Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Sep. 30, 2019	Nov. 08, 2019
Document And Entity Information
Entity Registrant Name	REPLIMUNE GROUP, INC.
Entity Central Index Key	0001737953
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--03-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Shell Company	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Common Stock, Shares Outstanding		32,008,559
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2019	Mar. 31, 2019
Current assets:
Cash and cash equivalents	$ 53,298	$ 25,704
Short-term investments	56,581	109,107
Research and development incentives receivable	2,337	2,474
Prepaid expenses and other current assets	5,796	3,696
Total current assets	118,012	140,981
Property, plant and equipment, net	3,528	12,159
Research and development incentives receivable - long term	1,212
Restricted cash	1,636	1,186
Long term prepaid rent	15,072
Right-to-use asset - operating leases	4,873
Right-to-use asset - financing leases	7,105
Total assets	151,438	154,326
Current liabilities:
Accounts payable	7,965	7,084
Accrued expenses and other current liabilities	3,352	2,801
Operating lease liabilities, current	631
Financing lease liabilities, current	34
Total current liabilities	11,982	9,885
Deferred rent, net of current portion		24
Financing obligation		6,561
Long term debt, net of debt discount	9,659
Operating lease liabilities, non-current	4,384
Finance lease liabilities, non-current	4,772
Total liabilities	30,797	16,470
Commitments and contingencies (Note 12)
Stockholders' Equity:
Common stock, $0.001 par value; 150,000,000 shares authorized as of September 30, 2019 and March 31, 2019; 31,719,346 and 31,656,950 shares issued and outstanding as of September 30, 2019 and March 31, 2019	32	32
Additional paid-in capital	202,359	198,645
Accumulated deficit	(80,320)	(59,766)
Accumulated other comprehensive loss	(1,430)	(1,055)
Total stockholders' equity	120,641	137,856
Total liabilities and stockholders' equity	$ 151,438	$ 154,326

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2019	Mar. 31, 2019
CONDENSED CONSOLIDATED BALANCE SHEETS
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized	150,000,000	150,000,000
Common stock, issued	31,719,346	31,656,950
Common stock, outstanding	31,719,346	31,656,950

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Operating expenses:
Research and development	$ 8,168	$ 4,962	$ 15,625	$ 8,898
General and administrative	4,074	2,142	7,524	4,085
Total operating expenses	12,242	7,104	23,149	12,983
Loss from operations	(12,242)	(7,104)	(23,149)	(12,983)
Other income (expense):
Research and development incentives	620	(77)	1,241	361
Investment income	567	664	1,254	891
Interest expense	(195)		(195)
Change in fair value of warrant liability		(2)		(5,452)
Other income	111	58	202	678
Total other income (expense), net	1,103	643	2,502	(3,522)
Net loss attributable to common stockholders	$ (11,139)	$ (6,461)	$ (20,647)	$ (16,505)
Net loss per share attributable to common shareholders, basic and diluted (in dollars per share)	$ (0.35)	$ (0.26)	$ (0.65)	$ (1.11)
Weighted average common shares outstanding-basic and diluted (in shares)	31,675,323	24,574,239	31,668,414	14,831,266

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Net loss	$ (11,139)	$ (6,461)	$ (20,647)	$ (16,505)
Other comprehensive income (loss):
Foreign currency translation loss	(218)	(139)	(400)	(986)
Net unrealized gain (loss) on short-term investments, net of tax	(40)	(34)	25	1
Comprehensive loss	$ (11,397)	$ (6,634)	$ (21,022)	$ (17,490)

- Definition

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

+ References + Details

CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Convertible preferred stock	Common stock	Additional paid-in capital	Accumulated deficit	Accumulated other comprehensive loss	Total
Balance at Mar. 31, 2018	$ 86,361	$ 5	$ 1,097	$ (28,932)	$ (238)	$ (28,068)
Balance (in shares) at Mar. 31, 2018	1,925,968	5,007,485
Increase (decrease) in Stockholders' Equity
Foreign currency translation adjustment					(847)	(847)
Unrealized gain on short-term investments					35	35
Stock-based compensation expense			225			225
Net loss				(10,044)		(10,044)
Balance at Jun. 30, 2018	$ 86,361	$ 5	1,322	(38,976)	(1,050)	(38,699)
Balance (in shares) at Jun. 30, 2018	1,925,968	5,007,485
Balance at Mar. 31, 2018	$ 86,361	$ 5	1,097	(28,932)	(238)	(28,068)
Balance (in shares) at Mar. 31, 2018	1,925,968	5,007,485
Increase (decrease) in Stockholders' Equity
Foreign currency translation adjustment						(986)
Unrealized gain on short-term investments						1
Conversion of convertible preferred stock into common stock upon closing of initial public offering						86,361
Conversion of convertible preferred stock warrants into common stock warrants						7,094
Net loss						(16,505)
Balance at Sep. 30, 2018		$ 32	196,664	(45,437)	(1,223)	150,036
Balance (in shares) at Sep. 30, 2018		31,553,672
Balance at Jun. 30, 2018	$ 86,361	$ 5	1,322	(38,976)	(1,050)	(38,699)
Balance (in shares) at Jun. 30, 2018	1,925,968	5,007,485
Increase (decrease) in Stockholders' Equity
Foreign currency translation adjustment					(139)	(139)
Unrealized gain on short-term investments						(34)
Exercise of stock options		$ 1	11			12
Exercise of stock options (in shares)		7,149
Conversion of convertible preferred stock into common stock upon closing of initial public offering	$ (86,361)	$ 19	86,342			86,361
Conversion of convertible preferred stock into common stock upon closing of initial public offering (in shares)	(1,925,968)	19,157,360
Conversion of convertible preferred stock warrants into common stock warrants			7,094			7,094
Repurchase of class A common stock upon closing of initial public offering (in shares)		(26,258)
Issuance of stock (value)		$ 7	101,177			101,184
Issuance of common stock upon closing of initial public offering, net of issuance costs and underwriter fees of $9,935 (shares)		7,407,936
Unrealized gain on short-term investments					(34)
Stock-based compensation expense			718			718
Net loss				(6,461)		(6,461)
Balance at Sep. 30, 2018		$ 32	196,664	(45,437)	(1,223)	150,036
Balance (in shares) at Sep. 30, 2018		31,553,672
Balance at Mar. 31, 2019		$ 32	198,645	(59,766)	(1,055)	137,856
Balance (in shares) at Mar. 31, 2019		31,656,950
Increase (decrease) in Stockholders' Equity
Foreign currency translation adjustment					(182)	(182)
Unrealized gain on short-term investments					65	65
Exercise of stock options			18			18
Exercise of stock options (in shares)		6,751
Impact of adoption of ASC 842				93		93
Stock-based compensation expense			1,810			1,810
Net loss				(9,508)		(9,508)
Balance at Jun. 30, 2019		$ 32	200,473	(69,181)	(1,172)	130,152
Balance (in shares) at Jun. 30, 2019		31,663,701
Balance at Mar. 31, 2019		$ 32	198,645	(59,766)	(1,055)	137,856
Balance (in shares) at Mar. 31, 2019		31,656,950
Increase (decrease) in Stockholders' Equity
Foreign currency translation adjustment						(400)
Unrealized gain on short-term investments						$ 25
Exercise of stock options (in shares)						62,396
Net loss						$ (20,647)
Balance at Sep. 30, 2019		$ 32	202,359	(80,320)	(1,430)	120,641
Balance (in shares) at Sep. 30, 2019		31,719,346
Balance at Jun. 30, 2019		$ 32	200,473	(69,181)	(1,172)	130,152
Balance (in shares) at Jun. 30, 2019		31,663,701
Increase (decrease) in Stockholders' Equity
Foreign currency translation adjustment					(218)	(218)
Unrealized gain on short-term investments					(40)	(40)
Exercise of stock options			105			105
Exercise of stock options (in shares)		55,645
Stock-based compensation expense			1,781			1,781
Net loss				(11,139)		(11,139)
Balance at Sep. 30, 2019		$ 32	$ 202,359	$ (80,320)	$ (1,430)	$ 120,641
Balance (in shares) at Sep. 30, 2019		31,719,346

