NVN Liquidation (NOVNQ) 10-K 30 Mar 23 2022 FY Annual report Financial data

Cover

Cover - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Mar. 16, 2023	Jun. 30, 2022
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-37880
Entity Registrant Name	Novan, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-4427682
Entity Address, Address Line One	4020 Stirrup Creek Drive, Suite 110
Entity Address, City or Town	Durham,
Entity Address, State or Province	NC
Entity Address, Postal Zip Code	27703
City Area Code	919
Local Phone Number	485-8080
Title of 12(b) Security	Common Stock, $0.0001 par value
Trading Symbol	NOVN
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	false
Entity Shell Company	false
Entity Public Float			$ 49.3
Entity Common Stock, Shares Outstanding (in shares)		28,015,371
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Entity Central Index Key	0001467154

Audit Information

Audit Information	12 Months Ended
	Dec. 31, 2022
Audit Information [Abstract]
Auditor Firm ID	243
Auditor Name	BDO USA, LLP
Auditor Location	Raleigh, North Carolina

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 12,316	$ 47,085
Restricted cash, current	1,047	0
Accounts receivable, net	22,002	4,473
Inventory, net	1,196	0
Prepaid expenses and other current assets	5,807	2,572
Total current assets	42,368	54,130
Restricted cash, net of current portion	583	583
Property and equipment, net	13,882	12,201
Intangible assets, net	27,475	75
Other assets	210	278
Right-of-use lease assets	1,756	1,693
Goodwill	4,056	0
Total assets	90,330	68,960
Current liabilities:
Accounts payable	13,689	2,170
Accrued expenses	18,624	4,988
Factoring arrangement payable	10,302	0
Deferred revenue, current portion	2,586	2,586
Research and development service obligation liability, current portion	555	1,406
Contingent consideration liability, current portion	451	0
Operating lease liabilities, current portion	191	0
Total current liabilities	46,398	11,150
Deferred revenue, net of current portion	8,079	10,665
Operating lease liabilities, net of current portion	3,739	3,613
Research and development service obligation liability, net of current portion	25	142
Research and development funding arrangement liability	25,000	25,000
Contingent consideration liability, net of current portion	2,037	0
Other long-term liabilities	447	71
Total liabilities	85,725	50,641
Commitments and contingencies (Note 9)
Stockholders’ equity:
Common stock $0.0001 par value; 200,000,000 shares authorized as of December 31, 2022 and 2021; 24,723,258 and 18,816,842 shares issued as of December 31, 2022 and 2021, respectively; 24,722,308 and 18,815,892 shares outstanding as of December 31, 2022 and 2021, respectively	2	2
Additional paid-in-capital	315,038	297,441
Treasury stock at cost, 950 shares as of December 31, 2022 and 2021	(155)	(155)
Accumulated deficit	(310,280)	(278,969)
Total stockholders’ equity	4,605	18,319
Total liabilities and stockholders’ equity	$ 90,330	$ 68,960

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Common stock, par value (in USD per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	24,723,258	18,816,842
Common stock, shares outstanding (in shares)	24,722,308	18,815,892
Treasury stock, shares (in shares)	950	950

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Total revenue	$ 23,682	$ 2,958
Operating expenses:
Cost of goods sold	7,379	0
Research and development	15,990	20,416
Selling, general and administrative	34,103	12,343
Amortization of intangible assets	1,600	0
Change in fair value of contingent consideration	(1,160)	0
Impairment loss on long-lived assets	0	114
Total operating expenses	57,912	32,873
Operating loss	(34,230)	(29,915)
Other income (expense), net:
Interest income	53	13
Interest expense	1,452	0
Gain on debt extinguishment	4,340	956
Other expense	(22)	(746)
Total other income (expense), net	2,919	223
Net loss	(31,311)	(29,692)
Comprehensive loss	$ (31,311)	$ (29,692)
Net loss per share, basic (in USD per share)	$ (1.42)	$ (1.74)
Net loss per share, diluted (in USD per share)	$ (1.42)	$ (1.74)
Weighted-average common shares outstanding, basic (in shares)	22,019,679	17,065,932
Weighted-average common shares outstanding, diluted (in shares)	22,019,679	17,065,932
Net product revenues
Revenue from contract with customer	$ 15,796	$ 0
License and collaboration revenue
Revenue from contract with customer	7,813	2,822
Government research contracts and grants revenue
Government research contracts and grants revenue	$ 73	$ 136

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Public Offering	Common Stock Purchase Agreement	ATM Facility	Pre Funded Warrant June 2022 Registered Direct Offering	Common warrant	Common Stock	Common Stock Public Offering	Common Stock Common Stock Purchase Agreement	Common Stock ATM Facility	Common Stock Pre Funded Warrant June 2022 Registered Direct Offering	Common Stock Common warrant	Additional Paid-In Capital	Additional Paid-In Capital Public Offering	Additional Paid-In Capital Common Stock Purchase Agreement	Additional Paid-In Capital ATM Facility	Additional Paid-In Capital Pre Funded Warrant June 2022 Registered Direct Offering	Additional Paid-In Capital Common warrant	Treasury Stock	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2020							14,570,009
Beginning balance at Dec. 31, 2020	$ 2,977						$ 1						$ 252,408						$ (155)	$ (249,277)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	$ 941												941
Extinguishment of fractional shares resulting from reverse stock split (in shares)							(37)
Common stock issued during period (in shares)								3,636,364	493,163
Common stock issued during period		$ 37,236	$ 6,334						$ 1					$ 37,236	$ 6,333
Exercise of warrants (in shares)												103,551
Exercise of common stock warrants						$ 461												$ 461
Exercise of stock options (in shares)	12,842						12,842
Exercise of stock options	$ 62												62
Net loss	$ (29,692)																			(29,692)
Ending balance (in shares) at Dec. 31, 2021	18,815,892						18,815,892
Ending balance at Dec. 31, 2021	$ 18,319						$ 2						297,441						(155)	(278,969)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	1,880												1,880
Common stock issued during period (in shares)											2,080,696
Common stock issued during period					$ 14,020												$ 14,020
Exercise of warrants (in shares)										645,105	3,180,615
Exercise of common stock warrants				$ 1,665	$ 32											$ 1,665	$ 32
Net loss	$ (31,311)																			(31,311)
Ending balance (in shares) at Dec. 31, 2022	24,722,308						24,722,308
Ending balance at Dec. 31, 2022	$ 4,605						$ 2						$ 315,038						$ (155)	$ (310,280)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Cash flow from operating activities:
Net loss	$ (31,311)	$ (29,692)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization of property and equipment	1,178	344
Impairment loss on long-lived assets	0	114
Amortization of intangible assets	1,600	0
Accretion of debt discount	635	0
Change in fair value of contingent consideration	(1,160)	0
Stock-based compensation	1,880	275
Foreign currency transaction loss	0	820
Gain on debt extinguishment	(4,340)	(956)
Loss on disposal and write-offs of property and equipment	70	0
Changes in operating assets and liabilities:
Accounts receivable	2,275	47
Inventory	(17)	0
Prepaid insurance, prepaid expenses and other current assets	457	688
Accounts payable	10,997	544
Accrued expenses	(9,369)	1,289
Deferred revenue	(2,586)	1,525
Research and development service obligation liability	(968)	(88)
Other long-term assets and liabilities	(223)	313
Net cash used in operating activities	(30,882)	(24,777)
Cash flow from investing activities:
Purchases of property and equipment	(4,274)	(9,050)
Landlord reimbursement of tenant improvement allowance	508	1,523
Payment for EPI Health Acquisition	(15,093)	0
Net cash used in investing activities	(18,859)	(7,527)
Cash flow from financing activities:
Proceeds from issuance of common stock and pre-funded warrants, net of underwriting fees and commissions	14,252	37,600
Proceeds from common stock issued pursuant to equity distribution agreement (at-the-market facility)	1,665	0
Payment of note payable	(10,000)	0
Proceeds from exercise of common stock warrants	0	461
Proceeds from issuance of common stock under common stock purchase agreement	0	6,334
Proceeds from factoring arrangement	18,427	0
Repayments of factoring arrangement	(8,125)	0
Payments related to public offering costs	(200)	(364)
Proceeds from exercise of stock options	0	62
Net cash provided by financing activities	16,019	44,093
Net (decrease) increase in cash, cash equivalents and restricted cash	(33,722)	11,789
Cash, cash equivalents and restricted cash as of beginning of period	47,668	35,879
Cash, cash equivalents and restricted cash as of end of period	13,946	47,668
Supplemental disclosure of cash flow information:
Cash paid for interest	339	0
Supplemental disclosure of non-cash investing and financing activities:
Non-cash gain on debt extinguishment	4,340	0
Contingent consideration related to EPI Health Acquisition	3,648	0
Note payable issued for EPI Health Acquisition	13,305	0
Deferred offering costs reclassified to additional paid-in capital	0	364
Purchases of property and equipment with accounts payable and accrued expenses	26	1,471
Right-of-use assets obtained in exchange for lease liabilities	0	1,693
Non-cash gain on debt extinguishment from forgiveness of Paycheck Protection Program loan	0	956
Reconciliation to consolidated balance sheets:
Cash and cash equivalents	12,316	47,085
Restricted cash	1,630	583
Total cash, cash equivalents and restricted cash shown in the statement of cash flows	$ 13,946	$ 47,668

Organization and Significant Ac

Organization and Significant Accounting Policies	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Organization and Significant Accounting Policies	Organization and Significant Accounting Policies Business Description Novan, Inc. (“Novan” and together with its subsidiaries, the “Company”) is a medical dermatology company focused on developing and commercializing innovative therapeutic products for skin diseases. Its goal is to deliver safe and efficacious therapies to patients, including developing product candidates where there are unmet medical needs. The Company is developing SB206 (berdazimer gel, 10.3%) as a topical prescription gel for the treatment of viral skin infections, with a current focus on molluscum contagiosum. On March 11, 2022, the Company acquired EPI Health, LLC, a specialty pharmaceutical company focused on medical dermatology (“EPI Health”), from Evening Post Group, LLC, a South Carolina limited liability company (“EPG” or the “Seller”). The acquisition of EPI Health (the “EPI Health Acquisition”) has provided the Company with a commercial infrastructure to sell a marketed portfolio of therapeutic products for skin diseases. Subsequent to the acquisition, the Company sells various medical dermatology products for the treatments of plaque psoriasis, rosacea and acne. Novan was incorporated in January 2006 under the state laws of Delaware. In 2015, Novan Therapeutics, LLC, was organized as a wholly owned subsidiary under the state laws of North Carolina; in March 2019, the Company completed registration of a wholly owned Ireland-based subsidiary, Novan Therapeutics, Limited; and in March 2022, the Company acquired its wholly owned subsidiary, EPI Health, a South Carolina limited liability company. In August 2022, EPI Health, as sole equity member, formed and organized a new Delaware single member LLC which did not have any operating activity for the year ended December 31, 2022. See Note 2—“Acquisition of EPI Health” for further information regarding the EPI Health Acquisition. Basis of Presentation The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Additionally, the report of the Company’s independent registered public accounting firm on the Company’s consolidated financial statements as of and for the year ended December 31, 2022, includes an explanatory paragraph indicating that there is substantial doubt about the Company’s ability to continue as a going concern, as further discussed below. Basis of Consolidation The accompanying consolidated financial statements reflect the operations of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The post-acquisition operating results of EPI Health are reflected within the Company’s consolidated statement of operations and comprehensive loss for the year ended December 31, 2022, specifically from March 11, 2022 through December 31, 2022. Liquidity and Ability to Continue as a Going Concern The Company’s consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The accompanying consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from uncertainty related to the Company’s ability to continue as a going concern. The Company has evaluated principal conditions and events, in the aggregate, that may raise substantial doubt about its ability to continue as a going concern within one year from the date that these financial statements are issued. The Company identified the following conditions: • The Company has reported a net loss in all fiscal periods since inception and, as of December 31, 2022, the Company had an accumulated deficit of $310,280. • As of December 31, 2022, the Company had a total cash and cash equivalents balance of $12,316. • The Company anticipates that it will continue to generate losses for the foreseeable future, and it expects the losses to increase as it continues the development of, and seeks regulatory approvals for, its product candidates and begins activities to prepare for potential commercialization of SB206, if approved. • The Company has concluded that the prevailing conditions and ongoing liquidity risks faced by the Company, coupled with its current forecasts, including costs associated with implementing the SB206 prelaunch strategy and commercial preparation, raise substantial doubt about its ability to continue as a going concern. This evaluation is also based on other relevant conditions that are known or reasonably knowable at the date that the financial statements are issued, including ongoing liquidity risks faced by the Company, the Company’s conditional and unconditional obligations due or anticipated within one year, the funds necessary to maintain the Company’s operations considering its current financial condition, obligations, and other expected cash flows, and other conditions and events that, when considered in conjunction with the above, may adversely affect the Company’s ability to meet its obligations. The Company will continue to evaluate this going concern assessment in connection with the preparation of its quarterly and annual financial statements based upon relevant facts and circumstances, including, but not limited to, its cash and cash equivalents balance and its operating forecast and related cash projection. The Company believes that its existing cash and cash equivalents as of December 31, 2022, plus expected receipts associated with product sales from its commercial product portfolio will not provide it with adequate liquidity to fund its planned operating needs for one year from the date of these financial statements. Variability in its operating forecast, driven primarily by (i) commercial product sales, (ii) timing of operating expenditures, and (iii) unanticipated changes in net working capital, will impact the Company’s cash runway. This operating forecast and related cash projection includes (i) costs associated with preparing for potential U.S. regulatory approval of SB206 as a treatment for molluscum, (ii) costs associated with the readiness and operation of the Company’s new manufacturing capability necessary to support small-scale drug substance and drug product manufacturing, (iii) conducting drug manufacturing activities with external third-party contract manufacturing organizations (“CMOs”), (iv) ongoing commercial operations, including sales, marketing, inventory procurement and distribution, and supportive activities, related to its portfolio of therapeutic products for skin diseases acquired with the EPI Health Acquisition, and (v) initial efforts to support potential commercialization of SB206, but excludes additional operating costs that could occur between the New Drug Application (“NDA”) submission for SB206 through NDA approval, including, but not limited to, manufacturing, marketing and commercialization efforts to achieve potential launch of SB206. The Company does not currently have sufficient funds to complete commercialization of any of its product candidates that are under development, and its funding needs will largely be determined by its commercialization strategy for SB206, subject to the regulatory approval process and outcome, and the operating performance of its commercial product portfolio. The inability of the Company to generate sufficient net revenues to fund its operations or obtain significant additional funding on acceptable terms in the near term, could have a material adverse effect on the Company’s business and cause the Company to alter or reduce its planned operating activities, including, but not limited to, delaying, reducing, terminating or eliminating planned product candidate development activities, furloughing employees or reducing the size of the workforce, to conserve its cash and cash equivalents. The Company has pursued and may continue to pursue additional capital through equity or debt financings or from other sources, including partnerships, collaborations, licensing, grants or other strategic relationships. The Company’s anticipated expenditure levels may change as it adjusts its current operating plan. Such actions could delay development timelines and have a material adverse effect on its business, results of operations, financial condition and market valuation. The Company may also explore the potential for additional strategic transactions, such as strategic acquisitions or in-licenses, sales, out-licenses or divestitures of some of its assets, or other potential strategic transactions, which could include a sale of the Company. If the Company were to pursue such a transaction, it may not be able to complete the transaction on a timely basis or at all or on terms that are favorable to the Company. Alternatively, if the Company is unable to obtain significant additional funding on acceptable terms or progress with a strategic transaction, it could instead determine to dissolve and liquidate its assets or seek protection under the bankruptcy laws. If the Company decides to dissolve and liquidate its assets or to seek protection under the bankruptcy laws, it is unclear to what extent the Company would be able to pay its obligations, and, accordingly, it is further unclear whether and to what extent any resources would be available for distributions to stockholders. Business Acquisitions The Company accounts for business acquisitions using the acquisition method of accounting in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations (“ASC 805”). ASC 805 requires, among other things, that assets acquired and liabilities assumed be recognized at their fair values, as determined in accordance with ASC 820, Fair Value Measurements (“ASC 820”), as of the acquisition date. For certain assets and liabilities, book value approximates fair value. In addition, ASC 805 establishes that consideration transferred be measured at the closing date of the acquisition at the then-current market price. Under ASC 805, acquisition-related costs (i.e., advisory, legal, valuation and other professional fees) are expensed in the period in which the costs are incurred. The application of the acquisition method of accounting requires the Company to make estimates and assumptions related to the estimated fair values of net assets acquired, which require significant management judgment. COVID-19 The extent to which COVID-19, and its variant strains, and domestic and global efforts to contain its spread along with lingering effects of the foregoing will impact the Company’s business, including its operations, preclinical studies, clinical trials, and financial condition, will depend on future developments, which are highly uncertain and cannot be predicted, and include the duration, severity and scope of the pandemic and its lingering impacts, the availability and effectiveness of vaccines in preventing the spread of COVID-19 (and its variants), and the actions taken by other parties, such as governmental authorities, to contain and treat COVID-19 and its variants. During the pandemic, the timetable for development of the Company’s product candidates has been impacted and may face further disruption and the Company’s business could be further adversely affected by the outbreak of COVID-19 and its variants. In particular, COVID-19 impacted the timing of trial initiation of the Company’s B-SIMPLE4 Phase 3 study and was a factor influencing the Company’s previous adjustment of its targeted SB206 NDA submission timing. In addition, certain factors from the COVID-19 pandemic may delay or otherwise adversely affect the Company’s generation of product revenues from its portfolio of therapeutic products for skin diseases, as well as adversely impact the Company’s business generally, including (i) changes in buying patterns caused by lack of normal access by patients to the healthcare system and concern about the supply of medications, (ii) adverse impacts on the Company’s manufacturing operations, supply chain and distribution processes, which may impact its ability to procure, produce and distribute its products or product candidates, (iii) the inability of third parties to fulfill their obligations to the Company due to staffing shortages, production slowdowns or stoppages and disruptions in delivery systems, (iv) the risk of shutdown in countries where the Company relies on CMOs to provide commercial manufacture of its products or clinical batch manufacturing of its product candidates, (v) the ability to procure raw materials needed for the production of the Company’s active pharmaceutical ingredient (“API”) and other manufacturing components for the Company’s product candidates, (vi) the possibility that third parties on which the Company may rely for certain functions and services, including CMOs, suppliers, distributors, logistics providers, and external business partners, may be adversely impacted by restrictions resulting from the COVID-19 pandemic, which could cause the Company to experience delays or to incur additional costs, and (vii) the risk that the COVID-19 pandemic may intensify other risks inherent in the Company’s business. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. The Company reviews all significant estimates affecting the consolidated financial statements on a recurring basis and records the effects of any necessary adjustments prior to their issuance. Significant estimates made by management include provisions for product returns, coupons, rebates, chargebacks, trade and cash discounts, allowances and distribution fees paid to certain wholesalers, inventory net realizable value, useful lives of amortizable intangible assets, stock-based compensation, accrued expenses, valuation of assets and liabilities in business combinations, developmental timelines related to licensed products, valuation of notes payable issued in conjunction with the acquisition, valuation of contingent consideration and contingencies. Actual results may differ materially and adversely from these estimates. To the extent there are material differences between the estimates and actual results, the Company’s future results of operations will be affected. Reclassifications Certain amounts in the Company’s consolidated balance sheet as of December 31, 2021 have been reclassified to conform to the current presentation. Prepaid insurance in the amount of $1,697 and other current assets related to leasing arrangement, net in the amount of $109 has been reclassified to prepaid expenses and other current assets. In addition, certain current liabilities totaling $2,164, which were previously classified as accrued compensation, accrued outside research and development services, and accrued legal and professional fees, have been reclassified to all be included in accrued expenses to conform with the current presentation. These reclassifications had no impact on the Company’s consolidated current assets, current liabilities or on the consolidated statements of operations and comprehensive loss or cash flows from operations as of and for the year ended December 31, 2021. Cash and Cash Equivalents The Company considers all highly liquid instruments with a maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents include deposits and money market accounts. Restricted Cash Restricted cash as of December 31, 2022 and December 31, 2021 includes both a current and non-current component. The current component relates to a factoring facility entered into in December 2022. See Note 9—“Commitments and Contingencies” for further information. The non-current component relates to funds maintained in a deposit account to secure a letter of credit for the benefit of the lessor of the Company’s headquarters. See Note 6—“Leases” for further information regarding the letter of credit. Accounts Receivable, net Accounts receivable are carried at original invoice amount less an estimate made for doubtful receivables. An account receivable is considered to be past due if any portion of the receivable balance is outstanding beyond the agreed-upon due date. The Company records an allowance for credit losses, which includes a provision for expected losses based on historical write-offs, adjusted for current conditions as deemed necessary, reasonable and supportable forecasts about future conditions that affect the expected collectability of the reported amount of the financial asset, as well as a specific reserve for accounts deemed at risk. The allowance is the Company’s estimate for accounts receivable as of the balance sheet date that ultimately will not be collected. Any changes in the allowance are reflected in the results of operations in the period in which the change occurs. As of December 31, 2022, the Company had recorded a provision for expected losses of $141. No allowance for credit losses was recorded as of December 31, 2021 as all amounts included in accounts receivable were expected to be collected. Account balances are written off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Recoveries of receivables previously written off are recorded when received. The Company does not charge interest on accounts receivable. As part of the EPI Health Acquisition, accounts receivable, net, were marked to fair value as part of the Company’s ASC 805 business combination accounting. See Note 2—“Acquisition of EPI Health” for additional detail. Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of cash, cash equivalents and accounts receivable. The Company places its cash and cash equivalents with financial institutions and these deposits may at times be in excess of insured limits and the Company assesses the creditworthiness of its customers on an on-going basis. As of December 31, 2022, three of the Company’s wholesaler customers accounted for more than 10% of its total accounts receivable balance at 25%, 13% and 12%, respectively. As of December 31, 2022, 23% of accounts receivable related to amounts due from Sato under the Rhofade agreement. As of December 31, 2021, 97% of accounts receivable related to amounts due from Sato under the SB206 and SB204 license agreement. See Note 14—“License and Collaboration Revenues” for additional detail. Inventory, net The Company maintains inventory consisting of for-sale pharmaceuticals related to its marketed product portfolio. The Company measures inventory using the first-in, first-out method and values inventory at the lower of cost or net realizable value. Net realizable value represents the estimated selling price for inventories less all estimated costs to sell. The Company performs an analysis and records a provision for potentially obsolete inventory. The reserve for obsolescence is generally an estimate of the amount of inventory held at period end that is expected to expire in the future based on projected sales volume and expected product expiration or sell-by dates. These assumptions require the Company to analyze the aging of and forecasted demand for its inventory and make estimates regarding future product sales. Property and Equipment Property and equipment are recorded at cost and depreciated using the straight-line method over their estimated useful lives as follows: Computer and office equipment 3 years Furniture and fixtures 5-7 years Laboratory equipment 7 years Leasehold improvements are amortized over the shorter of the life of the lease or the useful life of the improvements. Expenditures for maintenance and repairs are expensed as incurred. Improvements and betterments that add new functionality or extend the useful life of an asset are capitalized. Leases for real estate often include tenant improvement allowances, which the Company assesses according to applicable accounting guidance to determine the appropriate owner, and capitalizes such tenant improvement assets accordingly. Intangible Assets, net and Goodwill Intangible assets represent certain identifiable intangible assets, including product rights consisting of pharmaceutical product licenses and patents. Amortization for pharmaceutical products licenses is computed using the straight-line method based on the lesser of the term of the agreement and the useful life of the license. Amortization for pharmaceutical patents is computed using the straight-line method based on the useful life of the patent. Definite-lived intangible assets are reviewed for impairment whenever events or circumstances indicate that carrying amounts may not be recoverable. In the event impairment indicators are present or if other circumstances indicate that an impairment might exist, then management compares the future undiscounted cash flows directly associated with the asset or asset group to the carrying amount of the asset group being determined for impairment. If those estimated cash flows are less than the carrying amount of the asset group, an impairment loss is recognized. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. Considerable judgment is necessary to estimate the fair value of these assets, accordingly, actual results may vary significantly from such estimates. Indefinite-lived intangible assets, including goodwill and the cost to obtain and register the Company’s internet domain, are not amortized. The Company tests the carrying amounts of goodwill for recoverability on an annual basis at October 1 or when events or changes in circumstances indicate evidence that a potential impairment exists, using a fair value based test. Goodwill is assessed at the reporting unit level. The Company performed a qualitative assessment as of October 1, 2022 and concluded that it is not more likely than not that the fair value of the Company’s reporting unit was less than its carrying amount. A significant amount of judgment is involved in determining if an indicator of goodwill impairment has occurred. Such indicators may include, among others: a significant decline in expected future cash flows, a sustained, significant decline in the Company’s stock price and market capitalization, a significant adverse change in legal factors or in the business climate, adverse assessment or action by a regulator, and unanticipated competition. Any change in these indicators could have a significant negative impact on the Company’s financial condition, impact the goodwill impairment analysis or cause the Company to perform a goodwill impairment analysis more frequently than once per year. Intellectual Property The Company’s policy is to file patent applications to protect technology, inventions and improvements that are considered important to its business. Patent positions, including those of the Company, are uncertain and involve complex legal and factual questions for which important legal principles are largely unresolved. Due to the uncertainty of future value to be realized from the expenses incurred in developing the Company’s intellectual property, the cost of filing, prosecuting and maintaining internally developed patents are expensed as general and administrative costs as incurred. Leases The Company leases office space and certain equipment under non-cancelable lease agreements. The Company applies the accounting guidance in ASC 842, Leases. As such, the Company assesses all arrangements, that convey the right to control the use of property, plant and equipment, at inception, to determine if it is, or contains, a lease based on the unique facts and circumstances present in that arrangement. For those leases identified, the Company determines the lease classification, recognition, and measurement at the lease commencement date. For arrangements that contain a lease the Company: (i) identifies lease and non-lease components; (ii) determines the consideration in the contract; (iii) determines whether the lease is an operating or financing lease; and (iv) recognizes lease Right of Use (“ROU”) assets and corresponding lease liabilities. Lease liabilities are recorded based on the present value of lease payments over the expected lease term. The corresponding ROU asset is measured from the initial lease liability, adjusted by (i) accrued or prepaid rents; (ii) remaining unamortized initial direct costs and lease incentives; and (iii) any impairments of the ROU asset. The Company elected the practical expedient to not separate non-lease components from the lease components. Fixed lease payments on operating leases are recognized over the expected term of the lease on a straight-line basis. Variable lease expenses that are not considered fixed are expensed as incurred. Fixed and variable lease expense on operating leases is recognized within operating expenses within the accompanying consolidated statements of operations and comprehensive loss. The Company has elected the short-term lease exemption and, therefore, does not recognize an ROU asset or corresponding liability for lease arrangements with an original term of 12 months or less. The interest rate implicit in the Company’s lease contracts is typically not readily determinable and as such, the Company uses its incremental borrowing rate based on the information available at the lease commencement date, which represents an internally developed rate that would be incurred to borrow, on a collateralized basis, over a similar term, an amount equal to the lease payments in a similar economic environment. Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for an amount by which the carrying amount of the asset exceeds the fair value of the asset. Revenue Recognition The Company accounts for revenue in accordance with ASC 606, Revenue from Contracts with Customers (“ASC 606”). To determine revenue recognition for arrangements that are within the scope of ASC 606, the Company (i) identifies the contract with a customer, (ii) identifies the performance obligations within the contract, (iii) determines the transaction price, (iv) allocates the transaction price to the performance obligations in the contract, and (v) recognizes revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that it will collect the consideration to which it is entitled 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 and 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. Upon occurrence of a contract modification, the Company conducts an evaluation pursuant to the modification framework in ASC 606 to determine the appropriate revenue recognition. The framework centers around key questions, including (i) whether the modification adds additional goods and services, (ii) whether those goods and services are distinct, and (iii) whether the contract price increases by an amount that reflects the standalone selling price for the new goods or services. The resulting conclusions will determine whether the modification is treated as a separate, standalone contract or if it is combined with the original contract and accounted for in that manner. In addition, some modifications are accounted for on a prospective basis and others on a cumulative catch-up basis. The Company currently has the following types of revenue generating arrangements: Net Product Revenues Net product revenues encompass sales resulting from transferring control of products to the customer, excluding amounts collected on behalf of third parties. The amount of revenue recognized is the amount allocated to the satisfied performance obligation taking into account variable consideration. The estimated amount of variable consideration is included in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Product sales are recognized at the point in time when legal transfer of title has occurred, based on shipping terms. The Company records a reduction to the transaction price for estimated chargebacks, rebates, coupons, trade and cash discounts and sales returns. A liability is recognized for expected sales returns, rebates, coupons, trade and cash discounts, chargebacks or other reimbursements to customers in relation to sales made in the reporting period. Payment terms can differ from contract to contract, but no element of financing is deemed present as the typical payment terms are less than 100 days. Therefore, the transaction price is not adjusted for the effects of a significant financing component. A receivable is recognized as soon as control over the products is transferred to the customer as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due. Variable consideration relates to sales returns, rebates, coupons, trade and cash discounts, and chargebacks granted to various direct and indirect customers. The Company recognizes provisions at the time of sale and adjusts them if the actual amounts differ from the estimated provisions. The following describes the nature of each deduction and how provisions are estimated: Chargebacks – The Company has arrangements with various third-party wholesalers that require the Company to issue a credit to the wholesaler for the difference between the invoice price to the wholesaler and the customer’s contract price. Provisions for chargebacks involve estimates of the contract prices within multiple contracts with multiple wholesalers. The provisions for chargebacks vary in relation to changes in product mix, pricing and the level of inventory at the wholesalers and, in addition, fluctuate in proportion to an increase or decrease in sales. Provisions for estimated chargebacks are calculated using the historical chargeback experience and expected chargeback levels for new products and anticipated pricing changes, which involves significant estimates by management. Chargeback provisions are compared to externally obtained distribution channel reports for reasonableness. The Company regularly monitors the provisions for chargebacks and makes adjustments when the Company believes that actual chargebacks may differ from estimated provisions. Rebates – Rebates include managed care services, fee for service and the Medicaid rebate programs. Rebates are primarily related to volume-based incentives and are offered to key customers to promote loyalty. Customers receive rebates upon the attainment of a pre-established volume or the attainment of revenue milestones for a specified period. Since rebates are contractually agreed upon, provisions are estimated based on the specific terms in each agreement based on historical trends and expected sales. Returns – Returns primarily relate to customer returns of expired products that the customer has the right to return up to one year following the product’s expiration date. Such returned products are destroyed and credits and/or refunds are issued to the customer for the value of the returns. Accordingly, n

