0000950170-21-001789 | 10-Q | XBRL Viewer | Rani Therapeutics Holdings INC

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2021	Sep. 10, 2021
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Registrant Name	RANI THERAPEUTICS HOLDINGS, INC.
Entity Central Index Key	0001856725
Entity File Number	001-40672
Entity Tax Identification Number	86-3114789
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	2051 Ringwood Avenue
Entity Address, City or Town	San Jose
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95131
City Area Code	408
Local Phone Number	457-3700
Title of 12(b) Security	Class A common stock, par value $0.0001 per share
Trading Symbol	RANI
Security Exchange Name	NASDAQ
Document Quarterly Report	true
Document Transition Report	false
Common Class A [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		1,545,811
Common Class B [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		29,290,391
Common Class C [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		0

CONDENSED BALANCE SHEET - USD ($) $ in Thousands	Jun. 30, 2021	Apr. 19, 2021
Assets:
Total assets	$ 77,321
Commitments and contingencies
Rani Therapeutics Holdings Inc. [Member]
Assets:
Cash	10	$ 10
Total assets	10	10
Commitments and contingencies
Stockholder’s Equity:
Common stock, $0.0001 par value per share, 1,000 shares authorized, issued and outstanding at June 30, 2021 and April 19, 2021	0	0
Additional paid-in-capital	10	10
Total stockholder’s equity	$ 10	$ 10

- Definition

Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (SX 210.4-08(g)(1)(ii))
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References + Details

CONDENSED BALANCE SHEET (Parenthetical) - Rani Therapeutics Holdings Inc. [Member] - $ / shares	Jun. 30, 2021	Apr. 19, 2021	Apr. 06, 2021
Common stock, par value	$ 0.0001	$ 0.0001	$ 0.0001
Common stock, shares authorized	1,000	1,000	1,000
Common stock, shares issued	1,000	1,000
Common stock, shares outstanding	1,000	1,000

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 69,314	$ 73,058
Related party note receivable	0	1,720
Prepaid expenses	165	167
Total current assets	69,479	74,945
Deferred financing costs	3,412	0
Property and equipment, net	4,430	4,470
Total assets	77,321	79,415
Current liabilities:
Accounts payable	1,667	537
Related party payable	883	145
Accrued expenses	2,921	550
Deferred revenue	0	2,717
Current portion of long-term debt	3,884	1,359
Total current liabilities	9,355	5,308
Preferred unit warrant liability	606	320
Long-term debt, less current portion	0	2,412
Total liabilities	9,961	8,040
Commitments and contingencies
Convertible preferred units, 32,620,000 units authorized, and 27,629,804 and 26,745,528 units issued and outstanding at June 30, 2021 and December 31, 2020, respectively	191,034	184,714
Members’ deficit:
Common units, 101,000,000 units authorized, and 46,890,280 and 46,890,280 units issued and outstanding at June 30, 2021 and December 31, 2020, respectively	1,412	664
Accumulated deficit	(125,086)	(114,003)
Total members’ deficit	(123,674)	(113,339)
Total liabilities, convertible preferred units and members’ deficit	$ 77,321	$ 79,415

Condensed Consolidated Balance Sheets (Parenthetical) - shares	Jun. 30, 2021	Dec. 31, 2020
Statement Of Financial Position [Abstract]
Preferred units, authorized	32,620,000	32,620,000
Preferred units, issued	27,629,804	26,745,528
Preferred units, outstanding	27,629,804	26,745,528
Common units, authorized	101,000,000	101,000,000
Common units, issued	46,896,280	46,890,280
Common units, outstanding	46,896,280	46,890,280

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Contract revenue	$ 1,961	$ 60	$ 2,717	$ 143
Operating expenses
Research and development	3,759	2,558	7,106	6,618
General and administrative	3,460	892	6,067	2,299
Total operating expenses	7,219	3,450	13,173	8,917
Loss from operations	(5,258)	(3,390)	(10,456)	(8,774)
Other income (expense), net
Interest income	13	12	60	74
Interest expense and other, net	(169)	(2)	(357)	(2)
Change in estimated fair value of preferred unit warrant	(70)	672	(286)	655
Loss before income taxes	(5,484)	(2,708)	(11,039)	(8,047)
Income tax expense	(1)	(6)	(44)	(17)
Net loss and comprehensive loss	$ (5,485)	$ (2,714)	$ (11,083)	$ (8,064)
Net loss per unit, basic and diluted	$ (0.12)	$ (0.06)	$ (0.24)	$ (0.17)
Weighted-average common units outstanding—basic and diluted	46,896,280	46,890,280	46,896,081	46,890,280

Condensed Consolidated Statements of Changes in Convertible Preferred Units and Member's Deficit (Unaudited) - USD ($) $ in Thousands	Total	Secondary Sales Transactions	Convertible Preferred [Member]	Common [Member]	Common [Member] Secondary Sales Transactions	Accumulated Deficit [Member]	Accumulated Deficit [Member] Secondary Sales Transactions
Temporary Equity, Beginning Balance at Dec. 31, 2019			$ 115,505
Temporary Equity, Beginning Balance (in units) at Dec. 31, 2019			17,084,696
Beginning Balance at Dec. 31, 2019	$ (96,636)			$ 664		$ (97,300)
Beginning Balance (in units) at Dec. 31, 2019				46,890,280
Net loss	(5,350)					(5,350)
Temporary Equity, Ending Balance at Mar. 31, 2020			$ 115,505
Temporary Equity, Ending Balance (in units) at Mar. 31, 2020			17,084,696
Ending Balance at Mar. 31, 2020	(101,986)			$ 664		(102,650)
Ending Balance (in units) at Mar. 31, 2020				46,890,280
Temporary Equity, Beginning Balance at Dec. 31, 2019			$ 115,505
Temporary Equity, Beginning Balance (in units) at Dec. 31, 2019			17,084,696
Beginning Balance at Dec. 31, 2019	(96,636)			$ 664		(97,300)
Beginning Balance (in units) at Dec. 31, 2019				46,890,280
Net loss	(8,064)
Temporary Equity, Ending Balance at Jun. 30, 2020			$ 115,505
Temporary Equity, Ending Balance (in units) at Jun. 30, 2020			17,084,696
Ending Balance at Jun. 30, 2020	(104,700)			$ 664		(105,364)
Ending Balance (in units) at Jun. 30, 2020				46,890,280
Temporary Equity, Beginning Balance at Mar. 31, 2020			$ 115,505
Temporary Equity, Beginning Balance (in units) at Mar. 31, 2020			17,084,696
Beginning Balance at Mar. 31, 2020	(101,986)			$ 664		(102,650)
Beginning Balance (in units) at Mar. 31, 2020				46,890,280
Net loss	(2,714)					(2,714)
Temporary Equity, Ending Balance at Jun. 30, 2020			$ 115,505
Temporary Equity, Ending Balance (in units) at Jun. 30, 2020			17,084,696
Ending Balance at Jun. 30, 2020	(104,700)			$ 664		(105,364)
Ending Balance (in units) at Jun. 30, 2020				46,890,280
Temporary Equity, Beginning Balance at Dec. 31, 2020			$ 184,714
Temporary Equity, Beginning Balance (in units) at Dec. 31, 2020			26,745,528
Beginning Balance at Dec. 31, 2020	(113,339)			$ 664		(114,003)
Beginning Balance (in units) at Dec. 31, 2020				46,890,280
Issuance of Series E preferred units			$ 6,320
Issuance of Series E preferred units (in units)			884,276
Exercise of warrant for common units	13			$ 13		0
Exercise of warrant for common units (in units)				6,000
Equity-based compensation		$ 453			$ 453		$ 0
Net loss	(5,598)			$ 0		(5,598)
Temporary Equity, Ending Balance at Mar. 31, 2021			$ 191,034
Temporary Equity, Ending Balance (in units) at Mar. 31, 2021			27,629,804
Ending Balance at Mar. 31, 2021	(118,471)			$ 1,130		(119,601)
Ending Balance (in units) at Mar. 31, 2021				46,896,280
Temporary Equity, Beginning Balance at Dec. 31, 2020			$ 184,714
Temporary Equity, Beginning Balance (in units) at Dec. 31, 2020			26,745,528
Beginning Balance at Dec. 31, 2020	(113,339)			$ 664		(114,003)
Beginning Balance (in units) at Dec. 31, 2020				46,890,280
Net loss	(11,083)
Temporary Equity, Ending Balance at Jun. 30, 2021			$ 191,034
Temporary Equity, Ending Balance (in units) at Jun. 30, 2021			27,629,804
Ending Balance at Jun. 30, 2021	(123,674)			$ 1,412		(125,086)
Ending Balance (in units) at Jun. 30, 2021				46,896,280
Temporary Equity, Beginning Balance at Mar. 31, 2021			$ 191,034
Temporary Equity, Beginning Balance (in units) at Mar. 31, 2021			27,629,804
Beginning Balance at Mar. 31, 2021	(118,471)			$ 1,130		(119,601)
Beginning Balance (in units) at Mar. 31, 2021				46,896,280
Equity-based compensation	282			$ 282		0
Net loss	(5,485)			0		(5,485)
Temporary Equity, Ending Balance at Jun. 30, 2021			$ 191,034
Temporary Equity, Ending Balance (in units) at Jun. 30, 2021			27,629,804
Ending Balance at Jun. 30, 2021	$ (123,674)			$ 1,412		$ (125,086)
Ending Balance (in units) at Jun. 30, 2021				46,896,280

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities
Net loss	$ (11,083)	$ (8,064)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	264	303
Equity-based compensation expense	735	0
Change in fair value of preferred unit warrant liability	286	(655)
Other	124	0
Changes in operating assets and liabilities:
Prepaid expenses and other assets	2	(79)
Accounts receivable	0	(3,000)
Related party receivable	0	(15)
Accounts payable	421	1,662
Accrued expenses	1,554	(310)
Related party payable	738	(1,629)
Deferred revenue	(2,717)	2,857
Net cash used in operating activities	(9,676)	(8,930)
Cash flows from investing activities
Purchases of property and equipment	(235)	(944)
Net cash used in investing activities	(235)	(944)
Cash flows from financing activities
Proceeds from issuance of preferred units, net of issuance costs	6,320	0
Proceeds from exercise of warrants for common units	13	0
Proceeds from the Paycheck Protection Program Loan	0	1,254
Payment of deferred financing costs	(1,885)	0
Principal and interest repayments from related party for note receivable	1,720	0
Net cash provided by financing activities	6,167	1,254
Net decrease in cash and cash equivalents	(3,744)	(8,620)
Cash and cash equivalents, beginning of year	73,058	16,536
Cash and cash equivalents, end of year	69,314	7,916
Supplemental disclosures of cash flow information
Cash paid for interest	170	0
Supplemental disclosures of non-cash investing and financing activities
Property and equipment purchases included in accounts payable and accrued expenses	0	185
Deferred financing costs included in accounts payable and accrued expenses	$ 1,527	$ 0

Organization	6 Months Ended
Organization	Jun. 30, 2021
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Organization	1. Organization and Nature of Business Description of Business Rani Therapeutics, LLC (“Rani” or the “Company”) is a clinical stage biotherapeutics company advancing technologies to enable the development of orally administered biologics. The Company has developed the RaniPill capsule, which is a novel, proprietary and patented platform technology, intended to replace subcutaneous or intravenous injection of biologics with oral dosing. The Company was organized under the laws of the State of California in February 2012, as a limited liability company. The Company is managed by a board of managers (“Board of Managers”) as prescribed by its operating agreement. The Company formed a wholly-owned subsidiary, Rani Management Services, Inc. (“RMS”) in November 2019. The Company is headquartered in San Jose, California and operates in one segment. Up to December 31, 2019, Rani maintained no employees of its own and contracted with InCube Labs, LLC (“ICL”), the majority common unit holder of the Company and a related party, to provide research, development and administrative services. ICL and Rani have common management and interest holders and, in the course of performing under the terms of the service agreements, ICL employees acted on behalf of Rani. Effective January 1, 2020, the ICL personnel that were substantially dedicated to providing services to Rani were hired by RMS as full-time employees (see Note 6). Rani Therapeutics Holdings, Inc. (“Rani Holdings”) was incorporated in April 2021 for the purpose of facilitating an initial public offering in order to carry on the Company’s business. In August 2021, Rani Holdings closed its initial public offering (the “Offering” or "IPO") of 7,666,667 million shares of Class A common stock, including shares issued pursuant to the exercise in full of the underwriters’ option, for cash consideration of $11.00 per share and received approximately $73.7 million in net proceeds, after deducting underwriting discounts, offering costs and commissions. In connection with the Offering, Rani Holdings became a holding company and its principal asset is the Class A common units of Rani that it owns. As the sole managing member of the Company, Rani Holdings operates and controls all of the Company’s operations, and through Rani and its subsidiary, conducts all of Rani’s business. Liquidity The Company has incurred recurring losses since its inception, including net losses of $11.1 million for the six months ended June 30, 2021. As of June 30, 2021, the Company had an accumulated deficit of $125.1 million and for the six months ended June 30, 2021 had negative cash flows from operations of $9.7 million. The Company expects to continue to generate operating losses and negative operating cash flows for the foreseeable future as it continues to develop the RaniPill capsule. The Company expects that its cash and cash equivalents of $69.3 million as of June 30, 2021 and net proceeds of $73.7 million from the Offering will be sufficient to fund its operations through at least one year from the date the condensed consolidated financial statements are issued. The Company expects to finance its future operations with its existing cash and through strategic financing opportunities that could include, but are not limited to, future offerings of its equity, collaboration or licensing agreements, or the incurrence of debt. However, there is no guarantee that any of these strategic or financing opportunities will be executed or realized on favorable terms, if at all, and some could be dilutive to existing stockholders and holders of interests in the Company. The Company will not generate any revenue from product sales unless, and until, it successfully completes clinical development and obtains regulatory approval for the RaniPill capsule. If the Company obtains regulatory approval for the RaniPill capsule, it expects to incur significant expenses related to developing its internal commercialization capability to support manufacturing, product sales, marketing, and distribution. The Company’s ability to raise additional capital through either the issuance of equity or debt, is dependent on a number of factors including, but not limited to, the demand for the Company, which itself is subject to a number of development and business risks and uncertainties, as well as the uncertainty that the Company would be able to raise such additional capital at a price or on terms that are favorable to the Company.
Rani Therapeutics Holdings Inc. [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Organization	1. Organization Rani Therapeutics Holdings, Inc. ("Rani Holdings" or "the Company") was formed as a Delaware corporation on April 6, 2021. Rani Holdings was formed for the purpose of completing a public offering and related transactions in order to carry on the business of Rani Therapeutics, LLC (“Rani LLC”) and its subsidiary. As the manager of Rani LLC, Rani Holdings is expected to operate and control all of the business and affairs of Rani LLC, and through Rani LLC, continue to conduct the business now conducted by these subsidiaries. In August 2021, the Company closed its initial public offering (“the Offering” or “IPO”) and related organization transactions whereby the Company became a holding company, was admitted to Rani LLC as the sole managing member, and its principal asset became the common units of Rani LLC that it owns. As the sole managing member of Rani LLC, the Company operates and controls all of the business and affairs of Rani LLC, and through its subsidiary, conducts its business. As a result, the Company will consolidate the financial results of Rani LLC and will report a non-controlling interest representing the Rani LLC interests held by InCube Labs, LLC, a Delaware limited liability company and certain of its affiliates (“ICL”) and certain current and former executive officers, employees and directors of Rani LLC.