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net loss		$ (20,647)	$ (16,505)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense	$ 718	3,591	943
Depreciation and amortization	36	84	69
Change in fair value of warrant liability	2		5,452
Net amortization of premiums and discounts on short-term investments		(730)	(544)
Noncash interest expense		14
Changes in operating assets and liabilities:
Research and development incentives receivable		(1,241)	(344)
Prepaid expenses and other current assets		(2,128)	(1,034)
Operating lease, right-of-use-asset		250
Finance lease, right-of-use-asset		60
Long term prepaid rent		(12,433)
Accounts payable		(900)	150
Accrued expenses and other current liabilities		669	(1,417)
Operating lease liabilities		(144)
Deferred rent			(12)
Net cash used in operating activities		(33,555)	(13,242)
Cash flows from investing activities:
Purchases of property, plant and equipment		(1,146)	(119)
Purchase of short-term investments		(30,628)	(110,850)
Proceed from sales and maturities of short-term investments		83,909	30,750
Net cash provided by (used in) investing activities		52,135	(80,219)
Cash flows from financing activities:
Proceeds from long-term debt		10,000
Payment of issuance costs		(355)	(2,157)
Exercise of stock options		123	12
Proceeds from issuance of common stock in initial public offering, net of underwriting fees and discounts			103,341
Net cash provided by financing activities		9,768	101,196
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(304)	(928)
Net increase in cash, cash equivalents and restricted cash		28,044	6,807
Cash, cash equivalents and restricted cash at beginning of period		26,890	17,661
Cash, cash equivalents and restricted cash at end of period	24,468	54,934	24,468
Supplemental disclosure of non-cash investing and financing activities:
Conversion of convertible preferred stock warrants into common stock warrants	86,361		86,361
Conversion of convertible preferred stock into common stock	$ 7,094		7,094
Net unrealized gain on short-term investments		25	$ 1
Purchases of property and equipment included in accounts payable		1,825
Lease assets obtained in exchange for new financing lease liabilities		7,165
Lease assets obtained in exchange for new operating lease liabilities		$ 5,152