Acquisition of EPI Health

Acquisition of EPI Health	12 Months Ended
	Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]
Acquisition of EPI Health	Acquisition of EPI Health On March 11, 2022, the Company completed the EPI Health Acquisition, in which the Company acquired all of the issued and outstanding units of membership interest of EPI Health from EPG for an estimated fair value of purchase consideration of $32,046. EPI Health is an integrated medical dermatology company providing the Company with a commercial infrastructure to support the commercialization of products. Subsequent to the EPI Health Acquisition, the Company sells various dermatological products for the treatments of plaque psoriasis, rosacea and acne. At closing, the Company paid or committed to pay non-contingent consideration totaling $27,500, as adjusted for cash, indebtedness, net working capital estimates and other contractually defined adjustments (the “Closing Purchase Price”). The Closing Purchase Price consisted of (i) $11,000 paid in cash and (ii) a secured promissory note issued to EPG in the principal amount of $16,500 (the “Seller Note”). See Note 10—“Notes Payable” for additional detail regarding the Seller Note and its related terms. The Company also paid a total working capital adjustment of $4,093, including (i) a $993 payment at closing and (ii) a $3,100 payment post-closing in July 2022 as the parties agreed the final net working capital adjustment amount. The purchase agreement entered into in connection with the EPI Health Acquisition (the “EPI Heath Purchase Agreement”) included the potential payment of additional contingent consideration totaling up to $23,000 upon achievement of certain milestones, as follows: a. $500, as a one-time cash payment, upon EPG’s performance of transition services and the successful completion of the transition provided under the transition services agreement between the Company and EPG; b. $3,000, as a one-time payment, payable in cash or the Company’s common stock, at the discretion of the Company, upon net sales of certain of EPI Health’s legacy products exceeding $30,000 during the period from April 1, 2022 through March 31, 2023; c. up to $2,500, paid in quarterly installments in cash or the Company’s common stock at the discretion of the Company, upon net sales of Wynzora Cream (“Wynzora”) exceeding certain quarterly thresholds or an annual threshold of $12,500 during the period from April 1, 2022 through March 31, 2023; d. $5,000, as a one-time payment, payable in cash or the Company’s common stock at the discretion of the Company, upon the first occurrence of post-closing net sales of certain of EPI Health’s legacy products exceeding $35,000 during any twelve-month period from April 1, 2023 through March 31, 2026; and e. up to $12,000 based on receipt by EPI Health of regulatory and net sales milestones related to Sitavig from EPI Health’s over-the-counter (“OTC”) Switch License Agreement with Bayer. Certain of the above milestone payments will accelerate and become immediately payable upon certain specified events during the applicable milestone periods, including a sale of all or substantially all of the assets with respect to certain of EPI Health’s legacy products. The EPI Health Purchase Agreement provides that payment of any additional consideration may be made in cash or in shares of the Company’s common stock, so long as the number of shares that may be issued pursuant to the EPI Health Purchase Agreement or otherwise in connection with the EPI Health Acquisition is limited to no more than 19.99% of the Company’s outstanding shares of common stock immediately prior to the closing, unless stockholder approval is obtained to issue more than 19.99%. The EPI Health Acquisition is being accounted for as a business combination using the acquisition method in accordance with ASC 805. Under this method of accounting the fair value of the consideration transferred is allocated to the assets acquired and liabilities assumed based upon their estimated fair values on the date of the EPI Health Acquisition. Any excess of the purchase price over the fair value of identified assets acquired and liabilities assumed is recognized as goodwill. For the year ended December 31, 2022 and December 31, 2021, the Company incurred costs related to the EPI Health Acquisition of $4,981 and $290, respectively, recognized in selling, general and administrative expenses within the consolidated statements of operations and comprehensive loss. From the EPI Health Acquisition date through December 31, 2022, $21,023 of total net revenue and a net loss of $1,776 associated with EPI Health’s operations are included in the consolidated statements of operations and comprehensive loss. Purchase Consideration The following table presents the estimated fair value of purchase consideration as of each interim reporting period end date since the EPI Health Acquisition date, including measurement period adjustments made during each interim period. The estimated fair value of purchase consideration is then allocated to the estimated fair values of the net assets acquired at the EPI Health Acquisition date, as described further following the table under the section entitled Allocation of Purchase Consideration to Estimated Fair Values of Net Assets Acquired. As of March 11, 2022 Measurement Period Adjustments As of June 30, 2022 Measurement Period Adjustments As of September 30, 2022 Measurement Period Adjustments As of December 31, 2022 Initial cash consideration to Seller $ 11,000 $ — $ 11,000 $ — $ 11,000 $ — $ 11,000 Secured promissory note issued to Seller 16,500 — 16,500 (3,195) (B) 13,305 — 13,305 Closing date fair value of contingent consideration liability 3,773 — 3,773 (125) (C) 3,648 — 3,648 Remaining working capital adjustment to be paid 4,069 (969) (A) 3,100 — 3,100 — 3,100 Working capital adjustment paid at close 993 — 993 — 993 — 993 Total estimated purchase consideration $ 36,335 $ (969) $ 35,366 $ (3,320) $ 32,046 $ — $ 32,046 A. On July 7, 2022, the Company and EPG agreed to the final net working capital adjustment amount (the “Total Adjustment Amount”), as defined in the EPI Health Purchase Agreement, as part of the post-closing adjustment to the estimated purchase price for the EPI Health Acquisition. The Total Adjustment Amount was determined to be positive and in the amount of $3,100, which was paid to EPG on July 7, 2022. As of March 31, 2022, the Company had previously estimated that the Total Adjustment Amount would be $4,069. Therefore, the Company has reflected a $969 measurement period adjustment to the estimated fair value of total purchase consideration. As this adjustment related to the estimated fair value of purchase consideration and did not affect the fair value of any assets acquired or liabilities assumed, it resulted in a reduction of goodwill. B. During the third quarter of 2022, the Company continued to conduct a fair value assessment of the Seller Note as of the EPI Health Acquisition date of March 11, 2022. The Company completed the fair value assessment and updated the Seller Note fair value estimate as of March 11, 2022 to $13,305 via a downward measurement period adjustment of $3,195 during the interim quarterly period ended September 30, 2022. The Seller Note fair value assessment included both quantitative and qualitative analyses. The quantitative analysis utilized observable credit spreads for market debt transactions with credit ratings similar to the Company’s credit ratings. The qualitative analysis took into consideration the fact pattern leading up to the Seller Note’s original issuance in March 2022 as well as the subsequent period through July 2022 when the Seller Note was settled and terminated. These qualitative and quantitative analyses were used in conjunction with one another to determine the best estimate of the Seller Note’s fair value as of March 11, 2022. See Note 10—“Notes Payable” to these consolidated financial statements for further discussion regarding the Seller Note, including its repayment and termination during the third quarter of 2022. C. During the third quarter of 2022, the Company continued to conduct a fair value assessment of the contingent consideration liability as of the EPI Health Acquisition date of March 11, 2022. The Company updated the contingent consideration provisional fair value estimate as of March 11, 2022 to $3,648 via a downward measurement period adjustment of $125 during the interim quarterly period ended September 30, 2022, based on progression of the fair value assessment procedures conducted. Allocation of Purchase Consideration to Estimated Fair Values of Net Assets Acquired ASC 805 requires, among other things, that the assets acquired and liabilities assumed in a business combination be recognized at their fair values as of the acquisition date. Further, ASC 805 requires any consideration transferred or paid in a business combination in excess of the fair value of the assets acquired and liabilities assumed should be recognized as goodwill. The total estimated purchase consideration was allocated to the estimated fair values of the assets acquired and liabilities assumed as of March 11, 2022 as follows: As of March 11, 2022 Measurement Period Adjustments As of June 30, 2022 Measurement Period Adjustments As of September 30, 2022 Measurement Period Adjustments As of December 31, 2022 Assets acquired and liabilities assumed: Accounts receivable, net of $282 allowance $ 20,083 $ — $ 20,083 $ — $ 20,083 $ (279) (e) $ 19,804 Inventory 1,710 — 1,710 (410) (b) 1,300 (121) (e) 1,179 Prepaid expenses and other current assets 3,692 — 3,692 — 3,692 — 3,692 Property and equipment 100 — 100 — 100 — 100 Intangible assets 33,000 — 33,000 (4,000) (c) 29,000 — 29,000 Other assets 27 — 27 — 27 — 27 Right-of-use lease assets 400 — 400 — 400 — 400 Total assets $ 59,012 $ — $ 59,012 $ (4,410) $ 54,602 $ (400) $ 54,202 Accounts payable $ 947 $ — $ 947 $ — $ 947 $ — $ 947 Accrued expenses 24,892 — 24,892 — 24,892 (467) (e) 24,425 Operating lease liabilities, current portion 208 — 208 — 208 — 208 Operating lease liabilities, net of current portion 342 — 342 — 342 — 342 Other long-term liabilities 290 — 290 — 290 — 290 Total liabilities $ 26,679 $ — $ 26,679 $ — $ 26,679 $ (467) $ 26,212 Total identifiable net assets acquired $ 32,333 $ — $ 32,333 $ (4,410) $ 27,923 $ 67 $ 27,990 Goodwill 4,002 (969) (a) 3,033 1,090 (d) 4,123 (67) (e) 4,056 Total estimated purchase consideration $ 36,335 $ (969) $ 35,366 $ (3,320) $ 32,046 $ — $ 32,046 a. On July 7, 2022, the Company and EPG agreed to the final net working capital adjustment amount (the “Total Adjustment Amount”), as defined in the EPI Health Purchase Agreement, as part of the post-closing adjustment to the estimated purchase price for the EPI Health Acquisition. The Total Adjustment Amount was determined to be positive and in the amount of $3,100, which was paid to EPG on July 7, 2022. As of March 31, 2022, the Company had previously estimated that the Total Adjustment Amount would be $4,069. Therefore, the Company has reflected a $969 measurement period downward adjustment to the estimated fair value of total purchase consideration. As this adjustment related to the estimated fair value of purchase consideration and did not affect the fair value of any assets acquired or liabilities assumed, it resulted in a reduction of goodwill. b. During the third quarter of 2022, the Company continued to conduct a fair value assessment of the trade inventory on hand as of the EPI Health Acquisition date of March 11, 2022. The Company updated the trade inventory’s provisional fair value estimate as of March 11, 2022 to $1,300 via a downward measurement period adjustment of $410 during the interim quarterly period ended September 30, 2022, based on progression of the fair value assessment procedures conducted. c. During the third quarter of 2022, the Company continued to conduct a fair value assessment of the acquired definite-lived intangible product rights assets as of the EPI Health Acquisition date of March 11, 2022, which included further analysis of the forecasts used in the initial preliminary valuation. This downward measurement period adjustment also resulted in the recognition of $192 of additional amortization expense during the interim quarterly period ended September 30, 2022. d. The aforementioned measurement period adjustments made to the acquired assets and assumed liabilities, as well as the measurement period adjustments made to the estimated fair value of purchase consideration in the preceding section entitled Purchase Consideration , result in an updated goodwill balance of $4,123 as of September 30, 2022 based on a net upward adjustment of $1,090 during the interim quarterly period ended September 30, 2022. e. During the fourth quarter of 2022, the Company continued and completed its fair value assessment of accounts receivable, trade inventory and accrued expenses as of the EPI Health Acquisition date of March 11, 2022, which included analysis based upon year to date activity of those related balances. The related measurement period downward adjustments related to (i) $141 associated with the collectability of certain trade accounts receivable, (ii) $121 related to both inventory and accrued expenses for finished goods purchases that should not have been included in the acquisition date balances, (iii) $138 related to amounts due from a collaboration partner that should not have been included in the acquisition date balances, and (iv) $346 of certain previously accrued legal costs that should not have been accrued. The net results of these adjustments resulted in a reduction to goodwill of $67 during the quarterly period ended December 31, 2022. The Company determined the estimated fair value of the acquired intangible assets as of the closing date using the income approach. This is a valuation technique that is based on the market participant’s expectations of the cash flows that the intangible assets are forecasted to generate. The projected cash flows from these intangible assets were based on various assumptions, including estimates of revenues, expenses, and operating profit, and risks related to the viability of and commercial potential for alternative treatments. The cash flows were discounted at a rate commensurate with the level of risk associated with the projected cash flows. The Company believes the assumptions are representative of those a market participant would use in estimating fair value. Goodwill was determined on the basis of the fair values of the assets and liabilities identified at the time of the EPI Health Acquisition. Goodwill was calculated as the excess of the consideration paid consequent to completing the acquisition, compared to the net assets recognized. Goodwill represents the future economic benefits arising from the other acquired assets, which could not be individually identified and separately valued. Goodwill is primarily attributable to the acquired commercial platform and infrastructure, including personnel, and expected synergies related to the commercialization of product candidates and has therefore been allocated to the Research and Development Operations reporting unit. Pro forma Information The following pro forma information presents the combined results of operations for the year ended December 31, 2022 and December 31, 2021, as if the Company had completed the EPI Health Acquisition at the beginning of the periods presented. The pro forma financial information is provided for comparative purposes only and is not indicative of what actual results would have been had the EPI Health Acquisition occurred at the beginning of the periods presented, nor does it give effect to synergies, cost savings, fair market value adjustments, and other changes expected to result from the EPI Health Acquisition. Accordingly, the pro forma financial results do not purport to be indicative of consolidated results of operations as of the date hereof, for any period ended on the date hereof, or for any other future date or period. The pro forma financial information has been calculated after applying the Company’s accounting policies and includes adjustments for transaction-related costs. Twelve Months Ended December 31, 2022 December 31, 2021 Total revenue $ 27,701 $ 19,047 Net loss and comprehensive loss (32,365) (59,748) Net loss per share, basic and diluted $ (1.47) $ (3.50)

Inventory, net

Inventory, net	12 Months Ended
	Dec. 31, 2022
Inventory Disclosure [Abstract]
Inventory, net	Inventory, net The major components of inventory, net, were as follows: December 31, 2022 Finished goods available for sale $ 2,037 Reserve for obsolescence (841) Inventory, net $ 1,196

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	12 Months Ended
	Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid Expenses and Other Current Assets	Prepaid Expenses and Other Current Assets The following table represents the components of prepaid expenses and other current assets as of: December 31, 2022 December 31, 2021 Inventory and raw material deposits $ 1,280 $ — Prepaid service contracts 121 — Prepaid insurance 1,341 1,697 Prepaid Prescription Drug User Fee Act (PDUFA) fees 1,182 — Product samples 1,362 — Other current assets related to leasing arrangement — 109 Prepaid expenses and other current assets 521 766 Total prepaid expenses and other current assets $ 5,807 $ 2,572

Property and Equipment, Net

Property and Equipment, Net	12 Months Ended
	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Property and Equipment, Net	Property and Equipment, Net Property and equipment consisted of the following: December 31, 2022 2021 Computer equipment $ 58 $ 58 Furniture and fixtures 43 23 Laboratory equipment 6,195 4,134 Office equipment 177 177 Leasehold improvements 10,117 9,391 Property and equipment, gross 16,590 13,783 Less: Accumulated depreciation and amortization (2,708) (1,582) Total property and equipment, net $ 13,882 $ 12,201 Depreciation and amortization expense was $1,178 and $344 for the years ended December 31, 2022 and 2021, respectively. Corporate and Manufacturing Facility For the years ended December 31, 2022 and December 31, 2021, the Company had construction in progress amounts related to leasehold improvements of $210 and $7,485, respectively.

Leases

Leases	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Leases	Leases The Company leases office space and certain equipment under non-cancelable lease agreements. In accordance with ASC 842, Leases , arrangements meeting the definition of a lease are classified as operating or finance leases and are recorded on the balance sheet as both a right-of-use asset and lease liability, calculated by discounting fixed lease payments over the lease term at the rate implicit in the lease, if available, or otherwise at the Company’s incremental borrowing rate. For operating leases, interest on the lease liability and the amortization of the right-of-use asset result in straight-line rent expense over the lease term. Variable lease expenses, if any, are recorded when incurred. In calculating the right-of-use asset and lease liability, the Company elected, and has in practice, historically combined lease and non-lease components. The Company excludes short-term leases having initial terms of 12 months or less from the guidance as an accounting policy election and recognizes rent expense on a straight-line basis over the lease term. Office Lease at Triangle Business Center, Durham, North Carolina On January 18, 2021, the Company entered into a lease with an initial term expiring in 2032, as amended for 19,265 rentable square feet, located in Durham, North Carolina. This lease dated as of January 18, 2021, as amended (the “TBC Lease”), is by and between the Company and Copper II 2020, LLC (the “TBC Landlord”), pursuant to which the Company is leasing space serving as its corporate headquarters and small-scale manufacturing site (the “Premises”) located within the Triangle Business Center. The lease executed on January 18, 2021, as amended, was further amended on November 23, 2021 to expand the Premises by approximately 3,642 additional rentable square feet from 15,623 rentable square feet. The Premises serves as the Company’s corporate headquarters and supports various cGMP activities, including research and development and small-scale manufacturing capabilities. These capabilities include the infrastructure necessary to support small-scale drug substance manufacturing and the ability to act as a primary, or secondary backup, component of a potential future commercial supply chain. The TBC Lease commenced on January 18, 2021 (the “Lease Commencement Date”). Rent under the TBC Lease commenced in October 2021 (the “Rent Commencement Date”). The term of the TBC Lease expires on the last day of the one hundred twenty-third calendar month after the Rent Commencement Date. The TBC Lease provides the Company with one option to extend the term of the TBC Lease for a period of five years, which would commence upon the expiration of the original term of the TBC Lease, with base rent of a market rate determined according to the TBC Lease; however, the renewal period was not included in the calculation of the lease obligation as the Company determined it was not reasonably certain to exercise the renewal option. The monthly base rent for the Premises is approximately $40 for months 1-10 and approximately $49 for months 11-12, per the second amendment to the primary lease. Beginning with month 13 and annually thereafter, the monthly base rent will be increased by 3%. Subject to certain terms, the TBC Lease provided that base rent was abated for three months following the Rent Commencement Date. The Company is obligated to pay its pro-rata portion of taxes and operating expenses for the building as well as maintenance and insurance for the Premises, all as provided for in the TBC Lease. The TBC Landlord has agreed to provide the Company with a tenant improvement allowance in an amount not to exceed $130 per rentable square foot, totaling approximately $2,450, per the primary lease, inclusive of the first amendment, and $115 per rentable square foot, totaling $419, per the second amendment to the TBC Lease. The tenant improvement allowance was to be paid over four equal installments corresponding with work performed by the Company. Pursuant to the terms of the TBC Lease, the Company delivered to the TBC Landlord a letter of credit in the amount of $583, as amended, as collateral for the full performance by the Company of all of its obligations under the TBC Lease and for all losses and damages the TBC Landlord may suffer as a result of any default by the Company under the TBC Lease. Cash funds maintained in a separate deposit account at the Company’s financial institution to fully secure the letter of credit are presented as restricted cash in non-current assets on the accompanying consolidated balance sheets. Office Lease at Meeting Street, Charleston, South Carolina On March 3, 2022 EPI Health entered into a sublease agreement with EPG (the “Meeting Street Lease”) for office space at 174 Meeting Street in Charleston, South Carolina for approximately 6,000 rentable square feet. The term of the Meeting Street Lease was initially through September 30, 2024, and EPI Health had the right to terminate the Meeting Street Lease with prior notice. On August 31, 2022, EPI Health notified EPG of its termination of the sublease effective February 28, 2023. The monthly base rent for the Meeting Street Lease is $20 for months 1-12, inclusive of taxes and operating expenses such as maintenance and insurance. TBC Lease and Meeting Street Lease Rent expense, including both short-term and variable lease components associated with the TBC Lease and the Meeting Street Lease, as applicable, was $562 for the year ended December 31, 2022. Rent expense was $467 for the year ended December 31, 2021. The remaining lease term for the TBC Lease and the Meeting Street Lease are 9.17 years and 0.17 years, respectively, as of December 31, 2022. The weighted average discount rate for both leases was 8.35% as of December 31, 2022. Rent expense for leases less than one year in duration was $245 and $539 for the years ended December 31, 2022 and December 31, 2021, respectively. Future minimum lease payments, net of amounts expected to be received related to the tenant improvement allowance, as of December 31, 2022 were as follows: Maturity of Lease Liabilities Operating Leases 2023 $ 229 2024 626 2025 645 2026 665 2027 685 2028 and beyond 3,016 Total future undiscounted lease payments $ 5,866 Less: imputed interest (1,936) Total reported lease liability $ 3,930 The table above reflects payments for an operating lease with a remaining term of one year or more, but does not include obligations for short-term leases. In addition, the net cash flow related to the 2023 fiscal year presented above includes the expected timing of the remaining tenant improvement allowance being funded by the TBC Landlord, which the Company reasonably expects to receive within the next twelve months, offset by expected lease payments for the corresponding period. During the year ended December 31, 2022 and December 31, 2021 the Company received $508 and $1,523, respectively, related to payments as part of the total TBC Landlord funded tenant improvement allowance. Components of lease assets and liabilities as of December 31, 2022 were as follows: As of December 31, 2022 Assets Right-of-use lease assets $ 1,756 Total lease assets $ 1,756 Liabilities Operating lease liabilities, current portion $ 191 Operating lease liabilities, net of current portion 3,739 Total lease liabilities $ 3,930