Summary of Significant Accounting Policies	6 Months Ended
Summary of Significant Accounting Policies	Jun. 30, 2021
Product Information [Line Items]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation These condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. All intercompany accounts and transactions have been eliminated in consolidation. Unaudited Interim Financial Information The accompanying condensed consolidated balance sheet at June 30, 2021, condensed consolidated statements of operations and comprehensive loss and condensed consolidated statements of changes in convertible preferred units and members’ deficit for the three-month and six-month periods ended June 30, 2021 and 2020 and the condensed consolidated statements of cash flows for the six-month periods ended June 30, 2021 and 2020 are unaudited. In management’s opinion, the unaudited condensed consolidated financial statements have been prepared on the same basis as the audited annual consolidated financial statements, and include all adjustments necessary to state fairly the financial position as of June 30, 2021, the results of its operations for the three and six months ended June 30, 2021 and 2020 and the condensed consolidated statement of changes in convertible preferred units and members’ deficit for the three months and six months ended June 30, 2021 and 2020. The consolidated balance sheet as of December 31, 2020 included herein was derived from the audited consolidated financial statements as of that date. The results for the three months and six months ended June 30, 2021 are not necessarily indicative of the operating results to be expected for the full fiscal year or any future period. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted. Therefore, these interim condensed financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in Rani Holdings' Registration Statement on Form S-1 (No. 333-257809) filed with the SEC. Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses and the disclosure of contingent assets and liabilities in the Company’s consolidated financial statements and accompanying notes. These estimates and assumptions are based on current facts, historical experience and various other factors 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 and the recording of expenses that are not readily apparent from other sources. Significant estimates include, but are not limited to, recovery of long-lived assets, unvested equity-based compensation expense, research and development accruals, the fair value of Profits Interests, and the fair value of the Company’s preferred unit warrants. Actual results may differ materially and adversely from these estimates. Revenue Recognition The Company enters into evaluation arrangements with certain pharmaceutical partners, under which the Company performs evaluation services of the partner’s drug molecules using the RaniPill capsule. Revenue is recognized when control of promised goods or services is transferred to a customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To determine revenue recognition for its arrangements with customers, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. Revenue for an individual contract is recognized at the related transaction price, which is the amount the Company expects to be entitled to in exchange for transferring these services. The terms of the evaluation services agreements usually include payments for evaluation services and evaluation milestones based on a decision to extend the agreement. The transaction price of the evaluation services contracts may include variable consideration. Application of the constraint for variable consideration requires judgment. The constraint for variable consideration is applied such that it is probable a significant reversal of revenue will not occur when the uncertainty associated with the contingency is resolved. Application of the constraint for variable consideration is updated at each reporting period as a revision to the estimated transaction price. For arrangements where the anticipated period between timing of transfer of services and the timing of payment is one year or less, the Company has elected to not assess whether a significant financing component exists. The Company recognizes evaluation services revenue over the period in which evaluation services are provided. Specifically, the Company recognizes revenue using an output method to measure progress, using samples processed relative to total expected samples to be processed as its measure of progress. For services under these arrangements, costs incurred are included in research and development expenses in the Company’s consolidated statements of operations and comprehensive loss. Customer options, such as options granted to allow a customer to acquire later stage evaluation services, are evaluated at contract inception in order to determine whether those options provide a material right (i.e., an optional good or service offered for free or at a discount) to the customer. If the customer options represent a material right, the material right is treated as a separate performance obligation at the outset of the arrangement. The Company allocates the transaction price to material rights based on the standalone selling price, and revenue is recognized when or as the future goods or services are transferred or when the option expires. Customer options that are not material rights do not give rise to a separate performance obligation, and as such, the additional consideration that would result from a customer exercising an option in the future is not included in the transaction price for the current contract. Instead, the option is deemed a marketing offer, and additional option fee payments are recognized or being recognized as revenue when the licensee exercises the option. The exercise of an option that does not represent a material right is treated as a separate contract for accounting purposes. Revenue is recognized for each distinct performance obligation as control is transferred to the customer. The Company recognizes revenue from its evaluation services over time as services are delivered, using a cost-based input method of revenue recognition over the contract term. The cost-based input measured is based on an estimate of total costs to be incurred to deliver the services over the contract period compared to costs incurred to date for each contract. The Company’s evaluation of estimated costs to perform the services typically includes estimates for effort related to contracted research, formulation, and animal testing. These estimates are based on the Company’s reasonable assumptions and its historical experience. Actual results may differ materially and adversely from these estimates. Incremental costs of obtaining contracts are expensed when incurred when the amortization period of the assets that otherwise would have been recognized is one year or less. To date none of these costs have been material. The costs to fulfill the contracts are determined to be immaterial and are recognized as an expense when incurred. Contract assets are generated when contractual billing schedules differ from revenue recognition timing and the Company records a contract receivable when it has an unconditional right to consideration. No contract assets balance was recorded as of June 30, 2021 and December 31, 2020. Contract liabilities are recorded as deferred revenue when cash payments are received or due in advance of performance or where the Company has unsatisfied performance obligations. As of December 31, 2020 the Company had deferred revenue of $2.7 million. There was no deferred revenue as of June 30, 2021. Concentrations of Credit Risk and Other Risks and Uncertainties Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents. The Company maintains accounts in federally insured financial institutions in excess of federally insured limits. The Company also holds money market funds that are not federally insured. However, management believes the Company is not exposed to significant credit risk due to the financial strength of the depository institutions in which these deposits are held and of the money market funds and other entities in which these investments are made. In December 2019, a novel strain of coronavirus, which causes the disease known as COVID-19, was reported to have surfaced in Wuhan, China. Since then, COVID-19 coronavirus has spread globally. In March 2020, the World Health Organization declared the COVID-19 outbreak a pandemic. The COVID-19 pandemic has impacted and may continue to impact the Company’s third-party manufacturers and suppliers, which could disrupt its supply chain or the availability or cost of materials. The effects of the public health directives and the Company’s work-from-home policies may negatively impact productivity, disrupt its business, and delay clinical programs and timelines and future clinical trials, the magnitude of which will depend, in part, on the length and severity of the restrictions and other limitations on the Company’s ability to conduct business in the ordinary course. These and similar, and perhaps more severe, disruptions in the Company’s operations could negatively impact business, results of operations and financial condition, including its ability to obtain financing. To date, the Company has not incurred impairment losses in the carrying values of its assets as a result of the pandemic and is not aware of any specific related event or circumstances that would require the Company to revise its estimates reflected in these condensed consolidated financial statements. The Company cannot be certain what the overall impact of the COVID-19 pandemic will be on its business and prospects. The extent to which the COVID-19 pandemic will further directly or indirectly impact its business, results of operations, financial condition, and liquidity, including planned and future clinical trials and research and development costs, will depend on future developments that are highly uncertain, including as a result of new information that may emerge concerning COVID-19, the actions taken to contain or treat it, and the duration and intensity of the related effects. In addition, the Company could see some limitations on employee resources that would otherwise be focused on its operation, including but not limited to sickness of employees or their families, the desire of employees to avoid contact with large groups of people, and increased reliance on working from home. If the financial markets and/or the overall economy are impacted for an extended period, the Company’s business, financial condition, results of operations and prospects may be adversely affected. Fair Value of Financial Instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: Level 1—Quoted prices in active markets for identical assets or liabilities. Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. The carrying values of the Company’s cash equivalents, prepaid expenses, accounts payable, and accruals approximate their fair value due to their short-term nature. The fair value of the Company’s long-term debt approximates its carrying value based on borrowing rates currently available to the Company for debt with similar terms and maturities (Level 2 inputs). To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgement exercised by the Company in determining fair value is greatest for instruments categorized in Level 3 (see Note 3). A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value of the instrument. Research and Development Costs Research and development costs are expensed as incurred. Research and development expenses consist primarily of contract research fees and process development, outsourced labor and related expenses for personnel, facilities cost, fees paid to consultants and advisors, depreciation and supplies used in research and development and costs incurred under our evaluation agreements. Payments made prior to the receipt of goods or services to be used in research and development activities are recorded as prepaid expenses until the related goods or services are received. Until future commercialization is considered probable and the future economic benefit is expected to be realized the Company does not capitalize pre-launch inventory costs. Costs of property and equipment related to scaling-up of the manufacturing capacity for clinical trials and to support commercialization are capitalized as property and equipment unless the related asset does not have an alternative future use. Clinical and preclinical costs are a component of research and development expense. The Company accrues and expenses clinical and pre-clinical trial activities performed by third parties based upon actual work completed in accordance with agreements established with its service providers. The Company determines the actual costs through discussions with internal personnel and external service providers as to the progress or stage of completion of services and the agreed-upon fee to be paid for such services. Equity-Based Compensation The Company has granted equity-based awards to employees of ICL performing services for the Company, employees of and Board Managers of the Company and consultants in the form of non-vested incentive units (“Profits Interests”) and/or options to purchase common units. All awards of Profits Interests and options to purchase common units are measured based on the estimated fair value of the award on the date of grant. Forfeitures are recognized when they occur. All of the Profits Interests are subject to service and performance-based conditions and the Company evaluates the probability of achieving each performance-based condition at each reporting date and begins to recognize distribution of equity for ICL employee awards and equity-based compensation expense for Company and consultant awards when it is deemed probable that the performance-based condition will be met using the accelerated attribution method over the requisite service period. The options to purchase common units are subject to service conditions and generally vest over three or four years. The Company utilizes estimates and assumptions in determining the fair value of its Profits Interests and options to purchase common units on the date of grant. As the Company was not a publicly traded company in the six months ended June 30, 2021 and 2020, the Company utilized various valuation methodologies in accordance with the framework of the American Institute of Certified Public Accountants Technical Practice Aid, Valuation of Privately Held Company Equity Securities Issued as Compensation, to estimate the fair value of its preferred units, common units and Profits Interests. Each valuation methodology includes estimates and assumptions that require the Company’s judgment. These estimates and assumptions include several objective and subjective factors, including probability weighting of events, volatility, time to an exit event, a risk-free interest rate, the prices at which the Company sold preferred units, the superior rights, and preferences of the preferred units senior to the Company’s common units at the time, and a discount for the lack of marketability. Changes to the key assumptions used in the valuations could result in different fair values at each valuation date. The Company determines the grant-date fair value of options to purchase common units using the Black-Scholes option-pricing model which requires inputs based on certain subjective assumptions, including the expected stock price volatility, the expected term of the unit option, the risk-free interest rate for a period that approximates the expected term of the option, and the Company’s expected dividend yield. The grant-date fair value of awards is amortized over the employees’ requisite service period on a straight-line basis, or the consultants' vesting period as the services are rendered. Equity-based compensation is classified in the accompanying condensed consolidated statements of operations and comprehensive loss based on the function to which the related services are provided. Comprehensive Loss Comprehensive loss is defined as a change in equity of a business enterprise during a period, resulting from transactions and other events and/or circumstances from non-owner sources. The Company did not have any other comprehensive loss for any of the periods presented, and therefore comprehensive loss was the same as the Company’s net loss. Net Loss Per Unit Basic net loss per unit is computed using the weighted-average number of common units outstanding for the period, without consideration of potential dilutive securities. Diluted net loss per unit is computed using the weighted-average number of common units outstanding during the period and, if dilutive, the weighted-average number of potential common units. Net loss per unit attributable to common unitholders is calculated using the two-class method, which is an earnings allocation formula that determines net loss per unit for the holders of the Company’s common units and participating securities. The preferred unit warrants and convertible note are non-participating securities, while the Profits Interests participate in the gains and losses of the Company once the participation threshold is reached. The Company’s convertible preferred units contain participation rights in any dividend paid by the Company and are deemed to be participating securities. The convertible preferred units do not include a contractual obligation to participate in losses of the Company and are not included in the calculation of net loss per unit in the periods in which a net loss is recorded. The Company’s convertible preferred units, common unit warrants, preferred unit warrants, convertible notes and Profits Interests are considered potentially dilutive. The Company makes adjustments to diluted net loss to reflect the reversal of gains on the change in the value of preferred unit warrant liabilities, assuming conversion of warrants to acquire convertible preferred units at the beginning of the period or at time of issuance, if later, to the extent that those preferred unit warrants are dilutive. The Company computes diluted net loss per unit after giving consideration to all potentially dilutive common units outstanding during the period, determined using the treasury stock and if-converted methods, as applicable, except where the effect of including such securities would be antidilutive. For the six months ended June 30, 2021 and 2020, the Company reported a net loss. The potentially dilutive common units were anti-dilutive, except for the series B preferred unit warrants, which were considered dilutive but did not affect the net loss per share. As a result, basic and diluted net loss per unit were the same. Deferred financing costs Deferred financing costs, which consist of direct incremental legal, consulting, banking and accounting fees primarily relating to the Company’s Offering, are capitalized and will be offset against proceeds upon the consummation of the offering within members’ deficit. As of December 31, 2020, there were no capitalized deferred financing costs on the condensed consolidated balance sheet. As of June 30, 2021, there were $3.4 million of deferred financing costs recorded as a long-term asset on the condensed consolidated balance sheet. New Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-02, Leases (“Topic 842”), as subsequently amended, to improve financial reporting and disclosures about leasing transactions. Topic 842 requires companies that lease assets to recognize on the condensed consolidated balance sheet the assets and liabilities for the rights and obligations created by those leases, where the lease terms exceed 12 months. The recognition, measurement, and presentation of expense and cash flows arising from a lease by a lessee will depend primarily on its classification as a finance or operating lease; both types of leases will be recognized on the condensed consolidated balance sheet. Topic 842 also requires disclosures to help financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. On June 3, 2020, the FASB amended the effective dates of Topic 842 to give immediate relief from business disruptions caused by the COVID-19 pandemic and provided a one-year deferral of the effective date for nonpublic companies. As a result of the Company having elected the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act, and assuming the Company continues to be considered an emerging growth company, Topic 842 will be effective for the Company on January 1, 2022. The Company has not yet determined the effects of Topic 842 on its condensed consolidated financial statements but does expect the adoption of Topic 842 will have a material impact on the Company’s consolidated financial statements and related notes to the recognition of right of use (“ROU”) assets and lease liabilities on the Company’s consolidated balance sheets, but it will not have a material impact on the Company’s consolidated statement of income. The adoption of Topic 842 will also result in enhanced disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (“ASU 2016-13”) to require the measurement of expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable forecasts. The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. As a result of the Company having elected the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act, and assuming the Company continues to be considered an emerging growth company, ASU 2016-13 will be effective for the Company on January 1, 2023. The Company has not yet determined the potential effects of ASU 2016-13 on its condensed consolidated financial statements and disclosures.
Rani Therapeutics Holdings Inc. [Member]
Product Information [Line Items]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation and Accounting The accompanying unaudited condensed balance sheets have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to Form 10-Q of Regulation S-X of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Separate statements of operations, comprehensive income, changes in stockholder’s equity, and cash flows have not been presented as of June 30, 2021 because there have been no activities except in connection with the Company’s formation. The condensed balance sheet presented as of April 19, 2021, has been derived from the audited balance sheet as of that date. The condensed balance sheets and notes are presented as permitted by Form 10-Q and do not contain all information that is included in the annual financial statements and notes thereto of the Company. Therefore, these interim condensed balance sheets and notes should be read in conjunction with the Company’s audited balance sheet and notes included in the Company’s Registration Statement on Form S-1 (No. 333-257809) filed with the SEC. The financial statement has been prepared in accordance with GAAP. The financial statement has been prepared assuming Rani Holdings will continue as a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the normal course of business. 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 and liabilities and disclosure of contingent assets and liabilities at the date of the balance sheet. Actual results could differ from those estimates. Cash Cash consists of a deposit in-transit.

Fair Value Measurements

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

3. Fair Value Measurements

The following table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis and indicates the level of inputs used in such measurements (in thousands):


	As of June 30, 2021
	Level 1		Level 2		Level 3
Assets:
Money market funds	$	67,002	$	—	$	—
Total assets	$	67,002	$	—	$	—
Liabilities:
Preferred unit warrant liability	$	—	$	—	$	606
Total liabilities	$	—	$	—	$	606

	As of December 31, 2020
	Level 1		Level 2		Level 3
Assets:
Money market funds	$	71,666	$	—	$	—
Total assets	$	71,666	$	—	$	—
Liabilities:
Preferred unit warrant liability	$	—	$	—	$	320
Total liabilities	$	—	$	—	$	320

The Company estimates the fair value of its money market funds by taking into consideration valuations obtained from third-party pricing services. The pricing services utilize industry standard valuation models, including both income and market-based approaches, for which all significant inputs are observable, either directly or indirectly, to estimate fair value.

There were no transfers between Level 1, Level 2 and Level 3 of the fair value hierarchy for any of the periods presented.

The Company holds a Level 3 liability associated with preferred unit warrants that were issued in connection with the Company’s convertible note and preferred unit financings. The preferred unit warrants are accounted for as liabilities.