Nature of the business	6 Months Ended
Nature of the business	Sep. 30, 2019
Nature of the business
Nature of the business	1. Nature of the business Replimune Group, Inc. (the “Company”) is a clinical‑stage biotechnology company focused on the development of oncolytic immunotherapies to treat cancer. Replimune Limited (“Replimune UK”) was incorporated in 2015 under the laws of England, and was the sole shareholder of Replimune, Inc. (“Replimune US”), a Delaware corporation. On July 5, 2017, Replimune Group, Inc., a Delaware corporation, was incorporated and on July 10, 2017 the shareholders of Replimune UK effected a share‑for‑share exchange pursuant to which they exchanged their outstanding shares in Replimune UK for shares in Replimune Group, Inc., on a one‑for‑one basis. In addition, the holders of warrants and stock options to purchase Replimune UK capital stock canceled their warrants to purchase shares of series seed convertible preferred stock and stock options in Replimune UK and were issued replacement warrants to purchase shares of series seed convertible preferred stock and stock options to acquire Replimune Group, Inc. capital stock on a one‑for‑one basis. These transactions are collectively referred to as the reorganization. Upon completion of the reorganization, the historical consolidated financial statements of Replimune UK became the historical consolidated financial statements of Replimune Group, Inc. because the reorganization was accounted for similar to a reorganization of entities under common control due to the high degree of common ownership of Replimune UK and Replimune Group, Inc. and lack of economic substance to the transaction. The Company concluded that the reorganization resulted in no change in the material rights and preferences of each respective class of equity interests and no change in the fair value of each respective class of equity interests before and after the reorganization. On December 8, 2017, Replimune UK transferred all outstanding shares of its wholly owned subsidiary, Replimune US to Replimune Group, Inc. Replimune Group. Inc., a Delaware corporation, is the sole shareholder of Replimune UK, Replimune US and Replimune Securities Corporation, a Massachusetts corporation that was incorporated in November 2017. The Company is subject to risks and uncertainties common to early‑stage companies in the biotechnology industry, including, but not limited to, development by competitors of new technological innovations, dependence on key personnel, protection of proprietary technology, compliance with government regulations and the ability to secure additional capital to fund operations. Product candidates currently under development will require significant additional research and development efforts, including preclinical and clinical testing and regulatory approval, prior to commercialization. These efforts require significant amounts of additional capital, adequate personnel and infrastructure and extensive compliance and reporting capabilities. Even if the Company’s product development efforts are successful, it is uncertain when, if ever, the Company will realize significant revenue from product sales. Forward stock split On July 9, 2018, the Company effected a 1-for-9.94688 forward stock split of its issued and outstanding shares of common stock and a proportional adjustment to the existing conversion ratios for each series of the Company’s Convertible Preferred Stock (see Note 8). Accordingly, all share and per share amounts for all periods presented in the accompanying consolidated financial statements and notes thereto have been adjusted retroactively, where applicable, to reflect this forward stock split and adjustment of the convertible preferred stock conversion ratios. Further, on July 9, 2018, the Company’s authorized shares of common stock were increased to 27,314,288. Accordingly, the authorized shares of common stock presented in the accompanying consolidated financial statements and notes thereto have been adjusted retroactively, where applicable, to reflect the newly authorized shares of common stock. Initial public offering On July 24, 2018, the Company completed an initial public offering (“IPO”) of its common stock and issued and sold 6,700,000 shares of common stock at a public offering price of $15.00 per share, resulting in net proceeds of $93,465 after deducting underwriting discounts and commissions but before deducting offering costs of $2,157. Upon closing of the IPO, the Company’s outstanding convertible preferred stock automatically converted into shares of common stock (see Note 8). Upon conversion of the convertible preferred stock, the Company reclassified the carrying value of the convertible preferred stock to common stock and additional paid-in capital. The warrant to purchase shares of the Company’s series seed convertible preferred stock was converted into a warrant to purchase shares of the Company’s common stock upon the closing of the IPO. As a result, the warrant liability was remeasured a final time on the closing date of the IPO and reclassified to stockholders’ equity. Additionally, the Company repurchased 26,258 shares of class A common stock at a price equal to its par value upon the closing of the IPO. On July 30, 2018, the Company issued and sold an additional 707,936 shares of its common stock at the IPO price of $15.00 per share pursuant to the underwriters’ partial exercise of their option to purchase additional shares of common stock, resulting in additional net proceeds of $9,876 after deducting discounts and commissions and other offering expenses. Also, in connection with the completion of its IPO on July 24, 2018, the Company filed an amended and restated certificate of incorporation with the Secretary of State of the State of Delaware to authorize the issuance of up to 150,000,000 shares of common stock, par value $0.001 per share, and 10,000,000 shares of undesignated preferred stock, par value $0.001 per share. Basis of presentation The accompanying consolidated financial statements have been prepared on the basis of continuity of operations, realization of assets and the satisfaction of liabilities and commitments in the ordinary course of business. The Company has incurred recurring losses since its inception, including net losses of $11,139 and $6,461 for the three months ended September 30, 2019 and 2018, respectively and net losses of $20,647 and $16,505 for the six months ended September 30, 2019 and 2018, respectively. In addition, as of September 30, 2019, the Company had an accumulated deficit of $80,320. The Company expects to continue to generate operating losses for the foreseeable future. As of November 12, 2019, the issuance date of these consolidated financial statements, the Company expects that its cash and cash equivalents and short-term investments will be sufficient to fund its operating expenses and capital expenditure requirements through at least 12 months from the issuance of the condensed consolidated financial statements. The future viability of the Company beyond that point is dependent on its ability to raise additional capital to finance its operations. If the Company is unable to obtain funding it could be forced to delay, reduce or eliminate some or all of its research and development programs, product portfolio expansion or commercialization efforts, which could adversely affect its business prospects, or it may be unable to continue operations. Although management continues to pursue these plans, there is no assurance that the Company will be successful in obtaining sufficient funding on terms acceptable to the Company to fund continuing operations, if at all.

Summary of significant accounting policies

6 Months Ended

Sep. 30, 2019

Summary of significant accounting policies

Summary of significant accounting policies

2. Summary of significant accounting policies

Principles of consolidation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, and include the accounts of the Company and its wholly owned subsidiaries, Replimune UK, Replimune US and Replimune Securities Corporation, after elimination of all intercompany accounts and transactions. The consolidated financial statements reflect the capital as if Replimune Group, Inc. had been in existence for all periods presented.

Use of estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of expenses during the reporting periods. Significant estimates and assumptions reflected in these consolidated financial statements include, but are not limited to, the accrual for research and development expenses and the valuation of common stock and stock‑based awards. The Company bases its estimates on historical experience, known trends and other market‑specific or other relevant factors that it believes to be reasonable under the circumstances. Estimates are periodically reviewed in light of reasonable changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates or assumptions.

Unaudited interim financial information

The accompanying consolidated balance sheet as of September 30, 2019, the consolidated statements of operations, of comprehensive loss and of convertible preferred stock and stockholders’ equity for the three and six months ended September 30, 2019 and 2018 and the consolidated statements of cash flows for the six months ended September 30, 2019 and 2018 are unaudited. The unaudited interim consolidated financial statements have been prepared on the same basis as the audited annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of the Company’s financial position as of September 30, 2019 and the results of its operations for the three and six months ended September 30, 2019 and 2018. The financial data and other information disclosed in these consolidated notes related to the three and six months ended September 30, 2019 and 2018 are unaudited. The results for the three and six months ended September 30, 2019 are not necessarily indicative of results to be expected for the year ending March 31, 2020, any other interim periods or any future year or period. The financial information included herein should be read in conjunction with the financial statements and notes in the Company's Annual Report on Form 10-K for the year ended March 31, 2019.

