EyePoint Pharmaceuticals (EYPT) 10-Q 3 Nov 23 2023 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2023	Oct. 27, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Entity Registrant Name	EyePoint Pharmaceuticals, Inc.
Entity Central Index Key	0001314102
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Trading Symbol	EYPT
Entity Common Stock, Shares Outstanding		35,309,432
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity File Number	000-51122
Entity Tax Identification Number	26-2774444
Entity Address, Address Line One	480 Pleasant Street
Entity Address, City or Town	Watertown
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02472
City Area Code	(617)
Local Phone Number	926-5000
Document Quarterly Report	true
Document Transition Report	false
Entity Incorporation, State or Country Code	DE
Title of 12(b) Security	Common Stock, par value $0.001
Security Exchange Name	NASDAQ
Entity Interactive Data Current	Yes
Entity Current Reporting Status	Yes

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 133,035	$ 95,633
Marketable securities	2,977	48,928
Accounts and other receivables, net	483	15,503
Prepaid expenses and other current assets	9,091	9,858
Inventory	4,577	2,886
Total current assets	150,163	172,808
Property and equipment, net	4,480	1,360
Operating lease right-of-use assets	5,250	6,038
Restricted cash	150	150
Total assets	160,043	180,356
Current liabilities:
Accounts payable	9,580	5,919
Accrued expenses	13,417	16,359
Deferred revenue	39,841	1,205
Short-term borrowings	0	10,475
Other current liabilities	1,058	579
Total current liabilities	63,896	34,537
Long-term debt	0	29,310
Deferred revenue - noncurrent	32,341	13,557
Operating lease liabilities - noncurrent	5,185	5,984
Other long-term liabilities	0	600
Total liabilities	101,422	83,988
Contingencies (Note 14)
Stockholders' equity:
Preferred stock, $.001 par value, 5,000,000 shares authorized, no shares issued and outstanding	0	0
Common stock, $.001 par value, 300,000,000 shares authorized at September 30, 2023 and December 31, 2022; 35,309,432 and 34,082,934 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively	35	34
Additional paid-in capital	785,792	766,899
Accumulated deficit	(728,047)	(671,351)
Accumulated other comprehensive income	841	786
Total stockholders' equity	58,621	96,368
Total liabilities and stockholders' equity	$ 160,043	$ 180,356

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	35,309,432	34,082,934
Common stock, shares outstanding	35,309,432	34,082,934

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenues:
Total revenues	$ 15,202	$ 10,012	$ 31,990	$ 30,871
Operating expenses:
Cost of sales, excluding amortization of acquired intangible assets	1,202	1,405	3,634	4,916
Research and development	17,363	11,162	46,711	34,099
Sales and marketing	479	6,016	11,504	19,592
General and administrative	10,556	9,212	28,854	26,321
Amortization of acquired intangible assets	0	615	0	1,845
Total operating expenses	29,600	28,410	90,703	86,773
Loss from operations	(14,398)	(18,398)	(58,713)	(55,902)
Other income (expense):
Interest and other income, net	1,786	640	4,611	1,067
Interest expense	0	(662)	(1,247)	(2,408)
Loss on extinguishment of debt	0	0	(1,347)	(1,559)
Total other income (expense), net	1,786	(22)	2,017	(2,900)
Net loss	$ (12,612)	$ (18,420)	$ (56,696)	$ (58,802)
Net loss per share - basic	$ (0.33)	$ (0.49)	$ (1.5)	$ (1.58)
Net loss per share - diluted	$ (0.33)	$ (0.49)	$ (1.5)	$ (1.58)
Weighted average shares outstanding - basic	38,341	37,338	37,804	37,305
Weighted average shares outstanding - diluted	38,341	37,338	37,804	37,305
Net loss	$ (12,612)	$ (18,420)	$ (56,696)	$ (58,802)
Other comprehensive (loss) gain:
Unrealized (loss) gain on available-for-sale securities, net of tax of $0 for periods presented	(1)	51	55	(188)
Comprehensive loss	(12,613)	(18,369)	(56,641)	(58,990)
Product [Member]
Revenues:
Total revenues	816	9,720	13,483	30,048
License and Collaboration Agreements [Member]
Revenues:
Total revenues	14,137	52	17,768	160
Royalty Income [Member]
Revenues:
Total revenues	$ 249	$ 240	$ 739	$ 663

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
Unrealized (loss) gain on available-for-sale securities, tax	$ 0	$ 0	$ 0	$ 0

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Income [Member]
Balance at Dec. 31, 2021	$ 184,380	$ 34	$ 752,602	$ (569,097)	$ 841
Balance, shares at Dec. 31, 2021		33,905,826
Net loss	(58,802)			(58,802)
Other comprehensive gain (loss)	(188)				(188)
Issuance of stock, net of issue costs	20		20
Employee stock purchase plan	354		354
Employee stock purchase plan, shares		47,787
Exercise of stock options	41		41
Exercise of stock options, shares		4,479
Vesting of stock units	(271)		(271)
Vesting of stock units, shares		114,063
Stock-based compensation	10,816		10,816
Balance at Sep. 30, 2022	136,350	$ 34	763,562	(627,899)	653
Balance, shares at Sep. 30, 2022		34,072,155
Balance at Jun. 30, 2022	151,366	$ 34	760,209	(609,479)	602
Balance, shares at Jun. 30, 2022		34,052,616
Net loss	(18,420)			(18,420)
Other comprehensive gain (loss)	51				51
Employee stock purchase plan	153		153
Employee stock purchase plan, shares		19,283
Exercise of stock options	1		1
Exercise of stock options, shares		256
Stock-based compensation	3,199		3,199
Balance at Sep. 30, 2022	136,350	$ 34	763,562	(627,899)	653
Balance, shares at Sep. 30, 2022		34,072,155
Balance at Dec. 31, 2022	$ 96,368	$ 34	766,899	(671,351)	786
Balance, shares at Dec. 31, 2022	34,082,934	34,082,934
Net loss	$ (56,696)			(56,696)
Other comprehensive gain (loss)	55				55
Issuance of stock, net of issue costs	9,540	$ 1	9,539
Issuance of stock, net of issue costs, shares		902,769
Employee stock purchase plan	422		422
Employee stock purchase plan, shares		107,056
Exercise of stock options	634		634
Exercise of stock options, shares		56,090
Vesting of stock units	(169)		(169)
Vesting of stock units, shares		160,583
Stock-based compensation	8,467		8,467
Balance at Sep. 30, 2023	$ 58,621	$ 35	785,792	(728,047)	841
Balance, shares at Sep. 30, 2023	35,309,432	35,309,432
Balance at Jun. 30, 2023	$ 57,262	$ 34	771,821	(715,435)	842
Balance, shares at Jun. 30, 2023		34,306,118
Net loss	(12,612)			(12,612)
Other comprehensive gain (loss)	(1)				(1)
Issuance of stock, net of issue costs	9,540	$ 1	9,539
Issuance of stock, net of issue costs, shares		902,769
Employee stock purchase plan	174		174
Employee stock purchase plan, shares		43,335
Exercise of stock options	629		629
Exercise of stock options, shares		55,210
Vesting of stock units, shares		2,000
Stock-based compensation	3,629		3,629
Balance at Sep. 30, 2023	$ 58,621	$ 35	$ 785,792	$ (728,047)	$ 841
Balance, shares at Sep. 30, 2023	35,309,432	35,309,432

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net loss	$ (56,696)	$ (58,802)
Adjustments to reconcile net loss to cash flows used in operating activities:
Amortization of intangible assets	0	1,845
Depreciation of property and equipment	352	266
Amortization of debt discount and premium and discount on available-for-sale marketable securities	(334)	(218)
Provision for excess and obsolete inventory	693	0
Loss on extinguishment of debt	1,347	1,559
Stock-based compensation	8,467	10,816
Changes in operating assets and liabilities:
Accounts receivable and other current assets	14,701	(8,942)
Inventory	(2,224)	85
Accounts payable and accrued expenses	791	1,681
Right-of-use assets and operating lease liabilities	467	(44)
Deferred revenue	57,420	(663)
Net cash provided by (used in) operating activities	24,984	(52,417)
Cash flows from investing activities:
Purchases of marketable securities	(5,851)	(125,617)
Sales and maturities of marketable securities	52,284	77,000
Purchases of property and equipment	(2,600)	(1,565)
Net cash provided by (used in) investing activities	43,833	(50,182)
Cash flows from financing activities:
Proceeds from issuance of stock	9,974	0
Proceeds from issuance of long-term debt	0	30,000
Payment of equity and debt issue costs	(415)	(599)
Payment of long-term debt	(30,000)	(38,235)
Payment of extinguishment of debt costs	(1,350)	(2,294)
Borrowings under revolving facility	5,300	32,409
Repayment under revolving facility	(15,775)	(21,934)
Net settlement of stock units to satisfy statutory tax withholding	(169)	(271)
Proceeds from exercise of stock options and employee stock purchase plan	1,056	395
Principal payments on finance lease obligations	(36)	(103)
Net cash used in financing activities	(31,415)	(632)
Net increase (decrease) in cash, cash equivalents and restricted cash	37,402	(103,231)
Cash, cash equivalents and restricted cash at beginning of period	95,783	178,743
Cash, cash equivalents and restricted cash at end of period	133,185	75,512
Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheets:
Cash and cash equivalents	133,035	75,362
Restricted cash	150	150
Total cash, cash equivalents and restricted cash at end of period	133,185	75,512
Supplemental cash flow information:
Cash interest paid	1,405	1,907
Supplemental disclosure of non-cash investing and financing activities:
Accrued term loan exit fee	0	600
Stock issuance costs	$ 19	$ 0