The following table summarizes the significant unobservable inputs used in the fair value measurement of the Series E preferred unit warrant liability as of June 30, 2021:


Fair Value (in thousands)	Valuation Technique	Unobservable Input	Range	Weighted Average
	Hybrid between the	Time to exit	0.1 - 2.3 years	0.3 years
	probability weighted	Probability of exit events	10% - 90%	80%
$606	expected return and	Discount for lack of marketability	10% - 31%	12%
	option pricing methods	Volatility	72%	72%

Significant increases or decreases in time to exit, probability of exit, discount for lack of marketability and volatility would have resulted in a significantly lower or higher fair value measurement as of June 30, 2021.

The following tables set forth a summary of the changes in the fair value of the Company’s liability measured using Level 3 inputs (in thousands):


	Three Months Ended June 30,					Six Months Ended June 30,
	2021		2020			2021		2020
Balance at beginning of period	$	536	$	672		$	320	$	655
Change in estimated fair value of Series B warrants		—		(1	)		—		16
Change in estimated fair value of Series E warrants		70		—			286		—
Expiration of Series B warrants		—		(671	)		—		(671	)
Balance at end of period	$	606	$	—		$	606	$	—

- 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

Stockholder's Equity	6 Months Ended
Stockholder's Equity	Jun. 30, 2021
Rani Therapeutics Holdings Inc. [Member]
Class Of Stock [Line Items]
Stockholder's Equity	3. Stockholder's Equity On April 6, 2021, Rani Holdings was authorized to issue 1,000 shares of common stock, par value $0.0001 per share, all of which have been issued and are outstanding. On the balance sheet date, Rani Holdings issued 1,000 shares at a purchase price of $0.01 per share for aggregate gross proceeds of $10.00 to Rani LLC. As of the balance sheet date, Rani Holdings had outstanding 1,000 shares all of which were owned by Rani LLC. In connection with the Company’s Offering, the Company’s board of directors approved an amended and restated certificate of incorporation (the “Amended and Restated Certificate of Incorporation”). The Amended and Restated Certificate of Incorporation authorizes the issuance of up to 800,000,000 shares of Class A common stock, up to 40,000,000 shares of Class B common stock, 20,000,000 shares of Class C common stock and 20,000,000 shares of preferred stock, each having a par value of $0.0001 per share. The Class B common stock has no rights to receive any distributions or dividends, whether cash or stock. Each share of Class A common stock entitles its holders to one vote per share and each share of Class B common stock entitles its holders to 10 votes per share on all matters presented to the Company’s stockholders. Shares of Class C common stock have no voting rights, except as otherwise required by law.

Organization and Nature of Business

6 Months Ended

Jun. 30, 2021

Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]

Organization

1. Organization and Nature of Business

Description of Business

Rani Therapeutics, LLC (“Rani” or the “Company”) is a clinical stage biotherapeutics company advancing technologies to enable the development of orally administered biologics. The Company has developed the RaniPill capsule, which is a novel, proprietary and patented platform technology, intended to replace subcutaneous or intravenous injection of biologics with oral dosing. The Company was organized under the laws of the State of California in February 2012, as a limited liability company. The Company is managed by a board of managers (“Board of Managers”) as prescribed by its operating agreement. The Company formed a wholly-owned subsidiary, Rani Management Services, Inc. (“RMS”) in November 2019. The Company is headquartered in San Jose, California and operates in one segment.

Up to December 31, 2019, Rani maintained no employees of its own and contracted with InCube Labs, LLC (“ICL”), the majority common unit holder of the Company and a related party, to provide research, development and administrative services. ICL and Rani have common management and interest holders and, in the course of performing under the terms of the service agreements, ICL employees acted on behalf of Rani. Effective January 1, 2020, the ICL personnel that were substantially dedicated to providing services to Rani were hired by RMS as full-time employees (see Note 6).

Rani Therapeutics Holdings, Inc. (“Rani Holdings”) was incorporated in April 2021 for the purpose of facilitating an initial public offering in order to carry on the Company’s business. In August 2021, Rani Holdings closed its initial public offering (the “Offering” or "IPO") of 7,666,667 million shares of Class A common stock, including shares issued pursuant to the exercise in full of the underwriters’ option, for cash consideration of $11.00 per share and received approximately $73.7 million in net proceeds, after deducting underwriting discounts, offering costs and commissions.

In connection with the Offering, Rani Holdings became a holding company and its principal asset is the Class A common units of Rani that it owns. As the sole managing member of the Company, Rani Holdings operates and controls all of the Company’s operations, and through Rani and its subsidiary, conducts all of Rani’s business.

Liquidity

The Company has incurred recurring losses since its inception, including net losses of $11.1 million for the six months ended June 30, 2021. As of June 30, 2021, the Company had an accumulated deficit of $125.1 million and for the six months ended June 30, 2021 had negative cash flows from operations of $9.7 million. The Company expects to continue to generate operating losses and negative operating cash flows for the foreseeable future as it continues to develop the RaniPill capsule. The Company expects that its cash and cash equivalents of $69.3 million as of June 30, 2021 and net proceeds of $73.7 million from the Offering will be sufficient to fund its operations through at least one year from the date the condensed consolidated financial statements are issued. The Company expects to finance its future operations with its existing cash and through strategic financing opportunities that could include, but are not limited to, future offerings of its equity, collaboration or licensing agreements, or the incurrence of debt. However, there is no guarantee that any of these strategic or financing opportunities will be executed or realized on favorable terms, if at all, and some could be dilutive to existing stockholders and holders of interests in the Company. The Company will not generate any revenue from product sales unless, and until, it successfully completes clinical development and obtains regulatory approval for the RaniPill capsule. If the Company obtains regulatory approval for the RaniPill capsule, it expects to incur significant expenses related to developing its internal commercialization capability to support manufacturing, product sales, marketing, and distribution.

The Company’s ability to raise additional capital through either the issuance of equity or debt, is dependent on a number of factors including, but not limited to, the demand for the Company, which itself is subject to a number of development and business risks and uncertainties, as well as the uncertainty that the Company would be able to raise such additional capital at a price or on terms that are favorable to the Company.

Accrued Expenses

6 Months Ended

Jun. 30, 2021

Accrued Liabilities Current And Noncurrent [Abstract]

Accrued Expenses

4. Accrued Expenses

Accrued expenses consist of the following (in thousands):


	June 30,		December 31,
	2021		2020
Accrued professional fees	$	348	$	—
Payroll and related		1,222		136
Deferred financing costs		998		—
Other		353		414
Total accrued expenses	$	2,921	$	550

Evaluation Agreements

6 Months Ended

Jun. 30, 2021

Evaluation Agreements [Abstract]

Evaluation Agreements

5. Evaluation Agreements

Takeda

Takeda Pharmaceutical Company, Limited ("Takeda") was collaborating with the Company to conduct research on the use of the RaniPill capsule for the oral delivery of factor VIII (“FVIII”) therapy for patients with hemophilia A. The agreement granted Takeda a right of first negotiation to a worldwide, exclusive license under the Company’s intellectual property related to a FVIII-RaniPill therapeutic. Takeda paid the Company up-front payments of $5.9 million upon execution of and subsequent modifications to the agreement. Upon the initial evaluation services being completed, Takeda had an option to pay the Company $3.0 million to perform later stage evaluation services. Takeda also had the ability to terminate the agreement at any time by providing 30 days written notice after the effective date of the agreement. Unless terminated early, the agreement term ended upon the expiration of the right of first negotiation period which is 120 days after the completion of the evaluation services. The Takeda agreement could be terminated for cause by either party based on uncured material breach by the other party or bankruptcy of the other party. Upon early termination, all ongoing activities under the agreement and all mutual collaboration, development and commercialization licenses and sublicenses would terminate.

The Company identified one material promise under the Takeda agreement, the obligation to perform services to evaluate if Takeda’s FVIII therapy can be orally delivered using the RaniPill capsule (“Research and Development Services”), which was concluded be a single performance obligation.

For revenue recognition purposes, the Company determined that the duration of the contract began on the effective date in November 2017 and ends upon completion of the Research and Development Services. The contract duration is defined as the period in which parties to the contract have present enforceable rights and obligations. The Company also analyzed the impact of Takeda terminating the agreement prior to the completion of the performance obligation and determined, considering both quantitative and qualitative factors, that there were substantive non-monetary penalties to Takeda for doing so.

The Company has determined that the cost-based input method most faithfully depicts the transfer of its performance obligation to Takeda. Accordingly, the Company recognizes its contract revenue based on actual costs incurred as a percentage of total estimated costs the Company expects to incur to deliver its performance obligation. These actual costs consist of internal labor efforts, in vivo testing services and materials costs related to the Takeda agreement, as the costs incurred over time reflect the transfer of its performance obligations to Takeda. The cumulative effect of revisions to estimated costs to complete the Company’s performance obligation will be recorded in the period in which changes are identified and amounts can be reasonably estimated. A significant change in these assumptions and estimates could have a material impact on the timing and amount of revenue recognized in future periods.

In May 2021, the Company received written notice from Takeda as to their intent to terminate the contract for convenience. Due to the delivery of the termination notice, the Company determined that there were no further enforceable rights and obligations under the agreement beyond May 2021 and the remaining $2.0 million of deferred revenue was recognized in the three months ended June 30, 2021.

For the three months ended June 30, 2021 and 2020, the Company recognized contract revenue related to the Takeda agreement of $2.0 million and $0.1 million, respectively.

For the six months ended June 30, 2021 and 2020, the Company recognized contract revenue related to the Takeda agreement of $2.7 million and $0.1 million, respectively. As of December 31, 2020, deferred revenue related to the remaining identified performance obligation for the Takeda agreement of $2.7 million was recorded on the condensed consolidated balance sheets. There was no deferred revenue as of June 30, 2021.

Changes in the deferred revenue balance are as follows (in thousands):


	June 30,			December 31,
	2021			2020
Balance at beginning of period	$	2,717		$	179
Additions		—			3,000
Deductions		(2,717	)		(462	)
Balance at end of period	$	—		$	2,717

There were no receivables or net contract assets recorded as of June 30, 2021 or December 31, 2020 associated with the Takeda agreement. The Company expensed all incremental costs of obtaining the Takeda agreements, as such amounts were insignificant.

Related Party Transactions

6 Months Ended

Jun. 30, 2021

Related Party Transactions

6. Related Party Transactions

ICL is wholly-owned by the Company’s founder and Executive Chairman and his family. The Company’s Chief Scientific Officer is the brother of the founder and Executive Chairman and uncle of the Company’s Chief Executive Officer. The founder and Executive Chairman is also the father of the Company’s Chief Executive Officer.

Services agreements

In January 2019, the Company entered into a one year service agreement with ICL. This agreement was amended in January 2020 to extend the period for an additional year and expired in December 2020. The Company is presently operating under a service agreement with ICL executed in June 2021, retroactive to January 1, 2021. The Company or ICL may terminate services under the service agreement upon 60 days' notice to the other party, except for occupancy which requires six months' notice. The service agreement specifies the scope of services to be provided by ICL as well as the methods for determining the costs of services for the year ended December 31, 2021. Costs are billed on a monthly basis and based upon the hours incurred by ICL employees working on behalf of Rani as well as allocations of expenses based upon Rani’s utilization of ICL’s facilities and equipment.

In June 2021, RMS entered into the RMS-ICL Service Agreement with ICL effective January 1, 2021 (the "RMS-ICL Service Agreement"), pursuant to which ICL agreed to rent a specified portion of its facility to RMS. Additionally, RMS and ICL agreed to provide personnel services to the other upon requests based on rates specified in the agreement. The RMS-ICL Service Agreement has a 12-month term and will automatically renew for successive 12-month periods unless terminated. For the six months ended June 30, 2020 and 2021, RMS charged ICL $0.2 million and $0.3 million for services performed, respectively, and such amounts charged were recorded as a reduction to research and development expense in the condensed consolidated statement of operations and comprehensive loss.

The table below details the amounts charged by ICL for services and rent, net of the amount that RMS charged ICL, which is included in the condensed consolidated statements of operations and comprehensive loss (in thousands):


	Three Months Ended June 30,					Six Months Ended June 30,
	2021		2020			2021		2020
Research and development	$	123	$	(63	)	$	156	$	121
General and administrative		184		207			366		451
Total	$	307	$	144		$	522	$	572

The Company’s eligible employees are permitted to participate in ICL’s 401(k) Plan (“401(k) Plan”). Participation in the 401(k) Plan is offered for the benefit of the employees, including the Company’s named executive officers, and who satisfy certain eligibility requirements.

All of Rani's facilities are owned by an entity affiliated with the Company’s Executive Chairman. Rani pays for the use of these facilities through the services agreement with ICL.

Financing activity

From inception to the first half of 2017, Rani advanced funds to ICL, and ICL made payments directly to certain vendors on behalf of Rani, Rani has reimbursed ICL for all such payments at cost on a monthly basis.

In June 2017, Rani converted the outstanding net advances of $6.6 million to ICL into three notes receivable. The notes provide for interest at 1.97% compounded annually, loan fees of 2.75% and are payable upon demand to Rani any time after January 1, 2024. During 2020, the Company received $0.2 million in payments for interest and repayment of principal on the remaining notes receivable.

As of December 31, 2020, $1.7 million of the notes receivable was outstanding. In March 2021, the outstanding balance due, including all accrued interest, was fully repaid by ICL.

During 2020, the Company amended certain Series B warrants held by an entity affiliated with ICL. In December 2020, this entity elected to cashless exercise all of their Series B warrants in return for 51,341 Series B units (see Note 7). This same entity also acquired 59,312 Series D units for $1.0 million in 2017.

Exclusive License, Intellectual Property and Common Unit Purchase Agreement

The Company and ICL entered into an exclusive license and an intellectual property agreement and common unit purchase agreement in 2012. Pursuant to the common unit purchase agreement, the Company issued 46.0 million common units to ICL in return for rights to exclusive commercialization, development, use and sale of certain products and services related to the RaniPill capsule technology. ICL also granted the Company a fully-paid, royalty-free, sublicensable, exclusive license under the intellectual property made by ICL during the course of providing services to the Company related to the RaniPill capsule technology. Such rights were not recorded on the Company’s condensed consolidated balance sheet as the transaction was considered a common control transaction.

In June 2021, ICL and the Company entered into an Amended and Restated Exclusive License Agreement which replaces the 2012 Exclusive License Agreement, as amended in 2013, and terminates the Intellectual Property Agreement, as amended in June 2013. Under the Amended and Restated License Agreement, the Company will have a fully paid, exclusive license under certain scheduled patents related to optional features of the device and certain other scheduled patents to exploit products covered by those patents in the field of oral delivery of sensors, small molecule drugs or biologic drugs including, any peptide, antibody, protein, cell therapy, gene therapy or vaccine. The Company will cover patent-related expenses and, after a certain period, the Company will have the right to acquire four specified U.S. patent families from ICL by making a one-time payment of $250,000 to ICL for each U.S. patent family that the Company desires to acquire, up to $1.0 million in the aggregate. This payment will not become an obligation until the fifth anniversary of the Amended and Restated Exclusive License Agreement. The Amended and Restated Exclusive License Agreement will terminate when there are no remaining valid claims of the patents licensed under the Amended and Restated Exclusive License Agreement. Additionally, the Company may terminate the Amended and Restated Exclusive License Agreement in its entirety or as to any particular licensed patent upon notification to ICL of such intent to terminate.

Non-Exclusive License Agreement between Rani and ICL (“Non-Exclusive License Agreement”)

In June 2021, the Company entered into the Non-Exclusive License Agreement with ICL a related party, pursuant to which the Company granted ICL a non-exclusive, fully-paid license under specified patents that were assigned from ICL to the Company. Additionally, the Company agreed not to license these patents to a third party in a specific field outside the field of oral delivery of sensors, small molecule drugs or biologic drugs including, any peptide, antibody, protein, cell therapy, gene therapy or vaccine, if ICL can prove that it or its sublicensee has been in active development of a product covered by such patents in that specific field. ICL may grant sublicenses under this license to third parties only with the Company’s prior approval. The Non-Exclusive License Agreement will continue in perpetuity unless earlier terminated.