Goodwill and Intangible Assets,

Goodwill and Intangible Assets, net	12 Months Ended
	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets, net	Goodwill and Intangible Assets, net Goodwill The Company’s goodwill balance as of December 31, 2022 was $4,056. The entire goodwill balance relates to the EPI Health Acquisition during the year ended December 31, 2022. None of the goodwill is expected to be deductible for income tax purposes. All of the goodwill has been allocated to the Research and Development Operations reporting unit and operating segment, which has a negative carrying amount. Intangible Assets The following table presents both definite and indefinite lived intangible assets as of December 31, 2022, comprised primarily of acquired product rights related to the EPI Health Acquisition: Initial Carrying Value Accumulated Amortization Net Book Value Remaining Useful Life (Years) Rhofade $ 15,500 $ 835 $ 14,665 14.25 Wynzora 2,000 108 1,892 14.25 Minolira 8,500 458 8,042 14.25 Cloderm 1,000 54 946 14.25 Sitavig 2,000 145 1,855 13.94 Website domain 75 — 75 Total intangible assets $ 29,075 $ 1,600 $ 27,475 The Company amortizes the product rights related to its commercial product portfolio over their estimated useful lives. As part of the EPI Health Acquisition, product rights were recorded at fair value as part of the Company’s ASC 805 business combination accounting. See Note 2—“Acquisition of EPI Health” for additional detail. The following table represents annual amortization of definite lived intangible assets for the next five fiscal years, and thereafter: 2023 $ 1,935 2024 1,941 2025 1,935 2026 1,935 2027 1,935 Thereafter 17,719 Total amortization $ 27,400

Accounts Payable and Accrued Ex

Accounts Payable and Accrued Expenses	12 Months Ended
	Dec. 31, 2022
Payables and Accruals [Abstract]
Accounts Payable and Accrued Expenses	Accounts Payable and Accrued Expenses The following table represents the components of accounts payable as of December 31, 2022 and December 31, 2021: December 31, 2022 December 31, 2021 Rebates, coupons, discounts and chargebacks $ 9,509 $ — Finished goods inventory 721 — Construction in process — 451 Outside research and development services 721 140 Facility service providers — 87 Legal and professional fees 530 193 SB206 regulatory activities 422 417 SB206 pre-commercial and marketing 153 682 Other payables 1,633 200 Total accounts payable $ 13,689 $ 2,170 The following table represents the components of accrued expenses as of December 31, 2022 and December 31, 2021: December 31, 2022 December 31, 2021 Accrued rebates, coupons, discounts and chargebacks $ 8,671 $ — Accrued returns 3,011 — Accrued compensation 937 1,543 Accrued outside research and development services 410 194 Accrued legal and professional fees 542 427 Accrued royalties 675 — Accrued milestones 1,250 — Accrued construction in process — 1,020 Accrued insurance 747 — Accrued SB206 regulatory activities 165 — Accrued Wynzora payments due to collaborator 532 — Accrued MC2 collaboration deposit 1,149 — Accrued other expenses 535 1,804 Total accrued expenses $ 18,624 $ 4,988

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Commitments Factoring Arrangement On December 1, 2022, EPI Health entered into an accounts receivable-backed factoring agreement (the “Factoring Agreement”) with CSNK Working Capital Finance Corp. d/b/a Bay View Funding (“Bay View”), a subsidiary of Heritage Bank of Commerce. Pursuant to the Factoring Agreement, EPI Health may sell certain trade accounts receivable to Bay View from time to time, with recourse. The factoring facility provides for EPI Health to have access to the lesser of (i) $15,000 (the “Maximum Credit”) or (ii) the sum of all undisputed receivables purchased by Bay View multiplied by 70% (which percentages may be adjusted by Bay View in its sole discretion), less any reserved funds. Upon receipt of any advance, EPI Health will have sold and assigned all of its rights in such receivables and all proceeds thereof. In connection with the factoring facility, EPI Health will be charged a finance fee, defined as a floating rate per annum on outstanding advances under the Factoring Agreement, equal to the prime rate plus 2.00%, due on the first day of each month. EPI Health will also be charged a factoring fee of 0.35% of the gross face value of any trade accounts receivable for each 30 day period after the trade accounts receivable is purchased. Bay View has the right to demand repayment of any purchased receivables that remain unpaid for 90 days after purchase (or 100 days in the case of certain wholesale customers) or with respect to which any account debtor asserts a dispute. The factoring facility is for an initial term of twelve months and will renew on a year to year basis thereafter, unless terminated in accordance with the Factoring Agreement. EPI Health may terminate the facility at any time upon 60 days prior written notice and payment to Bay View of an early termination fee equal to 0.25% of the Maximum Credit multiplied by the number of months remaining in the term. All collections of purchased receivables will go directly to a controlled lockbox and Bay View shall apply these collections to EPI Health’s obligations. At the end of each reconciliation period, the collection amount, net of the advanced amount, factoring and financing fees, and other payment obligations, as applicable, will be refunded to EPI Health. Bay View has a full recourse right as stated above. If Bay View cannot collect the factored receivables from debtors, EPI Health must refund the advanced amount for any uncollected receivables from debtors. The Company has evaluated the Factoring Agreement under guidance in ASC 860, Transfers and Servicing (“ASC 860”). Based upon that evaluation, the Company has concluded that this agreement does not meet the criteria for sales accounting, and therefore is accounting for the Factoring Agreement as a secured borrowing. Accordingly, the Company records the advanced amount outstanding as a short-term liability and amounts in the controlled lockbox, which represent funds in transit to be applied against outstanding borrowings, as current restricted cash on its consolidated balance sheet. As of December 31, 2022, $10,302 of advances were outstanding under the Factoring Agreement. During the year ended December 31, 2022, the Company incurred total costs of factoring, including the factoring fees, financing fees and administrative fees of $185, with $73 included as interest expense and the reminder included in selling, general and administrative expense in the consolidated statement of operations. Contingencies From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of business activities. The Company accrues a liability for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. See Legal Proceedings below for further discussion of pending legal claims. The Company has entered into, and expects to continue to enter into, contracts in the normal course of business with various third parties who support its clinical trials, preclinical research studies and other services related to its development activities, including drug substance and drug product manufacturing technical transfer capabilities, production and supportive costs. The scope of the services under these agreements can generally be modified at any time, and these agreements can generally be terminated by either party after a period of notice and receipt of written notice. In connection with entering into the Equity Distribution Agreement with Oppenheimer discussed in Note 11—“Stockholders' Equity”, the Company terminated its common stock purchase agreement with Aspire Capital on March 10, 2022. Other than such termination and the repayment and termination of the Seller Note discussed in Note 10—“Notes Payable”, there have been no material contract terminations as of December 31, 2022. See Note 11—“Stockholders' Equity” regarding outstanding common stock warrants. See Note 12—“License and Collaboration Agreements”, Note 13—“Net Product Revenues” and Note 14—“License and Collaboration Revenues” regarding the Company’s license agreements. See Note 15—“Research and Development Agreements” regarding the Purchase Agreement with Reedy Creek and the Funding Agreement with Ligand. Legal Proceedings The Company is not currently a party to any material legal proceedings and is not aware of any claims or actions pending against the Company that the Company believes could have a material adverse effect on the Company’s business, operating results, cash flows or financial statements. In the future, the Company might from time to time become involved in litigation relating to claims arising from its ordinary course of business. Compensatory Obligations The Company enters into employment agreements with certain officers and employees. These agreements are in the normal course of business and contain certain customary Company controlled termination provisions which, if triggered, could result in future severance payments. See Note 16—“Stock Based Compensation” regarding Stock Appreciation Rights, Restricted Stock Units and Stock Options. Contingent Payment Obligations Related to the Purchase of EPI Health See Note 2—“Acquisition of EPI Health” for certain contingent payments related to consideration due to EPG upon achievement of certain milestones by EPI Health. Contingent Payment Obligations from Historical Acquisitions by EPI Health EPI Health has in the past acquired certain rights to pharmaceutical products and such arrangements have typically included requirements that EPI Health make certain contingent payments to the applicable seller as discussed below. Rhofade. On October 10, 2019, EPI Health entered into an agreement whereby it acquired certain assets related to Rhofade (the “Rhofade Acquisition Agreement”). In connection with the Rhofade Acquisition Agreement, EPI Health is required to make the following milestone payments to the seller upon reaching the following net sales thresholds during any calendar year following the closing date, as defined in the Rhofade Acquisition Agreement: Calendar Year Net Sales Threshold Milestone Payment $ 50,000 $ 5,000 $ 75,000 $ 5,000 $ 100,000 $ 10,000 Under the terms of the Rhofade Acquisition Agreement, EPI Health assumed certain liabilities of the prior licensees of the product Rhofade. In particular, EPI Health is required to pay certain earnout payments pursuant to historic acquisition agreements for Rhofade upon the achievement of net sales thresholds higher than those set forth above. However, the Company has not recognized a liability for such Rhofade milestones based on current and historical sales figures and management’s estimates of future sales. Cloderm. On September 28, 2018, EPI Health entered into an agreement pursuant to which it acquired assets related to the product Cloderm. EPI Health is required to pay a low double-digit royalty once cumulative net sales of Cloderm reach $20,833, until $6,500 of royalty payments have been made by EPI Health. Minolira. On August 20, 2018, EPI Health entered into an agreement pursuant to which it acquired assets related to the product Minolira. In connection with the agreement, EPI Health is required to make the following milestone payments to the seller upon reaching cumulative net sales thresholds as defined in the acquisition agreement: Cumulative Net Sales Threshold Milestone Payment $ 10,000 $ 1,000 $ 20,000 $ 1,000 Each additional $ 20,000 $ 1,500

Notes Payable

Notes Payable	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
Notes Payable	Notes Payable Seller Note with Evening Post Group On March 11, 2022, at the closing of the EPI Health Acquisition, the Company entered into a secured promissory note and security agreement with EPG. The Company entered into the Seller Note with EPG to finance a portion of the Closing Purchase Price related to the EPI Health Acquisition. The Seller Note had a principal amount of $16,500 with interest-only payments due over the course of the 24-month term of the Seller Note. The Seller Note bore interest at the rate of 5.0% per annum for the first 90 days after the closing date, 15.0% per annum for the following 12 months, and 18.0% per annum for the remainder of the term. The non-amortizing principal of the Seller Note was to be paid in full at maturity and was secured by the membership interests of EPI Health held by the Company. EPI Health was a guarantor of the Seller Note. There was no penalty for repaying the Seller Note prior to the end of the term. Based on the escalating interest rate over the term of the Seller Note, the Company recorded interest expense using the effective interest method. During the year ended December 31, 2022 , the Company recorded interest expense of $1,375, related to the Seller Note, of which $635 related to accretion of the debt discount which was recorded related to the Seller Note’s fair value estimate as of the date of the EPI Health Acquisition. On July 13, 2022, the Company reached agreement with EPG regarding payment and termination of the Seller Note. Upon the Company’s payment to EPG of $10,000, or an approximate 39% discount on the original principal amount of the Seller Note, the Seller Note and all related security agreements were terminated. Pursuant to the terms of the Seller Note, there was no penalty for repaying the Seller Note prior to the end of the term. In connection with the repayment of the Seller Note, the guaranty agreement between EPG and EPI Health, dated March 11, 2022 , was terminated as of July 13, 2022. Accordingly, the liens on the membership interests and assets of EPI Health were also terminated such that no obligations with respect to the Seller Note and related securities agreement or the underlying loan remain outstanding. Upon repayment and termination of the Seller Note, the Company recognized a $4,340 gain on debt extinguishment within the consolidated statements of operations and comprehensive loss. This gain represents (i) the $3,939 difference between the Seller Note’s $10,000 termination and settlement value and its $13,939 carrying value at the date of termination; and (ii) a $401 write-off of accrued interest outstanding upon termination of the Seller Note. See Note 2—“Acquisition of EPI Health” for additional detail regarding the Seller Note as it relates to the EPI Health purchase consideration and its estimated fair value and measurement period adjustments. Paycheck Protection Program On April 22, 2020, the Company entered into a promissory note, which was subsequently amended (the “Note”), evidencing an unsecured loan in the amount of approximately $956 made to the Company (the “Loan”) under the Paycheck Protection Program (the “PPP”). The PPP was established under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and is administered by the United States Small Business Administration (the “SBA”). The Loan was made through PNC Bank, National Association. Subject to the terms of the Note, the Loan’s interest rate was fixed at one percent (1%) per annum. Under the terms of the CARES Act, PPP loan recipients could apply for and be granted forgiveness for all or a portion of loans granted under the PPP, with such forgiveness to be determined, subject to limitations, based on the use of loan proceeds for payment of permitted and program-eligible expenses. Interest payable on the Note could be forgiven only if the SBA agrees to pay such interest on the forgiven principal amount of the Note. The Company previously applied for and during the second quarter of 2021 received notification of forgiveness of the entire loan balance, including any accrued interest. Based upon the Notice of Paycheck Protection Program Forgiveness Payment received by the Company from the SBA, as of June 14, 2021, the forgiveness of the principal balance of $956 is presented within the consolidated statements of operations and comprehensive loss as a gain on debt extinguishment.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2022
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity Capital Structure In conjunction with the completion of the Company’s initial public offering in September 2016, the Company amended its restated certificate of incorporation and amended and restated its bylaws. The amendment provided for 210,000,000 authorized shares of capital stock, of which 200,000,000 shares are designated as $0.0001 par value common stock and 10,000,000 shares are designated as $0.0001 par value preferred stock. At the Company’s Annual Meeting of Stockholders held on July 28, 2020 (the “2020 Annual Meeting”), the Company’s stockholders approved an amendment to the Company’s restated certificate of incorporation of the Company to effect a reverse stock split of the Company’s common stock at a ratio of not less than one-for-two and not more than one-for-fifteen, with such ratio and the implementation and timing of such reverse stock split to be determined by the Company’s board of directors in its sole discretion. On May 18, 2021, the Company’s board of directors approved a one-for-ten reverse stock split of the Company’s issued and outstanding common stock. On May 24, 2021, the Company filed with the Secretary of State of the State of Delaware a Certificate of Amendment to the Restated Certification of Incorporation of the Company in order to effect the Reverse Stock Split. The Reverse Stock Split became effective as of 5:00 p.m. Eastern Time on May 25, 2021, and the Company’s common stock began trading on a split-adjusted basis on May 26, 2021. As a result of the Reverse Stock Split, on the effective date thereof, each outstanding ten (10) shares of common stock combined into and became one (1) share of common stock, and the number of the Company’s issued and outstanding shares of common stock was reduced to 15,170,678. The accompanying consolidated financial statements and related notes give retroactive effect to the Reverse Stock Split. March 2022 Equity Distribution Agreement – At-the-Market Facility On March 11, 2022, the Company entered into an Equity Distribution Agreement (the “Equity Distribution Agreement”) with Oppenheimer & Co. Inc. (“Oppenheimer”). Pursuant to the Equity Distribution Agreement, the Company may from time to time issue and sell to or through Oppenheimer, acting as the Company’s sales agent, shares of the Company’s common stock, par value $0.0001 per share having an aggregate offering price of up to $50,000. Sales of the shares, if any, will be made by any method permitted by law deemed to be an “at the market offering” as defined in Rule 415(a)(4) promulgated under the Securities Act of 1933 (“Securities Act”), or, if expressly authorized by the Company, in privately negotiated transactions. As sales agent, Oppenheimer will offer the shares at prevailing market prices and will use its commercially reasonable efforts, consistent with its sales and trading practices, to sell on the Company’s behalf all of the shares requested to be sold by the Company, subject to the terms and conditions of the Equity Distribution Agreement. The Company or Oppenheimer may suspend the offering of the shares upon proper notice to the other party. The offering of the shares pursuant to the Equity Distribution Agreement will terminate upon the sale of shares in an aggregate offering amount equal to $50,000, or sooner if either the Company or Oppenheimer terminates the Equity Distribution Agreement as permitted by its terms. The Company will pay Oppenheimer a commission equal to 3.0% of the aggregate gross proceeds from the sale of the shares sold pursuant to the Equity Distribution Agreement and will reimburse Oppenheimer for certain expenses incurred in connection with its services under the Equity Distribution Agreement. The foregoing rate of compensation will not apply when Oppenheimer acts as principal, in which case the Company may sell the shares to Oppenheimer as principal at a price agreed upon among the parties. During the year ended December 31, 2022, the Company sold 645,105 shares of its common stock at an average price of approximately $2.66 per share for total net proceeds of $1,665 under the Equity Distribution Agreement. In relation to the June 2022 Registered Direct Offering (as defined and described below), the Company agreed not to issue any additional securities in any variable rate transaction (as defined in the related securities purchase agreement), including under the Equity Distribution Agreement, until December 13, 2022, unless, on or after September 11, 2022, the VWAP (as defined in the related securities purchase agreement) for the trading day prior to the date of the transaction was greater than 50% above the exercise price for the June 2022 Common Warrants. Equity Offerings and Outstanding Common Stock Warrants The Company has historically entered into equity offerings with underwriters and placement agents. Certain of these offerings, such as the June 2022 Registered Direct Offering, the March 2020 Public Offering, the March 2020 Registered Direct Offering and the January 2018 Offering, included certain common stock warrant and pre-funded warrant issuances. The following table presents the Company’s outstanding warrants to purchase common stock for the periods indicated. December 31, Exercise 2022 2021 Warrants to purchase common stock issued in the January 2018 Offering — 999,850 $ 46.60 Warrants to purchase common stock issued in the June 2022 Registered Direct Offering 5,261,311 — 2.851 Warrants to purchase common stock issued in the March 2020 Public Offering 252,417 252,417 3.00 Underwriter warrants to purchase common stock associated with the March 2020 Public Offering 11,304 11,304 3.75 Placement agent warrants to purchase common stock issued in the March 2020 Registered Direct Offering 10,605 10,605 5.375 5,535,637 1,274,176 The weighted average exercise price per share for warrants outstanding as of December 31, 2022 and December 31, 2021 was $2.86 and $37.24, respectively. For the years ended December 31, 2022 and December 31, 2021, total proceeds from the exercise of common stock warrants was zero and $461, respectively. June 2022 Registered Direct Offering On June 9, 2022, the Company entered into a securities purchase agreement with an institutional investor (the “Purchaser”), pursuant to which the Company agreed to issue and sell to the Purchaser, in a registered direct offering priced at-the-market under Nasdaq rules (the “June 2022 Registered Direct Offering”) (i) 2,080,696 shares (the “June 2022 Shares”) of the Company’s common stock, and accompanying common stock warrants (the “June 2022 Common Warrants”) to purchase an aggregate of 2,080,696 shares of common stock, for a combined price of $2.851 per share and accompanying common warrant, and (ii) pre-funded warrants to purchase 3,180,615 shares of the Company’s common stock (the “June 2022 Pre-funded Warrants”) and accompanying common warrants to purchase 3,180,615 shares of common stock, for a combined price of $2.841 per pre-funded warrant and accompanying common warrant. The June 2022 Registered Direct Offering closed on June 13, 2022. Net proceeds from the offering were approximately $14,020 after deducting fees and commissions and offering expenses of approximately $948. Offering costs were netted against the offering proceeds and recorded to additional paid-in capital. As of December 31, 2022, no June 2022 Pre-funded Warrants and 5,261,311 June 2022 Common Warrants are outstanding. The Company entered into a placement agent agreement (the “Placement Agent Agreement”) dated as of June 9, 2022, engaging Oppenheimer to act as the sole placement agent in connection with the June 2022 Registered Direct Offering. Pursuant to the Placement Agent Agreement, the Company agreed to pay Oppenheimer a placement agent fee in cash equal to 5.0% of the gross proceeds from the sale of the June 2022 Shares, the June 2022 Pre-funded Warrants and the June 2022 Common Warrants, and to reimburse certain expenses of Oppenheimer in connection with the June 2022 Registered Direct Offering. Each June 2022 Pre-funded Warrant had an exercise price of $0.01 per share. The June 2022 Pre-funded Warrants were exercisable immediately upon issuance until all of the June 2022 Pre-funded Warrants were exercised in full. Each June 2022 Common Warrant is immediately exercisable and has an exercise price of $2.851 per share and will expire five years from the date of issuance. The exercise price and the number of shares of common stock purchasable upon the exercise of the June 2022 Pre-funded Warrants and June 2022 Common Warrants are subject to adjustment upon the occurrence of specific events, including stock dividends, stock splits, reclassifications and combinations of the Company’s common stock. Common warrants. The June 2022 Common Warrants include certain provisions that establish warrant holder settlement rights that take effect upon the occurrence of certain fundamental transactions. The June 2022 Common Warrants define a fundamental transaction to generally include any consolidation, merger or other transaction whereby another entity acquires more than 50% of the Company’s outstanding common stock or the sale of all or substantially all of the Company’s assets. The fundamental transaction provision provides the warrant holders with the option to settle any unexercised warrants for cash in the event of certain fundamental transactions that are within the control of the Company. For any fundamental transaction that is not within the control of the Company, including a fundamental transaction not approved by the Company’s board of directors, the warrant holder will only be entitled to receive from the Company or any successor entity the same type or form of consideration (and in the same proportion) that is being offered and paid to the stockholders of the Company in connection with the fundamental transaction, whether that consideration be in the form of cash, stock or any combination thereof. In the event of any fundamental transaction, and regardless of whether it is within the control of the Company, the settlement amount of the June 2022 Common Warrants (whether in cash, stock or a combination thereof) is determined based upon a Black-Scholes value that is calculated using inputs as specified in the June 2022 Common Warrants, including a defined volatility input equal to the greater of the Company’s 100-day historical volatility or 100%. The June 2022 Common Warrants also include a separate provision whereby the exercisability of such warrants may be limited if, upon exercise, the warrant holder or any of its affiliates would beneficially own more than 4.99% (or an amount up to 9.99% if the holder so elects) of the Company’s common stock. The Company assessed the June 2022 Common Warrants for appropriate equity or liability classification pursuant to the Company’s accounting policy described in Note 1—“Organization and Significant Accounting Policies”. During this assessment, the Company determined (i) the June 2022 Common Warrants did not constitute a liability under ASC 480; (ii) the June 2022 Common Warrants met the definition of a derivative under ASC 815; (iii) the warrant holder’s option to receive a net cash settlement payment under the June 2022 Common Warrants only becomes exercisable upon the occurrence of certain specified fundamental transactions that are within the control of the Company; (iv) upon the occurrence of a fundamental transaction that is not within the control of the Company, the warrant holder would receive the same type or form of consideration offered and paid to common stockholders; (v) the June 2022 Common Warrants are indexed to the Company’s common stock; and (vi) the June 2022 Common Warrants met all other conditions for equity classification under ASC 480 and ASC 815. Based on the results of this assessment, the Company concluded that the June 2022 Common Warrants are freestanding equity-linked derivative instruments that met the criteria for equity classification. Accordingly, the June 2022 Common Warrants were classified as equity and were accounted for as a component of additional paid-in capital at the time of issuance. Pre-funded warrants. The June 2022 Pre-funded Warrants’ fundamental transaction provision did not provide the warrant holders with the option to settle any unexercised warrants for cash in the event of any fundamental transactions; rather, in all fundamental transaction scenarios, the warrant holder was only entitled to receive from the Company or any successor entity the same type or form of consideration (and in the same proportion) that was being offered and paid to the stockholders of the Company in connection with the fundamental transaction, whether that consideration be in the form of cash, stock or any combination thereof. The June 2022 Pre-funded Warrants also included a separate provision whereby the exercisability of the warrants could be limited if, upon exercise, the warrant holder or any of its affiliates would beneficially own more than 4.99% (or an amount up to 9.99% if the holder so elects) of the Company’s common stock. The Company assessed the June 2022 Pre-funded Warrants for appropriate equity or liability classification pursuant to the Company’s accounting policy described in Note 1—“Organization and Significant Accounting Policies”. During this assessment, the Company determined the June 2022 Pre-funded Warrants were freestanding instruments that did not meet the definition of a liability pursuant to ASC 480 and did not meet the definition of a derivative pursuant to ASC 815. The June 2022 Pre-funded Warrants were indexed to the Company’s common stock and met all other conditions for equity classification under ASC 480 and ASC 815. Based on the results of this assessment, the Company concluded that the June 2022 Pre-funded Warrants were freestanding equity-linked financial instruments that met the criteria for equity classification under ASC 480 and ASC 815. Accordingly, the June 2022 Pre-funded Warrants were classified as equity and were accounted for as a component of additional paid-in capital at the time of issuance. June 2021 Public Offering On June 17, 2021, the Company entered into an underwriting agreement with Cantor Fitzgerald & Co., as underwriter, pursuant to which the Company agreed to issue and sell an aggregate of 3,636,364 shares of the Company’s common stock at a price to the public of $11.00 per share, less underwriting discounts and commissions. The Company also granted the underwriter a 30-day option (the “Underwriter Option”) to purchase up to an additional 545,454 shares of common stock at the public offering price, less underwriting discounts and commissions. The June 2021 Public Offering closed on June 21, 2021, and the Underwriter Option expired unexercised in July 2021. Net proceeds from the June 2021 Public Offering were approximately $37,236 after deducting underwriting discounts and commissions and offering expenses of approximately $2,764. Offering costs were netted against the offering proceeds and recorded to additional paid-in capital. The June 2021 Public Offering was made pursuant to the Company’s effective shelf registration statement on Form S-3 (No. 333-236583), filed with the Securities and Exchange Commission (“SEC”) and declared effective by the SEC on April 10, 2020, including a prospectus contained therein dated as of April 10, 2020, as supplemented by a prospectus supplement, dated June 17, 2021. March 2020 Public Offering On February 27, 2020, the Company entered into an underwriting agreement with H.C. Wainwright, as underwriter, relating to the offering, issuance and sale of common stock, pre-funded warrants, and accompanying common warrants (the “CMPO Common Warrants”), in a public offering (the “March 2020 Public Offering”). The number of CMPO Common Warrants, excluding pre-funded warrants, issued in connection with the March 2020 Public Offering totaled 2,108,333. At closing, the Company also issued to designees of H.C. Wainwright, as underwriter, warrants to purchase an aggregate of up to 59,496 shares of common stock (the “CMPO UW Warrants”) representing 3.0% of the aggregate number of shares of common stock sold and shares of common stock underlying the pre-funded warrants sold in the March 2020 Public Offering. The CMPO Common Warrants have an exercise price of $3.00 per share and expire five years from the date of issuance. During the year ended December 31, 2022, there were no exercises of CMPO Common Warrants. During the year ended December 31, 2021, warrant holders exercised 10,000 of the CMPO Common Warrants for total proceeds of approximately $30. There were 252,417 of the CMPO Common Warrants outstanding as of December 31, 2022. The CMPO UW Warrants have an exercise price of $3.75 per share and expire five years from the date of issuance. During the year ended December 31, 2022, there were no exercises of CMPO UW Warrants. During the year ended December 31, 2021, warrant holders exercised 48,192 of the CMPO UW Warrants for total proceeds of approximately $181. There were 11,304 of the CMPO UW Warrants outstanding as of December 31, 2022. March 2020 Registered Direct Offering On March 24, 2020, the Company entered into a securities purchase agreement with several institutional and accredited investors, pursuant to which the Company agreed to sell and issue shares of the Company’s common stock and pre-funded warrants in a registered direct offering priced at the market (the “March 2020 Registered Direct Offering”). The March 2020 Registered Direct Offering closed on March 26, 2020. At closing, the Company issued to designees of H.C. Wainwright, as placement agent, warrants to purchase an aggregate of up to 55,814 shares of common stock (the “RDO PA Warrants”) representing 3.0% of the aggregate number of shares of common stock sold and shares of common stock underlying pre-funded warrants sold in the March 2020 Registered Direct Offering. The RDO PA Warrants have an exercise price of $5.375 per share and expire five years from the date of issuance. During the year ended December 31, 2022, there were no exercises of RDO PA Warrants. During the year ended December 31, 2021, warrant holders exercised 45,209 of the RDO PA Warrants for total proceeds of approximately $243. There were 10,605 of the RDO PA Warrants outstanding as of December 31, 2022. January 2018 Offering There were no exercises of warrants issued in the Company’s public offering that closed on January 9, 2018 (the “January 2018 Offering”) during the year ended December 31, 2022. During the year ended December 31, 2021, warrant holders exercised 150 of the warrants issued in the January 2018 Offering. On January 9, 2022, the remaining 999,850 outstanding warrants related to the January 2018 Offering expired without being exercised. Aspire Common Stock Purchase Agreement On July 21, 2020, the Company entered into the Common Stock Purchase Agreement (the “July 2020 CSPA”) with Aspire Capital Fund, LLC (“Aspire”), which provided that, upon the terms and subject to the conditions and limitations set forth therein, Aspire was committed to purchase up to an aggregate of $30,000 of shares of the Company’s common stock at the Company’s request from time to time during the 30-month term of the July 2020 Aspire CSPA. Upon execution of the July 2020 Aspire CSPA, the Company agreed to sell to Aspire 555,555 shares of its common stock at $9.00 per share for proceeds of $5,000. In consideration for entering into the July 2020 Aspire CSPA, upon satisfaction of certain conditions under the July 2020 Aspire CSPA, the Company issued to Aspire 100,000 shares of the Company’s common stock (the “July 2020 Commitment Shares”). The July 2020 Commitment Shares, valued at approximately $847, were recorded in July 2020 as non-cash costs of equity financing and included within general and administrative expenses. The July 2020 Aspire CSPA replaced the June 2020 Aspire Common Stock Purchase Agreement, which was terminated under the terms of the July 2020 Aspire CSPA. On March 9, 2022, the Company provided notice to Aspire electing to terminate the July 2020 CSPA effective as of March 10, 2022. By its terms, the July 2020 CSPA could be terminated by the Company at any time, at its discretion, without any penalty or additional cost to the Company. During the year ended December 31, 2022, there were no sales of common stock under the July 2020 CSPA. During the year ended December 31, 2021, the Company sold 493,163 shares of its common stock at an average price of $1.28 for total proceeds of $6,334. Common Stock The Company’s common stock has a par value of $0.0001 per share and consists of 200,000,000 authorized shares as of December 31, 2022 and December 31, 2021. There were 24,722,308 and 18,815,892 shares of common stock outstanding as of December 31, 2022 and December 31, 2021, respectively. The Company had reserved shares of common stock for future issuance as follows: December 31, 2022 2021 Outstanding warrants to purchase common stock (Note 11) 5,535,637 1,274,176 Outstanding stock options (Note 16) 1,032,570 518,553 Nonvested restricted stock units (Note 16) 457,406 — Outstanding stock appreciation rights (Note 16) 60,000 60,000 For possible future issuance under the 2016 Stock Plan (Note 16) 241,801 1,213,224 7,327,414 3,065,953 Related Party Stock Repurchase In April 2016, the Company repurchased 950 shares of its common stock for an aggregate price of $155 from an executive of the Company who was also a member of the Company’s board of directors at that time. The repurchase of these shares is recorded as treasury stock on the accompanying consolidated balance sheets as of December 31, 2022 and December 31, 2021. Preferred Stock The Company’s restated certificate of incorporation provides the Company’s board of directors with the authority to issue $0.0001 par value preferred stock from time to time in one or more series by adopting a resolution and filing a certificate of designations. Voting powers, designations, preferences, dividend rights, conversion rights and liquidation preferences shall be stated and expressed in such resolutions. There were 10,000,000 shares designated as preferred stock and no shares outstanding as of December 31, 2022 and December 31, 2021.