Operations

Operations	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Operations	1. Operations The accompanying condensed consolidated financial statements of EyePoint Pharmaceuticals, Inc., a Delaware corporation (together with its subsidiaries, the Company), as of September 30, 2023 and for the three and nine months ended September 30, 2023 and 2022 are unaudited. Certain information in the footnote disclosures of these financial statements has been condensed or omitted in accordance with the rules and regulations of the Securities and Exchange Commission. These financial statements should be read in conjunction with the Company’s audited consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. In the opinion of management, these statements have been prepared on the same basis as the audited consolidated financial statements as of and for the year ended December 31, 2022, and include all adjustments, consisting only of normal recurring adjustments, that are necessary for the fair presentation of the Company’s financial position, results of operations, comprehensive loss and cash flows for the periods indicated. The preparation of financial statements in accordance with United States (U.S.) generally accepted accounting principles requires management to make assumptions and estimates that affect, among other things, (i) reported amounts of assets and liabilities; (ii) disclosure of contingent assets and liabilities at the date of the consolidated financial statements; and (iii) reported amounts of revenues and expenses during the reporting period. The results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the entire 2023 fiscal year or any future period. The Company is committed to developing and commercializing therapeutics to help improve the lives of patients with serious eye disorders. The Company’s pipeline leverages its proprietary erodible DURASERT E ™ technology (Durasert E) for sustained intraocular drug delivery including EYP-1901, an investigational intravitreal treatment delivering vorolanib, currently in Phase 2 clinical trials for wet age-related macular degeneration (wet AMD), the leading cause of vision loss among people 50 years of age and older in the United States and non-proliferative diabetic retinopathy (NPDR), a largely untreated disease due to limitations of available therapies. The Company is also advancing EYP-2301 into pre-clinical development delivering razuprotafib in Durasert E for the potential treatment of diabetic eye diseases. In May 2023, the Company granted an exclusive license and rights to its YUTIQ ® (fluocinolone acetonide intravitreal implant) 0.18 mg (YUTIQ) product to Alimera Sciences, Inc. (Alimera) for $ 82.5 million, consisting of a $ 75.0 million upfront cash payment (Upfront Payment) and an additional $ 7.5 million payment in equal quarterly installments in 2024. In addition, commencing in 2025, the Company will receive a low-to-mid double-digit royalty on Alimera's related U.S. net sales above defined thresholds for the calendar years 2025-2028. The Company plans to identify and advance additional product candidates through clinical and regulatory development for its pipeline. This may be accomplished through internal discovery efforts, research collaborations and/or in-licensing arrangements with partner molecules and potential acquisitions of additional products, product candidates or technologies. Liquidity The Company had cash, cash equivalents and investments in marketable securities of $ 136.0 million at September 30, 2023. The Company has a history of operating losses and has not had significant recurring cash inflows from revenue. The Company’s operations have been financed primarily from sales of its equity securities, issuance of debt and a combination of license fees, milestone payments, royalty income and other fees received from its collaboration partners. The Company anticipates that it will continue to incur losses as it continues the research and development of its product candidates, and the Company does not expect revenues to generate sufficient funding to sustain its operations in the near-term. The Company expects to continue fulfilling its funding needs through cash inflows from revenues, licensing and research collaboration transactions, additional equity capital raises and other arrangements. The Company believes that its cash, cash equivalents and investments in marketable securities of $ 136.0 million at September 30, 2023 will enable the Company to fund its current and planned operations for at least the next twelve months from the date these consolidated financial statements were issued. Actual cash requirements could differ from management’s projections due to many factors, including the timing and results of the Company’s clinical trials for EYP-1901, additional investments in research and development programs, competing technological and market developments and the costs of any strategic acquisitions and/or development of compleme ntary business opportunities. Recently Adopted and Recently Issued Accounting Pronouncements New accounting pronouncements are issued periodically by the Financial Accounting Standards Board and are adopted by the Company as of the specified effective dates. The Company believes that recently issued and adopted pronouncements will not have a material impact on the Company’s financial position, results of operations and cash flows or do not apply to the Company’s operations.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Revenue Recognition Revenue is recognized when a customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, Revenue from Contracts with Customers (ASC 606), 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. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within the contract, determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Sales, value-add and other taxes collected on behalf of third parties are excluded from revenue. Product sales, net — The Company sold YUTIQ and DEXYCU primarily to a limited number of specialty distributors and specialty pharmacies (collectively the Distributors) in the U.S., with whom the Company had entered into formal agreements, for delivery to physician practices for YUTIQ and to hospital outpatient departments and ambulatory surgical centers (ASCs) for DEXYCU. The Company recognized revenue on sales of its products when Distributors obtained control of the products, which occurred at a point in time, typically upon delivery. In addition to agreements with Distributors, the Company also entered arrangements with healthcare providers, ASCs and payors that provided for government mandated and/or privately negotiated rebates, chargebacks and discounts with respect to the purchase of the Company’s products from Distributors. Reserves for variable consideration — Product sales were recorded at the wholesale acquisition costs, net of applicable reserves for variable consideration. Components of variable consideration included trade discounts and allowances, provider chargebacks and discounts, payor rebates, product returns and other allowances that were offered within contracts between the Company and its Distributors, payors and other contracted purchasers relating to the Company’s product sales. These reserves, as detailed below, were based on the amounts earned, or to be claimed on the related sales, and were classified either as reductions of product revenue and accounts receivable or a current liability, depending on how the amount was to be settled. Overall, these reserves reflected the Company’s best estimates of the amount of consideration to which it was entitled based on the terms of the respective underlying contracts. The actual amounts of consideration ultimately received may differ from the Company’s estimates. If actual results in the future vary from the estimates, the Company adjusts product revenue and earnings in the period such variances become known. Distribution fees — The Company compensated its Distributors for services explicitly stated in the Company’s contracts and were recorded as a reduction of revenue in the period the related product sale was recognized. Provider chargebacks and discounts — Chargebacks were discounts that represented the estimated obligations resulting from contractual commitments to sell products at prices lower than the list prices charged to the Company’s Distributors. These Distributors charged the Company for the difference between what they paid for the product and the Company’s contracted selling price. These reserves were established in the same period that the related revenue was recognized, resulting in a reduction of product revenue and the establishment of a current liability. Reserves for chargebacks consisted of amounts that the Company expected to pay for units that remained in the distribution channel inventories at each reporting period-end that the Company expected to be sold under a contracted selling price, and chargebacks that Distributors had claimed, but for which the Company had not yet settled. Government rebates — The Company was subject to discount obligations under state Medicaid programs and Medicare. These reserves were recorded in the same period the related revenue was recognized, resulting in a reduction of product revenue and the establishment of a current liability which was included in accrued expenses and other current liabilities on the condensed consolidated balance sheets. The Company’s liability for these rebates consisted of invoices received for claims from prior quarters that had not been paid or for which an invoice had not yet been received, estimates of claims for the current quarter, and estimated future claims that would be made for product that had been recognized as revenue, but which remained in the distribution channel inventories at the end of each reporting period. Payor rebates — The Company contracted with certain private payor organizations, primarily insurance companies, for the payment of rebates with respect to utilization of its products. The Company estimated these rebates and records such estimates in the same period the related revenue was recognized, resulting in a reduction of product revenue and the establishment of a current liability. Co-Payment assistance — The Company offered co-payment assistance to commercially insured patients meeting certain eligibility requirements. The calculation of the accrual for co-pay assistance was based on an estimate of claims and the cost per claim that the Company expected to receive associated with product that had been recognized as revenue. Product returns — The Company generally offered a limited right of return based on its returned goods policy, which included damaged product and remaining shelf life. The Company estimated the amount of its product sales that may be returned and recorded this estimate as a reduction of revenue in the period the related product revenue was recognized, as well as reductions to trade receivables, net on the condensed consolidated balance sheets. License and collaboration agreement revenue — The Company analyzes each element of its license and collaboration arrangements to determine the appropriate revenue recognition. The terms of the license agreement may include payment to the Company of non-refundable upfront license fees, milestone payments if specified objectives are achieved, and/or royalties on product sales. The Company recognizes revenue from upfront payments at a point in time, typically upon fulfilling the delivery of the associated intellectual property to the customer. For licenses that are combined with other promises, the Company determines whether the combined performance obligation is satisfied over time or at a point in time, when (or as) the associated performance obligation in the contract is satisfied. If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price based on the estimated relative standalone selling prices of the promised products or services underlying each performance obligation. The Company determines standalone selling prices based on the price at which the performance obligation is sold separately. If the standalone selling price is not observable through past transactions, the Company estimates the standalone selling price taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations. The Company recognizes sales-based milestone payments as revenue upon the achievement of the cumulative sales amount specified in the contract in accordance with ASC 606-10-55-65. For those milestone payments which are contingent on the occurrence of particular future events, the Company determines that these need to be considered for inclusion in the calculation of total consideration from the contract as a component of variable consideration using the most-likely amount method. As such, the Company assesses each milestone to determine the probability and substance behind achieving each milestone. Given the inherent uncertainty associated with these future events, the Company will not recognize revenue from such milestones until there is a high probability of occurrence, which typically occurs near or upon achievement of the event. When determining the transaction price of a contract, an adjustment is made if payment from a customer occurs either significantly before or significantly after performance, resulting in a significant financing component. Applying the practical expedient in paragraph 606-10-32-18, the Company does not assess whether a significant financing component exists if the period between when the Company performs its obligations under the contract and when the customer pays is one year or less. None of the Company’s contracts contained a significant financing component as of September 30, 2023. Royalties — The Company recognizes revenue from license arrangements with its commercial partners’ net sales of products. Such revenues are included as royalty income. In accordance with ASC 606-10-55-65, royalties are recognized when the subsequent sale of the commercial partner’s products occurs. The Company’s commercial partners are obligated to report their net product sales and the resulting royalty due to the Company typically within 60-days from the end of each quarter. Based on historical product sales, royalty receipts and other relevant information, the Company recognizes royalty income each quarter and subsequently determines a true-up when it receives royalty reports and payment from its commercial partners. Historically, these true-up adjustments have been immaterial. Sale of Future Royalties — The Company has sold its rights to receive certain royalties on product sales. In the circumstance where the Company has sold its rights to future royalties under a royalty purchase agreement (RPA) and also maintains limited continuing involvement in the arrangement (but not significant continuing involvement in the generation of the cash flows that are due to the purchaser), the Company defers recognition of the proceeds it receives for the sale of royalty streams and recognizes such unearned revenue as revenue under the units-of-revenue method over the life of the underlying license agreement. Under the units-of-revenue method, amortization for a reporting period is calculated by computing a ratio of the proceeds received from the purchaser to the total payments expected to be made to the purchaser over the term of the agreement, and then applying that ratio to the period’s cash payment. Estimating the total payments expected to be received by the purchaser over the term of such arrangements requires management to use subjective estimates and assumptions. Changes to the Company’s estimate of the payments expected to be made to the purchaser over the term of such arrangements could have a material effect on the amount of revenues recognized in any particular period. Research Collaborations — The Company recognizes revenue over the term of the statements of work under any funded research collaborations. Revenue recognition for consideration, if any, related to a license option right is assessed based on the terms of any such future license agreement or is otherwise recognized at the completion of the research collaborations. Please refer to Note 3 for further details on the license and collaboration agreements into which the Company has entered and corresponding amounts of revenue recognized during the current and prior year periods. Cost of sales, excluding amortization of acquired intangible assets — Cost of sales, excluding amortization of acquired intangible assets, consist of costs associated with the manufacture of YUTIQ and DEXYCU, certain period costs for DEXYCU product revenue, product shipping and, as applicable, royalty expense. The inventory costs for YUTIQ include purchases of various components, the active pharmaceutical ingredient (API) and direct labor and overhead for the product manufactured in the Company’s Watertown, Massachusetts facility. The inventory costs for DEXYCU include purchased components, the API and third-party manufacturing and assembly. For the three months ended September 30, 2023 and 2022, the Company accrued DEXYCU product revenue-based royalty expense of $ 0 and $ 351,000 , respectively, as a component of cost of sales. For the nine months ended September 30, 2023 and 2022, the Company accrued DEXYCU product revenue-based royalty expense of $ 1,000 and $ 1.5 million, respectively, as a component of cost of sales.