Intellectual Property Agreement with Mir Imran (the “Mir Agreement”)

In June 2021, the Company entered into the Mir Agreement, pursuant to which the Company and Mir Imran agreed that the Company would own all intellectual property conceived (a) using any of the Company’s people, equipment, or facilities or (b) that is within the field of oral delivery of sensors, small molecule drugs or biologic drugs including, any peptide, antibody, protein, cell therapy, gene therapy or vaccine. Neither the Company nor Mir Imran may assign the Mir Agreement to any third party without the prior written consent of the other party. The initial term of the Mir Agreement is three years, which can be extended upon mutual consent of the parties. The Mir Agreement may be terminated by either party for any reason within the initial three year term upon providing three months’ notice to the other party.

Board Services

During the year ended December 31, 2020, the Company made a $0.2 million payment to a member of the Board of Managers for legacy board services provided to the Company.

Secondary Sales Transactions

In February 2021, one of the Company's named executive officer's and then member of the Board of Managers, and a current member of the Board of Managers sold a total of 210,000 common units to a third-party investor at $7.1471 per unit. The Company determined that the sales price was above fair value of such units and as a result recorded equity-based compensation expense of $0.5 million for which $0.2 million was recorded as general and administrative expense and $0.3 million was recorded as research and development expense. The $0.5 million represents the difference between the sales price and fair value of the common units.

Warrants

6 Months Ended

Jun. 30, 2021

Warrants And Rights Note Disclosure [Abstract]

Warrants

7. Warrants

Preferred unit warrants

In September 2020, in conjunction with a loan and security Agreement (see Note 11), the Company issued warrants to purchase up to 118,929 Series E preferred units. The Series E warrants are exercisable for a period of seven years from the grant date at an exercise price of $7.1471 per unit. At June 30, 2021 and December 31, 2020 all of these Series E warrants were outstanding. In the event of a change of control or IPO, the Series E warrants were to automatically be exchanged for the same number of units of the Company’s securities for no consideration had the holder of the warrant elected to exercise the warrant immediately prior to a change in control or IPO. In conjunction with the Rani Holdings IPO in August 2021, the Series A warrants were exchanged for Class A common units of the Company as part of a set of organization transactions. These Class A common units were then exchanged for 62,887 shares of Rani Holdings Class A common stock.

Common unit warrants

In 2017, in conjunction with the Series D convertible preferred unit financing, the Company issued 229,315 common unit warrants with an exercise price of $2.18 per unit and an exercise period of five years. The Company recorded the issuance-date fair value of the common warrants of $0.3 million in equity as the warrant met all criteria for equity classification. In January 2021, 6,000 common unit warrants were exercised at $2.18 per share. At June 30, 2021 and December 31, 2020, 223,315 common unit warrants and 229,315 common unit warrants were outstanding, respectively. In conjunction with the Rani Holdings IPO in August 2021, the common warrants were net exchanged for Class A common units of the Company as part of a set of organization transactions. These Class A common units were then exchanged for 71,867 shares of Rani Holdings Class A common stock.

Members' Deficit

6 Months Ended

Jun. 30, 2021

Members Equity [Abstract]

Members' Deficit

8. Members’ deficit

Under the Fourth Amended and Restated Limited Liability Company Agreement (the “Operating Agreement”), the Company is authorized to issue 101,000,000 common units, of which 10,850,000 have been reserved for issuance as Profits Interests and 32,620,000 are reserved for six separate classes, the Series A convertible preferred units (the “Series A units”), the Series B

convertible preferred units (the “Series B units”), the Series C convertible preferred units (the “Series C units”), the Series C-1 convertible preferred units (the “Series C-1 units”), the Series D convertible preferred units (the “Series D units”), and the Series E convertible preferred units (the “Series E units”), collectively the “Preferred Units”.

The members of the Company who hold these common and Preferred Units are not liable, solely by reason of being a member, for the debts, obligations, or liabilities of the Company whether arising in contract or tort; under a judgment, decree, or order of a court; or otherwise. The members are not obligated to make capital contributions to the Company. The Company will dissolve generally only upon the written consent of a majority of the members.

The Company’s Profits Interests may be subject to either a combination of service, market, or performance vesting conditions. Vested Profits Interests are treated as common units for purposes of distributions.

Convertible Preferred Units

In October 2020, the Company entered into a Series E Preferred Unit Purchase Agreement (“Series E Agreement”). Between October 2020 and January 2021, the Company sold a total of 10,493,767 units of its Series E units at a purchase price of $7.1471 per unit, for total net proceeds of $74.8 million, net of issuance costs of $0.2 million. The subsequent closings were considered to be mutual options as neither the purchasers nor the Company had a commitment or obligation to purchase or sell additional units. As such, these rights were not accounted for separately. The Series E units were sold at a price lower than the Series C-1 and Series D units resulting in an anti-dilution adjustment to the Series C-1 and Series D conversion prices. The anti-dilution adjustment did not create a contingent beneficial conversion.

The Company’s convertible preferred units consisted of the following (in thousands, except unit amounts):


	Units				Carrying		Liquidation		Units issuable
June 30, 2021	Authorized		Outstanding		Value		Preference		upon conversion
Series A convertible preferred units		4,000,000		4,000,000		3,974		8,000		4,000,000
Series B convertible preferred units		2,600,000		2,510,246		10,080		19,332		2,510,246
Series C convertible preferred units		5,000,000		4,972,115		32,348		32,488		4,972,115
Series C-1 convertible preferred units		2,520,000		2,504,099		17,607		18,270		2,511,608
Series D convertible preferred units		7,500,000		3,149,577		52,214		49,174		3,400,875
Series E convertible preferred units		11,000,000		10,493,767		74,811		75,000		10,493,767
		32,620,000		27,629,804	$	191,034	$	202,264		27,888,611


	Units				Carrying		Liquidation		Units issuable
December 31, 2020	Authorized		Outstanding		Value		Preference		upon conversion
Series A units		4,000,000		4,000,000	$	3,974	$	8,000		4,000,000
Series B units		2,600,000		2,510,246		10,080		19,332		2,510,246
Series C units		5,000,000		4,972,115		32,348		32,488		4,972,115
Series C-1 units		2,520,000		2,504,099		17,607		18,325		2,511,058
Series D units		7,500,000		3,149,577		52,214		53,102		3,380,906
Series E units		11,000,000		9,609,491		68,491		68,680		9,609,491
		32,620,000		26,745,528	$	184,714	$	199,927		26,983,816

The following provides a summary of the rights of the holders of convertible preferred and common units, prior to the Offering:

Conversion Rights

The holders of Preferred Units have the right to convert the Preferred Units at any time into common units at an initial conversion ratio of one-to-one, subject to certain adjustments. The Preferred Units will automatically convert into common units at the conversion rate in effect at that time immediately upon the closing of an IPO that results in total proceeds to the Company of at least $100.0 million.

Redemption rights

No Preferred Units or common units are unilaterally redeemable by either the unitholders or the Company; however, the Company’s Operating Agreement provides that upon any liquidation event such units shall be entitled to receive the applicable liquidation preference.

Net Income and Loss Allocation

Net income and loss shall be allocated to the Preferred Units in a manner that if the Company were to liquidate completely and in connection with such liquidation (i) sell all of its assets at their carrying values, defined as the fair market value, (ii) settle all of its liabilities to the extent of the available assets of the Company, and (iii) each Preferred Unit holder were to pay to the Company at that time the amount of any obligation then unconditionally due to the Company, then each Preferred Unit holder’s capital account balance would correspond as closely as possible to the distributions that would result if the distributions to such Preferred Unit holders were made in accordance with the Operating Agreement.

Distributions

Distributions of the Company’s assets to Preferred Unit holders or common unit holders shall be made with the approval of the Board of Managers and with sufficient working capital reserves retained. There shall be no distribution to the Preferred Unit holders until such time as the Company has earned gross revenues of $20.0 million on a cumulative basis (or such other lesser amount as unanimously approved by the board of managers). The Company has not declared any distributions to date.

After the Company earns $20.0 million and prior to $50.0 million in gross revenue on a cumulative basis, distributions are as follows:


	•		First, to the Preferred Unit holders, on a pari passu and pro rata basis, until the cumulative amount of distributions made with respect to each unit equals their aggregate capital contributions; and


	•		Second, to common unit holders pro rata in proportion to the number of common units held.

After the Company earns $50.0 million and prior to $100.0 million in gross revenue on a cumulative basis, distributions are as follows:


	•		First, to Preferred and common unit holders, on a pari passu basis and pro rata in proportion to the number of units, until the cumulative amount of distributions made with respect to each unit equals their aggregate capital contributions;


	•		Second, to Preferred Unit holders, on a pari passu basis and pro rata in proportion to the number of Preferred Units held, until they have been distributed an additional amount equal to their aggregate capital contributions; and


	•		Third, 100% to common unit holders, excluding common unit holders who were formerly Preferred Unit holders subject to automatic conversion of their Preferred Units.

After the Company earns $100.0 million in gross revenue on a cumulative basis, distributions are as follows:


	•		First, to the Preferred Unit holders, on a pari passu basis and pro rata in proportion to the number of preferred units, until the cumulative amount of distributions made with respect to each unit equals their original capital contribution, then until the cumulative amount made with respect to each unit equals their aggregate contribution; and


	•		Second, to Preferred Unit holders and common unit holders pro rata in proportion to the number of common units held assuming full conversion of Preferred Units to common units at the applicable conversion rate.

Liquidating Distributions

In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company, including a merger or sale of the Company (“Deemed Liquidation Event”), the amount to be paid for each class of unit is equal to the original price of the issuance, plus any declared but unpaid dividends. At June 30, 2021, the liquidation priority is as follows:


	•		First 100% to the holders of Series E units until they have been distributed an amount equal to their aggregate capital contributions less any amounts previously distributed to the Preferred Unit holders;


	•		Second 100% to the holders of Series D units, until they have been distributed an amount equal to their aggregate capital contributions less any amounts previously distributed to the Preferred Unit holders;


	•		Third 100% to the holders of Series A, B, C, C-1 units pari passu and pro rata in proportion to the number of Preferred Units held by each, until the holders of Series A units and Series B units have been distributed an amount equal to 200% of their aggregate capital contributions less any amounts previously distributed to the Preferred Unit holders and the holders of Series C units and C-1 units have been distributed an amount equal to their aggregate capital contributions less any amounts previously distributed to the Preferred Unit holders; and


	•		Thereafter, 100% to the holders of Series A, B, and common units pari passu and pro rata in proportion to the number of common units held by each, assuming full conversion of the Preferred Units into common units at the then-applicable conversion rate, as defined in the Operating Agreement.

Tax Distributions

Within ninety days of the end of each fiscal year, the Company will make a distribution to each holder of units out of any available cash of the Company an amount equal to the excess of the sum of:


	•		the product of any amount of net income and gain taxable at ordinary tax rates allocated with respect to each unit and the maximum marginal rate of federal, state and local income and employment tax applicable to an individual subject to tax with respect to such income or gain, and


	•		the product of the amount of net income and gain table at long-term capital gains rates allocated with respect to such unit and the maximum marginal rate of federal, state and local income and employment tax applicable to an individual subject to tax with respect to such income or gain, and


	•		in the event of allocation by the Company of net income or gain taxable at a rate other than the ordinary or long-term capital gains rates contemplated in clauses (i) and (ii) above, the product of the amount of such net income and gain taxable at such other rate allocated with respect to such unit and the maximum marginal rate of federal, state and local income and employment tax applicable to an individual subject to tax with respect to such income or gain, over the cumulative cash distributions previously made with respect to such unit.

No tax distributions were made during any of the periods presented.

Voting Rights

The holders of Preferred Units, on an as converted to common unit basis, and the holders of common units shall vote together and not as separate voting groups on all matters required or permitted to be voted on, consented to, or taken or approved by the unit holders of the Company.

Registration Rights

Under our investors’ rights agreement, certain holders of our units have the right to demand that we file a registration statement or request that their units be covered by a registration statement that we are otherwise filing. Holders of the Company’s Preferred Units have the right to request the Company to file certain registration statements with the Securities and Exchange Commission for the registration of shares related to the Preferred Units. The obligations of the Company regarding such registration rights include, but are not limited to, commercially reasonable efforts to cause such registration statement to become effective, keep such registration statement effective for up to 120 days, prepare and file amendments and supplements to such registration statement and the prospectus used in connection with such registration statement, and furnish to the selling holders copies of the prospectus and any other documents as they may reasonably request. The terms of the registration rights provide for the payment of certain expenses related to the registration of the shares, including a capped reimbursement of legal fees of a single special counsel for the holders of the shares, but do not impose any obligations for the Company to pay additional consideration to the holders in case a registration statement is subsequently withdrawn at the request of the holders.

Common Units

Holders of the Company’s common units have no explicit redemption rights and vote on a one-to-one basis based on the number of common units held. Common units reserved for future issuance, consisted of the following as of:


	June 30,		December 31,
Class of Units/Shares	2021		2020
Units reserved for conversion of outstanding Series A		4,000,000		4,000,000
Units reserved for conversion of outstanding Series B		2,510,246		2,510,246
Units reserved for conversion of outstanding Series C		4,972,115		4,972,115
Units reserved for conversion of outstanding Series C-1		2,511,608		2,511,058
Units reserved for conversion of outstanding Series D		3,400,875		3,380,906
Units reserved for conversion of outstanding Series E		10,493,767		9,609,491
Units reserved for Profit Interests, issued and outstanding		8,547,401		6,926,358
Units reserved for options, issued and outstanding		2,292,309		—
Units reserved for Profit Interests and options, authorized for future issuance		10,290		3,923,642
		38,738,611		37,833,816

Equity Based Compensation

6 Months Ended

Jun. 30, 2021

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Equity-Based Compensation

9. Equity-Based Compensation

In 2016, the Company adopted the 2016 Equity Incentive Plan (the “Plan”) under which the Board of Managers may issue options for common units, Profits Interests, and restricted common units to managers, consultants or other individuals who provide service to the Company. The Board of Managers has the authority to determine to whom Profits Interests will be granted, the number of options granted, and the Profits Interests threshold amount, which is the minimum amount determined by the Board of Managers in its reasonable discretion to be necessary to cause such interests to be treated as Profits Interests (“Threshold Amounts”). In 2020, the Board of Managers approved an additional 2,000,000 common units to be reserved under the Plan for issuance as Profit Interests. Effective April, 2021, in anticipation of the Offering the Company ceased granting Profits Interests and began to issue options for common units out of the remaining pool. At June 30, 2021 there was a total of 10,850,000 common units were reserved under the Plan, and 10,290 common units remained available for future grants.

Immediately upon receipt of a Profits Interests award, the recipient will have no initial capital account balance and the Profits Interests received shall not entitle such recipient to any portion of the capital of the Company at the time of such recipient’s admission to the Company as an unitholder member, such that if the Company’s assets were sold at fair market value immediately after the grant to such recipient of Profits Interests and the proceeds distributed in complete liquidation of the Company, the Profits Interests received would entitle such recipient to receive no portion of those proceeds. Additionally, the Company shall not make a distribution with respect to any Profits Interests unless the Company has made aggregate distributions to each interest subject to a lower or no Profits Interests Threshold Amount. The common units underlying each Profits Interests award entitle the holder, upon a sale or other specified capital transaction (as set forth in the Operating Agreement), to participate in a portion of the profits and appreciation in the equity value of the Company arising after the date of grant, as determined in reference to the Profits Interests Threshold Amount set forth in each award agreement.

A summary of Profits Interests activity during the periods indicated is as follows:


	Number of Profits Interests			Weighted Average Grant Date Fair Value		Profits Interests Threshold
Balance at December 31, 2020		6,926,358		$	1.63	$1.44 - $2.29
Forfeitures		(235,957	)	$	2.04	$1.45 - $2.29
Profit Interests grants		1,857,000		$	2.00	$1.99 - $2.13
Balance at June 30, 2021		8,547,401		$	1.70	$1.44 - $2.29

All Profits Interests are subject to a performance-based condition, which is subject to the achievement of certain revenue targets or a liquidation of the Company, and a service condition subject to the holder’s continued employment with Rani or ICL. An IPO accelerates the service condition vesting of the Profits Interests. No equity distribution to ICL or equity-based compensation expense to the Company have been recorded since inception, as the Company has concluded that achievement of the performance-based condition is not considered probable as of June 30, 2021.

As of June 30, 2021, there was $14.5 million of unrecognized equity-based compensation expense and distribution of equity to ICL associated with the total of all Profits Interests subject to performance conditions.