Licensing and Collaboration Arr

Licensing and Collaboration Arrangements	12 Months Ended
	Dec. 31, 2022
Collaboration Arrangements [Abstract]
License and Collaboration Agreements	License and Collaboration Agreements Wynzora Agreement Effective as of January 1, 2022, EPI Health entered into an amended and restated promotion and collaboration agreement with MC2 Therapeutics Limited (“MC2”), relating to the commercialization of Wynzora for treatment of plaque psoriasis in adults in the United States (the “MC2 Agreement”). Pursuant to the MC2 Agreement, which sets forth the collaborative efforts between EPI Health and MC2 to commercialize and promote Wynzora with MC2 in the United States, MC2 granted EPI Health an exclusive right and license under MC2’s intellectual property rights to sell, or detail (as defined in the MC2 Agreement), and engage in certain commercialization activities with respect to Wynzora in the United States. In exchange for the provision of promotional and commercialization activities, under the terms of the MC2 Agreement, EPI Health is entitled to receive: • Reimbursement for all incremental costs incurred by the Company for the promotion and commercialization of Wynzora, including the incremental portion of the Company’s personnel and commercial operating costs. The supply price of Wynzora product inventory is also considered to be an incremental cost that is reimbursed by MC2. • A commercialization fee equivalent to a percentage of net sales ranging from the mid-teens for net sales less than or equal to $65,000 to the upper single digits for annual net sales greater than $105,000. EPI Health collects this commercialization fee by retaining its portion of the Wynzora product net sales it collects from its customers, with the remainder of the net sales being remitted by EPI Health to MC2 periodically in the form of a royalty payment, pursuant to the MC2 Agreement. • A contingent incentive fee equal to 5% of the first $30,000 in net sales of Wynzora sold in the United States by EPI Health in each of the 2022 and 2023 calendar years; provided that such incentive fee shall not exceed $1,500 each year and such incentive fee shall not be credited to EPI Health until the royalty payments paid to MC2 surpass the amount of certain commercialization payments made previously by MC2. The term of the MC2 Agreement runs until the seventh anniversary of the first commercial sale of Wynzora (as defined in the MC2 Agreement) or June 30, 2028, whichever is earlier. Either party may terminate the MC2 Agreement for the other party’s material uncured breach or the bankruptcy or insolvency of the other party. MC2 may terminate the MC2 Agreement under certain scenarios, including for convenience with twelve months’ advance notice to EPI Health, provided that the termination is not effective unless MC2 pays any unpaid historical liabilities related to commercialization of Wynzora owed by MC2. In the case of such termination, MC2 is also required to make an additional sunset payment to EPI Health, paid in installments over the 24 month period following termination. EPI Health may terminate the MC2 Agreement for convenience with twelve months’ advance notice to MC2 provided that the termination is not effective unless the Company provides MC2 with a guarantee of the payment of any outstanding royalty payments, to the extent such royalty payments owed by EPI Health exceed any unpaid historical liabilities related to commercialization of Wynzora owed by MC2. Rhofade Agreements In connection with the Rhofade Acquisition Agreement that is described in Note 9—“Commitments and Contingencies”, EPI Health acquired rights to that certain Assignment and License Agreement, whereby EPI Health licenses certain intellectual property from Aspect Pharmaceuticals, LLC (“Aspect” and such agreement, the “Aspect Agreement”). Under the terms of the Aspect Agreement, EPI Health, as successor-in-interest, has exclusive rights to, and is required to use commercially reasonable efforts to, commercialize the Rhofade product. EPI Health also has a duty to certain other parties to use commercially reasonable efforts to commercialize the Rhofade product based on historical acquisition agreements for Rhofade that were assumed by EPI Health. The Aspect Agreement expires upon the last-to-expire of patent claims made under the assigned and licensed patents under the Aspect Agreement. Aspect may terminate the agreement upon a material breach by EPI Health after providing an opportunity to cure. Upon such termination by Aspect, EPI Health will cease all development and commercialization of Rhofade and EPI Health will assign and convey to Aspect its entire right, title and interest in and to the assigned intellectual property transferred under the Aspect Agreement. Additionally, under the Aspect Agreement, the Rhofade Acquisition Agreement and the other historical acquisitions related to Rhofade, EPI Health is also required to pay a combined royalty on net sales of Rhofade and related products initially in the low double digits, which rate may increase based on the thresholds of net sales achieved by EPI Health. EPI Health is also required to pay 25% of any upfront, license, milestone or other related payments received by EPI Health related to any sublicenses of Rhofade and related products. In connection with two abbreviated new drug application (“ANDA”) settlement agreements that EPI Health entered into in connection with Rhofade in 2021, EPI Health granted two ANDA filers a license to launch their own generic product for the treatment of erythema in rosacea. The actual timing of the launch of such generic products is uncertain because the launch dates of such products under the settlement agreements are subject to acceleration under certain circumstances. In the absence of any circumstances triggering acceleration, the earliest launch of such a generic product would be in the third quarter of 2026. Minolira Agreements In connection with the Minolira acquisition that is described in Note 9—“Commitments and Contingencies”, EPI Health assumed the royalty obligation related to an ANDA settlement in connection with Minolira. Accordingly, EPI Health is required to pay a royalty to an ANDA filer in the low double digits of any generic form of Minolira that is the pharmaceutical equivalent of the 105 mg or 135 mg strength Minolira product. Sitavig Agreements On February 21, 2020, EPI Health entered into an agreement with Vectans Pharma (“Vectans”) in which the parties terminated an existing license agreement dated March 17, 2014 which granted EPI Health the exclusive right to develop and commercialize a prescription Sitavig product in the United States and Canada, and instead provided that EPI Health would purchase outright certain intellectual property (and license other intellectual property) related to the prescription Sitavig Rx product in the United States and Canada (the “Vectans Agreement”). At the time it entered into the Vectans Agreement, EPI Health also entered into an OTC Switch License Agreement (the “OTC License Agreement”) with Bayer Healthcare LLC (“Bayer”). Under the OTC License Agreement, EPI Health granted to Bayer an exclusive and sublicensable license to develop and commercialize an OTC product in the United States and Canada. Under the OTC License Agreement, Bayer has agreed to pay EPI Health various regulatory milestone payments upon the achievement of such regulatory milestones equaling a maximum aggregate amount of $9,500, along with various commercial milestone payments upon the achievement of such commercial milestones equaling a maximum aggregate amount of $20,000. Under the Vectans Agreement, EPI Health is required to pay Vectans various milestone and royalty payments in amounts ranging from 32% ‐ 50% of the amounts paid by Bayer to EPI Health pursuant to the OTC License Agreement, and the Company will also be required to pay a portion of such milestone payments to EPG under the EPI Health Purchase Agreement. Bayer has also agreed to pay to EPI Health a tiered royalty ranging from a mid-single digit to a low-double digit percentage of net sales of licensed products in the licensed territory, subject to a reduction in the royalty payments in certain circumstances. Bayer is responsible for funding the development and commercial costs for the OTC product in the United States and Canada. The Company is obligated to perform certain oversight, review and supporting activities for Bayer, including (i) maintaining existing EPI Health patents related to the Sitavig product, and (ii) participating in a joint committee that oversees, reviews and approves development and commercialization activities under the OTC License Agreement. The OTC License Agreement expires on the tenth anniversary of the first commercial sale of an OTC product on a country-by-country basis. The OTC License Agreement may be terminated by (i) Bayer without cause upon nine months’ advance written notice to EPI Health, (ii) either party in the event of the other party’s uncured material breach upon 60 days’ advance written notice, (iii) either party, upon three months’ notice, in the event Bayer provides EPI Health with notice that Bayer has elected to permanently discontinue development of the OTC product in the United States and Canada, and (iv) either party in the event of the other party’s dissolution, liquidation, bankruptcy or insolvency. On the tenth anniversary of the first commercial sale of the OTC product on a country-by-country basis, assuming Bayer is not in breach and the OTC License Agreement has not been terminated, Bayer will have an irrevocable, royalty-free license to commercialize the OTC product without any further obligations to EPI Health. Nuvail Agreements On November 7, 2021, a predecessor of EPI Health entered into an exclusive license agreement with Chesson Laboratory Associates, Inc. (“Chesson”), as subsequently amended, for the sale of Nuvail, and pursuant to such agreement, EPI Health serves as an exclusive distributor of this product in the United States. Pursuant to the Nuvail license agreement, EPI Health is required to pay a tiered royalty up to a low double digit percentage of net sales of Nuvail, subject to a minimum annual royalty payment. The initial term of the license agreement expired in 2021 and was automatically extended for an additional five year renewal period. The license agreement may be terminated by either party for material breach. Chesson may terminate the license agreement early for convenience upon 12 months’ notice but is required to pay a termination fee based on a multiple of trailing twelve months gross sales. EPI Health is not currently actively promoting this product as part of its commercial portfolio. UNC Agreements The Amended, Restated and Consolidated License Agreement dated June 27, 2012, as amended, with the University of North Carolina at Chapel Hill (“UNC,” and such agreement, the “UNC License Agreement”) provides the Company with an exclusive license to issued patents and pending applications directed to the Company’s library of Nitricil compounds, including patents issued in the United States, Japan and Australia, with claims intended to cover NVN1000, the new chemical entity (“NCE”) for the Company’s current product candidates. The UNC License Agreement requires the Company to pay UNC up to $425 in regulatory and commercial milestones on a licensed product by licensed product basis and a running royalty percentage in the low single digits on net sales of licensed products. Licensed products include any products being developed by the Company or by its sublicensees. Unless earlier terminated by the Company at its election, or if the Company materially breaches the agreement or becomes bankrupt, the UNC License Agreement remains in effect on a country by country and licensed product by licensed product basis until the expiration of the last to expire issued patent covering such licensed product in the applicable country. The projected date of expiration of the last to expire of the patents issued under the UNC License Agreement is 2036. Other Research and Development Agreements The Company has entered into various licensing agreements with universities and other research institutions under which the Company receives the rights, and in some cases substantially all of the rights, of the inventors, assignees or co-assignees to produce and market technology protected by certain patents and patent applications. In addition to the UNC License Agreement, which is the Company’s primary license agreement, the counterparties to the Company’s various other licensing agreements are the University of Akron Research Foundation, Hospital for Special Surgery, Strakan International S.a.r.l., which is a licensee of the University of Aberdeen, KIPAX AB and KNOW Bio. The Company is required to make payments based upon achievement of certain milestones and will be required to make royalty payments based on a percentage of future sales of covered products or a percentage of sublicensing revenue. As future royalty payments are directly related to future revenues (either sales or sublicensing), future commitments cannot be determined. No accrual for future payments under these agreements has been recorded, as the Company cannot estimate if, when or in what amount payments may become due. KNOW Bio Agreements On December 30, 2015, the Company completed the distribution of 100% of the outstanding membership interests of KNOW Bio, LLC (“KNOW Bio”), a former wholly owned subsidiary of the Company, to Novan’s stockholders (the “Distribution”), pursuant to which KNOW Bio became an independent privately held company. In connection with the Distribution, the Company entered into exclusive license agreements and sublicense agreements with KNOW Bio, as described below. The agreements will continue for so long as there is a valid patent claim under the respective agreement, unless earlier terminated, and upon expiration, will continue as perpetual non-exclusive licenses. KNOW Bio has the right to terminate each such agreement, for any reason upon 90 days advance written notice to the Company. License of existing and potential future intellectual property to KNOW Bio. The Company and KNOW Bio entered into an exclusive license agreement dated December 29, 2015 (the “KNOW Bio License Agreement”). Pursuant to the terms of the KNOW Bio License Agreement, the Company granted to KNOW Bio exclusive licenses, with the right to sublicense, under certain United States and foreign patents and patent applications that were controlled by the Company as of December 29, 2015 or that became controlled by the Company between that date and December 29, 2018, directed towards nitric-oxide releasing compositions and methods of manufacturing thereof, including methods of manufacturing Nitricil compounds and other nitric oxide-based therapeutics. Sublicense of UNC and other third party intellectual property to KNOW Bio. The Company and KNOW Bio also entered into sublicense agreements dated December 29, 2015 (the “KNOW Bio Sublicense Agreements” and together with the KNOW Bio License Agreement, the “Original KNOW Bio Agreements”). Pursuant to the terms of the KNOW Bio Sublicense Agreements, the Company granted to KNOW Bio exclusive sublicenses, with the ability to further sublicense, under certain of the United States and foreign patents and patent applications exclusively licensed to the Company from UNC under the UNC License Agreement, and another third party directed towards nitric oxide-releasing compositions, to develop and commercialize products utilizing the licensed technology. Under the exclusive sublicense to the UNC patents and applications (the “UNC Sublicense Agreement”), KNOW Bio is subject to the terms and conditions under the UNC License Agreement, including milestone and diligence payment obligations. However, pursuant to the terms of the UNC License Agreement, the Company is directly obligated to pay UNC any future milestones or royalties, including those resulting from actions conducted by the Company’s sublicensees, including KNOW Bio. Therefore, in the event of KNOW Bio non-performance with respect to its obligations under the UNC Sublicense Agreement, the Company would be obligated to make such payments to UNC. KNOW Bio would then become obligated to repay the Company pursuant to the UNC Sublicense Agreement, otherwise KNOW Bio would be in breach of its agreements with the Company and intellectual property rights would revert back to the Company. There were no milestone or royalty payments required during the years ended December 31, 2022 and December 31, 2021. On October 13, 2017, the Company and KNOW Bio entered into certain amendments to the Original KNOW Bio Agreements (the “KNOW Bio Amendments”). Pursuant to the terms of the KNOW Bio Amendments, the Company re-acquired from KNOW Bio exclusive, worldwide rights under certain United States and foreign patents and patent applications controlled by the Company as of December 29, 2015, and that became controlled by the Company between December 29, 2015 and December 29, 2018, directed towards nitric oxide-releasing compositions and methods of manufacturing thereof, including methods of manufacturing Nitricil compounds, and other nitric oxide-based therapeutics, to develop and commercialize products for all diagnostic, therapeutic, prophylactic and palliative uses for any disease, condition or disorder caused by certain oncoviruses (the “Oncovirus Field”). KNOW Bio also granted to the Company an exclusive license, with the right to sublicense, under any patents and patent applications which became controlled by KNOW Bio during the three-year period between December 29, 2015 and December 29, 2018 and directed towards nitric oxide-releasing compositions and methods of manufacturing thereof, including methods of manufacturing Nitricil compounds, and other nitric oxide-based therapeutics, but not towards medical devices, to develop and commercialize products for use in the Oncovirus Field. Upon execution of the KNOW Bio Amendments, in exchange for the Oncovirus Field rights, the Company paid KNOW Bio a non-refundable upfront payment of $250. Products the Company develops in the Oncovirus Field based on Nitricil will not be subject to any further milestones, royalties or sublicensing payment obligations to KNOW Bio under the KNOW Bio Amendments. However, if the Company develops products in the Oncovirus Field that incorporate a certain nitric oxide-releasing composition specified in the KNOW Bio Amendments and (i) are covered by KNOW Bio patents or (ii) materially use or incorporate know-how of KNOW Bio or the Company related to such composition that was created between December 29, 2015 and December 29, 2018, the Company would be obligated to make the certain contingent milestone and royalty payments to KNOW Bio under the KNOW Bio Amendments. The rights granted to the Company in the Oncovirus Field in the KNOW Bio Amendments continue for so long as there is a valid patent claim under the Original KNOW Bio Agreements, and upon expiration continue on a perpetual non-exclusive basis, and are subject to the termination rights of KNOW Bio and the Company that are set forth in the Original KNOW Bio Agreements. In addition, under the KNOW Bio Amendments, KNOW Bio may terminate the rights granted to the Company in the Oncovirus Field without terminating the Original KNOW Bio Agreements. The KNOW Bio Amendments also provide a mechanism whereby either party may cause a NCE covered by the Original KNOW Bio Agreements to become exclusive to such party by filing an investigational new drug application (“IND”) on the NCE. An NCE that becomes exclusive to a party under this provision may not be commercialized by the other party until the later of expiration of patents covering the NCE or regulatory exclusivity covering the NCE. A party who obtains exclusivity for an NCE must advance development of the NCE pursuant to terms of the KNOW Bio Amendments in order to maintain such exclusivity; otherwise, such exclusivity will expire. See Note 13—“Net Product Revenues” and Note 14—“License and Collaboration Revenues” for additional detail regarding revenue generating license and collaboration agreements, including related accounting treatments. Royalty and Milestone Payments Purchase Agreement with Reedy Creek Investments LLC On April 29, 2019, the Company entered into a royalty and milestone payments purchase agreement (the “Reedy Creek Purchase Agreement”) with Reedy Creek Investments LLC (“Reedy Creek”), pursuant to which Reedy Creek provided funding to the Company in an amount of $25,000 for the Company to use primarily to pursue the development, regulatory approval and commercialization activities (including through out-license agreements and other third-party arrangements) for SB206, a topical gel with anti-viral properties being developed as a treatment for molluscum, and advancing programmatically such activities with respect to SB204, a once-daily, topical monotherapy being developed for the treatment of acne vulgaris, and SB414, a topical cream-based product candidate being developed for the treatment of atopic dermatitis. If the Company successfully commercializes any such product, following regulatory approval, the Company will be obligated to pay Reedy Creek a low single digit royalty on net sales of such products in the United States, Mexico or Canada. The Company determined that the Reedy Creek Purchase Agreement is within the scope of ASC 730-20, Research and Development Arrangements (“ASC 730-20”), and that there has not been a substantive and genuine transfer of risk related to the Reedy Creek Purchase Agreement. As such, the Company determined that the appropriate accounting treatment under ASC 730-20 was to record the proceeds of $25,000 as cash and cash equivalents, as the Company had the ability to direct the usage of funds, and a long-term liability within its classified balance sheet. Development Funding and Royalties Agreement with Ligand Pharmaceuticals Incorporated On May 4, 2019, the Company entered into a development funding and royalties agreement (the “Ligand Funding Agreement”) with Ligand Pharmaceuticals Incorporated (“Ligand”), pursuant to which Ligand provided funding to the Company of $12,000, for the Company to use to pursue the development and regulatory approval of SB206, a topical gel with anti-viral properties being developed as a treatment for molluscum. Pursuant to the Ligand Funding Agreement, the Company will pay Ligand up to $20,000 in milestone payments upon the achievement by the Company of certain regulatory and commercial milestones associated with SB206 or any product that incorporates or uses NVN1000, the API for the Company’s clinical stage product candidates, as a treatment for molluscum. In addition to the milestone payments, the Company will pay Ligand tiered royalties ranging from 7% to 10% based on annual aggregate net sales of such products in the United States, Mexico or Canada. The Company determined that the Ligand transaction is within the scope of ASC 730-20 as it represents an obligation to perform contractual services for the development of SB206 using commercially reasonable efforts. As such, the Company concluded that the appropriate accounting treatment under ASC 730-20 was to record the proceeds of $12,000 as a liability and amortize the liability ratably during each reporting period, based on the Ligand funding as a percentage of the total direct costs incurred by the Company during the reporting period related to the estimated total cost to progress the SB206 program to a regulatory approval in the United States. The ratable Ligand funding is presented within the accompanying consolidated statements of operations and comprehensive loss within research and development expenses associated with the SB206 program. For the years ended December 31, 2022 and December 31, 2021, the Company recorded $968 and $88, respectively, of contra-research and development expense related to the SB206 developmental program, funded by Ligand. During the year ended December 31, 2021, after the announcement of the B-SIMPLE4 positive top-line results on June 11, 2021, the Company reassessed and identified additional estimated costs necessary to progress the SB206 program to a potential United States regulatory approval. As such, the estimated regulatory costs subject to the Ligand funding increased from prior periods. The Company will continue to monitor and adjust its estimated regulatory costs, through approval, as needed.