Revenue

Revenue	9 Months Ended
	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenue	3. Revenue Product Revenue Reserves and Allowances From January 1, 2023 through May 17, 2023 (the date the Company entered into the product rights agreement with Alimera), the Company’s product revenues were primarily from sales of YUTIQ in the U.S. For the three months ended September 30, 2023, the Company’s product revenues were primarily from the Company’s existing commercial supply agreements with Alimera. For the three and nine months ended September 30, 2022, the Company’s product revenues were made up of $ 7.3 million and $ 19.3 million from the sales of YUTIQ, and $ 2.4 million and $ 10.7 million from the sales of DEXYCU, respectively. The following table summarizes activity in each of the product revenue allowance and reserve categories for the nine months ended September 30, 2023 and 2022 (in thousands): Chargebacks, Government and Fees Rebates Returns Total Beginning balance at January 1, 2023 $ 859 $ 158 $ 871 $ 1,888 Provision related to sales in the current year 1,561 — — 1,561 Adjustments related to prior period sales 40 ( 55 ) ( 154 ) ( 169 ) Deductions applied and payments made ( 2,279 ) ( 103 ) ( 156 ) ( 2,538 ) Ending balance at September 30, 2023 $ 181 $ — $ 561 $ 742 Chargebacks, Government and Fees Rebates Returns Total Beginning balance at January 1, 2022 $ 1,153 $ 1,821 $ 379 $ 3,353 Provision related to sales in the current year 8,913 5,424 464 14,801 Adjustments related to prior period sales — — — — Deductions applied and payments made ( 8,092 ) ( 5,293 ) ( 259 ) ( 13,644 ) Ending balance at September 30, 2022 $ 1,974 $ 1,952 $ 584 $ 4,510 Returns are recorded as a reduction of accounts receivable on the condensed consolidated balance sheets. Chargebacks, discounts and fees and rebates are recorded as a component of accrued expenses on the condensed consolidated balance sheets (See Note 6). License and Collaboration Agreements and Royalty Income Alimera Product Rights Agreement and Commercial Supply Agreement On May 17, 2023 (the Closing Date), the Company entered into a product rights agreement (PRA) with Alimera Sciences, Inc. (Alimera). Under the PRA, the Company granted to Alimera an exclusive and sublicensable right and license (the License) under the Company’s and its affiliates’ interest in certain of the Company’s and its affiliates’ intellectual property to develop, manufacture, sell, commercialize and otherwise exploit certain products, including YUTIQ, for the treatment and prevention of uveitis in the entire world except Europe, the Middle East and Africa (the EMEA). The License also excludes any rights to YUTIQ for the treatment of chronic non-infectious uveitis affecting the posterior segment of the eye the Company granted to Ocumension Therapeutics (Ocumension) under the license agreements and a Memorandum of Understanding for YUTIQ (the Ocumension Agreement), pursuant to which rights have been exclusively licensed to Ocumension in China and certain other countries and regions in Asia. Additionally, pursuant to the PRA, the Company transferred and assigned to Alimera certain assets (the Transferred Assets) and certain contracts with third parties related to YUTIQ, including the new drug application #210331 for YUTIQ (collectively, the Asset Transfer). The Transferred Assets consist primarily of agreements and internally developed intangible assets which have zero carrying value. Pursuant to the PRA, Alimera paid the Company a $ 75.0 million Upfront Payment. Alimera will also make four quarterly payments of $ 1.875 million to the Company totaling $ 7.5 million during 2024. Alimera will also pay royalties to the Company from 2025 to 2028 at a percentage of low-to-mid double digits of Alimera’s related U.S. annual net sales of certain products (including YUTIQ) in excess of certain thresholds, beginning at $ 70.0 million in 2025, and increasing annually thereafter. Upon Alimera’s payment of the Upfront Payment and the 2024 quarterly payments, the licenses and rights granted to Alimera will automatically become perpetual and irrevocable. On the Closing Date, the Company and Alimera also entered into a commercial supply agreement (CSA), pursuant to which, during the term of the PRA, the Company agreed to manufacture and exclusively supply to Alimera agreed-upon quantities of YUTIQ necessary for Alimera to commercialize YUTIQ in the United States at certain cost plus amounts, subject to adjustments set forth in the CSA (the Supply Transaction and together with the License and the Asset Transfer, the Transaction). The initial term of the CSA is two years following the Closing Date, subject to certain changes set forth in the CSA. The CSA shall thereafter automatically renew for successive one ( 1 ) year terms; provided, that the term of the CSA automatically terminates upon the successful completion of the transfer of manufacturing for YUTIQ to Alimera or its designee in accordance with the CSA. In addition, the Company entered into a transition services agreement (TSA) under which the Company agreed to provide agreed upon transition services to Alimera, on a cost-plus pricing arrangement for up to six months following the closing of the Transaction. As part of the TSA, the Company agreed to fulfill Alimera sales orders for YUTIQ in the United States, to the extent requested by Alimera, during the period up to six months following the Closing Date, to the Company’s third-party customers on behalf of Alimera, including by invoicing for YUTIQ and receiving payments for such invoiced YUTIQ for fulfilling Alimera sales orders of YUTIQ and remit such payments to Alimera (See Note 6) (the Sales Services). The Sales Services were completed as of September 30, 2023. The Company classified the cash proceeds of the $ 75.0 million Upfront Payment received from Alimera as deferred revenue at the Closing Date, pursuant to the PRA and the CSA because the License and supply units to be delivered under both agreements comprise a single, combined performance obligation as Alimera will not have the right or ability to manufacture YUTIQ (or have YUTIQ manufactured by a third-party contract manufacturing organization) over the initial two-year term pursuant to the CSA. The combined performance obligation is satisfied over time using the units delivered output method to measure progress based on initial estimated supply units of YUTIQ over the two-year term for purposes of recognizing revenue, such that revenue is recognized based on the value transferred in the form of units of product in the satisfaction of a performance obligation. Through this method, the Company compares the actual units delivered to date with the current estimated total to be delivered in the contractual term to measure the satisfaction of the performance obligation and recognize revenue. The Company will monitor its estimate of total units to be delivered to determine if an adjustment is needed to ensure that revenue is recognized proportionally for units delivered to date relative to the total units expected to be delivered for the combined performance obligation. Such estimates of the total delivery will be reassessed on an ongoing basis. If the Company determines that a change in estimate is necessary, it will adjust revenue using a cumulative catch-up method. During the three and nine months ended September 30, 2023, the Company recognized $ 1.0 million and $ 1.2 million, respectively, of revenue from sales of product supply to Alimera under the CSA and recorded this amount in product sales, net on the condensed consolidated statements of operations and comprehensive loss. The Company recognized $ 13.6 million and $ 16.8 million of license and collaboration revenue related to the PRA and the CSA during the three and nine months ended September 30, 2023, respectively. The Company also recognized approximately $ 394,000 and $ 799,000 of license and collaboration revenue, related to additional transitional services for the three and nine months ended September 30, 2023, respectively. As of September 30, 2023, the Company had $ 38.5 million and $ 19.6 million as current and non-current deferred revenue recognized under the PRA, respectively. SWK Royalty Purchase Agreement Pursuant to a royalty purchase agreement (RPA) with SWK Funding LLC (SWK), the Company sold its right to receive royalty payments on future sales of products subject to a licensing and development agreement, as amended, with Alimera (the Amended Alimera Agreement) for an upfront cash payment of $ 16.5 million. The Company classified the proceeds received from SWK as deferred revenue at inception of the RPA and is recognizing revenue as royalty payments are made from Alimera to SWK. The Company recognized $ 249,000 and $ 737,000 of royalty revenue related to the RPA for the three and nine months ended September 30, 2023, respectively, and $ 240,000 and $ 663,000 of royalty revenue related to the RPA for the three and nine months ended September 30, 2022, respectively. As of September 30, 2023, the Company had $ 1.3 million and $ 12.7 million as current and non-current deferred revenue recognized under the RPA, respectively. As of December 31, 2022, the Company classified $ 1.2 million and $ 13.6 million as current and non-current deferred revenue recognized under the RPA, respectively. Ocumension Therapeutics Pursuant to license agreements and a Memorandum of Understanding signed with the Company, Ocumension has: • An exclusive license for the development and commercialization of its three-year micro insert using the Durasert technology for the treatment of posterior segment uveitis of the eye (YUTIQ in the U.S.) in Mainland China, Hong Kong, Macau and Taiwan at its own cost and expense in return for royalties based on sales with the Company supplying products for clinical trials and commercial sale; • An exclusive license for the development and commercialization in Mainland China, Hong Kong, Macau and Taiwan of DEXYCU for the treatment of post-operative inflammation following ocular surgery at its own cost and expense in return for royalties based on sales with the Company supplying product for clinical trials and commercial sale; and • Exclusive rights to develop and commercialize YUTIQ and DEXYCU products under its own brand names in South Korea and other jurisdictions across Southeast Asia in Brunei, Burma (Myanmar), Cambodia, Timor-Leste, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and Vietnam, at its own cost and expense in return for royalties based on sales with the Company supplying product for clinical trials and commercial sale. The Chief Executive Officer of Ocumension is a member of the Company's board of directors. During the three and nine months ended September 30, 2023, the Company recognized $ 0 and $ 471,000, respectively, of revenue from sales of product supply to Ocumension under the supply agreement and recorded this amount in product sales, net on the condensed consolidated statements of operations and comprehensive loss. The Company recognized approximately $ 17,000 and $ 65,000 of license and collaboration revenue, respectively, related to additional technical assistance during the three and nine months ended September 30, 2023. During the three and nine months ended September 30, 2022, in addition to $ 20,000 and $ 87,000 of revenue from product sales, respectively, the Company recognized approximately $ 50,000 and $ 158,000 of license and collaboration revenue, respectively, related to additional technical assistance. No royalty income was recorded for the three and nine months ended September 30, 2023 and 2022. Exclusive License Agreement with Betta Pharmaceuticals, Co., Ltd. On May 2, 2022, the Company entered into an exclusive license agreement (the Betta License Agreement) with Betta Pharmaceuticals Co., Ltd. (Betta), an affiliate of Equinox Sciences, LLC (Equinox) (see Note 11). Under the Betta License Agreement, the Company granted to Betta an exclusive, sublicensable, royalty-bearing license under certain of the Company’s intellectual property to develop, use (but not make or have made), sell, offer for sale and import the Company’s product candidate, EYP-1901, an investigational sustained delivery intravitreal anti-VEGF treatment that combines an erodible formulation of the Company’s proprietary sustained-release technology with the compound vorolanib (the Licensed Product), in the field of ophthalmology (the Betta Field) in the greater area of China, including China, the Hong Kong Special Administrative Region, the Macau Special Administrative Region, and Taiwan (the Betta Territory). The Company retained rights under the Company’s intellectual property to, among other things, conduct clinical trials on the Licensed Product in the Betta Field in the Betta Territory. In consideration for the rights granted by the Company, Betta agreed to pay the Company tiered, mid-to-high single-digit royalties based upon annual net sales of Licensed Products in the Betta Territory. The royalties are payable on a Licensed Product-by-Licensed Product and region-by-region basis commencing on the first commercial sale of a Licensed Product in a region and continuing until the later of (i) the date that is twelve (12) years after first commercial sale of such Licensed Product in such region, and (ii) the first day of the month following the month in which a generic product corresponding to such Licensed Product is launched in the relevant region. The royalty rate is subject to reduction under certain circumstances, including when there is no valid claim of a licensed patent that covers a Licensed Product in a particular region. Betta is responsible for all costs relating to development, registration, manufacturing, marketing, advertising, promotional, launch and sales activities in connection with the Licensed Products in the Betta Field in the Betta Territory. Betta is required to use commercially reasonable efforts to develop, seek regulatory approval for, and commercialize at least one Licensed Product in the Betta Field in the Betta Territory. The Betta License Agreement also requires Betta to achieve certain diligence milestones relating to regulatory filings, patient dosing and regulatory approval by certain specified deadlines set forth in the Betta License Agreement, subject to certain exceptions and extensions as set forth in the Betta License Agreement. Betta’s development activities will be conducted pursuant to a development plan subject to periodic updates. In the event that the Company conducts a global registrational clinical trial for a Licensed Product in the Betta Field, Betta will have the right to participate in such clinical trial by including clinical trial sites in the Betta Territory in accordance with the terms of the Betta License Agreement. The Company has also agreed to provide certain technology transfer and other support services to Betta subject to certain conditions and limitations set forth in the Betta License Agreement. The Company recorded no revenue from product sales, license and collaboration revenue, or royalty income for the three and nine months ended September 30, 2023 and 2022 related to this agreement.

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	9 Months Ended
	Sep. 30, 2023
Prepaid Expense and Other Assets, Current [Abstract]
Prepaid Expenses and Other Current Assets	4. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): September 30, December 31, Prepaid expenses $ 1,610 $ 2,723 Prepaid clinical trials 6,932 6,353 Other 549 782 Total prepaid expenses and other current assets $ 9,091 $ 9,858

Inventory

Inventory	9 Months Ended
	Sep. 30, 2023
Inventory Disclosure [Abstract]
Inventory	5. Inventory Inventory consisted of the following (in thousands): September 30, December 31, Raw materials $ 1,271 $ 1,410 Work in process 1,864 1,078 Finished goods 1,442 398 Total inventory $ 4,577 $ 2,886

Accrued Expenses

Accrued Expenses	9 Months Ended
	Sep. 30, 2023
Payables and Accruals [Abstract]
Accrued Expenses	6. Accrued Expenses Accrued expenses consisted of the following (in thousands): September 30, December 31, 2023 2022 Personnel costs $ 8,470 $ 9,515 Clinical trial costs 2,067 3,308 Due to Alimera (see Note 3) 1,579 — Professional fees 937 761 Sales chargebacks, rebates and other revenue reserves 181 1,017 Other 183 1,758 Total accrued expenses $ 13,417 $ 16,359

Leases

Leases	9 Months Ended
	Sep. 30, 2023
Leases [Abstract]
Leases	7. Leases On March 8, 2022 , the Company amended the lease for its headquarters in Watertown, Massachusetts totaling 21,649 square feet (i) to extend the term to May 31, 2028 for 13,650 square feet of laboratory and manufacturing operations space, with the landlord agreeing to provide the Company a construction allowance of up to $ 555,960 to be applied toward upgrades and improvements within the space; (ii) to rent an additional 11,999 square feet of office space within the building through May 31, 2028 (New Premises); and (iii) to terminate a portion of the lease comprising 7,999 square feet of office space in the building in accordance with its existing contractual term on May 31, 2025. The amendment also reinstated the Company’s right to extend the lease for the space it occupies after May 31, 2025 for one additional period of five years . Rent for the extension period would be at the fair market rent for comparable space in comparable properties in the Watertown area. During the second quarter of 2022, the Company recognized a $ 2.9 million increase to its lease liabilities and right-of-use (ROU) assets resulting from the lease amendment for the term extension of the laboratory and manufacturing operations space. The lease for the New Premises commenced during the third quarter of 2022. The Company occupied the New Premises when the landlord substantially completed its construction for the space, after which the Company’s obligation to pay base rent began. The Company recognized an increase of $ 1.6 million to its lease liabilities and $ 1.7 million to its ROU assets resulting from the lease for the New Premises. The Company previously provided a cash-collateralized $ 150,000 irrevocable standby letter of credit as security for the Company’s obligations under the lease, which will remain in effect through the period that is four months beyond the expiration date of the amended lease. The Company will also be required to pay its proportionate share of certain operating costs and property taxes applicable to the leased premises in excess of new base year amounts. On January 23, 2023, the Company entered into a lease agreement for its new standalone manufacturing facility, including office and lab space located at 600 Commerce Drive, Northbridge, Massachusetts. The new leased premises will consist of approximately 40,000 square feet. The lease includes a non-cancellable lease term of fifteen years and four months , with two options to extend the lease term for two additional terms of either five years or ten years at 95 % of the then-prevailing fair market rent. The lease term will commence upon the substantial completion of construction of the facility and related leasehold improvements, which are owned by the lessor, to prepare the premises for the Company’s intended use, which is currently expected to occur during the second half of 2024. The Company’s obligation to pay base rent will begin four months following the commencement of the lease term. The lease will create significant rights and obligations for the Company, including the payment of base rent on monthly basis, of which the Company estimates will total approximately $ 40.8 million during the initial non-cancellable term of the lease (i.e., fifteen years and four months ). The Company is responsible for real estate taxes, maintenance, and other operating expenses applicable to the leased premises. As of the date the condensed consolidated financial statements were issued, a lease commencement date in accordance with ASC 842, Leases , had not occurred, as such, no ROU or lease liability has been recorded as of September 30, 2023. Since the Company elected to account for each lease component and its associated non-lease components as a single combined component, all contract consideration was allocated to the respective lease components. The expected lease terms include non-cancellable lease periods. Renewal option periods have not been included in the determination of the lease terms as they are not deemed reasonably certain of exercise. Variable lease payments, such as common area maintenance, real estate taxes and property insurance are not included in the determination of the lease’s ROU asset or lease liability. As of September 30 , 2023, the weighted average remaining term of the Company’s operating leases was 4.5 years and the weighted average discount rate was 5.84 %. Supplemental balance sheet information related to operating leases as of September 30, 2023 and December 31, 2022 are as follows (in thousands): September 30, December 31, 2023 2022 Other current liabilities – operating lease current portion $ 1,058 $ 543 Operating lease liabilities – noncurrent portion 5,185 5,984 Total operating lease liabilities $ 6,243 $ 6,527 Operating lease expense recognized related to ROU assets was $ 356,000 and $ 263,000 , excluding $ 47,000 and $ 2,000 of variable lease costs, for each of the three months ended September 30, 2023 and 2022, respectively, which consisted of $ 291,000 and $ 240,000 for research and development expense and $ 65,000 and $ 23,000 for general and administrative expense, respectively, and was included in the accompanying condensed consolidated statements of operations and comprehensive loss. Operating lease expense recognized related to ROU assets was $ 1,067,000 and $ 781,000 , excluding $ 106,000 and $ 8,000 of variable lease costs, during each of the nine months ended September 30, 2023 and 2022, respectively, which consisted of $ 873,000 and $ 637,000 for research and development expense, $ 0 and $ 53,000 for sales and marketing expense, and $ 194,000 and $ 91,000 for general and administrative expense, respectively, and was included in the accompanying condensed consolidated statements of operations and comprehensive loss. Cash paid for amounts included in the measurement of operating lease liabilities was $ 274,000 and $ 164,000 for the three months ended September 30, 2023 and 2022, respectively, and $ 563,000 and $ 595,000 for the nine months ended September 30, 2023 and 2022, respectively. The Company’s total future minimum lease payments under non-cancellable leases at September 30, 2023 were as follows (in thousands): Operating Leases Remainder of 2023 $ 346 2024 1,392 2025 1,494 2026 1,589 2027 1,637 Thereafter 693 Total lease payments $ 7,151 Less imputed interest ( 908 ) Total $ 6,243

