Aggregate Intrinsic Value
Options outstanding		4,151,712		8.43	$	6.64	$	78,906
Vested and expected to vest		4,151,712		8.43	$	6.64	$	78,906
Exercisable		1,179,884		7.20	$	5.88	$	32,877

During the nine months ended September 30, 2024 and 2023, the Company granted employees and non-employees stock options to purchase 887,675 and 679,150 shares of common stock, respectively, with a weighted-average grant date fair value of $3.36 and $1.08 per share, respectively. As of September 30, 2024 and 2023, total unrecognized compensation costs related to unvested employee stock options were $13,648 and $2,576, respectively. These costs are expected to be recognized over a weighted-average period of approximately 2.9 years and 2.2 years, respectively.

The Company estimated the fair value of stock options using the Black-Scholes option pricing valuation model. The fair value of employee and non-employee stock options is being amortized on the straight-line basis over the requisite service period of the awards. The fair value of employee and non-employee stock options was estimated using the following assumptions for the nine months ended September 30, 2024 and 2023:


	2024			2023
Expected term (in years)	5.5 - 6.1			5.5 - 6.1
Expected volatility	109% - 124%			109% - 111%
Risk-free interest rate	3.5% - 4.7%			3.4% - 3.9%
Dividends		—	%		—	%

Expected Term—The expected term of options granted represents the period of time that the options are expected to be outstanding. Due to the lack of historical exercise history, the expected term of the Company’s employee stock options has been determined utilizing the simplified method for awards that qualify as plain-vanilla options.

Expected Volatility—The expected stock price volatility assumption was determined by examining the historical volatilities for industry peers, as the Company did not have any trading history for the Company’s common stock. The Company will continue to analyze the historical stock price volatility and expected term assumption as more historical data for the Company’s common stock becomes available.

Risk-Free Interest Rate—The risk-free interest rate assumption is based on the U.S. Treasury instruments whose term was consistent with the expected term of the Company’s stock options.

Dividends—The Company has not paid any cash dividends on common stock since inception and does not anticipate paying any dividends in the foreseeable future. Consequently, an expected dividend yield of zero was used.

Stock-Based Compensation Expense


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Research and development	$	559	$	173	$	1,665	$	465
General and administrative		775		390		2,307		984
Total	$	1,334	$	563	$	3,972	$	1,449

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Significant Accounting Policies—The Company’s significant accounting policies are described in Note 2, “Summary of Significant Accounting Policies,” in the Company’s Annual Report on Form 10-K filed with the SEC on March 19, 2024. There have been no material changes to the significant accounting policies during the period ended September 30, 2024.

Basis of Presentation—The unaudited interim Condensed Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been omitted. These unaudited interim Condensed Consolidated Financial Statements should be read in conjunction with the Company’s audited Consolidated Financial Statements and notes included in the company’s Annual Report on Form 10-K for the year ended December 31, 2023.

The Company has prepared the accompanying Condensed Consolidated Financial Statements on the same basis as the audited financial statements, and the unaudited interim financial statements include, in the Company’s opinion, all adjustments, consisting only of normal recurring adjustments that the Company considers necessary for a fair presentation of its financial position and results of operations for these periods.

Use of Estimates—The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates and assumptions, including those related to research and development accruals, recoverability of long-lived assets, right-of-use assets, lease obligations, stock-based compensation and income taxes uncertainties and valuation allowances. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from those estimates.