Options for Common Units

During the second quarter of 2021, the Company granted options to acquire the Company’s common units to certain executives and members of the Board of Managers. These options for common units vest based on the grantees continued services over a three to four year period.

A summary of options for common units activity during the periods indicated is as follows:


	Number of Unit Option Awards		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)
Balance at December 31, 2020		—		—
Options for common units granted		2,292,309	4.99			10.0		—
Balance at June 30, 2021		2,292,309	4.99			10.0
Exercisable at June 30, 2021		—		—		—		—
Nonvested at June 30, 2021		2,292,309	4.99			10.0		—

As of June 30, 2021, there was $7.6 million of unrecognized equity-based compensation expense related to options for common units which is expected to be recognized over a weighted-average period of approximately 3.5 years.

The following table summarizes the components of equity-based compensation expense resulting from the grant of options for common units, recorded in the Company’s condensed consolidated statement of operations and comprehensive loss (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Research and development	$	61		—	$	61		—
General and administrative		221		—		221		—
Total equity-based compensation	$	282		—	$	282		—

Commitments and Contingencies

6 Months Ended

Jun. 30, 2021

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

10. Commitments and Contingencies

Leases

Rani pays for the use of its office, laboratory and manufacturing facilities in San Jose, California as part of the services agreement with ICL (see Note 6) which is accounted for as an operating lease with an implied renewal option into 2025. Rent expense incurred with ICL was $0.4 million for both of the six months ended June 30, 2021 and 2020, respectively.

Legal Proceedings

In the ordinary course of business, the Company may be subject to legal proceedings, claims and litigation as the Company operates in an industry susceptible to patent legal claims. The Company accounts for estimated losses with respect to legal proceedings and claims when such losses are probable and estimable. Legal costs associated with these matters are expensed when incurred. The Company is currently involved in several opposition proceedings at the European Patent Office, all of which were asserted against us by Novo Nordisk AS. The ultimate outcome of this matter as a loss is not probable nor is there any amount that is reasonably estimable. However, the outcome of the opposition proceedings could impact the Company’s ability to commercialize its products in Europe.

Income Taxes

6 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

12. Income Taxes

The Company is treated as a flow-through entity for federal and state income tax purposes. The income or loss generated by this entity is not taxed at the LLC level. As such, the Company’s income tax provision consists solely of the activity of its taxable subsidiary, RMS, which is taxed as a corporation for federal income tax purposes.

The Company’s effective income tax rate was (0.21)% and (0.17)% for the three and six months ended June 30, 2021, and (0.21)% for each of the three and six months ended June 30, 2020, respectively. The change in the Company’s effective income tax rate for the three and six months ended June 30, 2021 compared to the three and six months ended June 30, 2020 was primarily driven by the change in net income and the ability to utilize the tax credits available to the Company.

There were no material changes to uncertain tax positions for the three and six months ended June 30, 2021 and 2020, respectively, and the Company does not anticipate material changes within the next 12 months.

- Definition

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

+ References + Details

Long Term Debt

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Long-term Debt

11. Long-Term Debt

Convertible Notes

In September 2020, the Company entered into a secured convertible loan agreement (the “Loan and Security Agreement” or the “Loan”) with Avenue Venture Opportunity Fund L.P. (“Avenue”), whereby the Company could borrow up to a maximum of $10.0 million, with $3.0 million being immediately available. The remaining $7.0 million available could be borrowed if Avenue received evidence of at least $40.0 million of net cash proceeds from the sale or issuance of securities to existing investors, or upfront

payments in connection with strategic partnerships by March 31, 2021. The Company opted not to drawn down this additional amount, and the option has since expired undrawn. Avenue has the right, while the Loan is outstanding, to convert, at any time, an amount up to $3.0 million of the outstanding loan principal into the previous round of preferred units issued by the Company, currently Series E preferred, or the then current series of units subject to the Company’s most current round of financing, at a 20% premium of the latest preferred unit offering price. In exchange for access to this facility, the Company agreed to issue warrants exercisable into the Company’s preferred units amounting to $0.9 million; the Company subsequently granted 118,929 Series E warrants with an exercise price of $7.1471 per unit (Note 7).

In the event of a qualified financing, whereby the Company raises capital of at least $75.0 million of total gross proceeds in cash, the Series E warrant will automatically convert into preferred units at a price equal to the issue price per share of the shares issued in the qualified financing and on the same terms and conditions of such qualified financing.

The Loan is interest only until September 2021 and bears interest at a variable rate of interest per annum, compounded monthly until its maturity date of September 2023, at which time all outstanding principal and interest will become due and payable in cash if not already converted. The Company’s obligations under the Loan are secured by a first priority security interest in substantially all of its assets. The Loan includes customary events of default, including instances of a material adverse change in the Company’s operations, which may require prepayment of the outstanding Loan.

At June 30, 2021 and December 31, 2020 the effective interest rate on the Loan was 20.56%.

The Loan contains a contingent interest feature in the event of default that is not clearly and closely related to the underlying note and meets the definition of a derivative. The Company concluded that the fair value of this derivative was insignificant at June 30, 2021 and December 31, 2020.

The Loan and Security Agreement contains negative and affirmative covenants, including covenants that restrict the ability of the Company and its current and future subsidiaries ability to, among other things, incur or prepay existing indebtedness, pay dividends or distributions, dispose of assets, engage in mergers and consolidations, make acquisitions or other investments, and make changes in the nature of the business. The Loan and Security Agreement also contains certain objective events of default, including, without limitation, nonpayment of principal, interest or other obligations, violation of the covenants, insolvency, court ordered judgments, and change in control. The Loan and Security Agreement also requires the Company to provide audited consolidated financial statements to the lenders no later than 120 days after year-end.

The Company was in compliance with all of the debt covenants under the Loan and Security Agreement as of June 30, 2021 and there were no events of default during the six months ended June 30, 2021. In July 2021, the Company repaid the Loan in full (see Note 14). Due to the Company having the intent and ability to repay the Loan as of June 30, 2021, such Loan has been classified as a current liability as of June 30, 2021.

Paycheck Protection Program Loan

In April 2020, the Company received a $1.3 million small business loan under the Paycheck Protection Program (“PPP Loan”) as part of the CARES Act. The PPP Loan matures in April 2022, and bears interest at a rate of 1.0% per annum. The PPP Loan is evidenced by a promissory note, which contains customary events of default relating to, among other things, payment defaults and breaches of representations and warranties. The PPP Loan may be prepaid by us at any time prior to maturity with no prepayment penalties.

The Company has used all proceeds from the PPP Loan to retain employees, maintain payroll and make lease and utility payments. The Company believes it would qualify for forgiveness for all of the loan amount. The Company was in compliance with all of the debt covenants under the PPP Loan and there were no events of default as of June 30, 2021. In September 2021, the Company repaid the PPP Loan in full (see Note 14).

As of June 30, 2021, future principal payments for the Company’s debt are as follows (in thousands):


2021 (remaining six months)	$	1,350
2022		1,779
2023		1,125
Total principal payments		4,254
Less: amount representing debt discount		(385	)
Add: amount representing interest		15
Present value of remaining debt payments		3,884
Less: current portion		(3,884	)
Total long-term debt, less current portion	$	-

Net Loss Per Unit

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Net Loss Per Unit

13. Net Loss Per Unit

The following table sets forth the computation of basic and diluted net loss per unit (in thousands, except for units and per unit data):


	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Numerator:
Net loss	$	(5,485	)	$	(2,714	)	$	(11,083	)	$	(8,064	)
Denominator:
Weighted average common units outstanding—basic and diluted		46,896,280			46,890,280			46,896,081			46,890,280
Net loss per unit—basic and diluted	$	(0.12	)	$	(0.06	)	$	(0.24	)	$	(0.17	)

The following table shows the total outstanding securities considered anti-dilutive and therefore excluded from the computation of diluted net loss per unit:


	Six Months Ended June 30,
	2021		2020
Preferred units		27,888,611		17,084,696
Units reserved for Profits Interests		8,547,401		6,937,348
Units reserved for options for common units		2,292,309		—
Common unit warrants		223,315		229,315
Preferred unit warrants		118,929		107,357
Total		39,070,565		24,002,325

The impact of the conversion of the Loan has also been excluded as it would be anti-dilutive.

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2021
Subsequent Events	14. Subsequent Events Repayment of Convertible Notes In July 2021, the Company repaid in full the $3.0 million of principal and approximately $0.5 million of final payment and fees under the Loan and Security Agreement. Avenue Capital also waived their right to convert the outstanding principal into Series E Preferred Units. Organization Transactions In August 2021, and in connection with the completion of the Offering, the Company amended and restated its operating agreement (the “Rani LLC Agreement”) to appoint Rani Holdings as the sole managing member of the Company and effectuated an exchange of all outstanding (i) convertible preferred units, automatic or net exercised warrants to purchase preferred units and common units, and common units of the Company into economic nonvoting Class A units (“Class A Units”) and an equal number of voting noneconomic Class B units (“Class B Units”) and (ii) all Profits Interests into Class A Units (the Class A Units and Class B Units are collectively referred to as the “LLC Interests”). In connection with the closing of the initial public offering, each LLC interest was exchanged 1 for 0.5282 as determined and predicated on the initial public offering price of Rani Holdings Class A common stock. Certain holders of the Company’s Class A Units (the “Former LLC Owners”) immediately exchanged all of their Class A Units for 12,047,925 shares of Rani Holdings Class A common stock in connection with the Offering. The remaining individuals and entities that continued to own LLC Interests (“the Continuing LLC Owners”) received 29,290,391 shares of Rani Holdings Class B common stock, other than those that did not tender their units, and may, subject to the terms of the amended and restated Rani LLC Agreement, exchange their LLC Interests for shares of Rani Holdings’ Class A common stock on a one to one basis with a corresponding number of such shares of Rani Holdings Class B common stock; provided that, at Rani Holdings’ election, Rani Holdings may effect a direct exchange of such Class A common stock or make a cash payment equal to a volume weighted average market price of one share of its Class A common stock for each LLC Interest redeemed. Certain individuals who continue to own interests in Rani LLC but do not hold shares of our Class B common stock can exchange their units for 1,545,811 shares of our Class A common stock. Any shares of Class B common stock will be cancelled on a one-for-one basis if the Company, at the election of the Continuing LLC Owners, redeems or exchanges such LLC Interests pursuant to the terms of the Rani LLC Agreement. These exchanges and redemptions may result in increases in the tax basis of the assets of Rani that otherwise would not have been available. Increases in tax basis resulting from such exchanges may reduce the amount of tax that Rani Holdings would otherwise be required to pay in the future. This tax basis may also decrease the gains (or increase the losses) on future dispositions of certain assets to the extent tax basis is allocated to those assets. Rani Holdings Initial Public Offering In August 2021, Rani Holdings closed an initial public offering by selling 7,666,667 shares of its Class A common stock, including shares issued pursuant to the exercise in full of the underwriters’ option, for cash consideration of $11.00 per share and received approximately $73.7 million in net proceeds, after deducting underwriting discounts, offering costs and commissions. The Company currently issued 7,666,667 new Class A common units that Rani Holdings subsequently purchased using the proceeds from its IPO. 2016 Equity Incentive Plan The Rani Therapeutics, LLC 2016 Plan was terminated in July 2021 concurrent with the adoption of Rani Holdings 2021 Equity Incentive Plan. Outstanding awards granted under the 2016 Plan remain outstanding, subject to the terms of our 2016 Plan and award agreements. Repayment of PPP Loan In September 2021, the Company repaid in full the $1.3 million of principal and interest related to the PPP Loan.
Rani Therapeutics Holdings Inc. [Member]
Subsequent Events	4. Subsequent Events Organization Transactions In August 2021, and in connection with the completion of the Offering, the Company was party to the following organization transactions (the “Organization Transactions”):  Appointed as Rani LLC’s sole managing member through an amendment and restatement of the Rani LLC operating agreement (the “Rani LLC Agreement”);  Amended and restated the Company’s certificate of incorporation in July 2021, to provide for the issuance of (i) Class A common stock, each share of which entitles its holders to one vote per share, (ii) Class B common stock, each share of which entitles its holders to 10 votes per share on all matters presented to Rani Holdings’ stockholders, (iii) Class C common stock, which has no voting rights, except as otherwise required by law and (iv) preferred stock;  Exchanged 12,047,925 shares of Class A common stock for existing Class A units of Rani LLC held by certain individuals and entities (“Former LLC Owners”) on a one-for-one basis;  Issued 29,290,391 shares of Class B common stock to the certain individuals and entities that continued to hold interests in Rani LLC after the Offering (“the Containing LLC Owners”) in exchange for an equal amount of Rani LLC Interests;  Entered into a registration rights agreement with certain of the Continuing LLC Owners. The Continuing LLC Owners of Rani LLC may, subject to the terms of the Rani LLC Agreement, exchange their interests in Rani LLC ("LLC Interests") for the Company’s Class A common stock on a one-to-one basis with a corresponding number of such shares of Class B common stock; provided that, at the Company’s election, the Company may effect a direct exchange of such Class A common stock or make a cash payment equal to a volume weighted average market price of one share of Class A common stock for each LLC Interest redeemed. Any shares of Class B common stock will be cancelled on a one-for-one basis if the Company, at the election of the Continuing LLC Owners, redeem or exchange such LLC Interests pursuant to the terms of the Rani LLC Agreement. These exchanges and redemptions may result in increases in the tax basis of the assets of Rani LLC that otherwise would not have been available. Increases in tax basis resulting from such exchanges may reduce the amount of tax that Rani Holdings would otherwise be required to pay in the future. This tax basis may also decrease the gains (or increase the losses) on future dispositions of certain assets to the extent tax basis is allocated to those assets. Certain individuals who continue to own interests in Rani LLC but do not hold shares of our Class B common stock can exchange their units for 1,545,811 shares of our Class A common stock. Initial Public Offering In August 2021, the Company closed an initial public offering and sold 7,666,667 shares of its Class A common stock, including shares issued pursuant to the exercise in full of the underwriters’ option, for cash consideration of $11.00 per share and received approximately $73.7 million in net proceeds, after deducting underwriting discounts, offering costs and commissions. The Company used the proceeds from the Offering to purchase 7,666,667 newly issued Class A units of Rani LLC. Tax Receivable Agreement In August 2021, in connection with the Offering, Rani Holdings entered into a tax receivable agreement with certain of the Continuing LLC Owners that provides for the payment by Rani Holdings to such Continuing LLC Owners of 85% of the amount of tax benefits, if any, that the Company is deemed to realize (calculated using certain assumptions) as a result of (i) increases in the tax basis of assets of Rani LLC resulting from (a) any future redemptions or exchanges of membership interests of Rani LLC and (b) payments under the tax receivable agreement and (ii) certain other benefits arising from payments under the tax receivable agreement. Equity Incentive Plans In July 2021, the Company adopted and its stockholders approved, the Rani Therapeutics Holdings, Inc. 2021 Equity Incentive Plan (the “2021 Plan”). The 2021 Plan provides for the grant of incentive stock options ("ISOs"), non-statutory stock options ("NSOs"), stock appreciation rights, restricted stock awards, restricted stock unit awards, performance-based awards and other awards for shares of the Company’s Class A common stock. In July 2021, the Company's board of directors adopted and its stockholders approved, the Rani Therapeutics Holdings, Inc. 2021 Employee Stock Purchase Plan (the “ESPP”). The Company reserved 500,000 shares of Class A Common Stock for issuance under the ESPP and 5,500,000 shares of Class A common stock for future issuance under the 2021 Plan.