Loan Agreements

Loan Agreements	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
Loan Agreements	8. Loan Agreements SVB Loan Agreement The Company's loans (SVB Loan) under an agreement (the SVB Loan Agreement) with First Citizens BancShares (First Citizens), as successor to Silicon Valley Bank (SVB), as lender (the Lender), were originally due and payable on January 1, 2027 . The loans bore interest that was payable monthly in arrears at a per annum rate equal to (i) with respect to the term facility, the greater of (x) the Wall Street Journal prime rate plus 2.25 % and (y) 5.50 % and (ii) with respect to the revolving facility, the Wall Street Journal Prime Rate. Commencing on February 1, 2024 , the Company was scheduled to begin repaying the principal of the term facility in 36 consecutive equal monthly installments. At maturity or if earlier prepaid, the Company was also required to pay an exit fee equal to 2.00 % of the aggregate principal amount of the term facility. On May 17, 2023 , the Company utilized a portion of the Upfront Payment from the PRA with Alimera (see Note 3) and repaid in full all outstanding amounts under the SVB Loan Agreement. The SVB Loan Agreement was terminated, and all security interests and other liens granted to or held by the Lender were terminated and released. This payment included (i) the remaining $ 30.0 million principal portion of the SVB Loan, (ii) $ 600,000 , representing a prepayment fee equal to 2.00 % of the aggregate principal amount of the term facility, (iii) a $ 600,000 exit fee, (iv) accrued and unpaid interest of $ 139,000 through the pay-off date, and (v) $ 155,000 , representing in the aggregate a statement fee, termination fee and unused credit line fee under the revolving facility. As a result of the early repayment of the SVB Loan Agreement, the Company recorded a loss on extinguishment of debt of $ 1.4 million for the nine months ended September 30, 2023 related to the write-off of the remaining balance of unamortized debt discount.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2023
Equity [Abstract]
Stockholders' Equity	9. Stockholders’ Equity ATM Facility In August 2020, the Company entered into an at-the-market facility (the ATM Facility) with Cantor Fitzgerald & Co (Cantor). Pursuant to the ATM Facility, the Company may, at its option, offer and sell shares of its common stock from time to time, through or to Cantor, acting as sales agent. The Company will pay Cantor a commission of 3.0 % of the gross proceeds from any future sales of such shares. During the three and nine months ended September 30, 2023, the Company sold 902,769 shares of its common stock at a weighted average price of $ 11.05 per share for gross proceeds of approximately $ 10.0 million. Share issue costs, including sales agent commissions, totaled approximately $ 434,000 during the reporting periods. During the three and nine months ended September 30, 2022, the Company did no t sell any shares of its common stock under the ATM Facility. Warrants to Purchase Common Shares Pursuant to a credit agreement, the Company issued a warrant to SWK to purchase (i) 40,910 shares of the Company’s common stock on March 28, 2018 at an exercise price of $ 11.00 per share with a seven-year term and (ii) 7,773 shares of the Company’s common stock on June 26, 2018 at an exercise price of $ 19.30 per share with a seven-year term. The weighted average exercise price for the warrants as of January 1, 2021 and 2022, September 30, 2022 and 2023 was $ 12.33 per share. At September 30, 2023, the weighted average remaining life of the warrant was approximately 1.53 years.

Share-Based Payment Awards

Share-Based Payment Awards	9 Months Ended
	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Share-Based Payment Awards	10. Share-Based Payment Awards Equity Incentive Plan Prior to June 20, 2023, the Company had authorized the issuance of 5,900,000 shares of the Company's common stock under the 2016 Long-Term Incentive Plan (the 2016 Plan), of which 184,904 shares remained available for future grants. At the Company’s Annual Meeting of Stockholders held on June 20, 2023 , the Company’s stockholders approved the adoption of the 2023 Long Term Incentive Plan (the 2023 Plan) and authorized up to 3,500,000 shares of common stock reserved for issuance to participating employees plus the 184,904 shares that remained available for grant under the 2016 Plan upon adoption of the 2023 Plan plus any shares that would have otherwise have become available for grant under the Company's 2008 Plan or the 2016 Plan as a result of termination or forfeiture of awards under such plan. The 2023 Plan replaced the 2008 Plan and the 2016 Plan. At September 30, 2023, a total of approximately 2,400,000 shares were available for new awards under the 2023 Plan. Starting March 2022, the Company granted non-statutory stock options to new employees as inducement awards to enter into employment with the Company. The grants were approved by the Compensation Committee of the Board of Directors and awarded in accordance with Nasdaq Listing Rule 5635(c)(4). Although not awarded under the 2023 Plan or the 2016 Plan, the grants are subject to and governed by the terms and conditions of the plan in effect at the time of the grant. Stock Options The following table provides a reconciliation of stock option activity under the Company’s equity incentive plan and for inducement awards for the nine months ended September 30, 2023: Number of Weighted Weighted Aggregate (in years) (in thousands) Outstanding at January 1, 2023 4,082,555 $ 13.79 Granted 2,739,861 4.28 Exercised ( 56,090 ) 11.31 Forfeited ( 373,911 ) 7.01 Expired ( 51,753 ) 25.98 Outstanding at September 30, 2023 6,340,662 $ 10.00 8.07 $ 10,437 Exercisable at September 30, 2023 2,354,229 $ 15.69 6.54 $ 42 The Company's stock options generally vest over four years with 25 % vesting after one year of service followed by ratable monthly vesting over the remaining three years . Nonemployee awards are granted similar to the Company’s employee awards. All option grants have a 10 -year term. Options to purchase a total of 938,000 shares of the Company’s common stock vested during the nine months ended September 30, 2023. In determining the grant date fair value of option awards during the nine months ended September 30, 2023, the Company applied the Black-Scholes option pricing model based on the following key assumptions: Option life (in years) 5.27 - 6.08 Stock volatility 78 % - 88 % Risk-free interest rate 3.44 % - 4.38 % Expected dividends 0.0 % The following table summarizes information about employee, non-executive director and external consultant stock options for the nine months ended September 30, 2023 (in thousands except per share amount): Nine Months Ended September 30, 2023 Weighted average grant date fair value per share $ 3.07 Total cash received from exercise of stock options 634 Total intrinsic value of stock options exercised 138 Time-Vested Restricted Stock Units Time-vested restricted stock units (RSUs) issued to date under the 2016 Plan and the 2023 Plan generally vest on a ratable annual basis over 3 years. The related stock-based compensation expense is recorded over the requisite service period, which is the vesting period. The fair value of all time-vested RSUs is based on the closing share price of the Company’s common stock on the date of grant. The following table provides a reconciliation of RSU activity under the 2016 Plan and the 2023 Plan for the nine months ended September 30, 2023: Number of Restricted Stock Units Weighted Average Grant Date Fair Value Nonvested at January 1, 2023 509,170 $ 10.81 Granted 1,071,354 3.92 Vested ( 201,414 ) 11.04 Forfeited ( 45,368 ) 8.63 Nonvested at September 30, 2023 1,333,742 $ 5.31 At September 30, 2023, the weighted average remaining vesting term of the RSUs was 1.45 years. Employee Stock Purchase Plan The Company’s Employee Stock Purchase Plan (the ESPP) allows qualified participants to purchase the Company’s common stock twice a year at 85 % of the lesser of the average of the high and low sales price of the Company’s common stock on (i) the first trading day of the relevant offering period and (ii) the last trading day of the relevant offering period. The number of shares of the Company’s common stock each employee may purchase under this plan, when combined with all other employee stock purchase plans, is limited to the lower of an aggregate fair market value of $ 25,000 during each calendar year, or 5,000 shares of the Company’s common stock in any one offering period. The Company has maintained consecutive six-month offering periods since August 1, 2019 . During the three and nine months ended September 30 , 2023, 43,335 and 107,056 shares of the Company’s common stock were issued pursuant to the ESPP. The Company estimated the fair value of the option component of the ESPP shares at the date of grant using a Black-Scholes valuation model. During the three and nine months ended September 30, 2023 and 2022, the compensation expense from ESPP shares was immaterial. Stock-Based Compensation Expense The Company’s condensed consolidated statements of comprehensive loss included total compensation expense from stock-based payment awards as follows (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Compensation expense included in: Research and development $ 1,263 $ 1,277 $ 3,405 $ 4,762 Sales and marketing 60 290 290 1,195 General and administrative 2,306 1,632 4,772 4,859 $ 3,629 $ 3,199 $ 8,467 $ 10,816 At September 30, 2023, there was approximately $ 13.0 million of unrecognized compensation expense related to outstanding equity awards under the 2023 Plan, the 2016 Plan, the inducement awards and the ESPP that is expected to be recognized as expense over a weighted average period of approximately 1.58 years.

License and Asset Purchase Agre

License and Asset Purchase Agreements	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
License and Asset Purchase Agreements	11. License and Asset Purchase Agreements Equinox Science, LLC In February 2020, the Company entered into an Exclusive License Agreement (the Equinox License Agreement) with Equinox, pursuant to which Equinox granted the Company an exclusive, sublicensable, royalty-bearing right and license to certain patents and other Equinox intellectual property to research, develop, make, have made, use, sell, offer for sale and import the compound vorolanib and any pharmaceutical products comprising the compound for local delivery to the eye for the prevention or treatment of age-related macular degeneration, diabetic retinopathy and retinal vein occlusion using the Company’s proprietary localized delivery technologies (the Original Field), in each case, throughout the world except China, Hong Kong, Taiwan and Macau (the Company Territory). In consideration for the rights granted by Equinox, the Company (i) made a one time, non-refundable, non-creditable upfront cash payment of $ 1.0 million to Equinox in February 2020, and (ii) agreed to pay milestone payments totaling up to $ 50 million upon the achievement of certain development and regulatory milestones, consisting of (a) completion of a Phase II clinical trial for the compound or a licensed product, (b) the filing of a new drug application or foreign equivalent for the compound or a licensed product in the United States, European Union or United Kingdom and (c) regulatory approval of the compound or a licensed product in the United States, European Union or United Kingdom. The Company also agreed to pay Equinox tiered royalties based upon annual net sales of licensed products in the Company Territory. The royalties are payable with respect to a licensed product in a particular country in the Company Territory on a country-by-country and licensed product-by-licensed product basis until the later of (i) twelve years after the first commercial sale of such licensed product in such country and (ii) the first day of the month following the month in which a generic product corresponding to such licensed product is launched in such country. The royalty rates range from the high-single digits to low-double digits depending on the level of annual net sales. The royalty rates are subject to reduction during certain periods when there is no valid patent claim that covers a licensed product in a particular country. On May 2, 2022, concurrent with the Company entering into the Betta License Agreement (see Note 3), the Company entered into Amendment #1 to the Equinox License Agreement, pursuant to which the Original Field was expanded to cover the prevention or treatment of ophthalmology indications using the Company’s proprietary localized delivery technologies, and certain conforming changes were made to the Equinox License Agreement in connection therewith. No R&D expense was recorded for the three and nine months ended September 30, 2023 related to the Equinox License Agreement, as no milestones were achieved. No R&D expense was recorded for the three and nine months ended September 30, 2022 related to the Equinox License Agreement.