During the three and six months ended September 30, 2019, there have been no changes to the Company’s significant accounting policies as described in the Company's Annual Report on Form 10-K for the year ended March 31, 2019, except as described below.

Debt Issuance Costs

Debt issuance costs consist of payments made to secure commitments under certain debt financing arrangements. These amounts are recognized as interest expense over the period of the financing arrangement using the effective interest method. If the financing arrangement is canceled or forfeited, or if the utility of the arrangement to the Company is otherwise compromised, these costs are recognized as interest expense immediately. The Company's condensed consolidated financial statements present debt issuance costs related to a recognized debt liability as a direct reduction from the carrying amount of that debt liability.

Recently Adopted Accounting Pronouncements

In June 2018, the FASB issued Accounting Standards Updates (“ASU” ) No. 2018-07, Compensation — Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”). ASU 2018-17 expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. ASU 2018-17 also clarifies that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Revenue from Contracts with Customers (Topic 606). The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. Early adoption is permitted. The Company adopted ASU 2018-17 on April 1, 2019. The adoption of ASU 2018-17 did not have a material impact on the Company’s consolidated financial statements.

In July 2017, the FASB issued ASU No. 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815) I. Accounting for Certain Financial Instruments with Down Round Features II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception (“ASU 2017-11”). Part I applies to entities that issue financial instruments such as warrants, convertible debt or convertible preferred stock that contain down-round features. Part II replaces the indefinite deferral for certain mandatorily redeemable noncontrolling interests and mandatorily redeemable financial instruments of nonpublic entities contained within Accounting Standards Codification (“ASC”) Topic 480 with a scope exception and does not impact the accounting for these mandatorily redeemable instruments. ASU 2017-11 is required to be adopted for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted ASU 2017-11 on April 1, 2019. The adoption of ASU 2017-11 did not have a material impact on the Company’s consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02 ("ASU 2016-02"), Leases (Topic 842), which supersedes FASB Topic 840, Leases (Topic 840) and provides principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases. In January 2018, the FASB issued ASU 2018-01, Leases (Topic 842) Land Easement Practical Expedient for Transition to Topic 842, which amends ASU 2016-02 to provide entities an optional transition practical expedient to not evaluate under Topic 842 existing or expired land easements that were not previously accounted for as leases under the current leases guidance in Topic 842. An entity that elects this practical expedient should evaluate new or modified land easements under Topic 842 beginning at the date that the entity adopts Topic 842. In July 2018, the FASB also issued ASU 2018-11, Leases (Topic 842): Targeted Improvements, which provides an optional transition method that allows entities to elect to apply the standard prospectively at its effective date, versus recasting the prior periods presented.

The Company adopted ASU 2016-02, as amended, on April 1, 2019, which supersedes the current leasing guidance and upon adoption, requires lessees to recognize right-to-use assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. Upon the adoption of the guidance, operating leases are capitalized on the balance sheet at the present value of lease payments. The balance sheet amount recorded for existing leases at the date of adoption of ASU 2016-02 was calculated using the applicable incremental borrowing rate at the date of adoption.

The Company adopted ASU 2016-02, including several practical expedients on April 1, 2019. The Company elected the available package of practical expedients, which allows the Company to not reassess previous accounting conclusions around whether arrangements are or contain leases, the classification of leases, and the treatment of initial direct costs. The Company also made an accounting policy election to utilize the short-term lease exemption, whereby leases with a term of 12 months or less will not follow the recognition and measurement requirements of the new standard. Upon adoption, the Company recognized total right-of-use assets of $789, with corresponding liabilities of $837 on the consolidated balance sheets. Additionally, the Company derecognized $11,514 of construction in progress assets and $6,561 of financing obligations and recorded long term prepaid rent of $5,006 on the consolidated balance sheet (see Note 12).

The following table summarizes the financial impact on the Company’s condensed consolidated balance sheet upon the adoption of ASU 2016-02 and the cumulative effect adjustment on April 1, 2019:


	March 31, 2019		Adjustments		April 1, 2019
Property, plant, and equipment, net	$	12,159	$	(11,514)	$	645
Right-to-use asset		—		789		789
Long term prepaid rent		—		5,006		5,006
Lease liabilities, current		—		388		388
Lease liabilities, non-current		—		449		449
Accrued expenses		2,801		(24)		2,777
Deferred rent, net of current portion		24		(24)		—
Financing obligation		6,561		(6,561)		—
Accumulated deficit	$	(59,766)	$	93	$	(59,673)

Recently Issued Accounting Pronouncements

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). The amendments in this ASU require certain existing disclosure requirements in Topic 820 to be modified or removed, and certain new disclosure requirements to be added to the Topic. In addition, this ASU allows entities to exercise more discretion when considering fair value measurement disclosures. ASU 2018-13 will be effective for the Company beginning April 1, 2020 with early adoption permitted. The Company is in the process of evaluating the impact of ASU 2018-13 on its consolidated financial statements and disclosures.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326). The standard changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. Financial assets measured at amortized cost will be presented at the net amount expected to be collected by using an allowance for credit losses. In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, which clarifies and corrects certain unintended applications of the guidance contained in each of the amended Topics. Additionally, in May 2019, the FASB issued ASU No. 2019-05, Financial Instruments – Credit Losses (Topic 326), which provides an option to irrevocably elect to measure certain individual financial assets at fair value instead of amortized cost. The standard is effective for fiscal years and interim periods beginning after December 15, 2019. Early adoption is permitted for all periods beginning after December 15, 2018. The Company is currently in the process of evaluating the impact the standard will have on its consolidated financial statements.