Net Product Revenues

Net Product Revenues	12 Months Ended
	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Net Product Revenues	Net Product Revenues The Company has the following commercial products that generate net product revenues: Rhofade (oxymetazoline hydrochloride cream, 1%), or Rhofade, is an alpha1A adrenoceptor agonist indicated for the topical treatment of persistent facial erythema associated with rosacea in adults. Wynzora (calcipotriene and betamethasone dipropionate cream), or Wynzora, is a combination of calcipotriene, a vitamin D analog, and betamethasone dipropionate, a corticosteroid, indicated for the topical treatment of plaque psoriasis in patients 18 years of age or older. Minolira (biphasic minocycline hydrochloride immediate release/extended release 105 mg and 135 mg tablets), or Minolira, is indicated to treat inflammatory lesions of non-nodular moderate to severe acne vulgaris in patients 12 years of age and older. Cloderm (clocortoline pivalate cream 0.1%), or Cloderm, is indicated for the relief of the inflammatory and pruritic manifestations of corticosteroid-responsive dermatoses. The post-acquisition operating results of EPI Health are reflected within the Company’s consolidated statement of operations and comprehensive loss for the year ended December 31, 2022, specifically from March 11, 2022 through December 31, 2022. Net product revenues are summarized as follows: Year Ended December 31, 2022 Total Net Product Revenues Percentage of Net Product Revenues Rhofade $ 11,488 72.7 % Wynzora 1,640 10.4 % Minolira 1,572 10.0 % Cloderm 505 3.2 % Other 591 3.7 % Net product revenues $ 15,796 100.0 % For the period March 11, 2022 through December 31, 2022, the Company recorded adjustments for certain commercial products for accruals that were assumed as of the EPI Health Acquisition date within the Other category in the table above. For the year ended December 31, 2022, one of the Company’s wholesaler customers accounted for more than 10% of its total gross product revenues, at 12%. For the year ended December 31, 2022, the Company recorded $3,995 of expense related to royalties on net sales for its commercial product portfolio, including Wynzora residual net sales royalty payments due to the collaboration partner. MC2 Agreement The Company assessed the MC2 Agreement and determined it is a collaboration arrangement within the scope of ASC 808. Per the MC2 agreement, the Company proposes a commercialization plan and incremental cost budget annually, which is developed in consultation with and subject to the approval of MC2. The Company is required to use commercially reasonable efforts to perform its commercialization activities in accordance with the commercialization plan. The Company and MC2 work collaboratively in promoting and commercializing Wynzora by performing their respective promotional and commercialization responsibilities, as established within the MC2 Agreement. Pursuant to the MC2 Agreement, MC2 is responsible for leading the overall strategy of messaging for the promotional materials for Wynzora and the Company is responsible for generating such promotional materials and executing all field promotional and sales activities via the Company’s existing commercial sales force. MC2 is responsible for the manufacturing of Wynzora via a third-party contract manufacturer, and subject to MC2’s obligation to supply product under the supply terms, the Company purchases product inventory from MC2 (and its third-party contract manufacturer) by periodically placing firm purchase orders and then taking title, physical possession and control of the product inventory. The Company then fulfills orders and distributes Wynzora to the Company’s wholesale, distributor and other pharmacy customers. The parties share regulatory responsibilities, and except for the regulatory responsibilities assigned to the Company under the terms of the MC2 Agreement, MC2 is responsible for maintaining the NDA for Wynzora and all remaining regulatory activities. The MC2 Agreement also establishes a joint steering committee, which monitors and oversees the development, promotion, commercialization, and manufacturing of Wynzora, coordinates the collaborative activities of the parties and resolves disputes. MC2 pays advance payments to the Company on a quarterly basis, prior to the beginning of each calendar quarter, for incremental costs expected to be incurred by the Company during such calendar quarter for the promotion and commercialization of Wynzora, including (i) promotional campaigns and related services performed by third parties, (ii) a portion of the Company’s personnel and commercial operating costs, and (iii) the supply price of Wynzora product inventory. The Company records an accrued deposit liability within accrued expenses on its balance sheets upon receipt of an advance payment for promotional and commercialization services not yet performed or incurred by the Company. As such services are performed and qualifying incremental expenses are incurred, the Company recognizes a contra-expense pursuant to the Company’s accounting policy described in Note 1—“Organization and Significant Accounting Policies”. During the year ended December 31, 2022, the Company recognized contra-expenses of $8,284 under this agreement. The accrued deposit liability related to the receipt of advance payments from MC2 for future incremental costs was $1,149 as of December 31, 2022, which is presented within accrued expenses in the accompanying consolidated balance sheets. The Company also identified the wholesalers, distributors and other pharmacies (collectively referred to as “End Customers”) who purchase Wynzora from the Company to be customers pursuant to ASC 606. When more than one party is involved in providing goods or services to the End Customer, ASC 606 requires an entity to determine whether it is a principal or an agent in such transactions by evaluating the nature of its promise to the End Customer. Control of the specified good or service prior to transfer of control to the customer is the determining factor when assessing whether an entity is a principal or an agent. The Company determined it is a principal in this arrangement because it takes title and physical possession of the Wynzora product inventory, at which point it can direct the inventory to any End Customer that submits an enforceable purchase order issued under an active, stand-alone agreement between the Company and the End Customer. With respect to its performance obligations to the End Customers and associated revenue recognition, the Company recognizes all Wynzora revenues pursuant to its accounting policies for net product revenues as described further in Note 1—“Organization and Significant Accounting Policies”. The Company has license and collaboration revenues summarized as follows: Year Ended December 31, 2022 Total License and Collaboration Revenues Percentage of License and Collaboration Revenues Sato Agreement - SB206 and SB204 $ 2,586 33.1 % Sato Rhofade Agreement 5,000 64.0 % Prasco Agreement - Cloderm AG 227 2.9 % License and collaboration revenues $ 7,813 100.0 % The post-acquisition operating results of EPI Health are reflected within the Company’s consolidated statement of operations for the year ended December 31, 2022, specifically from March 11, 2022 through December 31, 2022. For the year ended December 31, 2021, all license and collaboration revenues related to the Sato Agreement (related to SB206 and SB204). For the year ended December 31, 2022, the Company recorded $1,407 of expense related to milestones, including cumulative sales-based milestones and amounts related to the receipt of certain upfront payments. Sato Agreement - SB206 and SB204 On January 12, 2017, the Company entered into a license agreement, and related first amendment, with Sato Pharmaceutical Co., Ltd. (“Sato”), relating to SB204, its drug candidate for the treatment of acne vulgaris in Japan (the “Sato Agreement”). Pursuant to the Sato Agreement, the Company granted to Sato an exclusive, royalty-bearing, non-transferable right and license under certain of the Company’s intellectual property rights, with the right to sublicense with the Company’s prior written consent, to develop, use and sell products in Japan that incorporate SB204 in certain topical dosage forms for the treatment of acne vulgaris, and to make the finished form of such products. On October 5, 2018, the Company and Sato entered into the second amendment (the “Sato Amendment”) to the Sato Agreement (collectively, the “Amended Sato Agreement”). The Sato Amendment expanded the Sato Agreement to include SB206, the Company’s drug candidate for the treatment of viral skin infections. Pursuant to the Amended Sato Agreement, the Company granted to Sato an exclusive, royalty-bearing, non-transferable license under certain of its intellectual property rights, with the right to sublicense with the Company’s prior written consent, to develop, use and sell products in Japan that incorporate SB204 or SB206 in certain topical dosage forms for the treatment of acne vulgaris or viral skin infections, respectively, and to make the finished form of such products. The Company or its designated contract manufacturer will supply finished product to Sato for use in the development of SB204 and SB206 in the licensed territory. The rights granted to Sato do not include the right to manufacture the API of SB204 or SB206; rather, the parties agreed to negotiate a commercial supply agreement pursuant to which the Company or its designated contract manufacturer would be the exclusive supplier to Sato of the API for the commercial manufacture of licensed products in the licensed territory. Under the terms of the Amended Sato Agreement, the Company also has exclusive rights to certain intellectual property that may be developed by Sato in the future, which the Company could choose to use for its own development and commercialization of SB204 or SB206 outside of Japan. The term of the Amended Sato Agreement (and the period during which Sato must pay royalties under the amended license agreement) expires on the twentieth anniversary of the first commercial sale of a licensed product in the licensed field in the licensed territory (adjusted from the tenth anniversary of the first commercial sale in the Sato Agreement). The term of the Amended Sato Agreement may be renewed with respect to a licensed product by mutual written agreement of the parties for additional two Sato is responsible for funding the development and commercial costs for the program that are specific to Japan. The Company is obligated to perform certain oversight, review and supporting activities for Sato, including: (i) using commercially reasonable efforts to obtain marketing approval of SB204 and SB206 in the United States; (ii) sharing all future scientific information the Company may obtain during the term of the Amended Sato Agreement pertaining to SB204 and SB206; (iii) performing certain additional preclinical studies if such studies are deemed necessary by the Japanese regulatory authority, up to and not to exceed a total cost of $1,000; and (iv) participating in a joint committee that oversees, reviews and approves Sato’s development and commercialization activities under the Amended Sato Agreement. Additionally, the Company has granted Sato the option to use the Company’s trademarks in connection with the commercialization of licensed products in the licensed territory for no additional consideration, subject to the Company’s approval of such use. The Amended Sato Agreement may be terminated by (i) Sato without cause upon 120 days’ advance written notice to the Company; (ii) either party in the event of the other party’s uncured material breach upon 60 days’ advance written notice; (iii) force majeure; (iv) either party in the event of the other party’s dissolution, liquidation, bankruptcy or insolvency; and (v) the Company immediately upon written notice if Sato challenges the validity, patentability, or enforceability of any of the Company’s patents or patent applications licensed to Sato under the Amended Sato Agreement. In the event of a termination, no portion of the upfront fees received from Sato are refundable. The Company assessed the Sato Agreement in accordance with ASC 606 and concluded that the contract counterparty, Sato, is a customer within the scope of ASC 606. The Company identified the following promises under the Sato Agreement (i) the grant of the intellectual property license to Sato, (ii) the obligation to participate in a joint committee that oversees, reviews, and approves Sato’s research and development activities and provides advisory support during Sato’s development process, (iii) the obligation to manufacture and supply Sato with all quantities of licensed product required for development activities in Japan, and (iv) the stand-ready obligation to perform any necessary repeat preclinical studies, up to $1,000 in cost. The Company determined that these promises were not individually distinct because Sato can only benefit from these licensed intellectual property rights and services when bundled together; they do not have individual benefit or utility to Sato. As a result, all promises have been combined into a single performance obligation. The Sato Agreement also provides that the two parties agree to negotiate in good faith the terms of a commercial supply agreement pursuant to which the Company or a third-party manufacturer would be the exclusive supplier to Sato of the API for the commercial manufacture of licensed products in the licensed territory. The Company concluded this obligation to negotiate the terms of a commercial supply agreement does not create (i) a legally enforceable obligation under which the Company may have to perform and supply Sato with API for commercial manufacturing, or (ii) a material right because the incremental commercial supply fee consideration framework in the Sato Agreement is representative of a stand-alone selling price for the supply of API and does not represent a discount. Therefore, this contract provision is not considered to be a promise to deliver goods or services and is not a performance obligation or part of the combined single performance obligation described above. Sato Amendment On October 5, 2018, the Company and Sato entered into the second amendment to the Sato Agreement (the “Sato Amendment”). The Sato Amendment expanded the Sato Agreement to include SB206, the Company’s drug candidate for the treatment of viral skin infections. The Company assessed the Sato Agreement in accordance with ASC 606 and concluded the contract modification should incorporate the additional goods and services provided for in the Sato Amendment into the existing, partially satisfied single bundled performance obligation that will continue to be delivered to Sato over the remaining development period. The Company determined that this contract modification accounting is appropriate as the additional goods and services conveyed under the Sato Amendment were determined to not be distinct from the single performance obligation, and the additional consideration provided did not reflect the standalone selling price of those additional goods and services. As such, the Company recorded a cumulative adjustment as of the amendment execution date to reflect revenue that would have been recognized cumulatively for the partially completed bundled performance obligation. The Company concluded that the following consideration would be included in the transaction price as they were (i) received prior to December 31, 2022, or (ii) payable upon specified fixed dates in the future and not contingent upon clinical or regulatory success in Japan: • The 1.25 billion JPY (approximately $10,813 USD) original upfront payment received on January 19, 2017 following the execution of the Sato Agreement on January 12, 2017. • A milestone payment of 0.25 billion JPY (approximately $2,162 USD) received during the fourth quarter of 2018 following Sato’s initiation of a Phase 1 trial in Japan. • The Sato Amendment upfront payment of 1.25 billion JPY, payable in installments of 0.25 billion JPY, 0.5 billion JPY and 0.5 billion JPY on October 5, 2018, February 14, 2019 and September 13, 2019, respectively. On October 23, 2018, the Company received the first installment from the Amended Sato Agreement of 0.25 billion JPY (approximately $2,224 USD). On March 14, 2019, the Company received the second installment payment related to the Amended Sato Agreement of 0.5 billion JPY (approximately $4,460 USD). On November 7, 2019, the Company received the third installment payment related to the Amended Sato Agreement of 0.5 billion JPY (approximately $4,554 USD). • An aggregate of 1.0 billion JPY in non-contingent milestone payments that become payable upon the earlier occurrence of specified fixed dates in the future or the achievement of specified milestone events. On May 20, 2021, the Company received one such non-contingent milestone payment in the form of a payment of 0.5 billion JPY (approximately $4,572 USD) related to achievement of a time-based developmental milestone. On February 28, 2022, the Company received the remaining time-based milestone payment of 0.5 billion JPY (approximately $4,323 USD). The Company concluded that the following elements of consideration would not be included in the transaction price as they are contingent upon clinical or regulatory success in Japan: • Up to an aggregate of 0.5 billion JPY upon the achievement of various development and regulatory milestones. • Up to an aggregate of 3.9 billion JPY upon the achievement of various commercial milestones. • A tiered royalty ranging from a mid-single digit to a low-double digit percentage (adjusted from a mid-single digit percentage in the Sato Agreement) of net sales of licensed products in the licensed territory, subject to a reduction in the royalty payments in certain circumstances. The payment terms contained within the Sato Agreement related to upfront, developmental milestone and sales milestone payments are of a short-term nature and, therefore, do not represent a financing component requiring additional consideration. The following tables present the Company’s contract assets, contract liabilities and deferred revenue balances for the dates indicated. Contract Asset Contract Liability Net Deferred Revenue December 31, 2021 $ — $ 13,251 $ 13,251 December 31, 2022 $ — $ 10,665 $ 10,665 Short-term Deferred Revenue Long-term Deferred Revenue Net Deferred Revenue December 31, 2021 $ 2,586 $ 10,665 $ 13,251 December 31, 2022 $ 2,586 $ 8,079 $ 10,665 The Company has recorded the Sato Agreement (both the initial agreement and as amended by the Sato Amendment) transaction price, including the upfront payments received and the unconstrained variable consideration, as deferred revenue. The change in the net deferred revenue balance during the year ended December 31, 2022 was associated with the recognition of license and collaboration revenue associated with the Company’s performance during the period (continued amortization of deferred revenue). During the year ended December 31, 2022 and December 31, 2021, the Company recognized $2,586 and $2,822, respectively, in license and collaboration revenue under the Sato Agreement. The Company has concluded that the above consideration is probable of not resulting in a significant revenue reversal and therefore included in the transaction price and is allocated to the single performance obligation. No other variable consideration under the Sato Agreement is probable of not resulting in a significant revenue reversal as of December 31, 2022 and therefore, is currently fully constrained and excluded from the transaction price. The Company evaluated the timing of delivery for its performance obligation and concluded that a time-based input method is most appropriate because Sato is accessing and benefiting from the intellectual property and technology (the predominant items of the combined performance obligation) ratably over the duration of Sato’s estimated development period in Japan. Although the Company concluded that the intellectual property is functional rather than symbolic, the services provided under the performance obligation are provided over time. Therefore, the allocated transaction price will be recognized using a time-based input method that results in straight-line recognition over the Company’s performance period. The Company monitors and reassesses the estimated performance period for purposes of revenue recognition during each reporting period. In late July 2021, Sato communicated an updated plan regarding its amended design for its additional Japanese Phase 1 study for SB206. The amended study design included evaluation of potential lower dose strengths, including potential further refinement in a subsequent dose tolerability study. As part of the communication regarding these Phase 1 studies, Sato also communicated an updated comprehensive timeline for the Japanese SB206 program. The Company currently estimates a 10-year performance period, completing in the first quarter of 2027, based upon a Sato-prepared SB206 Japanese development program timeline. The SB204 Japanese development plan and program timeline has not been presented by Sato and remains under evaluation by the Company and Sato. Currently, the Company understands that the progression of the Japanese SB204 program could follow the same timeline as the Japanese SB206 program, subject to the nature of the results of Sato’s comprehensive asset developmental program, including SB206. The estimated timeline remains subject to prospective reassessment and adjustment based upon Sato’s interaction with the Japanese regulatory authorities and other developmental and timing considerations. The combined SB204 and SB206 development program timeline in Japan is continuously reevaluated by Sato and the Company, and may potentially be further affected by various factors, including (i) the analyses, assessments and decisions made by the joint development committee and the applicable regulatory authorities, which will influence and establish the combined SB204 and SB206 Japan development program plan, (ii) the remaining timeline and progression of the SB206 NDA approval process in the United States, (iii) the API and drug product supply chain progression, including the Company’s in-house drug manufacturing capabilities, (iv) the Company’s manufacturing technology transfer projects with third-party CMOs, and (v) a drug delivery device technology enhancement project with a technology manufacturing vendor. If the duration of the combined SB204 and SB206 development program timeline is further affected by the establishment of or subsequent adjustments to, as applicable, the mutually agreed upon SB204 and SB206 development plan in the Japan territory, the Company will adjust its estimated performance period for revenue recognition purposes accordingly, as needed. In future periods, the Company would lift the variable consideration constraint from each contingent payment if there were no longer a probable likelihood of significant revenue reversal. When the constraint is lifted from a milestone payment, the Company will recognize the incremental transaction price using the same time-based input method that is being used to recognize the revenue, which results in straight-line recognition over the performance period. If the Company’s performance is not yet completed at the time that the constraint is lifted, a cumulative catch-up adjustment will be recognized in the period. If no other performance is required by the Company at the time the constraint is lifted, the Company expects to recognize all revenue associated with such milestone payments at the time that the constraint is lifted. Performance Obligations under the Amended Sato Agreement The net amount of existing performance obligations under long-term contracts unsatisfied as of December 31, 2022 was $10,665. The Company expects to recognize approximately 24% of the remaining performance obligations as revenue over the next 12 months, and the balance thereafter. The Company applied the practical expedient and does not disclose information about variable consideration related to sales-based or usage-based royalties promised in exchange for a license of intellectual property. This expedient specifically applied to the sales-based milestone payments that are present in the Amended Sato Agreement (3.9 billion JPY), as well as percentage-based royalty payments in the Amended Sato Agreement that are contingent upon future sales. Sato Rhofade Agreement In December 2022, the Company entered into a license agreement with Sato in which they were granted an exclusive, royalty-bearing, non-transferable right and license under certain of EPI Health's intellectual property rights to develop, manufacture and market Rhofade (oxymetazoline hydrochloride cream, 1%) for the treatment of rosacea in Japan (the “Sato Rhofade Agreement”). In addition, per the Sato Rhofade Agreement, during a specified time period, Sato has an exclusive option to negotiate the terms under which its license would be expanded to include certain other countries in the Asia-Pacific region. The Company assessed the Sato Rhofade Agreement in accordance with ASC 606 and concluded that the contract counterparty, Sato, is a customer within the scope of ASC 606. The Company also identified one performance obligation within the Sato Rhofade Agreement, comprised of the delivery of a functional intellectual property license including scientific information, or know-how. The Company assessed certain options provided to Sato within the agreement, including the option to enter into additional licenses for other geographies, but concluded these rights were not material in regards to the determination of the performance obligation that was fixed and determinable as they would involve separate negotiations. Therefore, the contract provisions to provide certain options to Sato is not considered to be a material right and is not a performance obligation or part of the performance obligation described above. In exchange for the license granted to Sato, Sato agreed to pay the Company the following: (i) an upfront payment of $5,000; and (ii) a milestone payment of $2,500 upon receipt of marketing approval of Rhofade for rosacea in the Japan territory. Sato also agreed to pay tiered royalty payments on net sales of the licensed product ranging over time from a percentage of net sales in the mid-teens to a percentage of net sales in the low single digits. Therefore, the Company concluded that the transaction price was comprised of both fixed and variable consideration. The Company’s assessment of variable consideration related to the milestone payment and potential future royalty payments were completely constrained at contract inception. The Company concluded that the performance obligation related to the recognition of the upfront payment was satisfied at a point in time, in which the license and related know-how were transferred. Therefore, the upfront payment was recognized on the Sato Rhofade Agreement effective date. The milestone will be recognized when marketing approval in Japan is probable. The Company applied the practical expedient related to sales-based or usage-based royalties promised in exchange for a license of intellectual property and will record any royalties as the future sales occur. In addition, the Company is required to pay 25% of the upfront and milestone payment amounts to a third party under existing contractual obligations related to Rhofade and will also be required to pay a portion of the royalty amounts received under the Sato Rhofade Agreement to third parties, after which the Company will retain net royalties in the low single digits. See Note 9—“Commitments and Contingencies” for additional detail regarding this obligation. The initial term of the Sato Rhofade Agreement expires on the fifteenth anniversary of the first marketing approval of the licensed product for rosacea in the Japan territory. The term of the Sato Rhofade Agreement automatically extends for a further period of two years, unless either party gives one year’s notice before the end of the initial term. The Sato Rhofade Agreement may be terminated, among other reasons, (i) by Sato without cause upon 120 days’ advance written notice to the Company; (ii) by either party in the event of the other party’s uncured material breach upon 60 days’ advance written notice; and (iii) by the Company if Sato challenges the validity, patentability or enforceability of any of the Company’s patents licensed to Sato under the Sato Rhofade Agreement. Prasco Agreement - Cloderm AG five one