Restructuring Charges

Restructuring Charges	9 Months Ended
	Sep. 30, 2023
Restructuring and Related Activities [Abstract]
Restructuring Charges	12. Restructuring Charges Fiscal Year 2023 Restructuring Plan On May 17, 2023 , the Company executed a restructuring plan (the Restructuring Plan) with regard to its commercial operations. The Restructuring Plan is a result of the PRA with Alimera (see Note 3). In connection with the Restructuring Plan, the Company, among other things, downsized its current workforce, with reductions coming primarily from its YUTIQ sales force and supporting commercial operations. The Company recorded $ 0 and approximately $ 1.4 million of YUTIQ sales force personnel and employee severance for discretionary termination benefits during the three and nine months ended September 30, 2023, upon notification of the affected YUTIQ sales force personnel and employees in accordance with ASC 420, Exit or Disposal Cost Obligations. The charges of $ 1.4 million were recognized in the Company’s operating results, of which $ 300,000 , $ 940,000 , and $ 165,000 were included in research and development expense, sales and marketing expense and general and administrative expense, respectively. The Company expects the implementation of the Restructuring Plan will be substantially completed by the end of fiscal year 2023. The charges that the Company expects to incur in connection with the Restructuring Plan are subject to a number of assumptions, and actual results may differ materially. The Company may also incur additional costs not currently contemplated due to events that may occur as a result of, or that are associated with, the Restructuring Plan. The following table summarizes the restructuring activities related to the Plan for the nine months ended September 30, 2023 (in thousands): Employee Severance and Benefits Total Beginning balance at January 1, 2023 — — Restructuring charges 1,405 1,405 Cash payments ( 1,062 ) ( 1,062 ) Ending balance at September 30, 2023 $ 343 $ 343

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	13. Fair Value Measurements The following tables summarize the Company’s assets by significant categories carried at fair value measured on a recurring basis by valuation hierarchy (in thousands): September 30, 2023 Carrying Gross Gross Fair Value Cash Marketable Securities Level 1: Money market funds $ 126,234 $ — $ — $ 126,234 $ 126,234 $ — Subtotal $ 126,234 $ — $ — $ 126,234 $ 126,234 $ — Level 2: U.S. Treasury securities $ 2,977 $ — $ — $ 2,977 $ — $ 2,977 Subtotal $ 2,977 $ — $ — $ 2,977 $ — $ 2,977 Total $ 129,211 $ — $ — $ 129,211 $ 126,234 $ 2,977 December 31, 2022 Carrying Gross Gross Fair Value Cash Marketable Securities Level 1: Money market funds $ 77,191 $ — $ — $ 77,191 $ 77,191 $ — Subtotal $ 77,191 $ — $ — $ 77,191 $ 77,191 $ — Level 2: Commercial paper $ 18,701 $ — $ — $ 18,701 $ — $ 18,701 U.S. Treasury securities 35,266 — ( 55 ) 35,211 4,984 30,227 Subtotal $ 53,967 $ — $ ( 55 ) $ 53,912 $ 4,984 $ 48,928 Total $ 131,158 $ — $ ( 55 ) $ 131,103 $ 82,175 $ 48,928 At September 30, 2023 a total of $ 126.2 million or 100 % of the Company’s interest-bearing cash equivalent balances were concentrated in one institutional money market fund that has investments consisting primarily of Repurchase Agreements, U.S Treasuries, and U.S. Government Agency Debts. The Company had no interest-bearing cash equivalent balance consisted of investment-grade U.S. Treasury securities at September 30, 2023. At December 31, 2022, a total of $ 77.2 million, or 93.9 % of the Company’s interest-bearing cash equivalent balances were concentrated in one institutional money market fund that has investments consisting primarily of certificates of deposit, commercial paper, time deposits, Treasury repurchase agreements and U.S. Treasury securities. A total of $ 5.0 million, or 6.1 %, of the Company’s interest-bearing cash equivalent balances consisted of investment-grade U.S. Treasury securities at December 31, 2022. Generally, these deposits may be redeemed upon demand and, therefore, the Company believes they have minimal risk. Marketable securities consist of investments with an original or remaining maturity of greater than three months but less than one year at the date of purchase. The Company had investments of $ 3.0 million and $ 48.9 million in marketable securities at September 30, 2023 and December 31, 2022, respectively. The Company’s cash equivalents and marketable securities are classified within Level 1 or Level 2 on the basis of valuations using quoted market prices or alternative pricing sources and models utilizing market observable inputs, respectively. The marketable securities have been valued on the basis of valuations provided by third-party pricing services, as derived from such services’ pricing models. Inputs to the models may include, but are not limited to, reported trades, executable bid and ask prices, broker/dealer quotations, prices or yields of securities with similar characteristics, benchmark curves or information pertaining to the issuer, as well as industry and economic events. The pricing services may use a matrix approach, which considers information regarding securities with similar characteristics to determine the valuation for a security, and have been classified as Level 2. The carrying amounts of accounts receivable, accounts payable and accrued expenses approximate fair value because of their short-term maturity.

Contingencies

Contingencies	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Contingencies	14. Contingencies Legal Proceedings The Company is subject to various routine legal proceedings and claims incidental to its business, which management believes will not have a material effect on the Company’s financial position, results of operations or cash flows. U.S. Department of Justice Subpoena In August 2022, the Company received a subpoena from the U.S. Attorney’s Office for the District of Massachusetts seeking production of documents related to sales, marketing and promotional practices, including as pertain to DEXYCU ® (DOJ Investigation). The Company is cooperating fully with the government in connection with this matter. At this time, the Company is unable to predict the duration, scope or outcome of this matter or whether it could have a material impact on the Company's financial condition, results of operation or cash flow.

Net Loss per Share

Net Loss per Share	9 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
Net Loss per Share	15. Net Loss per Share Basic net loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding during the period. For periods in which the Company reports net income, diluted net income per share is determined by adding to the basic weighted average number of common shares outstanding the total number of dilutive common equivalent shares using the treasury stock method, unless the effect is anti-dilutive. Potentially dilutive shares were not included in the calculation of diluted net loss per share for each of the three and nine months ended September 30, 2023 and 2022 as their inclusion would be anti-dilutive. The Company issued 3,272,727 shares of Pre-Funded Warrants (PFW) to purchase common stock, in connection with the November 2021 underwritten public offering. The PFWs were included in the basic and diluted net loss per share calculation during the three and nine months ended September 30, 2022 and 2023, respectively. Potential common stock equivalents excluded from the calculation of diluted earnings per share because the effect would have been anti-dilutive were as follows: September 30, 2023 2022 Stock options 6,340,662 4,031,665 ESPP 8,522 12,849 Warrants 48,683 48,683 Restricted stock units 1,333,742 529,678 7,731,609 4,622,875

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2023
Related Party Transactions [Abstract]
Related Party Transactions	16. Related Party Transactions The former Chief Executive Officer and current Executive Vice Chair of the Board of Directors of the Company (the Board), joined the Board of Directors of Altasciences Company Inc. (Altasciences) in April 2021. In May 2021, Altasciences acquired Calvert Laboratories, Inc. (Calvert Labs), an entity with which the Company conducts business. The Company recorded $ 413,000 and $ 1.3 million of research and development expense in the accompanying condensed consolidated statements of operations and comprehensive loss related to preclinical and analytical services provided by Altasciences for the three and nine months ended September 30, 2023, respectively. The Company recorded $ 237,000 and $ 1.5 million of research and development expense in the accompanying condensed consolidated statements of operations and comprehensive loss related to preclinical and analytical services provided by Altasciences for the three and nine months ended September 30, 2022, respectively. Additionally, the Company recorded accounts payable of $ 469,000 and $ 201,000 , and prepaid expenses of $ 610,000 and $ 752,000 in the accompanying condensed consolidated balance sheets related to services provided by Altasciences, as of September 30, 2023 and December 31, 2022, respectively.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
Revenue Recognition	Revenue Recognition Revenue is recognized when a customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, Revenue from Contracts with Customers (ASC 606), 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. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within the contract, determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Sales, value-add and other taxes collected on behalf of third parties are excluded from revenue. Product sales, net — The Company sold YUTIQ and DEXYCU primarily to a limited number of specialty distributors and specialty pharmacies (collectively the Distributors) in the U.S., with whom the Company had entered into formal agreements, for delivery to physician practices for YUTIQ and to hospital outpatient departments and ambulatory surgical centers (ASCs) for DEXYCU. The Company recognized revenue on sales of its products when Distributors obtained control of the products, which occurred at a point in time, typically upon delivery. In addition to agreements with Distributors, the Company also entered arrangements with healthcare providers, ASCs and payors that provided for government mandated and/or privately negotiated rebates, chargebacks and discounts with respect to the purchase of the Company’s products from Distributors. Reserves for variable consideration — Product sales were recorded at the wholesale acquisition costs, net of applicable reserves for variable consideration. Components of variable consideration included trade discounts and allowances, provider chargebacks and discounts, payor rebates, product returns and other allowances that were offered within contracts between the Company and its Distributors, payors and other contracted purchasers relating to the Company’s product sales. These reserves, as detailed below, were based on the amounts earned, or to be claimed on the related sales, and were classified either as reductions of product revenue and accounts receivable or a current liability, depending on how the amount was to be settled. Overall, these reserves reflected the Company’s best estimates of the amount of consideration to which it was entitled based on the terms of the respective underlying contracts. The actual amounts of consideration ultimately received may differ from the Company’s estimates. If actual results in the future vary from the estimates, the Company adjusts product revenue and earnings in the period such variances become known. Distribution fees — The Company compensated its Distributors for services explicitly stated in the Company’s contracts and were recorded as a reduction of revenue in the period the related product sale was recognized. Provider chargebacks and discounts — Chargebacks were discounts that represented the estimated obligations resulting from contractual commitments to sell products at prices lower than the list prices charged to the Company’s Distributors. These Distributors charged the Company for the difference between what they paid for the product and the Company’s contracted selling price. These reserves were established in the same period that the related revenue was recognized, resulting in a reduction of product revenue and the establishment of a current liability. Reserves for chargebacks consisted of amounts that the Company expected to pay for units that remained in the distribution channel inventories at each reporting period-end that the Company expected to be sold under a contracted selling price, and chargebacks that Distributors had claimed, but for which the Company had not yet settled. Government rebates — The Company was subject to discount obligations under state Medicaid programs and Medicare. These reserves were recorded in the same period the related revenue was recognized, resulting in a reduction of product revenue and the establishment of a current liability which was included in accrued expenses and other current liabilities on the condensed consolidated balance sheets. The Company’s liability for these rebates consisted of invoices received for claims from prior quarters that had not been paid or for which an invoice had not yet been received, estimates of claims for the current quarter, and estimated future claims that would be made for product that had been recognized as revenue, but which remained in the distribution channel inventories at the end of each reporting period. Payor rebates — The Company contracted with certain private payor organizations, primarily insurance companies, for the payment of rebates with respect to utilization of its products. The Company estimated these rebates and records such estimates in the same period the related revenue was recognized, resulting in a reduction of product revenue and the establishment of a current liability. Co-Payment assistance — The Company offered co-payment assistance to commercially insured patients meeting certain eligibility requirements. The calculation of the accrual for co-pay assistance was based on an estimate of claims and the cost per claim that the Company expected to receive associated with product that had been recognized as revenue. Product returns — The Company generally offered a limited right of return based on its returned goods policy, which included damaged product and remaining shelf life. The Company estimated the amount of its product sales that may be returned and recorded this estimate as a reduction of revenue in the period the related product revenue was recognized, as well as reductions to trade receivables, net on the condensed consolidated balance sheets. License and collaboration agreement revenue — The Company analyzes each element of its license and collaboration arrangements to determine the appropriate revenue recognition. The terms of the license agreement may include payment to the Company of non-refundable upfront license fees, milestone payments if specified objectives are achieved, and/or royalties on product sales. The Company recognizes revenue from upfront payments at a point in time, typically upon fulfilling the delivery of the associated intellectual property to the customer. For licenses that are combined with other promises, the Company determines whether the combined performance obligation is satisfied over time or at a point in time, when (or as) the associated performance obligation in the contract is satisfied. If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price based on the estimated relative standalone selling prices of the promised products or services underlying each performance obligation. The Company determines standalone selling prices based on the price at which the performance obligation is sold separately. If the standalone selling price is not observable through past transactions, the Company estimates the standalone selling price taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations. The Company recognizes sales-based milestone payments as revenue upon the achievement of the cumulative sales amount specified in the contract in accordance with ASC 606-10-55-65. For those milestone payments which are contingent on the occurrence of particular future events, the Company determines that these need to be considered for inclusion in the calculation of total consideration from the contract as a component of variable consideration using the most-likely amount method. As such, the Company assesses each milestone to determine the probability and substance behind achieving each milestone. Given the inherent uncertainty associated with these future events, the Company will not recognize revenue from such milestones until there is a high probability of occurrence, which typically occurs near or upon achievement of the event. When determining the transaction price of a contract, an adjustment is made if payment from a customer occurs either significantly before or significantly after performance, resulting in a significant financing component. Applying the practical expedient in paragraph 606-10-32-18, the Company does not assess whether a significant financing component exists if the period between when the Company performs its obligations under the contract and when the customer pays is one year or less. None of the Company’s contracts contained a significant financing component as of September 30, 2023. Royalties — The Company recognizes revenue from license arrangements with its commercial partners’ net sales of products. Such revenues are included as royalty income. In accordance with ASC 606-10-55-65, royalties are recognized when the subsequent sale of the commercial partner’s products occurs. The Company’s commercial partners are obligated to report their net product sales and the resulting royalty due to the Company typically within 60-days from the end of each quarter. Based on historical product sales, royalty receipts and other relevant information, the Company recognizes royalty income each quarter and subsequently determines a true-up when it receives royalty reports and payment from its commercial partners. Historically, these true-up adjustments have been immaterial. Sale of Future Royalties — The Company has sold its rights to receive certain royalties on product sales. In the circumstance where the Company has sold its rights to future royalties under a royalty purchase agreement (RPA) and also maintains limited continuing involvement in the arrangement (but not significant continuing involvement in the generation of the cash flows that are due to the purchaser), the Company defers recognition of the proceeds it receives for the sale of royalty streams and recognizes such unearned revenue as revenue under the units-of-revenue method over the life of the underlying license agreement. Under the units-of-revenue method, amortization for a reporting period is calculated by computing a ratio of the proceeds received from the purchaser to the total payments expected to be made to the purchaser over the term of the agreement, and then applying that ratio to the period’s cash payment. Estimating the total payments expected to be received by the purchaser over the term of such arrangements requires management to use subjective estimates and assumptions. Changes to the Company’s estimate of the payments expected to be made to the purchaser over the term of such arrangements could have a material effect on the amount of revenues recognized in any particular period. Research Collaborations — The Company recognizes revenue over the term of the statements of work under any funded research collaborations. Revenue recognition for consideration, if any, related to a license option right is assessed based on the terms of any such future license agreement or is otherwise recognized at the completion of the research collaborations. Please refer to Note 3 for further details on the license and collaboration agreements into which the Company has entered and corresponding amounts of revenue recognized during the current and prior year periods. Cost of sales, excluding amortization of acquired intangible assets — Cost of sales, excluding amortization of acquired intangible assets, consist of costs associated with the manufacture of YUTIQ and DEXYCU, certain period costs for DEXYCU product revenue, product shipping and, as applicable, royalty expense. The inventory costs for YUTIQ include purchases of various components, the active pharmaceutical ingredient (API) and direct labor and overhead for the product manufactured in the Company’s Watertown, Massachusetts facility. The inventory costs for DEXYCU include purchased components, the API and third-party manufacturing and assembly. For the three months ended September 30, 2023 and 2022, the Company accrued DEXYCU product revenue-based royalty expense of $ 0 and $ 351,000 , respectively, as a component of cost of sales. For the nine months ended September 30, 2023 and 2022, the Company accrued DEXYCU product revenue-based royalty expense of $ 1,000 and $ 1.5 million, respectively, as a component of cost of sales.
Recently Adopted and Recently Issued Accounting Pronouncements	Recently Adopted and Recently Issued Accounting Pronouncements New accounting pronouncements are issued periodically by the Financial Accounting Standards Board and are adopted by the Company as of the specified effective dates. The Company believes that recently issued and adopted pronouncements will not have a material impact on the Company’s financial position, results of operations and cash flows or do not apply to the Company’s operations.