Fair value of financial assets and liabilities

6 Months Ended

Sep. 30, 2019

Fair value of financial assets and liabilities

Fair value of financial assets and liabilities

3. Fair value of financial assets and liabilities

The following tables present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis:


	Fair Value Measurements as of
	September 30, 2019 Using:
	Level 1		Level 2		Level 3		Total
Assets
Money market funds	$	—	$	21,119	$	—	$	21,119
Commercial paper		—		29,799		—		29,799
US Government Agency bonds		—		3,999		—		3,999
US Treasury bonds		—		13,235		—		13,235
Corporate debt securities		—		9,548		—		9,548
	$	—	$	77,700	$	—	$	77,700


	Fair Value Measurements as of
	March 31, 2019 Using:
	Level 1		Level 2		Level 3		Total
Assets
Money market funds	$	—	$	2,676	$	—	$	2,676
Commercial paper		—		46,687		—		46,687
US Government Agency bonds		—		20,884		—		20,884
US Treasury bonds		—		41,057		—		41,057
Corporate debt securities		—		8,467		—		8,467
	$	—	$	119,771	$	—	$	119,771

During the three and six months ended September 30, 2019 and 2018, there were no transfers between levels.

Valuation of cash equivalents and short‑term investments

Money market funds, commercial paper, US Government Agency bonds, US Treasury bonds and corporate debt securities were valued by the Company using quoted prices in active markets for similar securities, which represent a Level 2 measurement within the fair value hierarchy.

Valuation of Warrant Liability

The warrant liability is related to the warrants to purchase shares of series seed convertible preferred stock (see Note 8). The fair value of the warrant liability was determined based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy. Upon the closing of the IPO in July 2018, the warrant to purchase shares of the Company’s series seed convertible preferred stock was converted into a warrant to purchase shares of the Company’s common stock. As a result, the warrant liability was remeasured a final time on the closing date of the IPO and reclassified to stockholders’ equity.

The Company used the Black-Scholes option-pricing model, which incorporated assumptions and estimates, to value the warrant liability. Key estimates and assumptions impacting the fair value measurement include (i) the expected term of the warrants, (ii) the risk-free interest rate, (iii) the expected dividend yield, (iv) expected volatility of the price of the underlying series seed convertible preferred stock and (v) the fair value of the series seed convertible preferred stock on the valuation date. The Company estimated the fair value per share of the underlying series seed convertible preferred stock based, in part, on the results of third-party valuations and additional factors deemed relevant. The risk-free interest rate was determined by reference to the U.S. Treasury yield curve for time periods approximately equal to the remaining contractual term of the warrants. The Company estimated a 0% expected dividend yield based on the fact that the Company has never paid or declared dividends and does not intend to do so in the foreseeable future. Prior to July 2018, the Company was a private company and accordingly, lacked company-specific historical and implied volatility information of its stock, the expected stock volatility was based on the historical volatility of publicly traded peer companies for a term equal to the remaining expected term of the warrants.

Based on the terms and conditions of the warrant, upon closing of the Company’s IPO in July 2018, the warrant to purchase shares of the Company’s series seed convertible preferred stock was converted into a warrant to purchase shares of the Company’s common stock. On that date, the Company remeasured the warrant liability to fair value and reclassified the total carrying value to additional paid-in capital. The Company performed the final remeasurement of the warrant liability using the IPO price of $15.00 per share and recorded the change in fair value as a component of total other income (expense), net in the consolidated statement of operations.

The following assumptions were used to measure the fair market value of the warrant liability upon the conversion date:


	Six Months
	Ended
	September 30,
	2018
Risk-free interest rate		2.81	%
Expected dividend yield		0	%
Expected term (in years)		7.2
Expected volatility		64.4	%
Fair value of series seed preferred stock	$	15.00

The following table presents a roll forward of the warrant liability:


	Warrant
	Liability
Balance at March 31, 2018	$	1,642
Change in fair value		5,452
Conversion of convertible preferred stock warrant into common stock warrant		(7,094)
Balance at September 30, 2018	$	—

- 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 + Details

Short-term investments

6 Months Ended

Sep. 30, 2019

Short-term investments

Short-term investments

4. Short‑term investments

Short‑term investments by investment type consisted of the following:


	September 30, 2019
	Amortized		Gross unrealized		Gross unrealized
	cost		gains		losses		Fair value
Commercial paper	$	29,774	$	27	$	(2)	$	29,799
US Government agency bonds		3,997		2		—		3,999
US Treasury bonds		13,228		7		—		13,235
Corporate debt securities		9,542		6		—		9,548
	$	56,541	$	42	$	(2)	$	56,581


	March 31, 2019
	Amortized		Gross unrealized		Gross unrealized
	cost		gains		losses		Fair value
Commercial paper	$	46,687	$	2	$	(2)	$	46,687
US Government agency bonds		15,889		4		—		15,893
US Treasury bonds		38,047		13		—		38,060
Corporate debt securities		8,469		—		(2)		8,467
	$	109,092	$	19	$	(4)	$	109,107

Property, plant and equipment, net

6 Months Ended

Sep. 30, 2019

Property, plant and equipment, net

Property, plant and equipment, net

5. Property, plant and equipment, net


	September 30,		March 31,
	2019		2019
Construction in progress	$	3,014		124
Plant and laboratory equipment		650		584
Leasehold improvements		154	$	154
Computer equipment		149		138
Office equipment		49		49
Build-to-suit lease asset		—		11,514
		4,016		12,563
Less: Accumulated depreciation and amortization		(488)		(404)
	$	3,528	$	12,159

Depreciation and amortization expense was $42 and $84 for the three and six months ended September 30, 2019, respectively, and $36 and $69 for the three and six months ended September 30, 2018, respectively.