License and Collaboration Reven

License and Collaboration Revenues	12 Months Ended
	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
License and Collaboration Revenues	Net Product Revenues The Company has the following commercial products that generate net product revenues: Rhofade (oxymetazoline hydrochloride cream, 1%), or Rhofade, is an alpha1A adrenoceptor agonist indicated for the topical treatment of persistent facial erythema associated with rosacea in adults. Wynzora (calcipotriene and betamethasone dipropionate cream), or Wynzora, is a combination of calcipotriene, a vitamin D analog, and betamethasone dipropionate, a corticosteroid, indicated for the topical treatment of plaque psoriasis in patients 18 years of age or older. Minolira (biphasic minocycline hydrochloride immediate release/extended release 105 mg and 135 mg tablets), or Minolira, is indicated to treat inflammatory lesions of non-nodular moderate to severe acne vulgaris in patients 12 years of age and older. Cloderm (clocortoline pivalate cream 0.1%), or Cloderm, is indicated for the relief of the inflammatory and pruritic manifestations of corticosteroid-responsive dermatoses. The post-acquisition operating results of EPI Health are reflected within the Company’s consolidated statement of operations and comprehensive loss for the year ended December 31, 2022, specifically from March 11, 2022 through December 31, 2022. Net product revenues are summarized as follows: Year Ended December 31, 2022 Total Net Product Revenues Percentage of Net Product Revenues Rhofade $ 11,488 72.7 % Wynzora 1,640 10.4 % Minolira 1,572 10.0 % Cloderm 505 3.2 % Other 591 3.7 % Net product revenues $ 15,796 100.0 % For the period March 11, 2022 through December 31, 2022, the Company recorded adjustments for certain commercial products for accruals that were assumed as of the EPI Health Acquisition date within the Other category in the table above. For the year ended December 31, 2022, one of the Company’s wholesaler customers accounted for more than 10% of its total gross product revenues, at 12%. For the year ended December 31, 2022, the Company recorded $3,995 of expense related to royalties on net sales for its commercial product portfolio, including Wynzora residual net sales royalty payments due to the collaboration partner. MC2 Agreement The Company assessed the MC2 Agreement and determined it is a collaboration arrangement within the scope of ASC 808. Per the MC2 agreement, the Company proposes a commercialization plan and incremental cost budget annually, which is developed in consultation with and subject to the approval of MC2. The Company is required to use commercially reasonable efforts to perform its commercialization activities in accordance with the commercialization plan. The Company and MC2 work collaboratively in promoting and commercializing Wynzora by performing their respective promotional and commercialization responsibilities, as established within the MC2 Agreement. Pursuant to the MC2 Agreement, MC2 is responsible for leading the overall strategy of messaging for the promotional materials for Wynzora and the Company is responsible for generating such promotional materials and executing all field promotional and sales activities via the Company’s existing commercial sales force. MC2 is responsible for the manufacturing of Wynzora via a third-party contract manufacturer, and subject to MC2’s obligation to supply product under the supply terms, the Company purchases product inventory from MC2 (and its third-party contract manufacturer) by periodically placing firm purchase orders and then taking title, physical possession and control of the product inventory. The Company then fulfills orders and distributes Wynzora to the Company’s wholesale, distributor and other pharmacy customers. The parties share regulatory responsibilities, and except for the regulatory responsibilities assigned to the Company under the terms of the MC2 Agreement, MC2 is responsible for maintaining the NDA for Wynzora and all remaining regulatory activities. The MC2 Agreement also establishes a joint steering committee, which monitors and oversees the development, promotion, commercialization, and manufacturing of Wynzora, coordinates the collaborative activities of the parties and resolves disputes. MC2 pays advance payments to the Company on a quarterly basis, prior to the beginning of each calendar quarter, for incremental costs expected to be incurred by the Company during such calendar quarter for the promotion and commercialization of Wynzora, including (i) promotional campaigns and related services performed by third parties, (ii) a portion of the Company’s personnel and commercial operating costs, and (iii) the supply price of Wynzora product inventory. The Company records an accrued deposit liability within accrued expenses on its balance sheets upon receipt of an advance payment for promotional and commercialization services not yet performed or incurred by the Company. As such services are performed and qualifying incremental expenses are incurred, the Company recognizes a contra-expense pursuant to the Company’s accounting policy described in Note 1—“Organization and Significant Accounting Policies”. During the year ended December 31, 2022, the Company recognized contra-expenses of $8,284 under this agreement. The accrued deposit liability related to the receipt of advance payments from MC2 for future incremental costs was $1,149 as of December 31, 2022, which is presented within accrued expenses in the accompanying consolidated balance sheets. The Company also identified the wholesalers, distributors and other pharmacies (collectively referred to as “End Customers”) who purchase Wynzora from the Company to be customers pursuant to ASC 606. When more than one party is involved in providing goods or services to the End Customer, ASC 606 requires an entity to determine whether it is a principal or an agent in such transactions by evaluating the nature of its promise to the End Customer. Control of the specified good or service prior to transfer of control to the customer is the determining factor when assessing whether an entity is a principal or an agent. The Company determined it is a principal in this arrangement because it takes title and physical possession of the Wynzora product inventory, at which point it can direct the inventory to any End Customer that submits an enforceable purchase order issued under an active, stand-alone agreement between the Company and the End Customer. With respect to its performance obligations to the End Customers and associated revenue recognition, the Company recognizes all Wynzora revenues pursuant to its accounting policies for net product revenues as described further in Note 1—“Organization and Significant Accounting Policies”. The Company has license and collaboration revenues summarized as follows: Year Ended December 31, 2022 Total License and Collaboration Revenues Percentage of License and Collaboration Revenues Sato Agreement - SB206 and SB204 $ 2,586 33.1 % Sato Rhofade Agreement 5,000 64.0 % Prasco Agreement - Cloderm AG 227 2.9 % License and collaboration revenues $ 7,813 100.0 % The post-acquisition operating results of EPI Health are reflected within the Company’s consolidated statement of operations for the year ended December 31, 2022, specifically from March 11, 2022 through December 31, 2022. For the year ended December 31, 2021, all license and collaboration revenues related to the Sato Agreement (related to SB206 and SB204). For the year ended December 31, 2022, the Company recorded $1,407 of expense related to milestones, including cumulative sales-based milestones and amounts related to the receipt of certain upfront payments. Sato Agreement - SB206 and SB204 On January 12, 2017, the Company entered into a license agreement, and related first amendment, with Sato Pharmaceutical Co., Ltd. (“Sato”), relating to SB204, its drug candidate for the treatment of acne vulgaris in Japan (the “Sato Agreement”). Pursuant to the Sato Agreement, the Company granted to Sato an exclusive, royalty-bearing, non-transferable right and license under certain of the Company’s intellectual property rights, with the right to sublicense with the Company’s prior written consent, to develop, use and sell products in Japan that incorporate SB204 in certain topical dosage forms for the treatment of acne vulgaris, and to make the finished form of such products. On October 5, 2018, the Company and Sato entered into the second amendment (the “Sato Amendment”) to the Sato Agreement (collectively, the “Amended Sato Agreement”). The Sato Amendment expanded the Sato Agreement to include SB206, the Company’s drug candidate for the treatment of viral skin infections. Pursuant to the Amended Sato Agreement, the Company granted to Sato an exclusive, royalty-bearing, non-transferable license under certain of its intellectual property rights, with the right to sublicense with the Company’s prior written consent, to develop, use and sell products in Japan that incorporate SB204 or SB206 in certain topical dosage forms for the treatment of acne vulgaris or viral skin infections, respectively, and to make the finished form of such products. The Company or its designated contract manufacturer will supply finished product to Sato for use in the development of SB204 and SB206 in the licensed territory. The rights granted to Sato do not include the right to manufacture the API of SB204 or SB206; rather, the parties agreed to negotiate a commercial supply agreement pursuant to which the Company or its designated contract manufacturer would be the exclusive supplier to Sato of the API for the commercial manufacture of licensed products in the licensed territory. Under the terms of the Amended Sato Agreement, the Company also has exclusive rights to certain intellectual property that may be developed by Sato in the future, which the Company could choose to use for its own development and commercialization of SB204 or SB206 outside of Japan. The term of the Amended Sato Agreement (and the period during which Sato must pay royalties under the amended license agreement) expires on the twentieth anniversary of the first commercial sale of a licensed product in the licensed field in the licensed territory (adjusted from the tenth anniversary of the first commercial sale in the Sato Agreement). The term of the Amended Sato Agreement may be renewed with respect to a licensed product by mutual written agreement of the parties for additional two Sato is responsible for funding the development and commercial costs for the program that are specific to Japan. The Company is obligated to perform certain oversight, review and supporting activities for Sato, including: (i) using commercially reasonable efforts to obtain marketing approval of SB204 and SB206 in the United States; (ii) sharing all future scientific information the Company may obtain during the term of the Amended Sato Agreement pertaining to SB204 and SB206; (iii) performing certain additional preclinical studies if such studies are deemed necessary by the Japanese regulatory authority, up to and not to exceed a total cost of $1,000; and (iv) participating in a joint committee that oversees, reviews and approves Sato’s development and commercialization activities under the Amended Sato Agreement. Additionally, the Company has granted Sato the option to use the Company’s trademarks in connection with the commercialization of licensed products in the licensed territory for no additional consideration, subject to the Company’s approval of such use. The Amended Sato Agreement may be terminated by (i) Sato without cause upon 120 days’ advance written notice to the Company; (ii) either party in the event of the other party’s uncured material breach upon 60 days’ advance written notice; (iii) force majeure; (iv) either party in the event of the other party’s dissolution, liquidation, bankruptcy or insolvency; and (v) the Company immediately upon written notice if Sato challenges the validity, patentability, or enforceability of any of the Company’s patents or patent applications licensed to Sato under the Amended Sato Agreement. In the event of a termination, no portion of the upfront fees received from Sato are refundable. The Company assessed the Sato Agreement in accordance with ASC 606 and concluded that the contract counterparty, Sato, is a customer within the scope of ASC 606. The Company identified the following promises under the Sato Agreement (i) the grant of the intellectual property license to Sato, (ii) the obligation to participate in a joint committee that oversees, reviews, and approves Sato’s research and development activities and provides advisory support during Sato’s development process, (iii) the obligation to manufacture and supply Sato with all quantities of licensed product required for development activities in Japan, and (iv) the stand-ready obligation to perform any necessary repeat preclinical studies, up to $1,000 in cost. The Company determined that these promises were not individually distinct because Sato can only benefit from these licensed intellectual property rights and services when bundled together; they do not have individual benefit or utility to Sato. As a result, all promises have been combined into a single performance obligation. The Sato Agreement also provides that the two parties agree to negotiate in good faith the terms of a commercial supply agreement pursuant to which the Company or a third-party manufacturer would be the exclusive supplier to Sato of the API for the commercial manufacture of licensed products in the licensed territory. The Company concluded this obligation to negotiate the terms of a commercial supply agreement does not create (i) a legally enforceable obligation under which the Company may have to perform and supply Sato with API for commercial manufacturing, or (ii) a material right because the incremental commercial supply fee consideration framework in the Sato Agreement is representative of a stand-alone selling price for the supply of API and does not represent a discount. Therefore, this contract provision is not considered to be a promise to deliver goods or services and is not a performance obligation or part of the combined single performance obligation described above. Sato Amendment On October 5, 2018, the Company and Sato entered into the second amendment to the Sato Agreement (the “Sato Amendment”). The Sato Amendment expanded the Sato Agreement to include SB206, the Company’s drug candidate for the treatment of viral skin infections. The Company assessed the Sato Agreement in accordance with ASC 606 and concluded the contract modification should incorporate the additional goods and services provided for in the Sato Amendment into the existing, partially satisfied single bundled performance obligation that will continue to be delivered to Sato over the remaining development period. The Company determined that this contract modification accounting is appropriate as the additional goods and services conveyed under the Sato Amendment were determined to not be distinct from the single performance obligation, and the additional consideration provided did not reflect the standalone selling price of those additional goods and services. As such, the Company recorded a cumulative adjustment as of the amendment execution date to reflect revenue that would have been recognized cumulatively for the partially completed bundled performance obligation. The Company concluded that the following consideration would be included in the transaction price as they were (i) received prior to December 31, 2022, or (ii) payable upon specified fixed dates in the future and not contingent upon clinical or regulatory success in Japan: • The 1.25 billion JPY (approximately $10,813 USD) original upfront payment received on January 19, 2017 following the execution of the Sato Agreement on January 12, 2017. • A milestone payment of 0.25 billion JPY (approximately $2,162 USD) received during the fourth quarter of 2018 following Sato’s initiation of a Phase 1 trial in Japan. • The Sato Amendment upfront payment of 1.25 billion JPY, payable in installments of 0.25 billion JPY, 0.5 billion JPY and 0.5 billion JPY on October 5, 2018, February 14, 2019 and September 13, 2019, respectively. On October 23, 2018, the Company received the first installment from the Amended Sato Agreement of 0.25 billion JPY (approximately $2,224 USD). On March 14, 2019, the Company received the second installment payment related to the Amended Sato Agreement of 0.5 billion JPY (approximately $4,460 USD). On November 7, 2019, the Company received the third installment payment related to the Amended Sato Agreement of 0.5 billion JPY (approximately $4,554 USD). • An aggregate of 1.0 billion JPY in non-contingent milestone payments that become payable upon the earlier occurrence of specified fixed dates in the future or the achievement of specified milestone events. On May 20, 2021, the Company received one such non-contingent milestone payment in the form of a payment of 0.5 billion JPY (approximately $4,572 USD) related to achievement of a time-based developmental milestone. On February 28, 2022, the Company received the remaining time-based milestone payment of 0.5 billion JPY (approximately $4,323 USD). The Company concluded that the following elements of consideration would not be included in the transaction price as they are contingent upon clinical or regulatory success in Japan: • Up to an aggregate of 0.5 billion JPY upon the achievement of various development and regulatory milestones. • Up to an aggregate of 3.9 billion JPY upon the achievement of various commercial milestones. • A tiered royalty ranging from a mid-single digit to a low-double digit percentage (adjusted from a mid-single digit percentage in the Sato Agreement) of net sales of licensed products in the licensed territory, subject to a reduction in the royalty payments in certain circumstances. The payment terms contained within the Sato Agreement related to upfront, developmental milestone and sales milestone payments are of a short-term nature and, therefore, do not represent a financing component requiring additional consideration. The following tables present the Company’s contract assets, contract liabilities and deferred revenue balances for the dates indicated. Contract Asset Contract Liability Net Deferred Revenue December 31, 2021 $ — $ 13,251 $ 13,251 December 31, 2022 $ — $ 10,665 $ 10,665 Short-term Deferred Revenue Long-term Deferred Revenue Net Deferred Revenue December 31, 2021 $ 2,586 $ 10,665 $ 13,251 December 31, 2022 $ 2,586 $ 8,079 $ 10,665 The Company has recorded the Sato Agreement (both the initial agreement and as amended by the Sato Amendment) transaction price, including the upfront payments received and the unconstrained variable consideration, as deferred revenue. The change in the net deferred revenue balance during the year ended December 31, 2022 was associated with the recognition of license and collaboration revenue associated with the Company’s performance during the period (continued amortization of deferred revenue). During the year ended December 31, 2022 and December 31, 2021, the Company recognized $2,586 and $2,822, respectively, in license and collaboration revenue under the Sato Agreement. The Company has concluded that the above consideration is probable of not resulting in a significant revenue reversal and therefore included in the transaction price and is allocated to the single performance obligation. No other variable consideration under the Sato Agreement is probable of not resulting in a significant revenue reversal as of December 31, 2022 and therefore, is currently fully constrained and excluded from the transaction price. The Company evaluated the timing of delivery for its performance obligation and concluded that a time-based input method is most appropriate because Sato is accessing and benefiting from the intellectual property and technology (the predominant items of the combined performance obligation) ratably over the duration of Sato’s estimated development period in Japan. Although the Company concluded that the intellectual property is functional rather than symbolic, the services provided under the performance obligation are provided over time. Therefore, the allocated transaction price will be recognized using a time-based input method that results in straight-line recognition over the Company’s performance period. The Company monitors and reassesses the estimated performance period for purposes of revenue recognition during each reporting period. In late July 2021, Sato communicated an updated plan regarding its amended design for its additional Japanese Phase 1 study for SB206. The amended study design included evaluation of potential lower dose strengths, including potential further refinement in a subsequent dose tolerability study. As part of the communication regarding these Phase 1 studies, Sato also communicated an updated comprehensive timeline for the Japanese SB206 program. The Company currently estimates a 10-year performance period, completing in the first quarter of 2027, based upon a Sato-prepared SB206 Japanese development program timeline. The SB204 Japanese development plan and program timeline has not been presented by Sato and remains under evaluation by the Company and Sato. Currently, the Company understands that the progression of the Japanese SB204 program could follow the same timeline as the Japanese SB206 program, subject to the nature of the results of Sato’s comprehensive asset developmental program, including SB206. The estimated timeline remains subject to prospective reassessment and adjustment based upon Sato’s interaction with the Japanese regulatory authorities and other developmental and timing considerations. The combined SB204 and SB206 development program timeline in Japan is continuously reevaluated by Sato and the Company, and may potentially be further affected by various factors, including (i) the analyses, assessments and decisions made by the joint development committee and the applicable regulatory authorities, which will influence and establish the combined SB204 and SB206 Japan development program plan, (ii) the remaining timeline and progression of the SB206 NDA approval process in the United States, (iii) the API and drug product supply chain progression, including the Company’s in-house drug manufacturing capabilities, (iv) the Company’s manufacturing technology transfer projects with third-party CMOs, and (v) a drug delivery device technology enhancement project with a technology manufacturing vendor. If the duration of the combined SB204 and SB206 development program timeline is further affected by the establishment of or subsequent adjustments to, as applicable, the mutually agreed upon SB204 and SB206 development plan in the Japan territory, the Company will adjust its estimated performance period for revenue recognition purposes accordingly, as needed. In future periods, the Company would lift the variable consideration constraint from each contingent payment if there were no longer a probable likelihood of significant revenue reversal. When the constraint is lifted from a milestone payment, the Company will recognize the incremental transaction price using the same time-based input method that is being used to recognize the revenue, which results in straight-line recognition over the performance period. If the Company’s performance is not yet completed at the time that the constraint is lifted, a cumulative catch-up adjustment will be recognized in the period. If no other performance is required by the Company at the time the constraint is lifted, the Company expects to recognize all revenue associated with such milestone payments at the time that the constraint is lifted. Performance Obligations under the Amended Sato Agreement The net amount of existing performance obligations under long-term contracts unsatisfied as of December 31, 2022 was $10,665. The Company expects to recognize approximately 24% of the remaining performance obligations as revenue over the next 12 months, and the balance thereafter. The Company applied the practical expedient and does not disclose information about variable consideration related to sales-based or usage-based royalties promised in exchange for a license of intellectual property. This expedient specifically applied to the sales-based milestone payments that are present in the Amended Sato Agreement (3.9 billion JPY), as well as percentage-based royalty payments in the Amended Sato Agreement that are contingent upon future sales. Sato Rhofade Agreement In December 2022, the Company entered into a license agreement with Sato in which they were granted an exclusive, royalty-bearing, non-transferable right and license under certain of EPI Health's intellectual property rights to develop, manufacture and market Rhofade (oxymetazoline hydrochloride cream, 1%) for the treatment of rosacea in Japan (the “Sato Rhofade Agreement”). In addition, per the Sato Rhofade Agreement, during a specified time period, Sato has an exclusive option to negotiate the terms under which its license would be expanded to include certain other countries in the Asia-Pacific region. The Company assessed the Sato Rhofade Agreement in accordance with ASC 606 and concluded that the contract counterparty, Sato, is a customer within the scope of ASC 606. The Company also identified one performance obligation within the Sato Rhofade Agreement, comprised of the delivery of a functional intellectual property license including scientific information, or know-how. The Company assessed certain options provided to Sato within the agreement, including the option to enter into additional licenses for other geographies, but concluded these rights were not material in regards to the determination of the performance obligation that was fixed and determinable as they would involve separate negotiations. Therefore, the contract provisions to provide certain options to Sato is not considered to be a material right and is not a performance obligation or part of the performance obligation described above. In exchange for the license granted to Sato, Sato agreed to pay the Company the following: (i) an upfront payment of $5,000; and (ii) a milestone payment of $2,500 upon receipt of marketing approval of Rhofade for rosacea in the Japan territory. Sato also agreed to pay tiered royalty payments on net sales of the licensed product ranging over time from a percentage of net sales in the mid-teens to a percentage of net sales in the low single digits. Therefore, the Company concluded that the transaction price was comprised of both fixed and variable consideration. The Company’s assessment of variable consideration related to the milestone payment and potential future royalty payments were completely constrained at contract inception. The Company concluded that the performance obligation related to the recognition of the upfront payment was satisfied at a point in time, in which the license and related know-how were transferred. Therefore, the upfront payment was recognized on the Sato Rhofade Agreement effective date. The milestone will be recognized when marketing approval in Japan is probable. The Company applied the practical expedient related to sales-based or usage-based royalties promised in exchange for a license of intellectual property and will record any royalties as the future sales occur. In addition, the Company is required to pay 25% of the upfront and milestone payment amounts to a third party under existing contractual obligations related to Rhofade and will also be required to pay a portion of the royalty amounts received under the Sato Rhofade Agreement to third parties, after which the Company will retain net royalties in the low single digits. See Note 9—“Commitments and Contingencies” for additional detail regarding this obligation. The initial term of the Sato Rhofade Agreement expires on the fifteenth anniversary of the first marketing approval of the licensed product for rosacea in the Japan territory. The term of the Sato Rhofade Agreement automatically extends for a further period of two years, unless either party gives one year’s notice before the end of the initial term. The Sato Rhofade Agreement may be terminated, among other reasons, (i) by Sato without cause upon 120 days’ advance written notice to the Company; (ii) by either party in the event of the other party’s uncured material breach upon 60 days’ advance written notice; and (iii) by the Company if Sato challenges the validity, patentability or enforceability of any of the Company’s patents licensed to Sato under the Sato Rhofade Agreement. Prasco Agreement - Cloderm AG five one