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
Product Revenue Allowances and Reserves	The following table summarizes activity in each of the product revenue allowance and reserve categories for the nine months ended September 30, 2023 and 2022 (in thousands): Chargebacks, Government and Fees Rebates Returns Total Beginning balance at January 1, 2023 $ 859 $ 158 $ 871 $ 1,888 Provision related to sales in the current year 1,561 — — 1,561 Adjustments related to prior period sales 40 ( 55 ) ( 154 ) ( 169 ) Deductions applied and payments made ( 2,279 ) ( 103 ) ( 156 ) ( 2,538 ) Ending balance at September 30, 2023 $ 181 $ — $ 561 $ 742 Chargebacks, Government and Fees Rebates Returns Total Beginning balance at January 1, 2022 $ 1,153 $ 1,821 $ 379 $ 3,353 Provision related to sales in the current year 8,913 5,424 464 14,801 Adjustments related to prior period sales — — — — Deductions applied and payments made ( 8,092 ) ( 5,293 ) ( 259 ) ( 13,644 ) Ending balance at September 30, 2022 $ 1,974 $ 1,952 $ 584 $ 4,510

Prepaid Expenses and Other Cu_2

Prepaid Expenses and Other Current Assets (Tables)	9 Months Ended
	Sep. 30, 2023
Prepaid Expense and Other Assets, Current [Abstract]
Schedule of Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets consisted of the following (in thousands): September 30, December 31, Prepaid expenses $ 1,610 $ 2,723 Prepaid clinical trials 6,932 6,353 Other 549 782 Total prepaid expenses and other current assets $ 9,091 $ 9,858

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Sep. 30, 2023
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventory consisted of the following (in thousands): September 30, December 31, Raw materials $ 1,271 $ 1,410 Work in process 1,864 1,078 Finished goods 1,442 398 Total inventory $ 4,577 $ 2,886

Accrued Expenses (Tables)

Accrued Expenses (Tables)	9 Months Ended
	Sep. 30, 2023
Payables and Accruals [Abstract]
Schedule of Accrued Expenses	Accrued expenses consisted of the following (in thousands): September 30, December 31, 2023 2022 Personnel costs $ 8,470 $ 9,515 Clinical trial costs 2,067 3,308 Due to Alimera (see Note 3) 1,579 — Professional fees 937 761 Sales chargebacks, rebates and other revenue reserves 181 1,017 Other 183 1,758 Total accrued expenses $ 13,417 $ 16,359

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2023
Leases [Abstract]
Schedule of Supplemental Balance Sheet Information Related to Operating Leases	Supplemental balance sheet information related to operating leases as of September 30, 2023 and December 31, 2022 are as follows (in thousands): September 30, December 31, 2023 2022 Other current liabilities – operating lease current portion $ 1,058 $ 543 Operating lease liabilities – noncurrent portion 5,185 5,984 Total operating lease liabilities $ 6,243 $ 6,527
Future Minimum Lease Payments Under Non-Cancellable Leases	The Company’s total future minimum lease payments under non-cancellable leases at September 30, 2023 were as follows (in thousands): Operating Leases Remainder of 2023 $ 346 2024 1,392 2025 1,494 2026 1,589 2027 1,637 Thereafter 693 Total lease payments $ 7,151 Less imputed interest ( 908 ) Total $ 6,243

Share-Based Payment Awards (Tab

Share-Based Payment Awards (Tables)	9 Months Ended
	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Stock Option Activity Under Plan	The following table provides a reconciliation of stock option activity under the Company’s equity incentive plan and for inducement awards for the nine months ended September 30, 2023: Number of Weighted Weighted Aggregate (in years) (in thousands) Outstanding at January 1, 2023 4,082,555 $ 13.79 Granted 2,739,861 4.28 Exercised ( 56,090 ) 11.31 Forfeited ( 373,911 ) 7.01 Expired ( 51,753 ) 25.98 Outstanding at September 30, 2023 6,340,662 $ 10.00 8.07 $ 10,437 Exercisable at September 30, 2023 2,354,229 $ 15.69 6.54 $ 42
Schedule of Key Assumptions Used	In determining the grant date fair value of option awards during the nine months ended September 30, 2023, the Company applied the Black-Scholes option pricing model based on the following key assumptions: Option life (in years) 5.27 - 6.08 Stock volatility 78 % - 88 % Risk-free interest rate 3.44 % - 4.38 % Expected dividends 0.0 %
Summary of Information about Stock Options	The following table summarizes information about employee, non-executive director and external consultant stock options for the nine months ended September 30, 2023 (in thousands except per share amount): Nine Months Ended September 30, 2023 Weighted average grant date fair value per share $ 3.07 Total cash received from exercise of stock options 634 Total intrinsic value of stock options exercised 138
Summary of Restricted Stock Unit Activity	The following table provides a reconciliation of RSU activity under the 2016 Plan and the 2023 Plan for the nine months ended September 30, 2023: Number of Restricted Stock Units Weighted Average Grant Date Fair Value Nonvested at January 1, 2023 509,170 $ 10.81 Granted 1,071,354 3.92 Vested ( 201,414 ) 11.04 Forfeited ( 45,368 ) 8.63 Nonvested at September 30, 2023 1,333,742 $ 5.31
Compensation Expense from Stock-Based Payment Awards	The Company’s condensed consolidated statements of comprehensive loss included total compensation expense from stock-based payment awards as follows (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Compensation expense included in: Research and development $ 1,263 $ 1,277 $ 3,405 $ 4,762 Sales and marketing 60 290 290 1,195 General and administrative 2,306 1,632 4,772 4,859 $ 3,629 $ 3,199 $ 8,467 $ 10,816

Restructuring Charges (Tables)

Restructuring Charges (Tables)	9 Months Ended
	Sep. 30, 2023
Restructuring and Related Activities [Abstract]
Schedule of Restructuring Activities Related to Plan	The following table summarizes the restructuring activities related to the Plan for the nine months ended September 30, 2023 (in thousands): Employee Severance and Benefits Total Beginning balance at January 1, 2023 — — Restructuring charges 1,405 1,405 Cash payments ( 1,062 ) ( 1,062 ) Ending balance at September 30, 2023 $ 343 $ 343

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2023
Fair Value Disclosures [Abstract]
Assets and Liabilities Carried at Fair Value Measured on Recurring Basis	The following tables summarize the Company’s assets by significant categories carried at fair value measured on a recurring basis by valuation hierarchy (in thousands): September 30, 2023 Carrying Gross Gross Fair Value Cash Marketable Securities Level 1: Money market funds $ 126,234 $ — $ — $ 126,234 $ 126,234 $ — Subtotal $ 126,234 $ — $ — $ 126,234 $ 126,234 $ — Level 2: U.S. Treasury securities $ 2,977 $ — $ — $ 2,977 $ — $ 2,977 Subtotal $ 2,977 $ — $ — $ 2,977 $ — $ 2,977 Total $ 129,211 $ — $ — $ 129,211 $ 126,234 $ 2,977 December 31, 2022 Carrying Gross Gross Fair Value Cash Marketable Securities Level 1: Money market funds $ 77,191 $ — $ — $ 77,191 $ 77,191 $ — Subtotal $ 77,191 $ — $ — $ 77,191 $ 77,191 $ — Level 2: Commercial paper $ 18,701 $ — $ — $ 18,701 $ — $ 18,701 U.S. Treasury securities 35,266 — ( 55 ) 35,211 4,984 30,227 Subtotal $ 53,967 $ — $ ( 55 ) $ 53,912 $ 4,984 $ 48,928 Total $ 131,158 $ — $ ( 55 ) $ 131,103 $ 82,175 $ 48,928

Net Loss per Share (Tables)

Net Loss per Share (Tables)	9 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
Potentially Dilutive Securities Excluded from Computation of Diluted Weighted-Average Shares	Potential common stock equivalents excluded from the calculation of diluted earnings per share because the effect would have been anti-dilutive were as follows: September 30, 2023 2022 Stock options 6,340,662 4,031,665 ESPP 8,522 12,849 Warrants 48,683 48,683 Restricted stock units 1,333,742 529,678 7,731,609 4,622,875

Operations - Additional Informa

Operations - Additional Information (Detail) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	May 31, 2023	Dec. 31, 2024	Sep. 30, 2023
Operations [Line Items]
Cash, cash equivalents and investments in marketable securities			$ 136
Sale of YUTIQ franchise	$ 82.5
Upfront cash payment	$ 75
Scenario, Forecast [Member]
Operations [Line Items]
Upfront cash payment		$ 7.5

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
DEXYCU [Member]
Schedule Of Significant Accounting Policies [Line Items]
Accrued revenue-based royalty expense	$ 0	$ 351,000	$ 1,000	$ 1,500,000