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2021
Product Information [Line Items]
Basis of Presentation and Accounting	Basis of Presentation These condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. All intercompany accounts and transactions have been eliminated in consolidation.
Unaudited Interim Financial Information	Unaudited Interim Financial Information The accompanying condensed consolidated balance sheet at June 30, 2021, condensed consolidated statements of operations and comprehensive loss and condensed consolidated statements of changes in convertible preferred units and members’ deficit for the three-month and six-month periods ended June 30, 2021 and 2020 and the condensed consolidated statements of cash flows for the six-month periods ended June 30, 2021 and 2020 are unaudited. In management’s opinion, the unaudited condensed consolidated financial statements have been prepared on the same basis as the audited annual consolidated financial statements, and include all adjustments necessary to state fairly the financial position as of June 30, 2021, the results of its operations for the three and six months ended June 30, 2021 and 2020 and the condensed consolidated statement of changes in convertible preferred units and members’ deficit for the three months and six months ended June 30, 2021 and 2020. The consolidated balance sheet as of December 31, 2020 included herein was derived from the audited consolidated financial statements as of that date. The results for the three months and six months ended June 30, 2021 are not necessarily indicative of the operating results to be expected for the full fiscal year or any future period. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted. Therefore, these interim condensed financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in Rani Holdings' Registration Statement on Form S-1 (No. 333-257809) filed with the SEC.
Use of Estimates	Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses and the disclosure of contingent assets and liabilities in the Company’s consolidated financial statements and accompanying notes. These estimates and assumptions are based on current facts, historical experience and various other factors 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 and the recording of expenses that are not readily apparent from other sources. Significant estimates include, but are not limited to, recovery of long-lived assets, unvested equity-based compensation expense, research and development accruals, the fair value of Profits Interests, and the fair value of the Company’s preferred unit warrants. Actual results may differ materially and adversely from these estimates.
Revenue Recognition	Revenue Recognition The Company enters into evaluation arrangements with certain pharmaceutical partners, under which the Company performs evaluation services of the partner’s drug molecules using the RaniPill capsule. Revenue is recognized when control of promised goods or services is transferred to a customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To determine revenue recognition for its arrangements with customers, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. Revenue for an individual contract is recognized at the related transaction price, which is the amount the Company expects to be entitled to in exchange for transferring these services. The terms of the evaluation services agreements usually include payments for evaluation services and evaluation milestones based on a decision to extend the agreement. The transaction price of the evaluation services contracts may include variable consideration. Application of the constraint for variable consideration requires judgment. The constraint for variable consideration is applied such that it is probable a significant reversal of revenue will not occur when the uncertainty associated with the contingency is resolved. Application of the constraint for variable consideration is updated at each reporting period as a revision to the estimated transaction price. For arrangements where the anticipated period between timing of transfer of services and the timing of payment is one year or less, the Company has elected to not assess whether a significant financing component exists. The Company recognizes evaluation services revenue over the period in which evaluation services are provided. Specifically, the Company recognizes revenue using an output method to measure progress, using samples processed relative to total expected samples to be processed as its measure of progress. For services under these arrangements, costs incurred are included in research and development expenses in the Company’s consolidated statements of operations and comprehensive loss. Customer options, such as options granted to allow a customer to acquire later stage evaluation services, are evaluated at contract inception in order to determine whether those options provide a material right (i.e., an optional good or service offered for free or at a discount) to the customer. If the customer options represent a material right, the material right is treated as a separate performance obligation at the outset of the arrangement. The Company allocates the transaction price to material rights based on the standalone selling price, and revenue is recognized when or as the future goods or services are transferred or when the option expires. Customer options that are not material rights do not give rise to a separate performance obligation, and as such, the additional consideration that would result from a customer exercising an option in the future is not included in the transaction price for the current contract. Instead, the option is deemed a marketing offer, and additional option fee payments are recognized or being recognized as revenue when the licensee exercises the option. The exercise of an option that does not represent a material right is treated as a separate contract for accounting purposes. Revenue is recognized for each distinct performance obligation as control is transferred to the customer. The Company recognizes revenue from its evaluation services over time as services are delivered, using a cost-based input method of revenue recognition over the contract term. The cost-based input measured is based on an estimate of total costs to be incurred to deliver the services over the contract period compared to costs incurred to date for each contract. The Company’s evaluation of estimated costs to perform the services typically includes estimates for effort related to contracted research, formulation, and animal testing. These estimates are based on the Company’s reasonable assumptions and its historical experience. Actual results may differ materially and adversely from these estimates. Incremental costs of obtaining contracts are expensed when incurred when the amortization period of the assets that otherwise would have been recognized is one year or less. To date none of these costs have been material. The costs to fulfill the contracts are determined to be immaterial and are recognized as an expense when incurred. Contract assets are generated when contractual billing schedules differ from revenue recognition timing and the Company records a contract receivable when it has an unconditional right to consideration. No contract assets balance was recorded as of June 30, 2021 and December 31, 2020. Contract liabilities are recorded as deferred revenue when cash payments are received or due in advance of performance or where the Company has unsatisfied performance obligations. As of December 31, 2020 the Company had deferred revenue of $2.7 million. There was no deferred revenue as of June 30, 2021.
Concentrations of Credit Risk and Other Risks and Uncertainties	Concentrations of Credit Risk and Other Risks and Uncertainties Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents. The Company maintains accounts in federally insured financial institutions in excess of federally insured limits. The Company also holds money market funds that are not federally insured. However, management believes the Company is not exposed to significant credit risk due to the financial strength of the depository institutions in which these deposits are held and of the money market funds and other entities in which these investments are made. In December 2019, a novel strain of coronavirus, which causes the disease known as COVID-19, was reported to have surfaced in Wuhan, China. Since then, COVID-19 coronavirus has spread globally. In March 2020, the World Health Organization declared the COVID-19 outbreak a pandemic. The COVID-19 pandemic has impacted and may continue to impact the Company’s third-party manufacturers and suppliers, which could disrupt its supply chain or the availability or cost of materials. The effects of the public health directives and the Company’s work-from-home policies may negatively impact productivity, disrupt its business, and delay clinical programs and timelines and future clinical trials, the magnitude of which will depend, in part, on the length and severity of the restrictions and other limitations on the Company’s ability to conduct business in the ordinary course. These and similar, and perhaps more severe, disruptions in the Company’s operations could negatively impact business, results of operations and financial condition, including its ability to obtain financing. To date, the Company has not incurred impairment losses in the carrying values of its assets as a result of the pandemic and is not aware of any specific related event or circumstances that would require the Company to revise its estimates reflected in these condensed consolidated financial statements. The Company cannot be certain what the overall impact of the COVID-19 pandemic will be on its business and prospects. The extent to which the COVID-19 pandemic will further directly or indirectly impact its business, results of operations, financial condition, and liquidity, including planned and future clinical trials and research and development costs, will depend on future developments that are highly uncertain, including as a result of new information that may emerge concerning COVID-19, the actions taken to contain or treat it, and the duration and intensity of the related effects. In addition, the Company could see some limitations on employee resources that would otherwise be focused on its operation, including but not limited to sickness of employees or their families, the desire of employees to avoid contact with large groups of people, and increased reliance on working from home. If the financial markets and/or the overall economy are impacted for an extended period, the Company’s business, financial condition, results of operations and prospects may be adversely affected.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: Level 1—Quoted prices in active markets for identical assets or liabilities. Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. The carrying values of the Company’s cash equivalents, prepaid expenses, accounts payable, and accruals approximate their fair value due to their short-term nature. The fair value of the Company’s long-term debt approximates its carrying value based on borrowing rates currently available to the Company for debt with similar terms and maturities (Level 2 inputs). To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgement exercised by the Company in determining fair value is greatest for instruments categorized in Level 3 (see Note 3). A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value of the instrument.
Research and Development Costs	Research and Development Costs Research and development costs are expensed as incurred. Research and development expenses consist primarily of contract research fees and process development, outsourced labor and related expenses for personnel, facilities cost, fees paid to consultants and advisors, depreciation and supplies used in research and development and costs incurred under our evaluation agreements. Payments made prior to the receipt of goods or services to be used in research and development activities are recorded as prepaid expenses until the related goods or services are received. Until future commercialization is considered probable and the future economic benefit is expected to be realized the Company does not capitalize pre-launch inventory costs. Costs of property and equipment related to scaling-up of the manufacturing capacity for clinical trials and to support commercialization are capitalized as property and equipment unless the related asset does not have an alternative future use. Clinical and preclinical costs are a component of research and development expense. The Company accrues and expenses clinical and pre-clinical trial activities performed by third parties based upon actual work completed in accordance with agreements established with its service providers. The Company determines the actual costs through discussions with internal personnel and external service providers as to the progress or stage of completion of services and the agreed-upon fee to be paid for such services.
Equity-Based Compensation	Equity-Based Compensation The Company has granted equity-based awards to employees of ICL performing services for the Company, employees of and Board Managers of the Company and consultants in the form of non-vested incentive units (“Profits Interests”) and/or options to purchase common units. All awards of Profits Interests and options to purchase common units are measured based on the estimated fair value of the award on the date of grant. Forfeitures are recognized when they occur. All of the Profits Interests are subject to service and performance-based conditions and the Company evaluates the probability of achieving each performance-based condition at each reporting date and begins to recognize distribution of equity for ICL employee awards and equity-based compensation expense for Company and consultant awards when it is deemed probable that the performance-based condition will be met using the accelerated attribution method over the requisite service period. The options to purchase common units are subject to service conditions and generally vest over three or four years. The Company utilizes estimates and assumptions in determining the fair value of its Profits Interests and options to purchase common units on the date of grant. As the Company was not a publicly traded company in the six months ended June 30, 2021 and 2020, the Company utilized various valuation methodologies in accordance with the framework of the American Institute of Certified Public Accountants Technical Practice Aid, Valuation of Privately Held Company Equity Securities Issued as Compensation, to estimate the fair value of its preferred units, common units and Profits Interests. Each valuation methodology includes estimates and assumptions that require the Company’s judgment. These estimates and assumptions include several objective and subjective factors, including probability weighting of events, volatility, time to an exit event, a risk-free interest rate, the prices at which the Company sold preferred units, the superior rights, and preferences of the preferred units senior to the Company’s common units at the time, and a discount for the lack of marketability. Changes to the key assumptions used in the valuations could result in different fair values at each valuation date. The Company determines the grant-date fair value of options to purchase common units using the Black-Scholes option-pricing model which requires inputs based on certain subjective assumptions, including the expected stock price volatility, the expected term of the unit option, the risk-free interest rate for a period that approximates the expected term of the option, and the Company’s expected dividend yield. The grant-date fair value of awards is amortized over the employees’ requisite service period on a straight-line basis, or the consultants' vesting period as the services are rendered. Equity-based compensation is classified in the accompanying condensed consolidated statements of operations and comprehensive loss based on the function to which the related services are provided.
Comprehensive Loss	Comprehensive Loss Comprehensive loss is defined as a change in equity of a business enterprise during a period, resulting from transactions and other events and/or circumstances from non-owner sources. The Company did not have any other comprehensive loss for any of the periods presented, and therefore comprehensive loss was the same as the Company’s net loss.
Net Loss Per Unit	Net Loss Per Unit Basic net loss per unit is computed using the weighted-average number of common units outstanding for the period, without consideration of potential dilutive securities. Diluted net loss per unit is computed using the weighted-average number of common units outstanding during the period and, if dilutive, the weighted-average number of potential common units. Net loss per unit attributable to common unitholders is calculated using the two-class method, which is an earnings allocation formula that determines net loss per unit for the holders of the Company’s common units and participating securities. The preferred unit warrants and convertible note are non-participating securities, while the Profits Interests participate in the gains and losses of the Company once the participation threshold is reached. The Company’s convertible preferred units contain participation rights in any dividend paid by the Company and are deemed to be participating securities. The convertible preferred units do not include a contractual obligation to participate in losses of the Company and are not included in the calculation of net loss per unit in the periods in which a net loss is recorded. The Company’s convertible preferred units, common unit warrants, preferred unit warrants, convertible notes and Profits Interests are considered potentially dilutive. The Company makes adjustments to diluted net loss to reflect the reversal of gains on the change in the value of preferred unit warrant liabilities, assuming conversion of warrants to acquire convertible preferred units at the beginning of the period or at time of issuance, if later, to the extent that those preferred unit warrants are dilutive. The Company computes diluted net loss per unit after giving consideration to all potentially dilutive common units outstanding during the period, determined using the treasury stock and if-converted methods, as applicable, except where the effect of including such securities would be antidilutive. For the six months ended June 30, 2021 and 2020, the Company reported a net loss. The potentially dilutive common units were anti-dilutive, except for the series B preferred unit warrants, which were considered dilutive but did not affect the net loss per share. As a result, basic and diluted net loss per unit were the same.
Deferred financing costs	Deferred financing costs Deferred financing costs, which consist of direct incremental legal, consulting, banking and accounting fees primarily relating to the Company’s Offering, are capitalized and will be offset against proceeds upon the consummation of the offering within members’ deficit. As of December 31, 2020, there were no capitalized deferred financing costs on the condensed consolidated balance sheet. As of June 30, 2021, there were $3.4 million of deferred financing costs recorded as a long-term asset on the condensed consolidated balance sheet.
New Accounting Pronouncements	New Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-02, Leases (“Topic 842”), as subsequently amended, to improve financial reporting and disclosures about leasing transactions. Topic 842 requires companies that lease assets to recognize on the condensed consolidated balance sheet the assets and liabilities for the rights and obligations created by those leases, where the lease terms exceed 12 months. The recognition, measurement, and presentation of expense and cash flows arising from a lease by a lessee will depend primarily on its classification as a finance or operating lease; both types of leases will be recognized on the condensed consolidated balance sheet. Topic 842 also requires disclosures to help financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. On June 3, 2020, the FASB amended the effective dates of Topic 842 to give immediate relief from business disruptions caused by the COVID-19 pandemic and provided a one-year deferral of the effective date for nonpublic companies. As a result of the Company having elected the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act, and assuming the Company continues to be considered an emerging growth company, Topic 842 will be effective for the Company on January 1, 2022. The Company has not yet determined the effects of Topic 842 on its condensed consolidated financial statements but does expect the adoption of Topic 842 will have a material impact on the Company’s consolidated financial statements and related notes to the recognition of right of use (“ROU”) assets and lease liabilities on the Company’s consolidated balance sheets, but it will not have a material impact on the Company’s consolidated statement of income. The adoption of Topic 842 will also result in enhanced disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (“ASU 2016-13”) to require the measurement of expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable forecasts. The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. As a result of the Company having elected the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act, and assuming the Company continues to be considered an emerging growth company, ASU 2016-13 will be effective for the Company on January 1, 2023. The Company has not yet determined the potential effects of ASU 2016-13 on its condensed consolidated financial statements and disclosures.
Rani Therapeutics Holdings Inc. [Member]
Product Information [Line Items]
Basis of Presentation and Accounting	Basis of Presentation and Accounting The accompanying unaudited condensed balance sheets have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to Form 10-Q of Regulation S-X of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Separate statements of operations, comprehensive income, changes in stockholder’s equity, and cash flows have not been presented as of June 30, 2021 because there have been no activities except in connection with the Company’s formation. The condensed balance sheet presented as of April 19, 2021, has been derived from the audited balance sheet as of that date. The condensed balance sheets and notes are presented as permitted by Form 10-Q and do not contain all information that is included in the annual financial statements and notes thereto of the Company. Therefore, these interim condensed balance sheets and notes should be read in conjunction with the Company’s audited balance sheet and notes included in the Company’s Registration Statement on Form S-1 (No. 333-257809) filed with the SEC. The financial statement has been prepared in accordance with GAAP. The financial statement has been prepared assuming Rani Holdings will continue as a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the normal course of business.
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 and liabilities and disclosure of contingent assets and liabilities at the date of the balance sheet. Actual results could differ from those estimates.
Cash	Cash Cash consists of a deposit in-transit.