Build-to-suit lease asset, as of March 31, 2019, included $11,514 capitalized in connection with the Company's build-to-suit lease accounting. Upon transition to ASC 842, the Company determined that it did not control the build-to-suit lease asset and the arrangement has been accounted for under ASC 842 guidance. Upon the adoption of ASC 842, the Company derecognized $11,514 of construction in progress and $6,561 of financing obligations and recorded long term prepaid rent of $5,006 on the consolidated balance sheet (see Note 12).

Accrued expenses and other current liabilities

6 Months Ended

Sep. 30, 2019

Accrued expenses and other current liabilities.

Accrued expenses and other current liabilities

6. Accrued expenses and other current liabilities

Accrued expenses and other current liabilities consisted of the following:


	September 30,		March 31,
	2019		2019
Accrued research and development costs	$	1,080	$	530
Accrued compensation and benefits costs		1,187		1,510
Accrued professional fees		477		464
Deferred rent		—		24
Other		608		273
	$	3,352	$	2,801

Long-Term Debt

6 Months Ended

Sep. 30, 2019

Long-Term Debt

Long-Term Debt

7. Long-Term Debt

Long-term debt consisted of the following:


	September 30,
	2019
Principal amount of long-term debt	$	10,000
Unamortized debt discount		(341)
Long-term debt, net of discount	$	9,659

Hercules Loan Agreement

On August 8, 2019, (the “Closing Date”) the Company and certain of its affiliates entered into a Loan and Security Agreement (the “Loan Agreement”) with Hercules Capital, Inc. (“Hercules”) pursuant to which Hercules agreed to make available to the Company a secured term loan facility in the amount of $30,000 (the “Term Loan Facility”), subject to certain terms and conditions. The Company borrowed $10,000 under the Loan Agreement in one advance as a single tranche Term Loan on the Closing Date upon which the Company paid a $225 facility charge and incurred $130 in additional closing and legal fees. The Company may borrow the unused $20,000 available under the Term Loan Facility in two separate advances. The second advance of up to $10,000 may be borrowed between January 1, 2020 and December 15, 2020 and the third advance of up to $10,000 may be borrowed between July 1, 2020 and June 30, 2021.

Advances under the Term Loan Facility bear interest at a rate per annum equal to the greater of either (i) the prime rate as reported in The Wall Street Journal plus 2.75%, and (ii) 8.75%. The Loan Agreement includes covenants, limitations, and events of default customary for similar facilities. The term of the Loan Agreement is four years, ending August 1, 2023.

Interest is payable on a monthly basis until March 1, 2022 (the “Amortization Date”). After the Amortization Date, payments shall consist of equal monthly installments of principal and interest payable until the secured obligations are repaid in full.

At any time the Company may prepay the principal of any advance pursuant to the terms of the Term Loan Facility subject to a prepayment charge equal to: 3.0%, if such advance is prepaid within the first twelve months following the Closing Date, 2.0%, if such advance is prepaid after twelve months but prior to twenty four months following the Closing Date, and 1.0%, if such advance is prepaid anytime thereafter. The Company will also pay a charge of equal to the product of 4.95% and the aggregate amount of any advance made pursuant to the terms of the Term Loan Facility.

The Term Loan Facility is secured by substantially all of the Company’s assets, but excluding its intellectual property, and subject to certain exceptions and exclusions.

The Loan Agreement contains customary covenants for transactions of this type and other covenants agreed to by the parties, including, among others, (i) the provision of delivery of annual and quarterly financial statements and insurance policies and restrictions on incurring debt, granting liens, making acquisitions, making loans, paying dividends, dissolving, and entering into leases and asset sales. The Loan Agreement also provides for customary events of default, including, among others, events of default relating to failure to make payment, bankruptcy, breach of covenants, breaches of representations and warranties, change of control, judgment and material adverse effects.

In connection with entering into the Hercules Loan Agreement the Company also paid Hercules $355 of upfront fees, including closing costs and legal fees associated with entering into the agreement, which were recorded as a debt discount. The debt discount is reflected as a reduction of the carrying value of long-term debt on the Company’s condensed consolidated balance sheet and is being amortized to interest expense over the term of the loan using the effective interest method.

The Company recognized aggregate interest expense under the Hercules Loan Agreement of $170 during the three and six months ended September 30, 2019, which included non-cash interest expense of $36 related to the accretion of the debt discount and the final payment. As of September 30, 2019, the unamortized debt discount was $341. The Company’s annual effective interest rate of the Hercules Loan Agreement was approximately 10.1% for the period from August 8, 2019 to September 30, 2019.

There were no principal payments due or paid under the Hercules Loan Agreement during the three and six months ended September 30, 2019.

Future payments of long-term debt, as of September 30, 2019 are as follows:


Future long-term debt payments:
2021	$	—
2022		527
2023		6,558
2024		2,915
2025		—
Total debt payments	$	10,000