Revenue - Additional Informatio

Revenue - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended						9 Months Ended		12 Months Ended
	May 31, 2023	Dec. 31, 2024	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2022
Disaggregation Of Revenue [Line Items]
Upfront cash payment	$ 75,000,000
Revenue						$ 15,202,000	$ 10,012,000	$ 31,990,000	$ 30,871,000
Accounts and other receivables, net						483,000		483,000				$ 15,503,000
Current liabilities						63,896,000		63,896,000				34,537,000
Accrued expenses						13,417,000		13,417,000				16,359,000
Accounts payable						9,580,000		$ 9,580,000				5,919,000
Scenario, Forecast [Member]
Disaggregation Of Revenue [Line Items]
Upfront cash payment											$ 7,500,000
Alimera Sciences, Inc. [Member]
Disaggregation Of Revenue [Line Items]
Product rights agreement, closing date								May 17, 2023
Receipt of upfront license fee								$ 75,000,000
RPA [Member] | SWK [Member]
Disaggregation Of Revenue [Line Items]
Upfront cash payment								16,500,000
Revenue						249,000,000	240,000,000	737,000,000	663,000,000
Deferred revenue, current						1,300,000		1,300,000				1,200,000
Deferred revenue, non-current						12,700,000		12,700,000				$ 13,600,000
YUTIQ [Member]
Disaggregation Of Revenue [Line Items]
Revenue							7,300,000		19,300,000
DEXYCU [Member]
Disaggregation Of Revenue [Line Items]
Revenue							2,400,000		10,700,000
Product [Member]
Disaggregation Of Revenue [Line Items]
Revenue						816,000	9,720,000	13,483,000	30,048,000
Product [Member] | Ocumension Therapeutics [Member]
Disaggregation Of Revenue [Line Items]
Revenue						0	20,000	471,000,000	87,000
Product [Member] | Product Rights Agreement and the Supply Agreement [Member]
Disaggregation Of Revenue [Line Items]
Revenue						1,000,000		1,200,000
License and Collaboration Agreement [Member]
Disaggregation Of Revenue [Line Items]
Revenue						14,137,000	52,000	17,768,000	160,000
License and Collaboration Agreement [Member] | Ocumension Therapeutics [Member]
Disaggregation Of Revenue [Line Items]
Revenue						17,000,000	50,000	65,000,000	158,000
License and Collaboration Agreement [Member] | Alimera Sciences, Inc. [Member]
Disaggregation Of Revenue [Line Items]
Revenue						394,000,000		799,000,000
License and Collaboration Agreement [Member] | Product Rights Agreement and the Supply Agreement [Member]
Disaggregation Of Revenue [Line Items]
Revenue						13,600,000		16,800,000
Royalty Income [Member]
Disaggregation Of Revenue [Line Items]
Revenue						249,000	240,000	739,000	663,000
Royalty Income [Member] | Ocumension Therapeutics [Member]
Disaggregation Of Revenue [Line Items]
Revenue						0	0	0	0
Product Sales, License and Collaboration Revenue, or Royalty Income [Member] | Exclusive License Agreement with Betta Pharmaceuticals, Co., Ltd.
Disaggregation Of Revenue [Line Items]
Revenue						0	$ 0	0	$ 0
Product Rights Agreement [Member] | Alimera Sciences, Inc. [Member]
Disaggregation Of Revenue [Line Items]
Upfront cash payment								75,000,000
Deferred revenue, current						38,500,000		38,500,000
Deferred revenue, non-current						19,600,000		19,600,000
Carrying value of internally developed intangible assets						$ 0		$ 0
Product Rights Agreement [Member] | Alimera Sciences, Inc. [Member] | Scenario, Forecast [Member]
Disaggregation Of Revenue [Line Items]
Guaranteed payments		$ 1,875,000	$ 1,875,000	$ 1,875,000	$ 1,875,000						$ 7,500,000
Product Rights Agreement [Member] | Alimera Sciences, Inc. [Member] | Maximum [Member]
Disaggregation Of Revenue [Line Items]
Royalties payment period								2028
Product Rights Agreement [Member] | Alimera Sciences, Inc. [Member] | Maximum [Member] | Scenario, Forecast [Member]
Disaggregation Of Revenue [Line Items]
Royalty payments										$ 70,000,000
Product Rights Agreement [Member] | Alimera Sciences, Inc. [Member] | Minimum [Member]
Disaggregation Of Revenue [Line Items]
Royalties payment period								2025
Supply Agreement [Member] | Alimera Sciences, Inc. [Member]
Disaggregation Of Revenue [Line Items]
Initial term of the supply agreement								2 years
Renewal term of supply agreement								1 year
Initial Term of Estimated Supply Units								2 years

Revenue - Product Revenue Allow

Revenue - Product Revenue Allowance and Reserves (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Disclosure Of Product Revenue Reserves And Allowances [Line Items]
Beginning balance	$ 1,888	$ 3,353
Provision related to sales in the current year	1,561	14,801
Adjustments related to prior period sales	(169)	0
Deductions applied and payments made	(2,538)	(13,644)
Ending balance	742	4,510
Chargebacks, Discounts and Fees [Member]
Disclosure Of Product Revenue Reserves And Allowances [Line Items]
Beginning balance	859	1,153
Provision related to sales in the current year	1,561	8,913
Adjustments related to prior period sales	40	0
Deductions applied and payments made	(2,279)	(8,092)
Ending balance	181	1,974
Government and Other Rebates [Member]
Disclosure Of Product Revenue Reserves And Allowances [Line Items]
Beginning balance	158	1,821
Provision related to sales in the current year	0	5,424
Adjustments related to prior period sales	(55)	0
Deductions applied and payments made	(103)	(5,293)
Ending balance	0	1,952
Returns [Member]
Disclosure Of Product Revenue Reserves And Allowances [Line Items]
Beginning balance	871	379
Provision related to sales in the current year	0	464
Adjustments related to prior period sales	(154)	0
Deductions applied and payments made	(156)	(259)
Ending balance	$ 561	$ 584

Prepaid Expenses and Other Cu_3

Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Prepaid Expense and Other Assets, Current [Abstract]
Prepaid expenses	$ 1,610	$ 2,723
Prepaid clinical trials	6,932	6,353
Other	549	782
Total prepaid expenses and other current assets	$ 9,091	$ 9,858

Inventory - Schedule of Invento

Inventory - Schedule of Inventory (Detail) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 1,271	$ 1,410
Work in process	1,864	1,078
Finished goods	1,442	398
Total inventory	$ 4,577	$ 2,886

Accrued Expenses - Schedule of

Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Personnel costs	$ 8,470	$ 9,515
Clinical trial costs	2,067	3,308
Due to Alimera (see Note 3)	1,579	0
Professional fees	937	761
Sales chargebacks, rebates and other revenue reserves	181	1,017
Other	183	1,758
Total accrued expenses	$ 13,417	$ 16,359

Leases - Additional Information

Leases - Additional Information (Detail)			3 Months Ended		9 Months Ended
	Jan. 23, 2023 USD ($) ft² Tranche	Mar. 08, 2022 USD ($) ft² Tranche	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)	Jun. 30, 2022 USD ($)
Disclosure Of Leases [Line Items]
Estimates total lease initial noncancellable amount			$ 7,151,000		$ 7,151,000
Lease liabilities			6,243,000		6,243,000		$ 6,527,000	$ 2,900,000
ROU assets			$ 5,250,000		$ 5,250,000		$ 6,038,000	$ 2,900,000
Operating lease weighted average remaining lease term			4 years 6 months		4 years 6 months
Operating lease weighted average discount rate			5.84%		5.84%
Operating lease expense			$ 356,000	$ 263,000	$ 1,067,000	$ 781,000
Variable lease cost			47,000	2,000	106,000	8,000
Operating lease payments			274,000	164,000	563,000	595,000
ASC 842 [Member]
Disclosure Of Leases [Line Items]
Lease liabilities			0		0
ROU assets			0		0
Research and Development Expense [Member]
Disclosure Of Leases [Line Items]
Operating lease expense			291,000	240,000	873,000	637,000
Sales and Marketing Expense [Member]
Disclosure Of Leases [Line Items]
Operating lease expense					0	53,000
General and Administrative Expense [Member]
Disclosure Of Leases [Line Items]
Operating lease expense			65,000	23,000	194,000	91,000
New Premises [Member]
Disclosure Of Leases [Line Items]
Lease liabilities				1,600,000		1,600,000
ROU assets				$ 1,700,000		$ 1,700,000
Massachusetts [Member]
Disclosure Of Leases [Line Items]
Lease not yet commenced term	The lease term will commence upon the substantial completion of construction of the facility and related leasehold improvements, which are owned by the lessor, to prepare the premises for the Company’s intended use, which is currently expected to occur during the second half of 2024. The Company’s obligation to pay base rent will begin four months following the commencement of the lease term.
Estimates total lease initial noncancellable amount	$ 40,800,000
Term of contract	15 years 4 months
Lessee operating lease not yet commenced option to extend	The Company is responsible for real estate taxes, maintenance, and other operating expenses applicable to the leased premises. As of the date the condensed consolidated financial statements were issued, a lease commencement date in accordance with ASC 842, Leases, had not occurred, as such, no ROU or lease liability has been recorded as of September 30, 2023.
Massachusetts [Member] | New Premises [Member]
Disclosure Of Leases [Line Items]
Area of leased office and laboratory space | ft²	40,000
Original lease term	15 years 4 months
Lease existence of option to extend	true
Lease option to extend	The lease includes a non-cancellable lease term of fifteen years and four months, with two options to extend the lease term for two additional terms of either five years or ten years at 95% of the then-prevailing fair market rent.
Number of renewal options | Tranche	2
Lease renewal rate at 95% of market rent at time of renewal	95%
Massachusetts [Member] | Minimum [Member] | New Premises [Member]
Disclosure Of Leases [Line Items]
Additional lease renewal option period	5 years
Massachusetts [Member] | Maximum [Member] | New Premises [Member]
Disclosure Of Leases [Line Items]
Additional lease renewal option period	10 years
Massachusetts [Member] | Second Amendment Lease [Member]
Disclosure Of Leases [Line Items]
Irrevocable standby letter of credit			$ 150,000		$ 150,000
Massachusetts [Member] | Fourth Amendment Lease [Member]
Disclosure Of Leases [Line Items]
Area of leased office and laboratory space | ft²		21,649
Lease commencement date		Mar. 08, 2022
Lease term expiration date		May 31, 2028
Termination of property area | ft²		7,999
Lease existence of option to extend					true
Area of leased office space | ft²		13,650
Number of renewal options | Tranche		1
Additional lease renewal option period		5 years
Massachusetts [Member] | Fourth Amendment Lease [Member] | New Premises [Member]
Disclosure Of Leases [Line Items]
Additional Space leased | ft²		11,999
Massachusetts [Member] | Fourth Amendment Lease [Member] | Maximum [Member]
Disclosure Of Leases [Line Items]
Construction allowance		$ 555,960

Leases - Supplemental Balance S

Leases - Supplemental Balance Sheet Related to Operating Leases (Detail) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022	Jun. 30, 2022
Leases [Abstract]
Other current liabilities – operating lease current portion	$ 1,058	$ 543
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other current liabilities	Other current liabilities
Operating lease liabilities - noncurrent	$ 5,185	$ 5,984
Total operating lease liabilities	$ 6,243	$ 6,527	$ 2,900

Leases - Future Minimum Lease P

Leases - Future Minimum Lease Payments Under Non-Cancellable Leases (Detail) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022	Jun. 30, 2022
Operating Leases
Remainder of 2023	$ 346
2024	1,392
2025	1,494
2026	1,589
2027	1,637
Thereafter	693
Total future minimum lease payments	7,151
Less imputed interest	(908)
Total	$ 6,243	$ 6,527	$ 2,900

Loan Agreements - Additional In

Loan Agreements - Additional Information (Detail)			3 Months Ended		9 Months Ended
	May 17, 2023 USD ($)	Mar. 09, 2022 Installment	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)
Loan Agreement [Line Items]
Loss on extinguishment of debt			$ 0	$ 0	$ (1,347,000)	$ (1,559,000)
Payment of exit fee					1,350,000	$ 2,294,000
Silicon Valley Bank [Member]
Loan Agreement [Line Items]
Loss on extinguishment of debt					$ (1,400,000)
Silicon Valley Bank [Member] | Senior Secured Term Loan [Member]
Loan Agreement [Line Items]
Repayment of senior secured term loan	$ 30,000,000
Payment of exit fee upon repayment of secured term loan	600,000
Payment of accrued and unpaid interest through the date of the secured term loan refinancing	$ 139,000
Maturity date	May 17, 2023
Payment of exit fee	$ 600,000
Prepayment fee percentage	2%
Silicon Valley Bank [Member] | Senior Secured Revolving Credit Facility [Member]
Loan Agreement [Line Items]
Line of credit facility statement fee, termination fee and unused credit fee amount	$ 155,000
First Citizens BancShares, Inc. [Member] | Senior Secured Term Loan [Member]
Loan Agreement [Line Items]
Debt instrument effective rate		5.50%
Line of credit facility commencing date		Feb. 01, 2024
Number of consecutive equal monthly installment | Installment		36
Exit fee percentage of the aggregate principal amount		2%
First Citizens BancShares, Inc. [Member] | Senior Secured Term Loan [Member] | Prime Rate Margin [Member]
Loan Agreement [Line Items]
Revolving line bears interest rate		2.25%
First Citizens BancShares, Inc. [Member] | Senior Secured Revolving Credit Facility and Senior Secured Term Loan[Member]
Loan Agreement [Line Items]
Maturity date		Jan. 01, 2027