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Recorded at Fair Value on a Recurring Basis


	As of June 30, 2021
	Level 1		Level 2		Level 3
Assets:
Money market funds	$	67,002	$	—	$	—
Total assets	$	67,002	$	—	$	—
Liabilities:
Preferred unit warrant liability	$	—	$	—	$	606
Total liabilities	$	—	$	—	$	606

	As of December 31, 2020
	Level 1		Level 2		Level 3
Assets:
Money market funds	$	71,666	$	—	$	—
Total assets	$	71,666	$	—	$	—
Liabilities:
Preferred unit warrant liability	$	—	$	—	$	320
Total liabilities	$	—	$	—	$	320

Summary of Significant Unobservable Inputs used in the Fair Value Measurement of the Series E Preferred Unit Warrant Liability

The following table summarizes the significant unobservable inputs used in the fair value measurement of the Series E preferred unit warrant liability as of June 30, 2021:


Fair Value (in thousands)	Valuation Technique	Unobservable Input	Range	Weighted Average
	Hybrid between the	Time to exit	0.1 - 2.3 years	0.3 years
	probability weighted	Probability of exit events	10% - 90%	80%
$606	expected return and	Discount for lack of marketability	10% - 31%	12%
	option pricing methods	Volatility	72%	72%

Summary of the Changes in the Fair Value of the Company’s Liability

The following tables set forth a summary of the changes in the fair value of the Company’s liability measured using Level 3 inputs (in thousands):


	Three Months Ended June 30,					Six Months Ended June 30,
	2021		2020			2021		2020
Balance at beginning of period	$	536	$	672		$	320	$	655
Change in estimated fair value of Series B warrants		—		(1	)		—		16
Change in estimated fair value of Series E warrants		70		—			286		—
Expiration of Series B warrants		—		(671	)		—		(671	)
Balance at end of period	$	606	$	—		$	606	$	—

Accrued Expenses (Tables)

6 Months Ended

Jun. 30, 2021

Accrued Liabilities Current And Noncurrent [Abstract]

Schedule of Accrued Expenses

Accrued expenses consist of the following (in thousands):


	June 30,		December 31,
	2021		2020
Accrued professional fees	$	348	$	—
Payroll and related		1,222		136
Deferred financing costs		998		—
Other		353		414
Total accrued expenses	$	2,921	$	550

Evaluation Agreements (Tables)

6 Months Ended

Jun. 30, 2021

Evaluation Agreements [Abstract]

Schedule of deferred revenue balance

Changes in the deferred revenue balance are as follows (in thousands):


	June 30,			December 31,
	2021			2020
Balance at beginning of period	$	2,717		$	179
Additions		—			3,000
Deductions		(2,717	)		(462	)
Balance at end of period	$	—		$	2,717

Related Party Transactions (Tables)

6 Months Ended

Jun. 30, 2021

Schedule of Amounts Charged for Services and Rent


	Three Months Ended June 30,					Six Months Ended June 30,
	2021		2020			2021		2020
Research and development	$	123	$	(63	)	$	156	$	121
General and administrative		184		207			366		451
Total	$	307	$	144		$	522	$	572

Members Deficit (Tables)

6 Months Ended

Jun. 30, 2021

Members Deficit [Abstract]

Schedule of Convertible Preferred Units

The Company’s convertible preferred units consisted of the following (in thousands, except unit amounts):


	Units				Carrying		Liquidation		Units issuable
June 30, 2021	Authorized		Outstanding		Value		Preference		upon conversion
Series A convertible preferred units		4,000,000		4,000,000		3,974		8,000		4,000,000
Series B convertible preferred units		2,600,000		2,510,246		10,080		19,332		2,510,246
Series C convertible preferred units		5,000,000		4,972,115		32,348		32,488		4,972,115
Series C-1 convertible preferred units		2,520,000		2,504,099		17,607		18,270		2,511,608
Series D convertible preferred units		7,500,000		3,149,577		52,214		49,174		3,400,875
Series E convertible preferred units		11,000,000		10,493,767		74,811		75,000		10,493,767
		32,620,000		27,629,804	$	191,034	$	202,264		27,888,611


	Units				Carrying		Liquidation		Units issuable
December 31, 2020	Authorized		Outstanding		Value		Preference		upon conversion
Series A units		4,000,000		4,000,000	$	3,974	$	8,000		4,000,000
Series B units		2,600,000		2,510,246		10,080		19,332		2,510,246
Series C units		5,000,000		4,972,115		32,348		32,488		4,972,115
Series C-1 units		2,520,000		2,504,099		17,607		18,325		2,511,058
Series D units		7,500,000		3,149,577		52,214		53,102		3,380,906
Series E units		11,000,000		9,609,491		68,491		68,680		9,609,491
		32,620,000		26,745,528	$	184,714	$	199,927		26,983,816

Schedule of Common Units Reserved for Future Issuance


	June 30,		December 31,
Class of Units/Shares	2021		2020
Units reserved for conversion of outstanding Series A		4,000,000		4,000,000
Units reserved for conversion of outstanding Series B		2,510,246		2,510,246
Units reserved for conversion of outstanding Series C		4,972,115		4,972,115
Units reserved for conversion of outstanding Series C-1		2,511,608		2,511,058
Units reserved for conversion of outstanding Series D		3,400,875		3,380,906
Units reserved for conversion of outstanding Series E		10,493,767		9,609,491
Units reserved for Profit Interests, issued and outstanding		8,547,401		6,926,358
Units reserved for options, issued and outstanding		2,292,309		—
Units reserved for Profit Interests and options, authorized for future issuance		10,290		3,923,642
		38,738,611		37,833,816

Equity Based Compensation (Tables)

6 Months Ended

Jun. 30, 2021

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Profits Interests Activity

A summary of Profits Interests activity during the periods indicated is as follows:


	Number of Profits Interests			Weighted Average Grant Date Fair Value		Profits Interests Threshold
Balance at December 31, 2020		6,926,358		$	1.63	$1.44 - $2.29
Forfeitures		(235,957	)	$	2.04	$1.45 - $2.29
Profit Interests grants		1,857,000		$	2.00	$1.99 - $2.13
Balance at June 30, 2021		8,547,401		$	1.70	$1.44 - $2.29

Summary of Options for Common Units Activity

A summary of options for common units activity during the periods indicated is as follows:


	Number of Unit Option Awards		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)
Balance at December 31, 2020		—		—
Options for common units granted		2,292,309	4.99			10.0		—
Balance at June 30, 2021		2,292,309	4.99			10.0
Exercisable at June 30, 2021		—		—		—		—
Nonvested at June 30, 2021		2,292,309	4.99			10.0		—

Summary of Components of Equity-based Compensation Expense


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Research and development	$	61		—	$	61		—
General and administrative		221		—		221		—
Total equity-based compensation	$	282		—	$	282		—

Long Term Debt (Tables)

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Schedule of Future Principal Payments for the Company's Debt

As of June 30, 2021, future principal payments for the Company’s debt are as follows (in thousands):


2021 (remaining six months)	$	1,350
2022		1,779
2023		1,125
Total principal payments		4,254
Less: amount representing debt discount		(385	)
Add: amount representing interest		15
Present value of remaining debt payments		3,884
Less: current portion		(3,884	)
Total long-term debt, less current portion	$	-

Net Loss Per Unit (Tables)

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table sets forth the computation of basic and diluted net loss per unit (in thousands, except for units and per unit data):


	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Numerator:
Net loss	$	(5,485	)	$	(2,714	)	$	(11,083	)	$	(8,064	)
Denominator:
Weighted average common units outstanding—basic and diluted		46,896,280			46,890,280			46,896,081			46,890,280
Net loss per unit—basic and diluted	$	(0.12	)	$	(0.06	)	$	(0.24	)	$	(0.17	)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following table shows the total outstanding securities considered anti-dilutive and therefore excluded from the computation of diluted net loss per unit:


	Six Months Ended June 30,
	2021		2020
Preferred units		27,888,611		17,084,696
Units reserved for Profits Interests		8,547,401		6,937,348
Units reserved for options for common units		2,292,309		—
Common unit warrants		223,315		229,315
Preferred unit warrants		118,929		107,357
Total		39,070,565		24,002,325

Organization (Additional Information) (Details)	6 Months Ended
Organization (Additional Information) (Details)	Jun. 30, 2021
Rani Therapeutics Holdings Inc. [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Date of incorporation	Apr. 06, 2021

Organization and Nature of Business - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands		6 Months Ended
	Jul. 30, 2021	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Proceeds from issuance from initial public offering		$ 73,700
Recurring gain (Loss)		(11,100)
Accumulated deficit		125,086		$ 114,003
Operating activities, net		9,676	$ 8,930
Cash and cash equivalents		69,300
IPO
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Proceeds from issuance from initial public offering		$ 100,000
Common Class A [Member] \| IPO \| Subsequent Event
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Issuance of common stock, shares	7,666,667
Stock offering price per share	$ 11.00
Proceeds from issuance from initial public offering	$ 73,700

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($)	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020	Dec. 31, 2019
Summary Of Significant Accounting Policies [Line Items]
Contract assets	$ 0	$ 0
Deferred revenue	0	2,717,000	$ 179,000
Deferred offering costs	$ 3,400,000	$ 0
Equity Based compensation, Terms, Description	The options to purchase common units are subject to service conditions and generally vest over three or four years

Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Level 1
Assets:
Total assets	$ 67,002	$ 71,666
Liabilities:
Total liabilities	0	0
Level 1 \| Money market funds
Assets:
Total assets	67,002	71,666
Level 1 \| Preferred unit warrant liability
Liabilities:
Total liabilities	0	0
Level 2
Assets:
Total assets	0	0
Liabilities:
Total liabilities	0	0
Level 2 \| Money market funds
Assets:
Total assets	0	0
Level 2 \| Preferred unit warrant liability
Liabilities:
Total liabilities	0	0
Level 3
Assets:
Total assets	0	0
Liabilities:
Total liabilities	606	320
Level 3 \| Money market funds
Assets:
Total assets	0	0
Level 3 \| Preferred unit warrant liability
Liabilities:
Total liabilities	$ 606	$ 320

Fair Value Measurement - Unobservable inputs used in the fair value Measurement (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2021 USD ($)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value (in thousands)	$ 606
Measurement Input, Price Volatility
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value measurement expected volatility rate	72.00%
Minimum [Member] \| Measurement Input, Expected Term
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative, term of contract	1 month 6 days
Minimum [Member] \| Measurement Input Probability Of Exit Events
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value measurement probability of exit events	10.00%
Minimum [Member] \| Measurement Input, Discount for Lack of Marketability
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value measurement discount for lack of marketability	10.00%
Maximum [Member] \| Measurement Input, Expected Term
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative, term of contract	2 years 2 months 12 days
Maximum [Member] \| Measurement Input Probability Of Exit Events
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value measurement probability of exit events	90.00%
Maximum [Member] \| Measurement Input, Discount for Lack of Marketability
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value measurement discount for lack of marketability	31.00%
Weighted Average \| Measurement Input, Expected Term
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative, term of contract	4 months 24 days
Weighted Average \| Measurement Input Probability Of Exit Events
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value measurement probability of exit events	80.00%
Weighted Average \| Measurement Input, Discount for Lack of Marketability
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value measurement discount for lack of marketability	12.00%
Weighted Average \| Measurement Input, Price Volatility
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value measurement expected volatility rate	72.00%

Fair Value Measurements - Summary of the changes in the fair value of the Liability (Details) - Level 3 - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Balance at beginning of period	$ 536	$ 672	$ 320	$ 655
Expiration of Series B warrants	0	(671)	0	(671)
Balance at end of period	606	0	606	0
Series B Warrants
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Change in estimated fair value	0	(1)	0	16
Series E Warrants
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Change in estimated fair value	$ 70	$ 0	$ 286	$ 0

Stockholder's Equity - Additional Information (Details) - USD ($)	6 Months Ended
	Jun. 30, 2021	Apr. 19, 2021	Apr. 06, 2021	Dec. 31, 2020
Class Of Stock [Line Items]
Preferred stock, shares authorized	32,620,000			32,620,000
Rani Therapeutics Holdings Inc. [Member]
Class Of Stock [Line Items]
Common stock, shares authorized	1,000	1,000	1,000
Common stock, par value	$ 0.0001	$ 0.0001	$ 0.0001
Common stock, shares issued	1,000	1,000
Shares issued, price per share	$ 0.01
Proceeds from common stock	$ 10.00
Common stock, shares outstanding	1,000	1,000
Preferred stock, shares authorized	20,000,000
Preferred stock, par value	$ 0.0001
Rani Therapeutics Holdings Inc. [Member] \| Common Stock [Member]
Class Of Stock [Line Items]
Common stock, voting rights	Each share of Class A common stock entitles its holders to one vote per share and each share of Class B common stock entitles its holders to 10 votes per share on all matters presented to the Company’s stockholders. Shares of Class C common stock have no voting rights, except as otherwise required by law.
Rani Therapeutics Holdings Inc. [Member] \| Common Class A [Member]
Class Of Stock [Line Items]
Common stock, shares authorized	800,000,000
Common stock, par value	$ 0.0001
Rani Therapeutics Holdings Inc. [Member] \| Common Class B [Member]
Class Of Stock [Line Items]
Common stock, shares authorized	40,000,000
Common stock, par value	$ 0.0001
Rani Therapeutics Holdings Inc. [Member] \| Common Class C [Member]
Class Of Stock [Line Items]
Common stock, shares authorized	20,000,000
Common stock, par value	$ 0.0001

Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Accrued Liabilities Current And Noncurrent [Abstract]
Accrued professional fees	$ 348	$ 0
Payroll and related	1,222	136
Deferred financing costs	998	0
Other	353	414
Total accrued expenses	$ 2,921	$ 550

Evaluation Agreements - Additional information (Details) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Nov. 30, 2017	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	May 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]
Deferred revenue		$ 0		$ 0			$ 2,717,000	$ 179,000
Receivables or net contract assets from agreement		0		0			0
Takeda Agreement [Member]
Defined Benefit Plan Disclosure [Line Items]
Upfront payment	$ 5,900,000
Amount payable for evaluation services	$ 3,000,000.0
Agreement termination period	30 days
Agreement termination negotiation period	120 days
Revenue from contract		$ 2,000,000.0	$ 100,000	$ 2,700,000	$ 100,000
Deferred revenue						$ 2,000,000.0	$ 2,700,000

- Definition

Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130545-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130543-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Evaluation Agreements - Schedule of deferred revenue balance (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Evaluation Agreements [Abstract]
Balance at beginning of period	$ 2,717,000	$ 179,000
Additions	0	3,000,000
Deductions	(2,717,000)	(462,000)
Balance at end of period	$ 0	$ 2,717,000

Related Party Transactions - Additional Information (Details) - USD ($)	1 Months Ended		6 Months Ended		12 Months Ended
	Feb. 28, 2021	Jun. 30, 2017	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Dec. 31, 2017
Related Party Transaction [Line Items]
Outstanding net advances			$ 1,720,000	$ 0
Aggregate desired patent acquisition			1,000,000.0
Legacy Cost					$ 200,000
Equity-based compensation expense			735,000	0
Secondary Sales Transactions
Related Party Transaction [Line Items]
Sale of common units	210,000
Common unit, price per share	$ 7.1471
Equity-based compensation expense	$ 500,000
Sales price and fair value of common units, difference	500,000
Series D Units
Related Party Transaction [Line Items]
Conversion of stock, amount						$ 1,000,000.0
Research and Development Expense \| Secondary Sales Transactions
Related Party Transaction [Line Items]
Equity-based compensation expense	300,000
General and Administrative Expense \| Secondary Sales Transactions
Related Party Transaction [Line Items]
Equity-based compensation expense	$ 200,000
ICL
Related Party Transaction [Line Items]
Outstanding net advances		$ 6,600,000
Interest rate on notes		1.97%
Rate of loan fees payable upon demand		2.75%
Payment of interest and principal on notes receivable					200,000
Notes receivable outstanding					$ 1,700,000
One time patent payment to related party			$ 250,000
ICL \| Exclusive License Intellectual Property and Common Unit Purchase Agreement
Related Party Transaction [Line Items]
Common stock units issued			46,000,000.0
ICL \| Series B Convertible Preferred Units
Related Party Transaction [Line Items]
Conversion of stock, shares					51,341
ICL \| Series D Units
Related Party Transaction [Line Items]
Conversion of stock, shares						59,312
ICL \| Research and Development Expense
Related Party Transaction [Line Items]
Amount charged to related party			$ 300,000	$ 200,000
RMS-ICL
Related Party Transaction [Line Items]
Service agreement term			In June 2021, RMS entered into the RMS-ICL Service Agreement with ICL effective January 1, 2021 (the "RMS-ICL Service Agreement"), pursuant to which ICL agreed to rent a specified portion of its facility to RMS. Additionally, RMS and ICL agreed to provide personnel services to the other upon requests based on rates specified in the agreement. The RMS-ICL Service Agreement has a 12-month term and will automatically renew for successive 12-month periods unless terminated. For the six months ended June 30, 2020 and 2021, RMS charged ICL $0.2 million and $0.3 million for services performed, respectively, and such amounts charged were recorded as a reduction to research and development expense in the condensed consolidated statement of operations and comprehensive loss.