Stockholders' Equity	6 Months Ended
Stockholders' Equity	Sep. 30, 2019
Stockholders' Equity
Stockholders' Equity	8. Stockholders’ Equity Common Stock As of September 30, 2019 and March 31, 2019, the Company’s certificate of incorporation, as amended and restated, authorized the Company to issue up to 150,000,000 shares of common stock, par value $0.001 per share. As of September 30, 2019 and March 31, 2019, the Company had reserved 8,394,310 and 6,873,744 shares of common stock for the exercise of outstanding stock options, the number of shares remaining available for grant under the Company's 2018 Omnibus Incentive Compensation Plan and the Company's Employee Stock Purchase Plan (see Note 9) and the exercise of the outstanding warrants to purchase shares of common, respectively. Undesignated Preferred Stock As of September 30, 2019 and March 31, 2019, the Company’s certificate of incorporation, as amended and restated, authorized the Company to issue up to 10,000,000 shares of undesignated preferred stock, par value $0.001 per share. There were no undesignated preferred shares issued or outstanding as of September 30, 2019 or March 31, 2019. Convertible Preferred Stock The Company has issued series seed convertible preferred stock (the “series seed preferred stock”), series A convertible preferred stock (the “series A preferred stock”) and series B convertible preferred stock (the “series B preferred stock”). The series seed preferred stock, series A preferred stock and series B preferred stock are collectively referred to as the “preferred stock.” In connection with the closing of the IPO, the preferred stock converted into 19,157,360 shares of common stock on a 1:9.94688 basis. There was no preferred stock outstanding as of September 30, 2019. Preferred Stock Warrants In connection with the issuance of the series seed preferred stock, the Company issued to the holders of the series seed preferred stock warrants for the purchase of 50,000 shares of series seed preferred stock, which became fully vested and exercisable in the year of issuance. The warrants to purchase shares of series seed preferred stock were issued at an exercise price of $10.00 per share and expire on the earlier of September 16, 2025 or a qualified change of control event. The issuance date fair value of the warrants to purchase shares of series seed preferred stock was $391 and was recorded as a liability with a corresponding reduction in the carrying value of the series seed preferred stock. The Company recognized a loss of $0 and $(2) and $0 and $(5,452) in change in fair value of warrant liability within total other income (expense), net in the consolidated statements of operations for the three and six months ended September 30, 2019 and 2018, respectively, related to the change in fair value of the warrant liability. Upon the closing of the Company’s IPO in July 2018, all outstanding convertible preferred stock was converted into common stock and the series seed preferred stock warrants became exercisable for 497,344 shares of common stock instead of series seed preferred stock. As a result, the warrant liability was remeasured a final time on the closing date of the IPO and reclassified to stockholders’ equity. ATM Program In August 2019, the Company entered into a Sales Agreement (the “Sales Agreement”) with SVB Leerink LLC (the “Agent”), pursuant to which the Company may sell, from time to time, at its option, up to an aggregate amount of $75,000 of shares of the Company’s common stock, $0.001 par value per share (the “Shares”), through the Agent, as the Company’s sales agent. Any Shares to be offered and sold under the Sales Agreement will be issued and sold (i) by methods deemed to be an “at the market offering” (“ATM”), as defined in Rule 415(a)(4) promulgated under the Securities Act of 1933, as amended or in negotiated transactions, if authorized by the Company and (ii) pursuant to, and only upon the effectiveness of, a registration statement on Form S-3 filed by the Company with the Securities and Exchange Commission on August 8, 2019 for an offering of up to $250,000 of various securities, including shares of the Company’s common stock, preferred stock, debt securities, warrants and/or units for sale to the public in one or more public offerings. Subject to the terms of the Sales Agreement, the Agent will use commercially reasonable efforts to sell the Shares from time to time, based upon the Company’s instructions (including any price, time or size limits or other customary parameters or conditions the Company may impose). The Company cannot provide any assurances that it will issue any Shares pursuant to the Sales Agreement. The Company will pay the Agent a commission of 3.0% of the gross proceeds from the sale of the Shares, if any. As of September 30, 2019, the Company has not made any sale under the Sale Agreement. In October and November 2019, the Company sold 287,559 shares of common stock for a gross proceeds of $4,568 less legal fees of $137 for net proceeds of $4,431 under the ATM program.

Stock-Based Compensation

6 Months Ended

Sep. 30, 2019

Stock-Based Compensation

Stock-Based Compensation

9. Stock‑Based Compensation

2015 Enterprise Management Incentive Share Option Plan

The 2015 Enterprise Management Incentive Share Option Plan of Replimune UK (the “2015 Plan”) provided for Replimune UK to grant incentive stock options, non‑statutory stock options, stock awards, stock units, stock appreciation rights and other stock‑based awards. Incentive stock options are granted only to the Company’s employees, including officers and directors who are also employees. Non‑statutory stock options are granted to employees, members of the board of directors, outside advisors and consultants of the Company.

2017 Equity Compensation Plan

In July 2017, in conjunction with the reorganization, the 2015 Plan was terminated, and all awards were cancelled with replacement awards issued under the 2017 Equity Compensation Plan (the “2017 Plan”). Subsequent to the reorganization, no additional grants will be made under the 2015 Plan and any outstanding awards under the 2015 Plan will continue with their original terms. The Company concluded that the cancellation of the 2015 Plan and issuance of replacement awards under the 2017 Plan was a modification with no change in the material rights and preferences and therefore no recorded change in the fair value of each respective award.

The Company’s 2017 Plan provides for the Company to grant incentive stock options or non‑statutory stock options, stock awards, stock units, stock appreciation rights and other stock‑based awards. Incentive stock options may be granted only to the Company’s employees, including officers and directors who are also employees. Restricted stock awards and non‑statutory stock options may be granted to employees, officers, members of the board of directors, advisors and consultants of the Company. The maximum number of common shares that may be issued under the 2017 Plan was 2,659,885 as of September 30, 2019, of which 0 remained available for future grants as of September 30, 2019. Shares with respect to which awards have expired, terminated, surrendered or cancelled under the 2017 Plan without having been fully exercised will be available for future awards under the 2018 Plan. In addition, shares of common stock that are tendered to the Company by a participant to exercise an award are added to the number of shares of common stock available for the grant of awards.

2018 Omnibus Incentive Compensation Plan

On July 9, 2018, the Company’s board of directors adopted, and the Company’s stockholders approved, the 2018 Omnibus Incentive Compensation Plan (the “2018 Plan”), which became effective immediately prior to the effectiveness of the registration statement for the Company’s IPO. The 2018 Plan provides for the issuance of incentive stock options, non-qualified stock options, stock awards, stock units, stock appreciation rights and other stock-based awards. The number of shares initially reserved for issuance under the 2018 Plan is 3,617,968 shares, which is equal to the sum of (i) 3,486,118 shares of the Company’s common stock, plus (ii) the number of shares of the Company’s common stock reserved for issuance under the 2017 Plan that remain available as of the effective date of the 2018 Plan (not to exceed 131,850 shares of the Company’s common stock). If any options or stock appreciation rights, including outstanding options and stock appreciation rights granted under the 2017 Plan (up to 2,520,247 shares), terminate, expire, or are canceled, forfeited, exchanged, or surrendered without having been exercised, or if any stock awards, stock units or other stock-based awards, including outstanding awards granted under the 2017 Plan, are forfeited, terminated, or otherwise not paid in full in shares of common stock, the shares of the Company’s common stock subject to such grants will be available for purposes of our 2018 Plan. On April 1, 2019, the number of shares reserved for issuance under the 2018 Plan automatically increased by 1,266,370 shares pursuant to the terms of the 2018 Plan. As of September 30, 2019, 2,492,426 shares remained available for future grants under the 2018 Plan.