Stockholders' Equity - Equity F

Stockholders' Equity - Equity Financings - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Aug. 31, 2020	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Common Stock [Member]
Class Of Stock [Line Items]
Common stock issued		902,769		902,769
At-the-Market Offering [Member]
Class Of Stock [Line Items]
Price per share		$ 11.05		$ 11.05
Gross proceeds from issuance of common stock		$ 10,000,000		$ 10,000,000
Share issuance costs		$ 434,000		$ 434,000
Stock issuances, sales agent commission maximum percentage	3%
At-the-Market Offering [Member] | Common Stock [Member]
Class Of Stock [Line Items]
Common stock issued		902,769	0	902,769	0

Stockholders' Equity - Warrants

Stockholders' Equity - Warrants to Purchase Common Shares - Additional Information (Detail) - $ / shares			9 Months Ended
	Jun. 26, 2018	Mar. 28, 2018	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2021	Dec. 31, 2020
Class Of Stock [Line Items]
Weighted average exercise price of warrants			$ 12.33	$ 12.33	$ 12.33	$ 12.33
SWK [Member] | Senior Secured Term Loan [Member] | Warrants [Member]
Class Of Stock [Line Items]
Warrants issued to purchase shares of common stock	7,773	40,910
Exercise price of issued warrants	$ 19.30	$ 11
Warrants exercise period	7 years	7 years
Investor [Member] | Senior Secured Term Loan [Member] | Warrants [Member]
Class Of Stock [Line Items]
Weighted average remaining life of lender warrants			1 year 6 months 10 days

Share-Based Payment Awards - Eq

Share-Based Payment Awards - Equity Incentive Plan - Additional Information (Detail) - shares	Jun. 20, 2023	Sep. 30, 2023
2016 Long Term Incentive Plan [Member]
Class Of Stock [Line Items]
Number of common stock, authorized for issuance		5,900,000
Shares remained available for grant	184,904	184,904
2023 Long Term Incentive Plan [Member]
Class Of Stock [Line Items]
Number of common stock, authorized for issuance	3,500,000
Shares available for grant under the Long Term Incentive Plan		2,400,000
Equity incentive plan, approval date	Jun. 20, 2023

Share-Based Payment Awards - St

Share-Based Payment Awards - Stock Option Activity Under Company's Equity Incentive Plan (Detail) - Equity Incentive Plan and Inducement Awards [Member] - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Options Outstanding, Beginning balance	4,082,555
Number of Options, Granted	2,739,861
Number of Options, Exercised	(56,090)
Number of Options, Forfeited	(373,911)
Number of Options, Expired	(51,753)
Number of Options Outstanding, Ending balance	6,340,662
Number of Options, Exercisable at September 30, 2023	2,354,229
Weighted Average Exercise Price Outstanding, Beginning balance	$ 13.79
Weighted Average Exercise Price, Granted	4.28
Weighted Average Exercise Price, Exercised	11.31
Weighted Average Exercise Price, Forfeited	7.01
Weighted Average Exercise Price, Expired	25.98
Weighted Average Exercise Price Outstanding, Ending balance	10
Weighted Average Exercise Price, Exercisable at September 30, 2023	$ 15.69
Weighted Average Remaining Contractual Life, Outstanding at September 30, 2023	8 years 25 days
Weighted Average Remaining Contractual Life, Exercisable at September 30, 2023	6 years 6 months 14 days
Aggregate Intrinsic Value, Outstanding at September 30, 2023	$ 10,437
Aggregate Intrinsic Value, Exercisable at September 30, 2023	$ 42

Share-Based Payment Awards - _2

Share-Based Payment Awards - Stock Options - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2023 shares
2016 and 2023 Long Term Incentive Plan [Member]
Class Of Stock [Line Items]
Contractual life of option grants	10 years
Stock Compensation Plan [Member]
Class Of Stock [Line Items]
Ratable monthly vesting period	4 years
Award vesting percentage	25%
Cliff vesting period	3 years
Common stock vested during the period	938,000

Share-Based Payment Awards - Su

Share-Based Payment Awards - Summary of Company Applied the Black-Scholes Option Pricing (Detail) - 2016 and 2023 Long Term Incentive Plan [Member]	9 Months Ended
	Sep. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock volatility, minimum	78%
Stock volatility, maximum	88%
Risk-free interest rate, minimum	3.44%
Risk-free interest rate, maximum	4.38%
Expected dividends	0%
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option life (in years)	5 years 3 months 7 days
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option life (in years)	6 years 29 days

Share-Based Payment Awards - _3

Share-Based Payment Awards - Summary of Information about Stock Options (Detail) - Equity Incentive Plans [Member] $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($) $ / shares
Weighted-average grant date fair value per share | $ / shares	$ 3.07
Total cash received from exercise of stock options	$ 634
Total intrinsic value of stock options exercised	$ 138

Share-Based Payment Awards - Ti

Share-Based Payment Awards - Time-Vested Restricted Stock Units - Additional Information (Detail) - RSU [Member] - 2016 and 2023 Long Term Incentive Plan [Member]	9 Months Ended
	Sep. 30, 2023
Class Of Stock [Line Items]
Ratable annual vesting period of equity awards	3 years
Weighted average remaining vesting term	1 year 5 months 12 days

Share-Based Payment Awards - _4

Share-Based Payment Awards - Summary of Restricted Stock Unit Activity (Detail) - 2016 and 2023 Long Term Incentive Plan [Member] - RSU [Member]	9 Months Ended
	Sep. 30, 2023 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Stock Units Outstanding, Beginning Balance | shares	509,170
Number of stock units, Granted | shares	1,071,354
Number of Stock Units, Vested | shares	(201,414)
Number of Stock Units, Forfeited | shares	(45,368)
Number of Stock Units Outstanding, Ending Balance | shares	1,333,742
Weighted Average Grant Date Fair Value Nonvested, Beginning balance | $ / shares	$ 10.81
Weighted average grant date fair value, Granted | $ / shares	3.92
Weighted Average Grant Date Fair value, Vested | $ / shares	11.04
Weighted Average Grant Date Fair value, Forfeited | $ / shares	8.63
Weighted Average Grant Date Fair Value Nonvested, Ending balance | $ / shares	$ 5.31

Share-Based Payment Awards - Em

Share-Based Payment Awards - Employee Stock Purchase Plan - Additional Information (Detail) - USD ($)		3 Months Ended		9 Months Ended
	Jun. 25, 2019	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Class Of Stock [Line Items]
Employee stock purchase plan		$ 174,000	$ 153,000	$ 422,000	$ 354,000
Common stock, shares issued		35,309,432		35,309,432		34,082,934
ESPP [Member]
Class Of Stock [Line Items]
Price of common stock purchased twice a year under ESPP, percent	85%
Employee stock purchase plan	$ 25,000
Employee stock purchase plan, shares	5,000	43,335		107,056
Consecutive six month offering period	Aug. 01, 2019

Share-Based Payment Awards - Co

Share-Based Payment Awards - Compensation Expense from Stock-Based Payment Awards (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 3,629	$ 3,199	$ 8,467	$ 10,816
Research and Development Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	1,263	1,277	3,405	4,762
Sales and Marketing [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	60	290	290	1,195
General and Administrative Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 2,306	$ 1,632	$ 4,772	$ 4,859

Share-Based Payment Awards - _5

Share-Based Payment Awards - Stock-Based Compensation Expense - Additional Information (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2023 USD ($)
Share-Based Payment Arrangement [Abstract]
Unrecognized compensation expense	$ 13
Unrecognized compensation expense weighted average period	1 year 6 months 29 days

License and Asset Purchase Ag_2

License and Asset Purchase Agreements - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Feb. 29, 2020	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Collaborative Agreements And Contracts [Line Items]
Research and development		$ 17,363,000	$ 11,162,000	$ 46,711,000	$ 34,099,000
Equinox Science, LLC [Member]
Collaborative Agreements And Contracts [Line Items]
Non-refundable and non-creditable upfront cash payment	$ 1,000,000
Research and development		$ 0	$ 0	$ 0	$ 0
Equinox Science, LLC [Member] | Maximum [Member]
Collaborative Agreements And Contracts [Line Items]
Payment upon achievement of development and regulatory milestones	$ 50,000,000

Restructuring Charges - Additio

Restructuring Charges - Additional Information (Detail) - USD ($)		3 Months Ended	9 Months Ended
	May 17, 2023	Sep. 30, 2023	Sep. 30, 2023
Restructuring Cost and Reserve [Line Items]
Restructuring plan executed date	May 17, 2023
2023 Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges			$ 1,405,000
2023 Restructuring Plan [Member] | Research and Development Expense [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges			300,000
2023 Restructuring Plan [Member] | Sales and Marketing Expense [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges			940,000
2023 Restructuring Plan [Member] | General and Administrative Expense [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges			165,000
2023 Restructuring Plan [Member] | Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges		$ 0	$ 1,405,000

Restructuring Charges - Schedul

Restructuring Charges - Schedule of Restructuring Activities Related to Plan (Detail) - 2023 Restructuring Plan [Member] - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2023
Restructuring Cost and Reserve [Line Items]
Beginning balance		$ 0
Restructuring charges		1,405
Cash payments		(1,062)
Ending balance	$ 343	343
Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance		0
Restructuring charges	0	1,405
Cash payments		(1,062)
Ending balance	$ 343	$ 343

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Carried at Fair Value Measured on Recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities	$ 2,977	$ 48,928
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Value	129,211	131,158
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	(55)
Fair Value	129,211	131,103
Cash Equivalents	126,234	82,175
Marketable Securities	2,977	48,928
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Value	126,234	77,191
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	126,234	77,191
Cash Equivalents	126,234	77,191
Marketable Securities	0	0
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets (Level 1) [Member] | Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Value	126,234	77,191
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	126,234	77,191
Cash Equivalents	126,234	77,191
Marketable Securities	0	0
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Value	2,977	53,967
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	(55)
Fair Value	2,977	53,912
Cash Equivalents	0	4,984
Marketable Securities	2,977	48,928
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Commercial Paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Value		18,701
Gross Unrealized Gains		0
Gross Unrealized Losses		0
Fair Value		18,701
Cash Equivalents		0
Marketable Securities		18,701
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Value	2,977	35,266
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	(55)
Fair Value	2,977	35,211
Cash Equivalents	0	4,984
Marketable Securities	$ 2,977	$ 30,227

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	$ 2,977	$ 48,928
Interest-bearing cash equivalent consisted of money market fund	126,200	77,200
Interest-bearing cash equivalent consisted of investment-grade U.S.Treasury securities	$ 0	$ 5,000
Investment Instruments [Member] | Credit Concentration Risk [Member] | Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Percentage of concentration risk	100%	93.90%
Investment Instruments [Member] | Credit Concentration Risk [Member] | US Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Percentage of concentration risk		6.10%

Net Loss per Share - Additional

Net Loss per Share - Additional Information (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Nov. 30, 2021
Earnings Per Share [Abstract]
Pre Funded Warrants to purchase common stock					3,272,727
Pre-funded warrants shares included in net loss per share calculation	3,272,727	3,272,727	3,272,727	3,272,727

Net Loss per Share - Potentiall

Net Loss per Share - Potentially Dilutive Securities Excluded from Computation of Diluted Weighted-Average Shares (Detail) - shares	Sep. 30, 2023	Sep. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive common stock equivalents outstanding excluded from diluted earnings per share calculation	7,731,609	4,622,875
Stock options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive common stock equivalents outstanding excluded from diluted earnings per share calculation	6,340,662	4,031,665
ESPP [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive common stock equivalents outstanding excluded from diluted earnings per share calculation	8,522	12,849
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive common stock equivalents outstanding excluded from diluted earnings per share calculation	48,683	48,683
Restricted stock units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive common stock equivalents outstanding excluded from diluted earnings per share calculation	1,333,742	529,678

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Related Party Transaction [Line Items]
Research and development expense	$ 17,363,000	$ 11,162,000	$ 46,711,000	$ 34,099,000
Prepaid expenses	1,610,000		1,610,000		$ 2,723,000
Altasciences Company Inc [Member]
Related Party Transaction [Line Items]
Research and development expense	413,000	$ 237,000	1,300,000	$ 1,500,000
Accounts payable	$ 469,000		$ 469,000		$ 201,000
Other Liability, Related Party, Type [Extensible Enumeration]	Accounts Payable, Current		Accounts Payable, Current		Accounts Payable, Current
Prepaid expenses	$ 610,000		$ 610,000		$ 752,000