Related Party Transactions - Schedule of Amounts Charged for Services and Rent (Details) - ICL - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Related Party Transaction [Line Items]
Related party charges	$ 307	$ 144	$ 522	$ 572
Research and Development Expense
Related Party Transaction [Line Items]
Related party charges	123	63	156	121
General and Administrative Expense
Related Party Transaction [Line Items]
Related party charges	$ 184	$ 207	$ 366	$ 451

Warrants - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended		12 Months Ended
	Aug. 31, 2021	Jan. 31, 2021	Dec. 31, 2017	Jun. 30, 2021	Dec. 31, 2020	Sep. 30, 2020
Preferred Unit Warrants \| Series E Preferred Units \| Loan and Security Agreement
Class Of Warrant Or Right [Line Items]
Securities purchase in exchange for warrant						118,929
Warrants exercisable period						7 years
Warrant exercise price						$ 7.1471
Preferred Unit Warrants \| Rani Therapeutics Holdings Inc. [Member] \| Subsequent Event
Class Of Warrant Or Right [Line Items]
Common Stock, Units Exchanged	62,887
Common Unit Warrants
Class Of Warrant Or Right [Line Items]
Warrants exercisable period			5 years
Warrant exercise price		$ 2.18	$ 2.18
Class of warrant or right, outstanding				223,315	229,315
Common unit warrants issued			229,315
Issuance date fair value of warrants or right			$ 0.3
Warrants or rights exercised		6,000
Common Unit Warrants \| Rani Therapeutics Holdings Inc. [Member] \| Subsequent Event
Class Of Warrant Or Right [Line Items]
Common Stock, Units Exchanged	71,867

Members' Deficit - Additional Information (Details) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended	6 Months Ended
	Oct. 31, 2020 USD ($) $ / shares	Mar. 31, 2021	Jun. 30, 2021 USD ($) shares	Jan. 31, 2021 shares	Dec. 31, 2020 shares
Common units, authorized \| shares			101,000,000		101,000,000
Common units reserved for issuance \| shares			38,738,611		37,833,816
Initial conversion ratio			1
Proceeds from issuance from initial public offering			$ 73,700
Distribution, Condition One
Gross revenue earnings			20,000
Distribution, Condition One \| Prior
Gross revenue earnings			50,000
Distribution, Condition Two
Gross revenue earnings			50,000
Distribution, Condition Two \| Prior
Gross revenue earnings			100,000
Distribution, Condition Three
Gross revenue earnings			100,000
IPO
Proceeds from issuance from initial public offering			$ 100,000
Convertible Preferred Units
Common units reserved for issuance \| shares			32,620,000
Series E Preferred Unit
Shares issued \| shares				10,493,767
Common unit, price per share \| $ / shares	$ 7.1471
Total net proceeds	$ 74,800
Issuance costs, net	$ 200
Series E Convertible Preferred Unit
Liquidating distributions priority			100.00%
Series D Convertible Preferred Unit [Member]
Liquidating distributions priority			100.00%
Series A B C C1 Convertible Preferred Unit
Liquidating distributions priority			100.00%
Series A B C C1 Convertible Preferred Unit \| Maximum
Aggregate capital contributions		200.00%
Series A, B and Common Units
Liquidating distributions priority			100.00%
Profits Interests
Common units reserved for issuance \| shares			10,850,000
Preferred Units
Distribution to unit holders			$ 0
Gross revenue earnings			$ 20,000
Common Unit
Distributions of company assets, percentage			1

Members' Deficit - Schedule of Convertible Preferred Units (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Units Authorized	32,620,000	32,620,000
Units Outstanding	27,629,804	26,745,528
Carrying Value	$ 191,034	$ 184,714
Liquidation Preference	$ 202,264	$ 199,927
Units issuable upon conversion	27,888,611	26,983,816
Series A Convertible Preferred Units
Units Authorized	4,000,000	4,000,000
Units Outstanding	4,000,000	4,000,000
Carrying Value	$ 3,974	$ 3,974
Liquidation Preference	$ 8,000	$ 8,000
Units issuable upon conversion	4,000,000	4,000,000
Series B Convertible Preferred Units
Units Authorized	2,600,000	2,600,000
Units Outstanding	2,510,246	2,510,246
Carrying Value	$ 10,080	$ 10,080
Liquidation Preference	$ 19,332	$ 19,332
Units issuable upon conversion	2,510,246	2,510,246
Series C Convertible Preferred Unit [Member]
Units Authorized	5,000,000	5,000,000
Units Outstanding	4,972,115	4,972,115
Carrying Value	$ 32,348	$ 32,348
Liquidation Preference	$ 32,488	$ 32,488
Units issuable upon conversion	4,972,115	4,972,115
Series C-1 Convertible Preferred Units
Units Authorized	2,520,000	2,520,000
Units Outstanding	2,504,099	2,504,099
Carrying Value	$ 17,607	$ 17,607
Liquidation Preference	$ 18,270	$ 18,325
Units issuable upon conversion	2,511,608	2,511,058
Series D Convertible Preferred Unit [Member]
Units Authorized	7,500,000	7,500,000
Units Outstanding	3,149,577	3,149,577
Carrying Value	$ 52,214	$ 52,214
Liquidation Preference	$ 49,174	$ 53,102
Units issuable upon conversion	3,400,875	3,380,906
Series E Convertible Preferred Unit
Units Authorized	11,000,000	11,000,000
Units Outstanding	10,493,767	9,609,491
Carrying Value	$ 74,811	$ 68,491
Liquidation Preference	$ 75,000	$ 68,680
Units issuable upon conversion	10,493,767	9,609,491

Members' Deficit - Schedule of Common Units Reserved for Future Issuance (Details) - shares	Jun. 30, 2021	Dec. 31, 2020
Common units reserved for issuance	38,738,611	37,833,816
Units Reserved For Conversion Of Outstanding Series A
Common units reserved for issuance	4,000,000	4,000,000
Units Reserved For Conversion Of Outstanding Series B
Common units reserved for issuance	2,510,246	2,510,246
Units Reserved For Conversion Of Outstanding Series C
Common units reserved for issuance	4,972,115	4,972,115
Units Reserved for Conversion of Outstanding Series C-1
Common units reserved for issuance	2,511,608	2,511,058
Units Reserved For Conversion Of Outstanding Series D
Common units reserved for issuance	3,400,875	3,380,906
Units Reserved For Conversion Of Outstanding Series E
Common units reserved for issuance	10,493,767	9,609,491
Units Reserved For Profit Interests Issued And Outstanding
Common units reserved for issuance	8,547,401	6,926,358
Units Reserved For Unit Options Issued and Outstanding
Common units reserved for issuance	2,292,309	0
Units Reserved For Profit Interests and Unit Option Authorized For Future Issuance
Common units reserved for issuance	10,290	3,923,642

Equity-Based Compensation - Additional Information (Details) $ in Millions	6 Months Ended
	Jun. 30, 2021 USD ($) shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized equity-based compensation expense \| $	$ 14.5
Common stock shares available for future grants	10,290
Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period	3 years
Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period	4 years
Unit Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized equity-based compensation expense \| $	$ 7.6
Recognized over a weighted-average period	3 years 6 months
Equity Incentive Plan2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Additional common units	2,000,000
Common units, total	10,850,000

Equity-Based Compensation - Summary of Profits Interests Activity (Details)	6 Months Ended
	Jun. 30, 2021 $ / shares shares
Number of Profit Interests, Balance at December 31, 2020 \| shares	6,926,358
Number of Profit Interests Forfeited \| shares	(235,957)
Number of Profit Interests Granted \| shares	1,857,000
Number of Profit Interests, Balance at June 30, 2021 \| shares	8,547,401
Weighted Average Grant Date Fair Value, Balance at December 31, 2020	$ 1.63
Weighted Average Grant Date Fair Value, Forfeited	2.04
Weighted Average Grant Date Fair Value, Vested	2.00
Weighted Average Grant Date Fair Value, Balance at June 30, 2021	1.70
Minimum [Member]
Profits Interests Threshold, Balance at December 31, 2020	1.44
Profits Interests Threshold, Forfeitures	1.45
Profits Interests Threshold, Grants	1.99
Profits Interests Threshold, Balance at June 30, 2021	1.44
Maximum [Member]
Profits Interests Threshold, Balance at December 31, 2020	2.29
Profits Interests Threshold, Forfeitures	2.29
Profits Interests Threshold, Grants	2.13
Profits Interests Threshold, Balance at June 30, 2021	$ 2.29

Equity-Based Compensation - Summary of Unit Options Activity (Details) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2021 USD ($) $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Options, Outstanding, Beginning balance \| shares	0
Number of Options, Unit Grants \| shares	2,292,309
Number of Options, Outstanding, Ending balance \| shares	2,292,309
Exercisable at June 30, 2021 \| shares	0
Nonvested at June 30, 2021 \| shares	2,292,309
Weighted Average Exercise Price per Share, Outstanding, Beginning balance \| $ / shares	$ 0
Weighted Average Exercise Price per Share, Unit Grants \| $ / shares	4.99
Weighted Average Exercise Price per Share, Outstanding, Ending balance \| $ / shares	4.99
Weighted Average Exercise Price per Share, Exercisable at June 30, 2021 \| $ / shares	0
Weighted Average Exercise Price per Share, Nonvested at June 30, 2021 \| $ / shares	$ 4.99
Weighted Average Remaining Contractual Term, Unit Grants (in years)	10 years
Weighted Average Remaining Contractual Term (in years)	10 years
Weighted Average Remaining Contractual Term, Nonvested at June 30, 2021 (in years)	10 years
Aggregate Intrinsic Value, Unit Grants (in thousands) \| $	$ 0
Aggregate Intrinsic Value, Exercisable at June 30, 2021 (in thousands) \| $	0
Aggregate Intrinsic Value, Nonvested at June 30, 2021 (in thousands) \| $	$ 0

Equity-Based Compensation - Summary of Components of Equity-based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total equity-based compensation	$ 282	$ 0	$ 282	$ 0
Research and Development
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total equity-based compensation	61	0	61	0
General and Administrative
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total equity-based compensation	$ 221	$ 0	$ 221	$ 0

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
ICL
Loss Contingencies [Line Items]
Rent expense	$ 0.4	$ 0.4

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Effective tax rate	(0.21%)	(0.21%)	(0.17%)	(0.21%)
Change in uncertain tax position	$ 0	$ 0

Long Term Debt - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		6 Months Ended	12 Months Ended
	Sep. 30, 2020	Apr. 30, 2020	Jun. 30, 2021	Dec. 31, 2020	Sep. 30, 2021
Debt Instrument [Line Items]
Long-term Debt, Gross			$ 4,254
Interest Rate On Loan			20.56%	20.56%
Paycheck Protection Program
Debt Instrument [Line Items]
Debt Instrument, Face Amount		$ 1,300			$ 1,300
Interest Rate On Loan		1.00%
Debt Prepayment Cost		$ 0
Loan and Security Agreement
Debt Instrument [Line Items]
Long-term Debt, Gross	$ 75,000
Debt Instrument, Maturity Date	Sep. 30, 2023
Loan and Security Agreement \| Paycheck Protection Program
Debt Instrument [Line Items]
Debt Instrument, Maturity Date		Apr. 30, 2022
Loan and Security Agreement \| Avenue Venture Opportunity Fund L.P \| Preferred unit warrant liability
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 10,000
Sale of securities	40,000
Outstanding Loan Principal into the previous round of preferred units	$ 3,000
Preferred Unit Offering Price	20.00%
Issuance of warrants exercisable into preferred units	$ 900
Warrant exercise price	$ 7.1471
Loan and Security Agreement \| Avenue Venture Opportunity Fund L.P \| Preferred unit warrant liability \| Series E Preferred Units
Debt Instrument [Line Items]
Warrants or Rights Exercised	118,929
Minimum [Member] \| Loan and Security Agreement \| Avenue Venture Opportunity Fund L.P \| Preferred unit warrant liability
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 3,000
Maximum [Member] \| Loan and Security Agreement \| Avenue Venture Opportunity Fund L.P \| Preferred unit warrant liability
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 7,000

Long-Term Debt - Schedule of Future Principal Payments for the Company's Debt (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Debt Disclosure [Abstract]
2021 (remaining six months)	$ 1,350
2022	1,779
2023	1,125
Total principal payments	4,254
Less: amount representing debt discount	(385)
Add: amount representing interest	15
Present value of remaining debt payments	3,884
Current portion of long-term debt	(3,884)	$ (1,359)
Total long-term debt, less current portion	$ 0

Net Loss Per Unit - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Numerator:
Net loss	$ (5,485)	$ (5,598)	$ (2,714)	$ (5,350)	$ (11,083)	$ (8,064)
Denominator:
Weighted-average common units outstanding—basic and diluted	46,896,280		46,890,280		46,896,081	46,890,280
Net loss per unit, basic and diluted	$ (0.12)		$ (0.06)		$ (0.24)	$ (0.17)

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Net Loss Per Unit - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the computation of diluted net loss per unit	39,070,565	24,002,325
Preferred Units
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the computation of diluted net loss per unit	27,888,611	17,084,696
Units Reserved for Profits Interests
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the computation of diluted net loss per unit	8,547,401	6,937,348
Units reserved for options for common units
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the computation of diluted net loss per unit	2,292,309
Common Unit Warrants
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the computation of diluted net loss per unit	223,315	229,315
Preferred Unit Warrants
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the computation of diluted net loss per unit	118,929	107,357

Subsequent Events - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions		1 Months Ended
	Jul. 30, 2021	Aug. 31, 2021	Jul. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020	Apr. 30, 2020
Subsequent Event [Line Items]
Shares reserved for future issuance					38,738,611	37,833,816
Stock options, outstanding					2,292,309	0
Stock options, outstanding, weighted average exercise price					$ 4.99	$ 0
Rani Therapeutics Holdings Inc. [Member] \| Common Class A \| IPO
Subsequent Event [Line Items]
Issuance of common stock, shares		7,666,667
Net proceeds from issuance from initial public offering		$ 73.7
Subsequent Event \| Common Class A \| IPO
Subsequent Event [Line Items]
Issuance of common stock, shares	7,666,667
Stock offering price per share	$ 11.00
Subsequent Event \| Rani Therapeutics Holdings Inc. [Member]
Subsequent Event [Line Items]
Percentage of tax benefit to be transferred		85.00%
Subsequent Event \| Rani Therapeutics Holdings Inc. [Member] \| Common Class A
Subsequent Event [Line Items]
Common stock, voting rights		Class A common stock, each share of which entitles its holders to one vote per share
Exchange of common units		12,047,925
Common stock, conversion basis		In connection with the closing of the initial public offering, each LLC interest was exchanged 1 for 0.5282 as determined and predicated on the initial public offering price of Rani Holdings Class A common stock.
Issuance of common stock, shares		7,666,667
Issuance of common stock in exchange of units, shares		1,545,811
Stock offering price per share		$ 11.00
Subsequent Event \| Rani Therapeutics Holdings Inc. [Member] \| Common Class A \| 2021 Employee Stock Purchase Plan
Subsequent Event [Line Items]
Shares reserved for future issuance		500,000
Subsequent Event \| Rani Therapeutics Holdings Inc. [Member] \| Common Class A \| 2021 Equity Incentive Plan
Subsequent Event [Line Items]
Shares reserved for future issuance		5,500,000
Subsequent Event \| Rani Therapeutics Holdings Inc. [Member] \| Common Class A \| IPO
Subsequent Event [Line Items]
Issuance of common stock, shares		7,666,667
Stock offering price per share		$ 11.00
Net proceeds from issuance from initial public offering		$ 73.7
Subsequent Event \| Rani Therapeutics Holdings Inc. [Member] \| Common Class B
Subsequent Event [Line Items]
Common stock, voting rights		Class B common stock, each share of which entitles its holders to 10 votes per share on all matters presented to Rani Holdings’ stockholders
Issuance of common stock, shares		29,290,391
Subsequent Event \| Rani Therapeutics Holdings Inc. [Member] \| Common Class C [Member]
Subsequent Event [Line Items]
Common stock, voting rights			Class C common stock, which has no voting rights, except as otherwise required by law
Paycheck Protection Program
Subsequent Event [Line Items]
Debt Instrument, Face Amount				$ 1.3			$ 1.3
Loan and Security Agreement \| Avenue Venture Opportunity Fund L.P \| Subsequent Event
Subsequent Event [Line Items]
Debt Instrument, Face Amount			$ 3.0
Repayments of convertible debt			$ 0.5