The 2015 Plan, the 2017 Plan and the 2018 Plan was administered by the board of directors or, at the discretion of the board of directors, by a committee of the board of directors. However, the board of directors shall administer and approve all grants made to non-employee directors. The exercise prices, vesting and other restrictions are determined at the discretion of the board of directors, except that the exercise price per share of incentive stock options may not be less than 100% of the fair market value of the common stock on the date of grant (or 110% of fair value in the case of an award granted to employees who hold more than 10% of the total combined voting power of all classes of stock at the time of grant) and the term of stock options may not be greater than five years for an incentive stock option granted to a 10% stockholder and greater than ten years for all other options granted. Stock options awarded under both plans expire ten years after the grant date, unless the board of directors sets a shorter term. Vesting periods for both plans are determined at the discretion of the board of directors. Incentive stock options granted to employees and non-statutory options granted to employees, officers, members of the board of directors, advisors, and consultants of the Company typically vest over four years.

Employee Stock Purchase Plan

On July 9, 2018, the Company’s board of directors adopted and the Company’s stockholders approved the Employee Stock Purchase Plan (the “ESPP”), which became effective immediately prior to the effectiveness of the registration statement for the Company’s IPO. The total shares of common stock initially reserved for issuance under the ESPP is limited to 348,612 shares. In addition, as of the first trading day of each fiscal year during the term of the ESPP (excluding any extensions), an additional number of shares of the Company’s common stock equal to 1% of the total number of shares outstanding on the last trading day in the immediately preceding fiscal year or 697,224 shares, whichever is less (or such lesser amount as determined by the Company’s board of directors) will be added to the number of shares authorized under the ESPP. In accordance, on April 1, 2019, the number of shares reserved for issuance under the ESPP automatically increased by 316,592 shares, for a total of 665,204 shares reserved for the ESPP. If the total number of shares of common stock to be purchased pursuant to outstanding purchase rights on any particular date exceed the number of shares then available for issuance under the ESPP, then the plan administrator will allocate the available shares pro-rata and refund any excess payroll deductions or other contributions to participants.

Stock option valuation

The fair value of stock option grants is estimated using the Black-Scholes option-pricing model. The Company lacks company- specific historical and implied volatility information. Therefore, it estimated its expected stock volatility based on the historical volatility of a publicly traded set of peer companies. For options with service-based vesting conditions, the expected term of the Company’s stock options has been determined utilizing the “simplified” method for awards that qualify as “plain-vanilla” options. The expected term of stock options granted to non-employees is equal to the contractual term of the option award. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. Expected dividend yield is based on the fact that the Company has never paid cash dividends and does not expect to pay any cash dividends in the foreseeable future.

The following table presents, on a weighted-average basis, the assumptions that the Company used to determine the grant-date fair value of stock options granted to employees and directors:


	Three Months Ended				Six Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
Risk-free interest rate	1.68	%	2.83	%	2.30	%	2.83	%
Expected term (in years)	6.1		6.1		6.0		6.1
Expected volatility	70.2	%	61.5	%	71.4	%	61.5	%
Expected dividend yield	0	%	0	%	0	%	0	%

Stock options

The following table summarizes the Company’s stock option activity:


		Weighted		Weighted
		Average		Average	Aggregate
	Number of	Exercise		Contractual	Intrinsic
	Shares	Price		Term (Years)	Value
Outstanding as of March 31, 2019	3,721,784	$	7.14	8.61	$	30,150
Granted	1,200,035		15.22	9.54
Exercised	(62,396)		1.97
Cancelled	(120,087)		10.91
Outstanding as of September 30, 2019	4,739,336		9.16	8.36	$	25,610
Options exercisable as of March 31, 2019	1,278,330	$	2.51	7.75	$	16,249
Options exercisable as of September 30, 2019	1,836,004		4.90	7.59	$	16,930

The aggregate intrinsic value of stock options is calculated as the difference between the exercise price of the stock options and the fair value of the Company’s common stock for those stock options that had exercise prices lower than the fair value of the Company’s common stock.

The total fair value of options vested during the three and six months ended September 30, 2019 was $3,206 and $3,417, respectively. The total fair value of options vested during the three and six months ended September 30, 2018 was $785 and $830, respectively. As of September 30, 2019, there were no outstanding unvested service‑based stock options held by non‑employees.

Stock‑Based Compensation

Stock‑based compensation expense was classified in the consolidated statements of operations as follows:


	Three Months Ended				Six Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
Research and development	$	815	$	389	$	1,656	$	515
General and administrative		966		329		1,935		428
	$	1,781	$	718	$	3,591	$	943

As of September 30, 2019, total unrecognized compensation cost related to the unvested stock‑based awards was $19,185, which is expected to be recognized over a weighted average period of 2.22 years.

Net loss per share

6 Months Ended

Sep. 30, 2019

Net loss per share

Net loss per share

10. Net loss per share

Basic and diluted net loss per share attributable to common stockholders was calculated as follows:


	Three Months Ended				Six Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
Numerator:
Net loss attributable to common stockholders	$	(11,139)	$	(6,461)	$	(20,647)	$	(16,505)
Denominator:

CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (Parenthetical) $ in Thousands	3 Months Ended
	Sep. 30, 2018 USD ($)
Common stock
Issuance costs and underwriter fees	$ 9,935