Research and Development Agreem

Research and Development Agreements	12 Months Ended
	Dec. 31, 2022
Collaboration Arrangements [Abstract]
Research and Development Agreements	License and Collaboration Agreements Wynzora Agreement Effective as of January 1, 2022, EPI Health entered into an amended and restated promotion and collaboration agreement with MC2 Therapeutics Limited (“MC2”), relating to the commercialization of Wynzora for treatment of plaque psoriasis in adults in the United States (the “MC2 Agreement”). Pursuant to the MC2 Agreement, which sets forth the collaborative efforts between EPI Health and MC2 to commercialize and promote Wynzora with MC2 in the United States, MC2 granted EPI Health an exclusive right and license under MC2’s intellectual property rights to sell, or detail (as defined in the MC2 Agreement), and engage in certain commercialization activities with respect to Wynzora in the United States. In exchange for the provision of promotional and commercialization activities, under the terms of the MC2 Agreement, EPI Health is entitled to receive: • Reimbursement for all incremental costs incurred by the Company for the promotion and commercialization of Wynzora, including the incremental portion of the Company’s personnel and commercial operating costs. The supply price of Wynzora product inventory is also considered to be an incremental cost that is reimbursed by MC2. • A commercialization fee equivalent to a percentage of net sales ranging from the mid-teens for net sales less than or equal to $65,000 to the upper single digits for annual net sales greater than $105,000. EPI Health collects this commercialization fee by retaining its portion of the Wynzora product net sales it collects from its customers, with the remainder of the net sales being remitted by EPI Health to MC2 periodically in the form of a royalty payment, pursuant to the MC2 Agreement. • A contingent incentive fee equal to 5% of the first $30,000 in net sales of Wynzora sold in the United States by EPI Health in each of the 2022 and 2023 calendar years; provided that such incentive fee shall not exceed $1,500 each year and such incentive fee shall not be credited to EPI Health until the royalty payments paid to MC2 surpass the amount of certain commercialization payments made previously by MC2. The term of the MC2 Agreement runs until the seventh anniversary of the first commercial sale of Wynzora (as defined in the MC2 Agreement) or June 30, 2028, whichever is earlier. Either party may terminate the MC2 Agreement for the other party’s material uncured breach or the bankruptcy or insolvency of the other party. MC2 may terminate the MC2 Agreement under certain scenarios, including for convenience with twelve months’ advance notice to EPI Health, provided that the termination is not effective unless MC2 pays any unpaid historical liabilities related to commercialization of Wynzora owed by MC2. In the case of such termination, MC2 is also required to make an additional sunset payment to EPI Health, paid in installments over the 24 month period following termination. EPI Health may terminate the MC2 Agreement for convenience with twelve months’ advance notice to MC2 provided that the termination is not effective unless the Company provides MC2 with a guarantee of the payment of any outstanding royalty payments, to the extent such royalty payments owed by EPI Health exceed any unpaid historical liabilities related to commercialization of Wynzora owed by MC2. Rhofade Agreements In connection with the Rhofade Acquisition Agreement that is described in Note 9—“Commitments and Contingencies”, EPI Health acquired rights to that certain Assignment and License Agreement, whereby EPI Health licenses certain intellectual property from Aspect Pharmaceuticals, LLC (“Aspect” and such agreement, the “Aspect Agreement”). Under the terms of the Aspect Agreement, EPI Health, as successor-in-interest, has exclusive rights to, and is required to use commercially reasonable efforts to, commercialize the Rhofade product. EPI Health also has a duty to certain other parties to use commercially reasonable efforts to commercialize the Rhofade product based on historical acquisition agreements for Rhofade that were assumed by EPI Health. The Aspect Agreement expires upon the last-to-expire of patent claims made under the assigned and licensed patents under the Aspect Agreement. Aspect may terminate the agreement upon a material breach by EPI Health after providing an opportunity to cure. Upon such termination by Aspect, EPI Health will cease all development and commercialization of Rhofade and EPI Health will assign and convey to Aspect its entire right, title and interest in and to the assigned intellectual property transferred under the Aspect Agreement. Additionally, under the Aspect Agreement, the Rhofade Acquisition Agreement and the other historical acquisitions related to Rhofade, EPI Health is also required to pay a combined royalty on net sales of Rhofade and related products initially in the low double digits, which rate may increase based on the thresholds of net sales achieved by EPI Health. EPI Health is also required to pay 25% of any upfront, license, milestone or other related payments received by EPI Health related to any sublicenses of Rhofade and related products. In connection with two abbreviated new drug application (“ANDA”) settlement agreements that EPI Health entered into in connection with Rhofade in 2021, EPI Health granted two ANDA filers a license to launch their own generic product for the treatment of erythema in rosacea. The actual timing of the launch of such generic products is uncertain because the launch dates of such products under the settlement agreements are subject to acceleration under certain circumstances. In the absence of any circumstances triggering acceleration, the earliest launch of such a generic product would be in the third quarter of 2026. Minolira Agreements In connection with the Minolira acquisition that is described in Note 9—“Commitments and Contingencies”, EPI Health assumed the royalty obligation related to an ANDA settlement in connection with Minolira. Accordingly, EPI Health is required to pay a royalty to an ANDA filer in the low double digits of any generic form of Minolira that is the pharmaceutical equivalent of the 105 mg or 135 mg strength Minolira product. Sitavig Agreements On February 21, 2020, EPI Health entered into an agreement with Vectans Pharma (“Vectans”) in which the parties terminated an existing license agreement dated March 17, 2014 which granted EPI Health the exclusive right to develop and commercialize a prescription Sitavig product in the United States and Canada, and instead provided that EPI Health would purchase outright certain intellectual property (and license other intellectual property) related to the prescription Sitavig Rx product in the United States and Canada (the “Vectans Agreement”). At the time it entered into the Vectans Agreement, EPI Health also entered into an OTC Switch License Agreement (the “OTC License Agreement”) with Bayer Healthcare LLC (“Bayer”). Under the OTC License Agreement, EPI Health granted to Bayer an exclusive and sublicensable license to develop and commercialize an OTC product in the United States and Canada. Under the OTC License Agreement, Bayer has agreed to pay EPI Health various regulatory milestone payments upon the achievement of such regulatory milestones equaling a maximum aggregate amount of $9,500, along with various commercial milestone payments upon the achievement of such commercial milestones equaling a maximum aggregate amount of $20,000. Under the Vectans Agreement, EPI Health is required to pay Vectans various milestone and royalty payments in amounts ranging from 32% ‐ 50% of the amounts paid by Bayer to EPI Health pursuant to the OTC License Agreement, and the Company will also be required to pay a portion of such milestone payments to EPG under the EPI Health Purchase Agreement. Bayer has also agreed to pay to EPI Health a tiered royalty ranging from a mid-single digit to a low-double digit percentage of net sales of licensed products in the licensed territory, subject to a reduction in the royalty payments in certain circumstances. Bayer is responsible for funding the development and commercial costs for the OTC product in the United States and Canada. The Company is obligated to perform certain oversight, review and supporting activities for Bayer, including (i) maintaining existing EPI Health patents related to the Sitavig product, and (ii) participating in a joint committee that oversees, reviews and approves development and commercialization activities under the OTC License Agreement. The OTC License Agreement expires on the tenth anniversary of the first commercial sale of an OTC product on a country-by-country basis. The OTC License Agreement may be terminated by (i) Bayer without cause upon nine months’ advance written notice to EPI Health, (ii) either party in the event of the other party’s uncured material breach upon 60 days’ advance written notice, (iii) either party, upon three months’ notice, in the event Bayer provides EPI Health with notice that Bayer has elected to permanently discontinue development of the OTC product in the United States and Canada, and (iv) either party in the event of the other party’s dissolution, liquidation, bankruptcy or insolvency. On the tenth anniversary of the first commercial sale of the OTC product on a country-by-country basis, assuming Bayer is not in breach and the OTC License Agreement has not been terminated, Bayer will have an irrevocable, royalty-free license to commercialize the OTC product without any further obligations to EPI Health. Nuvail Agreements On November 7, 2021, a predecessor of EPI Health entered into an exclusive license agreement with Chesson Laboratory Associates, Inc. (“Chesson”), as subsequently amended, for the sale of Nuvail, and pursuant to such agreement, EPI Health serves as an exclusive distributor of this product in the United States. Pursuant to the Nuvail license agreement, EPI Health is required to pay a tiered royalty up to a low double digit percentage of net sales of Nuvail, subject to a minimum annual royalty payment. The initial term of the license agreement expired in 2021 and was automatically extended for an additional five year renewal period. The license agreement may be terminated by either party for material breach. Chesson may terminate the license agreement early for convenience upon 12 months’ notice but is required to pay a termination fee based on a multiple of trailing twelve months gross sales. EPI Health is not currently actively promoting this product as part of its commercial portfolio. UNC Agreements The Amended, Restated and Consolidated License Agreement dated June 27, 2012, as amended, with the University of North Carolina at Chapel Hill (“UNC,” and such agreement, the “UNC License Agreement”) provides the Company with an exclusive license to issued patents and pending applications directed to the Company’s library of Nitricil compounds, including patents issued in the United States, Japan and Australia, with claims intended to cover NVN1000, the new chemical entity (“NCE”) for the Company’s current product candidates. The UNC License Agreement requires the Company to pay UNC up to $425 in regulatory and commercial milestones on a licensed product by licensed product basis and a running royalty percentage in the low single digits on net sales of licensed products. Licensed products include any products being developed by the Company or by its sublicensees. Unless earlier terminated by the Company at its election, or if the Company materially breaches the agreement or becomes bankrupt, the UNC License Agreement remains in effect on a country by country and licensed product by licensed product basis until the expiration of the last to expire issued patent covering such licensed product in the applicable country. The projected date of expiration of the last to expire of the patents issued under the UNC License Agreement is 2036. Other Research and Development Agreements The Company has entered into various licensing agreements with universities and other research institutions under which the Company receives the rights, and in some cases substantially all of the rights, of the inventors, assignees or co-assignees to produce and market technology protected by certain patents and patent applications. In addition to the UNC License Agreement, which is the Company’s primary license agreement, the counterparties to the Company’s various other licensing agreements are the University of Akron Research Foundation, Hospital for Special Surgery, Strakan International S.a.r.l., which is a licensee of the University of Aberdeen, KIPAX AB and KNOW Bio. The Company is required to make payments based upon achievement of certain milestones and will be required to make royalty payments based on a percentage of future sales of covered products or a percentage of sublicensing revenue. As future royalty payments are directly related to future revenues (either sales or sublicensing), future commitments cannot be determined. No accrual for future payments under these agreements has been recorded, as the Company cannot estimate if, when or in what amount payments may become due. KNOW Bio Agreements On December 30, 2015, the Company completed the distribution of 100% of the outstanding membership interests of KNOW Bio, LLC (“KNOW Bio”), a former wholly owned subsidiary of the Company, to Novan’s stockholders (the “Distribution”), pursuant to which KNOW Bio became an independent privately held company. In connection with the Distribution, the Company entered into exclusive license agreements and sublicense agreements with KNOW Bio, as described below. The agreements will continue for so long as there is a valid patent claim under the respective agreement, unless earlier terminated, and upon expiration, will continue as perpetual non-exclusive licenses. KNOW Bio has the right to terminate each such agreement, for any reason upon 90 days advance written notice to the Company. License of existing and potential future intellectual property to KNOW Bio. The Company and KNOW Bio entered into an exclusive license agreement dated December 29, 2015 (the “KNOW Bio License Agreement”). Pursuant to the terms of the KNOW Bio License Agreement, the Company granted to KNOW Bio exclusive licenses, with the right to sublicense, under certain United States and foreign patents and patent applications that were controlled by the Company as of December 29, 2015 or that became controlled by the Company between that date and December 29, 2018, directed towards nitric-oxide releasing compositions and methods of manufacturing thereof, including methods of manufacturing Nitricil compounds and other nitric oxide-based therapeutics. Sublicense of UNC and other third party intellectual property to KNOW Bio. The Company and KNOW Bio also entered into sublicense agreements dated December 29, 2015 (the “KNOW Bio Sublicense Agreements” and together with the KNOW Bio License Agreement, the “Original KNOW Bio Agreements”). Pursuant to the terms of the KNOW Bio Sublicense Agreements, the Company granted to KNOW Bio exclusive sublicenses, with the ability to further sublicense, under certain of the United States and foreign patents and patent applications exclusively licensed to the Company from UNC under the UNC License Agreement, and another third party directed towards nitric oxide-releasing compositions, to develop and commercialize products utilizing the licensed technology. Under the exclusive sublicense to the UNC patents and applications (the “UNC Sublicense Agreement”), KNOW Bio is subject to the terms and conditions under the UNC License Agreement, including milestone and diligence payment obligations. However, pursuant to the terms of the UNC License Agreement, the Company is directly obligated to pay UNC any future milestones or royalties, including those resulting from actions conducted by the Company’s sublicensees, including KNOW Bio. Therefore, in the event of KNOW Bio non-performance with respect to its obligations under the UNC Sublicense Agreement, the Company would be obligated to make such payments to UNC. KNOW Bio would then become obligated to repay the Company pursuant to the UNC Sublicense Agreement, otherwise KNOW Bio would be in breach of its agreements with the Company and intellectual property rights would revert back to the Company. There were no milestone or royalty payments required during the years ended December 31, 2022 and December 31, 2021. On October 13, 2017, the Company and KNOW Bio entered into certain amendments to the Original KNOW Bio Agreements (the “KNOW Bio Amendments”). Pursuant to the terms of the KNOW Bio Amendments, the Company re-acquired from KNOW Bio exclusive, worldwide rights under certain United States and foreign patents and patent applications controlled by the Company as of December 29, 2015, and that became controlled by the Company between December 29, 2015 and December 29, 2018, directed towards nitric oxide-releasing compositions and methods of manufacturing thereof, including methods of manufacturing Nitricil compounds, and other nitric oxide-based therapeutics, to develop and commercialize products for all diagnostic, therapeutic, prophylactic and palliative uses for any disease, condition or disorder caused by certain oncoviruses (the “Oncovirus Field”). KNOW Bio also granted to the Company an exclusive license, with the right to sublicense, under any patents and patent applications which became controlled by KNOW Bio during the three-year period between December 29, 2015 and December 29, 2018 and directed towards nitric oxide-releasing compositions and methods of manufacturing thereof, including methods of manufacturing Nitricil compounds, and other nitric oxide-based therapeutics, but not towards medical devices, to develop and commercialize products for use in the Oncovirus Field. Upon execution of the KNOW Bio Amendments, in exchange for the Oncovirus Field rights, the Company paid KNOW Bio a non-refundable upfront payment of $250. Products the Company develops in the Oncovirus Field based on Nitricil will not be subject to any further milestones, royalties or sublicensing payment obligations to KNOW Bio under the KNOW Bio Amendments. However, if the Company develops products in the Oncovirus Field that incorporate a certain nitric oxide-releasing composition specified in the KNOW Bio Amendments and (i) are covered by KNOW Bio patents or (ii) materially use or incorporate know-how of KNOW Bio or the Company related to such composition that was created between December 29, 2015 and December 29, 2018, the Company would be obligated to make the certain contingent milestone and royalty payments to KNOW Bio under the KNOW Bio Amendments. The rights granted to the Company in the Oncovirus Field in the KNOW Bio Amendments continue for so long as there is a valid patent claim under the Original KNOW Bio Agreements, and upon expiration continue on a perpetual non-exclusive basis, and are subject to the termination rights of KNOW Bio and the Company that are set forth in the Original KNOW Bio Agreements. In addition, under the KNOW Bio Amendments, KNOW Bio may terminate the rights granted to the Company in the Oncovirus Field without terminating the Original KNOW Bio Agreements. The KNOW Bio Amendments also provide a mechanism whereby either party may cause a NCE covered by the Original KNOW Bio Agreements to become exclusive to such party by filing an investigational new drug application (“IND”) on the NCE. An NCE that becomes exclusive to a party under this provision may not be commercialized by the other party until the later of expiration of patents covering the NCE or regulatory exclusivity covering the NCE. A party who obtains exclusivity for an NCE must advance development of the NCE pursuant to terms of the KNOW Bio Amendments in order to maintain such exclusivity; otherwise, such exclusivity will expire. See Note 13—“Net Product Revenues” and Note 14—“License and Collaboration Revenues” for additional detail regarding revenue generating license and collaboration agreements, including related accounting treatments. Royalty and Milestone Payments Purchase Agreement with Reedy Creek Investments LLC On April 29, 2019, the Company entered into a royalty and milestone payments purchase agreement (the “Reedy Creek Purchase Agreement”) with Reedy Creek Investments LLC (“Reedy Creek”), pursuant to which Reedy Creek provided funding to the Company in an amount of $25,000 for the Company to use primarily to pursue the development, regulatory approval and commercialization activities (including through out-license agreements and other third-party arrangements) for SB206, a topical gel with anti-viral properties being developed as a treatment for molluscum, and advancing programmatically such activities with respect to SB204, a once-daily, topical monotherapy being developed for the treatment of acne vulgaris, and SB414, a topical cream-based product candidate being developed for the treatment of atopic dermatitis. If the Company successfully commercializes any such product, following regulatory approval, the Company will be obligated to pay Reedy Creek a low single digit royalty on net sales of such products in the United States, Mexico or Canada. The Company determined that the Reedy Creek Purchase Agreement is within the scope of ASC 730-20, Research and Development Arrangements (“ASC 730-20”), and that there has not been a substantive and genuine transfer of risk related to the Reedy Creek Purchase Agreement. As such, the Company determined that the appropriate accounting treatment under ASC 730-20 was to record the proceeds of $25,000 as cash and cash equivalents, as the Company had the ability to direct the usage of funds, and a long-term liability within its classified balance sheet. Development Funding and Royalties Agreement with Ligand Pharmaceuticals Incorporated On May 4, 2019, the Company entered into a development funding and royalties agreement (the “Ligand Funding Agreement”) with Ligand Pharmaceuticals Incorporated (“Ligand”), pursuant to which Ligand provided funding to the Company of $12,000, for the Company to use to pursue the development and regulatory approval of SB206, a topical gel with anti-viral properties being developed as a treatment for molluscum. Pursuant to the Ligand Funding Agreement, the Company will pay Ligand up to $20,000 in milestone payments upon the achievement by the Company of certain regulatory and commercial milestones associated with SB206 or any product that incorporates or uses NVN1000, the API for the Company’s clinical stage product candidates, as a treatment for molluscum. In addition to the milestone payments, the Company will pay Ligand tiered royalties ranging from 7% to 10% based on annual aggregate net sales of such products in the United States, Mexico or Canada. The Company determined that the Ligand transaction is within the scope of ASC 730-20 as it represents an obligation to perform contractual services for the development of SB206 using commercially reasonable efforts. As such, the Company concluded that the appropriate accounting treatment under ASC 730-20 was to record the proceeds of $12,000 as a liability and amortize the liability ratably during each reporting period, based on the Ligand funding as a percentage of the total direct costs incurred by the Company during the reporting period related to the estimated total cost to progress the SB206 program to a regulatory approval in the United States. The ratable Ligand funding is presented within the accompanying consolidated statements of operations and comprehensive loss within research and development expenses associated with the SB206 program. For the years ended December 31, 2022 and December 31, 2021, the Company recorded $968 and $88, respectively, of contra-research and development expense related to the SB206 developmental program, funded by Ligand. During the year ended December 31, 2021, after the announcement of the B-SIMPLE4 positive top-line results on June 11, 2021, the Company reassessed and identified additional estimated costs necessary to progress the SB206 program to a potential United States regulatory approval. As such, the estimated regulatory costs subject to the Ligand funding increased from prior periods. The Company will continue to monitor and adjust its estimated regulatory costs, through approval, as needed.

Stock-Based Compensation

Stock-Based Compensation	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock Based Compensation 2016 Incentive Award Plan For the years ended December 31, 2022 and December 31, 2021, the Company continued to administer and grant awards under the 2016 Incentive Award Plan, as amended (the “2016 Plan”), the Company’s only active equity incentive plan. Certain of the Company’s stock options granted under the Company’s 2008 Stock Plan (the “2008 Plan”), which was the predecessor to the 2016 Plan and became inactive upon adoption of the 2016 Plan effective September 20, 2016, remain outstanding and exercisable. The 2016 Plan provides for the grant of the following awards: (i) incentive stock options, (ii) nonstatutory stock options, (iii) SARs, (iv) restricted stock awards, (v) restricted stock unit awards and (vi) other stock awards. Eligible plan participants include employees, directors, and consultants. At the Company’s Annual Meeting of Stockholders held on May 4, 2021, the Company’s stockholders approved an amendment to the 2016 Plan (the “2016 Plan Amendment”), to increase the aggregate number of shares of the Company’s common stock authorized for issuance thereunder by 1,500,000 shares. This amendment was approved by the Company’s board of directors on March 10, 2021. The approval by the Company’s stockholders of the 2016 Plan Amendment was contingent upon the occurrence of certain other events, including that the 2016 Plan Amendment would become effective at the effective time of a certificate of amendment to the Company’s certificate of incorporation filed with the Secretary of State of the State of Delaware in relation to a potential reverse stock split pursuant to the authority previously granted to the Company’s board of directors by the Company’s stockholders at the 2020 Annual Meeting. The Certificate of Amendment filed in connection with the Reverse Stock Split became effective at 5:00pm on May 25, 2021, and thus, the 2016 Plan Amendment became effective on May 25, 2021. As of December 31, 2022, there were 241,801 shares available for future issuance under the 2016 Plan. Under both the 2008 Plan and the 2016 Plan, options to purchase the Company’s common stock may be granted at a price no less than the fair value of a common stock share on the date of grant. The Black-Scholes option-pricing model uses the common stock fair value based on the closing sales price for a share as quoted on any established securities exchange for such grant date or the last preceding date for which such quotation exists. Vesting terms of options issued are determined by the board of directors or compensation committee of the board. The Company’s stock options vest based on terms in the stock option agreements and have a maximum term of ten years. Restricted Stock Units The Company accounts for restricted stock units (“RSUs”) based on their estimated fair values on the date of grant. The fair value of RSUs is estimated based on the closing price of the underlying common stock on the date of grant. Stock-based compensation expense related to the RSUs is recognized on a straight-line basis over the requisite service period, net of estimated forfeitures. The terms of the RSUs, including the vesting provisions, are determined by the board of directors. Each RSU represents the contingent right to receive one share of common stock of the Company. The RSUs granted typically cliff vest after a one-year period for grants to directors and a two-year period for grants to employees, provided that the grantee remains a director, employee or consultant of the Company as of such vesting date. For the year ended December 31, 2022, 263,000 and 216,606 RSUs were granted to employees and directors, respectively. There were no RSU grants for the year ended December 31, 2021. Stock Appreciation Rights The Company has occasionally used stock appreciation rights (“SARs”) as a component of executive compensation. As of December 17, 2019, the Company entered into an amended and restated employment agreement with Paula Brown Stafford which provided for a grant of 60,000 SARs with an exercise price of $8.20 per share (the fair market value of the Company’s common stock on the grant date) and with a ten-year term. These SAR awards were vested in full as of December 31, 2021. As of December 31, 2022, there were a total of 60,000 SARs outstanding, which were fully exercisable. Tangible Stockholder Return Plan On August 2, 2018, the Company’s board of directors approved and established the Tangible Stockholder Return Plan, which was a performance-based long-term incentive plan (the “Performance Plan”). The Performance Plan was effective immediately upon approval and expired on March 1, 2022. The Performance Plan covered all employees, including the Company’s executive officers, consultants and other persons deemed eligible by the Company’s compensation committee. The core underlying metric of the Performance Plan was the potential achievement of two share price goals for the Company’s common stock, which, if achieved, could have represented measurable increases in stockholder value. The Performance Plan expired on March 1, 2022. As the Company’s stock price did not reach the minimum share price targets necessary to trigger a payment, no payments were made under the Performance Plan to any participants during the period the Performance Plan was effective. Inducement Grants In prior years, the Company awarded nonstatutory stock options to purchase shares of common stock to newly-hired employees as inducements material to the individuals’ entering into employment with the Company within the meaning of Nasdaq Listing Rule 5635(c)(4) (the “Inducement Grants”). The Inducement Grants were awarded outside of the Company’s 2016 Plan, pursuant to Nasdaq Listing Rule 5635(c)(4), but have terms and conditions generally consistent with the Company’s 2016 Plan and vest over three years, subject to the employee’s continued service as an employee or consultant through the vesting period. As of December 31, 2022, there were a total of 1,250 Inducement Grants outstanding. Stock Compensation Expense During the years ended December 31, 2022 and December 31, 2021, the Company recorded employee stock-based compensation expense, including fair value adjustments of the Tangible Stockholder Return Plan, as follows: Year Ended December 31, 2022 2021 Stock options $ 1,333 $ 826 Restricted stock units 547 — Stock appreciation rights — 115 Tangible Stockholder Return Plan — (666) Total $ 1,880 $ 275 Total stock-based compensation expense for the years ended December 31, 2022 and December 31, 2021 included in the accompanying consolidated statements of operations and comprehensive loss is as follows: Year Ended December 31, 2022 2021 Research and development $ 449 $ (250) General and administrative 1,431 525 Total $ 1,880 $ 275 The fair value of each option grant is estimated on the grant date using the Black-Scholes option-pricing model, and the following weighted average assumptions: Year Ended December 31, 2022 2021 Estimated dividend yield — % — % Expected volatility 110.97 % 107.54 % Risk-free interest rate 2.59 % 1.02 % Expected life of options (in years) 5.95 5.79 Weighted-average fair value per share $ 2.72 $ 7.13 The Company estimates forfeitures based on various classes of option grantees and the rates used ranged from 12.2% to 11.9% during the years ended December 31, 2022 and December 31, 2021, respectively. Stock compensation activity for the periods indicated is as follows: Shares Shares Weighted- Weighted- Aggregate Options outstanding as of December 31, 2020 52,378 199,199 $ 30.71 Additional shares reserved under plan 1,500,000 — SARs forfeited 1,000 — Options granted (385,885) 385,885 8.82 Options forfeited 45,731 (53,689) 26.72 Options exercised — (12,842) 4.74 Options outstanding as of December 31, 2021 1,213,224 518,553 $ 15.48 RSUs granted (479,606) — RSUs forfeited 22,200 — Options granted (543,300) 543,300 3.25 Options forfeited 29,283 (29,283) 4.92 Options outstanding as of December 31, 2022 241,801 1,032,570 $ 9.34 8.47 $ — Vested and expected to vest as of 470,773 $ 16.24 8.67 $ 2 Exercisable as of December 31, 2021 200,638 $ 26.59 7.46 $ 2 Vested and expected to vest as of 943,355 $ 9.82 8.42 $ — Exercisable as of December 31, 2022 352,915 $ 18.70 7.38 $ — The total intrinsic value of options exercised during the years ended December 31, 2022 and December 31, 2021 was zero and $3, respectively. As of December 31, 2022 and December 31, 2021, total unrecognized compensation expense related to non-vested stock options was $1,912 and $1,852, respectively, which is expected to be recognized over a weighted average period of 1.91 and 2.26 years, respectively. RSU activity for the year ended December 31, 2022 is as follows: Shares Weighted- Nonvested RSUs outstanding as of December 31, 2021 — $ — RSUs granted 479,606 2.87 RSUs forfeited (22,200) 2.98 RSUs vested — — Nonvested RSUs outstanding as of December 31, 2022 457,406 $ 2.86 As of December 31, 2022, total unrecognized compensation expense related to non-vested RSUs was $762, which is expected to be recognized over a weighted average period of 0.96 years.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesThere was no income tax benefit recognized for the years ended December 31, 2022 and December 31, 2021 due to the Company’s history of net losses combined with an inability to confirm recovery of the tax benefits from the Company’s losses and other net deferred tax assets. The Company has established a valuation allowance against its deferred tax assets due to the uncertainty surrounding the realization of such assets. Net operating loss (“NOL”) and tax credit carryforwards are subject to review and possible adjustment by the Internal Revenue Service and state tax authorities. NOL and tax credit carry forwards may become subject to an annual limitation in the event of certain cumulative changes in the ownership interest of significant stockholders over a three-year period in excess of 50%, as defined under Sections 382 and 383 of the Internal Revenue Code of 1986, as amended, or “the Code,” as well as similar state tax provisions. The amount of the annual limitation, if any, will be determined based on the value of the company immediately prior to an ownership change. Subsequent ownership changes may further affect the utilization in future years. Additionally, U.S. tax laws limit the time during which certain of these carry forwards may be applied against future taxable income (in the case of NOL carryforwards) and tax liabilities (in the case of tax credits). Therefore, the Company may not be able to take full advantage of these carry forwards for federal or state income tax purposes. During the course of preparing the Company’s consolidated financial statements as of and for the year ended December 31, 2021, the Company completed an assessment of the available NOL and tax credit carryforwards under Sections 382 and 383, respectively, of the Code. The Company determined that it underwent multiple ownership changes throughout its history as defined under Section 382, including most recently in 2015 and 2020. As a result of the identified ownership changes, the portion of NOL and tax credit carryforwards attributable to the pre-ownership change periods are subject to a substantial annual limitation under Sections 382 and 383 of the Code. The Company adjusted its NOL and tax credit carryforwards to address the impact of the Section 382 ownership changes, resulting in a reduction of available federal and state NOLs of $113.8 million and $149.4 million, respectively. The Company has not experienced another cumulative ownership change since 2020. The reasons for the difference between actual income tax benefit for the years ended December 31, 2022 and December 31, 2021, and the amount computed by applying the statutory federal income tax rate to losses before income tax benefit are as follows: Year Ended December 31, 2022 2021 Income tax benefit at federal statutory rate $ (6,569) $ (6,235) State income taxes, net of federal benefit (389) — Non-deductible expenses 98 63 Research and development tax credits (775) (768) Change in State Tax Rate (545) 1,532 Other 163 (96) Change in valuation allowance 8,017 5,504 Total income tax provision $ — $ — In 2021, following the enactment of North Carolina’s 2021 Appropriations Act, which included a gradual corporate income tax rate decrease to 0% by 2030, the Company reduced all of its North Carolina deferred tax assets, including the NOLs, to zero, as no benefit is expected to be realized from these deferred tax assets prior to 2030 when there would be no income tax in North Carolina. With the acquisition of EPI Health, the Company now has nexus in states other than North Carolina, and has revalued its deferred tax assets and the corresponding valuation allowance accordingly. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and deferred tax liabilities are as follows: As of December 31, 2022 2021 Deferred tax assets: Accrued compensation $ 28 $ 247 Accrued liabilities 2,332 117 Tax loss carryforwards 22,041 21,008 Intangible assets 7 213 Stock-based compensation 778 499 Tax credits 2,427 1,653 Research and development service obligation 5,701 5,575 Right-of-use lease liabilities 867 736 Deferred revenue 2,377 1,849 Capitalized research expenses 3,454 — Fixed assets — 305 Other 280 50 Total deferred tax assets 40,292 32,252 Less valuation allowance (39,823) (31,808) Net deferred tax asset 469 444 Deferred tax liabilities: Fixed assets (18) — Right-of-use lease assets (389) (356) Other (62) (88) Net noncurrent deferred tax asset (liability) $ — $ — As of December 31, 2022, the Company had federal and state NOL carryforwards of $104,745 and $65,061, respectively. The NOLs begin to expire in 2029 and 2024 for federal and state tax purposes, respectively. As of December 31, 2022, the Company had government research and development tax credits of approximately $2,427 to offset future federal taxes which begin to expire in 2041. The Company had no unrecognized tax benefits as of December 31, 2022 and December 31, 2021. The Company does not anticipate a significant change in total unrecognized tax benefits within the next 12 months. Tax years 2019-2021 remain open to examination by the major taxing jurisdictions to which the Company is subject. Additionally, years prior to 2019 are also open to examination to the extent of loss and credit carryforwards from those years.

Retirement Plan

Retirement Plan	12 Months Ended
	Dec. 31, 2022
Retirement Benefits [Abstract]
Retirement Plan	Retirement PlanThe Company maintains a defined contribution savings plan under Section 401(k) of the Internal Revenue Code. This plan covers all employees who meet minimum age requirements and allows participants to defer a portion of their annual compensation on a pre-tax basis. The Company has made discretionary matching contributions up to 5% of gross wages during 2022 and 2021. The Company contributed $524 and $258 for the years ended December 31, 2022 and December 31, 2021, respectively.

Fair Value

Fair Value	12 Months Ended
	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Fair Value	Fair ValueThe Company has contingent consideration associated with the EPI Health Acquisition that is required to be measured at fair value on a recurring basis, presented within the consolidated balance sheets as both current and long-term liabilities, beginning as of March 11, 2022. For assets and liabilities recorded at fair value, it is the Company’s policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements, in accordance with the fair value hierarchy. Fair value measurements for assets and liabilities where there exists limited or no observable market data and therefore, are based primarily upon estimates, are often calculated based on the economic and competitive environment, the characteristics of the asset or liability and other factors. Therefore, the results cannot be determined with precision and may not be realized in an actual sale or immediate settlement of the asset or liability. Additionally, there may be inherent uncertainties in any calculation technique, and changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the results of current or future values. The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The Company’s contingent consideration liability is measured on a recurring basis using level 3 inputs. The following table summarizes the change in fair value, as determined by Level 3 inputs for the contingent consideration liabilities for the year ended December 31, 2022: Balance at March 31, 2022 $ 3,773 Change in fair value (454) Balance at June 30, 2022 $ 3,319 Change in fair value 186 Measurement period adjustment (see Note 2) (125) Balance at September 30, 2022 $ 3,380 Change in fair value (892) Balance at December 31, 2022 $ 2,488 Contingent consideration liability, current portion $ 451 Contingent consideration liability, net of current portion 2,037 Balance at December 31, 2022 $ 2,488 The following tables present the significant inputs and valuation methodologies used for the Company’s fair value of the contingent consideration liabilities as of March 11, 2022, in addition to EPI Health’s forecasted net sales from the EPI Health legacy products: Transition Services Agreement Sitavig Milestone (Regulatory) Valuation methodology Probability-Weighted Probability-Weighted Term 0.81 1.89 Payment term 1.05 2.14 Adjusted discount rate 12.11 % 13.15 % First Sales Based Legacy Milestone Wynzora Milestone Second Sales Based Legacy Milestone Sitavig Milestone (Commercial) Valuation methodology Monte Carlo Monte Carlo Monte Carlo Monte Carlo Risk-adjusted discount rates (minimum) 5.39% 5.39% 5.39% 6.89% Risk-adjusted discount rates (maximum) 6.99% 6.23% 6.99% 7.15% Net sales volatility (per annum) 13.0% 12.0% 13.0% 13.0% Credit spread (continuous) 10.42% 10.55% 10.42% 11.13% The following tables present the significant inputs and valuation methodologies used for the Company’s fair value of the contingent consideration liabilities as of December 31, 2022, in addition to EPI Health’s forecasted net sales from the EPI Health legacy products: Transition Services Agreement Sitavig Milestone (Regulatory) Valuation methodology Probability-Weighted Probability-Weighted Term 0.2 3.25 Payment term 0.44 3.5 Adjusted discount rate 19.17 % 19.50 % First Sales Based Legacy Milestone Wynzora Milestone Second Sales Based Legacy Milestone Sitavig Milestone (Commercial) Valuation methodology Monte Carlo Monte Carlo Monte Carlo Monte Carlo Risk-adjusted discount rates (minimum) 8.90% 8.90% 8.90% 8.70% Risk-adjusted discount rates (maximum) 9.53% 8.97% 9.53% 8.90% Net sales volatility (per annum) 13.0% 12.0% 13.0% 13.0% Credit spread (continuous) 14.82% 14.01% 14.82% 15.57% For the year ended December 31, 2022, there was a $1,160 change in fair value related to contingent consideration related to the EPI Health Acquisition recorded in the accompanying consolidated statements of operations and comprehensive loss related primarily to changes in market assumptions, management forecasts and discount rates since the transaction date. Significant increases or decreases in any of the probabilities of success or changes in expected achievement of any of the milestones underlying the contingent consideration would result in a significantly higher or lower fair value of the contingent consideration liability. The contingent consideration is revalued at each reporting period and changes in fair value are recognized in the consolidated statements of operations and comprehensive loss until settlement. The following table presents information about the classification and potential earnout periods for the Company’s contingent consideration liabilities as of December 31, 2022: Fair Value Classification Earnout Period Transition Services Agreement $ 451 Current portion 11-Mar-2022 to 11-Mar-2023 First Sales Based Legacy Milestone — Current portion 1-Apr-2022 to 31-Mar-2023 Wynzora Milestone — Current portion 1-Apr-2022 to 31-Mar-2023 Second Sales Based Legacy Milestone 620 Non-current portion 1-Apr-2023 to 31-Mar-2026 Sitavig Milestones 1,417 Non-current portion 1-Apr-2026 to 1-Oct-2036 $ 2,488 See Note 2—“Acquisition of EPI Health” for additional detail regarding contingent consideration related to the transaction.

Segment Information

Segment Information	12 Months Ended
	Dec. 31, 2022
Segment Reporting [Abstract]
Segment Information	Segment Information The Company has determined that it operates in two segments, which represent (i) the promotion of commercial products for the treatment of medical dermatological conditions (the “Commercial Operations” segment), and (ii) research and development activities related to the Company’s nitric oxide-based technology to develop product candidates (the “Research and Development Operations” segment). • The Commercial Operations segment consists of the Company’s portfolio of commercial products. • The Research and Development Operations segment consists of multiple drug product candidates under clinical development. Costs associated with the development of SB206 are currently included in the Research and Development Operations segment. There are no significant inter-segment sales. The Company evaluates the financial performance of each segment based on operating profit or loss. There is no inter-segment allocation of non-operating expenses and income taxes. The Company’s chief operating decision-maker (“CODM”) is the Company’s Chairman, President and Chief Executive Officer. Segment revenue, net and comprehensive loss and total assets were as follows: Twelve Months Ended Twelve Months Ended December 31, 2022 December 31, 2021 Revenue Commercial operations $ 21,023 $ — Research and Development operations 2,659 2,958 Total revenue $ 23,682 $ 2,958 Net loss Commercial operations $ (1,776) $ — Research and Development operations (29,535) (29,692) Net loss and comprehensive loss $ (31,311) $ (29,692) As of December 31, 2022 Assets Commercial operations $ 63,564 Research and Development operations 26,766 Total assets $ 90,330 The net revenues attributed to the Commercial Operations segment are primarily derived from the sale of the Company’s commercial products and licensing agreements of those commercial products, such as the Sato Rhofade Agreement, and the net revenues attributed to the Research and Development Operations segment are primarily derived from the arrangement with the Company’s licensing partner in Japan for SB206 and SB204. Drug development and potential commercialization costs are included in the Research and Development Operations segment. Total assets by reporting segment are not reviewed by the CODM when evaluating the reporting segments’ performance, however, the Commercial Operations segment includes the acquired assets associated with the EPI Health Acquisition and changes in such assets, while the Research and Development Operations segment is comprised of the assets associated with the historical business of the Company related to the Company’s product candidates that are in development. Substantially all revenue was derived from product sales or from licensing agreements originating in the United States. All of the Company’s long-lived assets are maintained in the United States. Although all of the Company’s operations are based in, and all net product revenue is generated from, sales in the United States, the revenue generated from its licensing partner in Japan was $7,586, or 32% of total revenue, during the year ended December 31, 2022, of which $5,000 was attributed to the Commercial Operations segment and $2,586 was attributed to the Research and Development Operations segment. During the year ended December 31, 2021, the Company generated revenue from its licensing partner in Japan of $2,822, or 95% of total revenue. Pr ior to the quarter ended March 31, 2022, the Company operated in only one segment, which was the Research and Development Operations segment.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2022
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events March 2023 Registered Direct Offering On March 13, 2023, the Company entered into a securities purchase agreement with an institutional investor pursuant to which the Company agreed to issue and sell to the purchaser, in a registered direct offering, an aggregate of (i) 5,042,017 shares of its common stock (or pre-funded warrants to purchase common stock in lieu thereof) and (ii) warrants to purchase up to 5,042,017 shares of common stock, at an effective combined purchase price of $1.19 per share (or pre-funded warrant) and associated common warrant. The offering closed on March 16, 2023. The gross proceeds to the Company from the offering were approximately $6,000, before deducting placement agent fees and offering expenses, and excluding the exercise of any warrants. The Company estimates that its net proceeds from its issuance and sale of shares, pre-funded warrants and common warrants will be approximately $5,400. In connection with the offering, the Company and the purchaser agreed to amend the June 2022 Common Warrants to reduce the exercise price thereof from $2.851 to $1.20 per share of common stock, to delay the exercisability of the June 2022 Common Warrant until six months after the closing of the March 2023 Registered Direct Offering, and to extend the exercise period of the June 2022 Common Warrant until December 13, 2027. No other changes to the June 2022 Common Warrants were made. Outstanding common stock warrants, including pre-funded warrants, totaled 12,869,671 after the March 2023 Registered Direct Offering with a weighted-average exercise price of $1.03. March 2022 Equity Distribution Agreement – At-the-Market Facility

Organization and Significant _2

Organization and Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Additionally, the report of the Company’s independent registered public accounting firm on the Company’s consolidated financial statements as of and for the year ended December 31, 2022, includes an explanatory paragraph indicating that there is substantial doubt about the Company’s ability to continue as a going concern, as further discussed below.
Basis of Consolidation	Basis of Consolidation The accompanying consolidated financial statements reflect the operations of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The post-acquisition operating results of EPI Health are reflected within the Company’s consolidated statement of operations and comprehensive loss for the year ended December 31, 2022, specifically from March 11, 2022 through December 31, 2022.
Liquidity and Ability to Continue as a Going Concern	Liquidity and Ability to Continue as a Going Concern The Company’s consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The accompanying consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from uncertainty related to the Company’s ability to continue as a going concern. The Company has evaluated principal conditions and events, in the aggregate, that may raise substantial doubt about its ability to continue as a going concern within one year from the date that these financial statements are issued. The Company identified the following conditions: • The Company has reported a net loss in all fiscal periods since inception and, as of December 31, 2022, the Company had an accumulated deficit of $310,280. • As of December 31, 2022, the Company had a total cash and cash equivalents balance of $12,316. • The Company anticipates that it will continue to generate losses for the foreseeable future, and it expects the losses to increase as it continues the development of, and seeks regulatory approvals for, its product candidates and begins activities to prepare for potential commercialization of SB206, if approved. • The Company has concluded that the prevailing conditions and ongoing liquidity risks faced by the Company, coupled with its current forecasts, including costs associated with implementing the SB206 prelaunch strategy and commercial preparation, raise substantial doubt about its ability to continue as a going concern. This evaluation is also based on other relevant conditions that are known or reasonably knowable at the date that the financial statements are issued, including ongoing liquidity risks faced by the Company, the Company’s conditional and unconditional obligations due or anticipated within one year, the funds necessary to maintain the Company’s operations considering its current financial condition, obligations, and other expected cash flows, and other conditions and events that, when considered in conjunction with the above, may adversely affect the Company’s ability to meet its obligations. The Company will continue to evaluate this going concern assessment in connection with the preparation of its quarterly and annual financial statements based upon relevant facts and circumstances, including, but not limited to, its cash and cash equivalents balance and its operating forecast and related cash projection. The Company believes that its existing cash and cash equivalents as of December 31, 2022, plus expected receipts associated with product sales from its commercial product portfolio will not provide it with adequate liquidity to fund its planned operating needs for one year from the date of these financial statements. Variability in its operating forecast, driven primarily by (i) commercial product sales, (ii) timing of operating expenditures, and (iii) unanticipated changes in net working capital, will impact the Company’s cash runway. This operating forecast and related cash projection includes (i) costs associated with preparing for potential U.S. regulatory approval of SB206 as a treatment for molluscum, (ii) costs associated with the readiness and operation of the Company’s new manufacturing capability necessary to support small-scale drug substance and drug product manufacturing, (iii) conducting drug manufacturing activities with external third-party contract manufacturing organizations (“CMOs”), (iv) ongoing commercial operations, including sales, marketing, inventory procurement and distribution, and supportive activities, related to its portfolio of therapeutic products for skin diseases acquired with the EPI Health Acquisition, and (v) initial efforts to support potential commercialization of SB206, but excludes additional operating costs that could occur between the New Drug Application (“NDA”) submission for SB206 through NDA approval, including, but not limited to, manufacturing, marketing and commercialization efforts to achieve potential launch of SB206. The Company does not currently have sufficient funds to complete commercialization of any of its product candidates that are under development, and its funding needs will largely be determined by its commercialization strategy for SB206, subject to the regulatory approval process and outcome, and the operating performance of its commercial product portfolio. The inability of the Company to generate sufficient net revenues to fund its operations or obtain significant additional funding on acceptable terms in the near term, could have a material adverse effect on the Company’s business and cause the Company to alter or reduce its planned operating activities, including, but not limited to, delaying, reducing, terminating or eliminating planned product candidate development activities, furloughing employees or reducing the size of the workforce, to conserve its cash and cash equivalents. The Company has pursued and may continue to pursue additional capital through equity or debt financings or from other sources, including partnerships, collaborations, licensing, grants or other strategic relationships. The Company’s anticipated expenditure levels may change as it adjusts its current operating plan. Such actions could delay development timelines and have a material adverse effect on its business, results of operations, financial condition and market valuation. The Company may also explore the potential for additional strategic transactions, such as strategic acquisitions or in-licenses, sales, out-licenses or divestitures of some of its assets, or other potential strategic transactions, which could include a sale of the Company. If the Company were to pursue such a transaction, it may not be able to complete the transaction on a timely basis or at all or on terms that are favorable to the Company. Alternatively, if the Company is unable to obtain significant additional funding on acceptable terms or progress with a strategic transaction, it could instead determine to dissolve and liquidate its assets or seek protection under the bankruptcy laws. If the Company decides to dissolve and liquidate its assets or to seek protection under the bankruptcy laws, it is unclear to what extent the Company would be able to pay its obligations, and, accordingly, it is further unclear whether and to what extent any resources would be available for distributions to stockholders.
Business Acquisitions	Business Acquisitions The Company accounts for business acquisitions using the acquisition method of accounting in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations (“ASC 805”). ASC 805 requires, among other things, that assets acquired and liabilities assumed be recognized at their fair values, as determined in accordance with ASC 820, Fair Value Measurements (“ASC 820”), as of the acquisition date. For certain assets and liabilities, book value approximates fair value. In addition, ASC 805 establishes that consideration transferred be measured at the closing date of the acquisition at the then-current market price. Under ASC 805, acquisition-related costs (i.e., advisory, legal, valuation and other professional fees) are expensed in the period in which the costs are incurred. The application of the acquisition method of accounting requires the Company to make estimates and assumptions related to the estimated fair values of net assets acquired, which require significant management judgment.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. The Company reviews all significant estimates affecting the consolidated financial statements on a recurring basis and records the effects of any necessary adjustments prior to their issuance. Significant estimates made by management include provisions for product returns, coupons, rebates, chargebacks, trade and cash discounts, allowances and distribution fees paid to certain wholesalers, inventory net realizable value, useful lives of amortizable intangible assets, stock-based compensation, accrued expenses, valuation of assets and liabilities in business combinations, developmental timelines related to licensed products, valuation of notes payable issued in conjunction with the acquisition, valuation of contingent consideration and contingencies. Actual results may differ materially and adversely from these estimates. To the extent there are material differences between the estimates and actual results, the Company’s future results of operations will be affected.
Reclassifications	Reclassifications Certain amounts in the Company’s consolidated balance sheet as of December 31, 2021 have been reclassified to conform to the current presentation. Prepaid insurance in the amount of $1,697 and other current assets related to leasing arrangement, net in the amount of $109 has been reclassified to prepaid expenses and other current assets. In addition, certain current liabilities totaling $2,164, which were previously classified as accrued compensation, accrued outside research and development services, and accrued legal and professional fees, have been reclassified to all be included in accrued expenses to conform with the current presentation.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid instruments with a maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents include deposits and money market accounts.
Restricted Cash	Restricted CashRestricted cash as of December 31, 2022 and December 31, 2021 includes both a current and non-current component. The current component relates to a factoring facility entered into in December 2022. See Note 9—“Commitments and Contingencies” for further information. The non-current component relates to funds maintained in a deposit account to secure a letter of credit for the benefit of the lessor of the Company’s headquarters.
Accounts Receivable, net	Accounts Receivable, net Accounts receivable are carried at original invoice amount less an estimate made for doubtful receivables. An account receivable is considered to be past due if any portion of the receivable balance is outstanding beyond the agreed-upon due date. The Company records an allowance for credit losses, which includes a provision for expected losses based on historical write-offs, adjusted for current conditions as deemed necessary, reasonable and supportable forecasts about future conditions that affect the expected collectability of the reported amount of the financial asset, as well as a specific reserve for accounts deemed at risk. The allowance is the Company’s estimate for accounts receivable as of the balance sheet date that ultimately will not be collected. Any changes in the allowance are reflected in the results of operations in the period in which the change occurs. As of December 31, 2022, the Company had recorded a provision for expected losses of $141. No allowance for credit losses was recorded as of December 31, 2021 as all amounts included in accounts receivable were expected to be collected. Account balances are written off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Recoveries of receivables previously written off are recorded when received. The Company does not charge interest on accounts receivable.
Concentration of Credit Risk	Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of cash, cash equivalents and accounts receivable. The Company places its cash and cash equivalents with financial institutions and these deposits may at times be in excess of insured limits and the Company assesses the creditworthiness of its customers on an on-going basis.
Inventory, net	Inventory, net The Company maintains inventory consisting of for-sale pharmaceuticals related to its marketed product portfolio. The Company measures inventory using the first-in, first-out method and values inventory at the lower of cost or net realizable value. Net realizable value represents the estimated selling price for inventories less all estimated costs to sell.
Property and Equipment	Property and EquipmentLeasehold improvements are amortized over the shorter of the life of the lease or the useful life of the improvements. Expenditures for maintenance and repairs are expensed as incurred. Improvements and betterments that add new functionality or extend the useful life of an asset are capitalized. Leases for real estate often include tenant improvement allowances, which the Company assesses according to applicable accounting guidance to determine the appropriate owner, and capitalizes such tenant improvement assets accordingly.
Intangible Assets, net and Goodwill	Intangible Assets, net and Goodwill Intangible assets represent certain identifiable intangible assets, including product rights consisting of pharmaceutical product licenses and patents. Amortization for pharmaceutical products licenses is computed using the straight-line method based on the lesser of the term of the agreement and the useful life of the license. Amortization for pharmaceutical patents is computed using the straight-line method based on the useful life of the patent. Definite-lived intangible assets are reviewed for impairment whenever events or circumstances indicate that carrying amounts may not be recoverable. In the event impairment indicators are present or if other circumstances indicate that an impairment might exist, then management compares the future undiscounted cash flows directly associated with the asset or asset group to the carrying amount of the asset group being determined for impairment. If those estimated cash flows are less than the carrying amount of the asset group, an impairment loss is recognized. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. Considerable judgment is necessary to estimate the fair value of these assets, accordingly, actual results may vary significantly from such estimates. Indefinite-lived intangible assets, including goodwill and the cost to obtain and register the Company’s internet domain, are not amortized. The Company tests the carrying amounts of goodwill for recoverability on an annual basis at October 1 or when events or changes in circumstances indicate evidence that a potential impairment exists, using a fair value based test. Goodwill is assessed at the reporting unit level. The Company performed a qualitative assessment as of October 1, 2022 and concluded that it is not more likely than not that the fair value of the Company’s reporting unit was less than its carrying amount. A significant amount of judgment is involved in determining if an indicator of goodwill impairment has occurred. Such indicators may include, among others: a significant decline in expected future cash flows, a sustained, significant decline in the Company’s stock price and market capitalization, a significant adverse change in legal factors or in the business climate, adverse assessment or action by a regulator, and unanticipated competition. Any change in these indicators could have a significant negative impact on the Company’s financial condition, impact the goodwill impairment analysis or cause the Company to perform a goodwill impairment analysis more frequently than once per year.
Intellectual Property	Intellectual Property The Company’s policy is to file patent applications to protect technology, inventions and improvements that are considered important to its business. Patent positions, including those of the Company, are uncertain and involve complex legal and factual questions for which important legal principles are largely unresolved. Due to the uncertainty of future value to be realized from the expenses incurred in developing the Company’s intellectual property, the cost of filing, prosecuting and maintaining internally developed patents are expensed as general and administrative costs as incurred.
Leases	Leases The Company leases office space and certain equipment under non-cancelable lease agreements. The Company applies the accounting guidance in ASC 842, Leases. As such, the Company assesses all arrangements, that convey the right to control the use of property, plant and equipment, at inception, to determine if it is, or contains, a lease based on the unique facts and circumstances present in that arrangement. For those leases identified, the Company determines the lease classification, recognition, and measurement at the lease commencement date. For arrangements that contain a lease the Company: (i) identifies lease and non-lease components; (ii) determines the consideration in the contract; (iii) determines whether the lease is an operating or financing lease; and (iv) recognizes lease Right of Use (“ROU”) assets and corresponding lease liabilities. Lease liabilities are recorded based on the present value of lease payments over the expected lease term. The corresponding ROU asset is measured from the initial lease liability, adjusted by (i) accrued or prepaid rents; (ii) remaining unamortized initial direct costs and lease incentives; and (iii) any impairments of the ROU asset. The Company elected the practical expedient to not separate non-lease components from the lease components. Fixed lease payments on operating leases are recognized over the expected term of the lease on a straight-line basis. Variable lease expenses that are not considered fixed are expensed as incurred. Fixed and variable lease expense on operating leases is recognized within operating expenses within the accompanying consolidated statements of operations and comprehensive loss. The Company has elected the short-term lease exemption and, therefore, does not recognize an ROU asset or corresponding liability for lease arrangements with an original term of 12 months or less. The interest rate implicit in the Company’s lease contracts is typically not readily determinable and as such, the Company uses its incremental borrowing rate based on the information available at the lease commencement date, which represents an internally developed rate that would be incurred to borrow, on a collateralized basis, over a similar term, an amount equal to the lease payments in a similar economic environment. The Company leases office space and certain equipment under non-cancelable lease agreements. In accordance with ASC 842, Leases , arrangements meeting the definition of a lease are classified as operating or finance leases and are recorded on the balance sheet as both a right-of-use asset and lease liability, calculated by discounting fixed lease payments over the lease term at the rate implicit in the lease, if available, or otherwise at the Company’s incremental borrowing rate. For operating leases, interest on the lease liability and the amortization of the right-of-use asset result in straight-line rent expense over the lease term. Variable lease expenses, if any, are recorded when incurred. In calculating the right-of-use asset and lease liability, the Company elected, and has in practice, historically combined lease and non-lease components. The Company excludes short-term leases having initial terms of 12 months or less from the guidance as an accounting policy election and recognizes rent expense on a straight-line basis over the lease term.
Impairment of Long-Lived Assets	Impairment of Long-Lived AssetsLong-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for an amount by which the carrying amount of the asset exceeds the fair value of the asset.
Revenue Recognition	Revenue Recognition The Company accounts for revenue in accordance with ASC 606, Revenue from Contracts with Customers (“ASC 606”). To determine revenue recognition for arrangements that are within the scope of ASC 606, the Company (i) identifies the contract with a customer, (ii) identifies the performance obligations within the contract, (iii) determines the transaction price, (iv) allocates the transaction price to the performance obligations in the contract, and (v) recognizes revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that it will collect the consideration to which it is entitled 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 and 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. Upon occurrence of a contract modification, the Company conducts an evaluation pursuant to the modification framework in ASC 606 to determine the appropriate revenue recognition. The framework centers around key questions, including (i) whether the modification adds additional goods and services, (ii) whether those goods and services are distinct, and (iii) whether the contract price increases by an amount that reflects the standalone selling price for the new goods or services. The resulting conclusions will determine whether the modification is treated as a separate, standalone contract or if it is combined with the original contract and accounted for in that manner. In addition, some modifications are accounted for on a prospective basis and others on a cumulative catch-up basis. The Company currently has the following types of revenue generating arrangements: Net Product Revenues Net product revenues encompass sales resulting from transferring control of products to the customer, excluding amounts collected on behalf of third parties. The amount of revenue recognized is the amount allocated to the satisfied performance obligation taking into account variable consideration. The estimated amount of variable consideration is included in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Product sales are recognized at the point in time when legal transfer of title has occurred, based on shipping terms. The Company records a reduction to the transaction price for estimated chargebacks, rebates, coupons, trade and cash discounts and sales returns. A liability is recognized for expected sales returns, rebates, coupons, trade and cash discounts, chargebacks or other reimbursements to customers in relation to sales made in the reporting period. Payment terms can differ from contract to contract, but no element of financing is deemed present as the typical payment terms are less than 100 days. Therefore, the transaction price is not adjusted for the effects of a significant financing component. A receivable is recognized as soon as control over the products is transferred to the customer as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due. Variable consideration relates to sales returns, rebates, coupons, trade and cash discounts, and chargebacks granted to various direct and indirect customers. The Company recognizes provisions at the time of sale and adjusts them if the actual amounts differ from the estimated provisions. The following describes the nature of each deduction and how provisions are estimated: Chargebacks – The Company has arrangements with various third-party wholesalers that require the Company to issue a credit to the wholesaler for the difference between the invoice price to the wholesaler and the customer’s contract price. Provisions for chargebacks involve estimates of the contract prices within multiple contracts with multiple wholesalers. The provisions for chargebacks vary in relation to changes in product mix, pricing and the level of inventory at the wholesalers and, in addition, fluctuate in proportion to an increase or decrease in sales. Provisions for estimated chargebacks are calculated using the historical chargeback experience and expected chargeback levels for new products and anticipated pricing changes, which involves significant estimates by management. Chargeback provisions are compared to externally obtained distribution channel reports for reasonableness. The Company regularly monitors the provisions for chargebacks and makes adjustments when the Company believes that actual chargebacks may differ from estimated provisions. Rebates – Rebates include managed care services, fee for service and the Medicaid rebate programs. Rebates are primarily related to volume-based incentives and are offered to key customers to promote loyalty. Customers receive rebates upon the attainment of a pre-established volume or the attainment of revenue milestones for a specified period. Since rebates are contractually agreed upon, provisions are estimated based on the specific terms in each agreement based on historical trends and expected sales. Returns – Returns primarily relate to customer returns of expired products that the customer has the right to return up to one year following the product’s expiration date. Such returned products are destroyed and credits and/or refunds are issued to the customer for the value of the returns. Accordingly, no returned assets are recorded in connection with those products. The returns provision is estimated by applying a historical return rate to the amounts of revenue estimated to be subject to returns. Revenue subject to returns is estimated based on the lag time from time of sale to date of return. The estimated lag time is developed by analyzing historical experience. Additionally, the Company considers specific factors, such as levels of inventory in the distribution channel, product dating and expiration, size and maturity of launch, entrance of new competitors, changes in formularies or packaging and any changes to customer terms, in determining the overall expected levels of returns, which involves significant estimates by management. Prompt pay discounts – Prompt pay discounts are offered to most customers to encourage timely payment. Discounts are estimated at the time of invoice based on historical discounts in relation to sales. Prompt pay discounts are almost always utilized by customers. As a result, the actual discounts typically do not vary significantly from the estimated amount. Coupons – The Company offers coupons to market participants in order to stimulate product sales. The redemption cost of consumer coupons is based on historical redemption experience by product and value. Sales and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue. Shipping and handling costs are accounted for as a fulfillment cost and are recorded as cost of revenue. Incidental items that are immaterial in the context of the contract are recognized as expense. Costs incurred to obtain a contract will be expensed as incurred when the amortization period is less than a year. There can be a lag between the Company’s establishment of an estimate and the timing of the invoicing or claim. The Company believes it has made reasonable estimates for future rebates and claims, however, these estimates involve assumptions pertaining to contractual utilization and performance, and payor mix. If the performance or mix across third-party payors is different from the Company’s estimates, the Company may be required to pay higher or lower total price adjustments and/or chargebacks than it had estimated. License and Collaboration Revenues The Company has entered into various types of agreements that either license the Company’s intellectual property to a third party or acquire license rights to intellectual property of a third party, or both. Agreements where the Company licenses its intellectual property to a third party for development and commercialization in a licensed territory. If the applicable license is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenues from non-refundable, upfront fees allocated to the license when the license is transferred to the customer and the customer is able to use and benefit from the license. For licenses that are bundled with other promises, the Company’s management utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the estimated performance period and the appropriate method of measuring progress during the performance period for purposes of recognizing revenue. The Company re-evaluates the estimated performance period and measure of progress each reporting period and, if necessary, adjusts related revenue recognition accordingly. These arrangements often include milestone as well as royalty or profit-share payments, contingent upon the occurrence of certain future events linked to the success of the asset in development, as well as expense reimbursements from or payments to the collaboration partner. Because of the risk that products in development will not receive regulatory approval, the Company does not recognize any contingent payments until regulatory approval becomes probable. Future sales-based royalties are not recorded until the subsequent sale occurs. Agreements where the Company acquires licensed rights to, or otherwise accesses, a third party’s intellectual property for commercialization of the third party’s product in a licensed territory. The Company also enters into various types of arrangements to commercialize products. The Company’s services provided to the third party under such arrangements, in exchange for compensation that may take the form of cost reimbursements, may include promoting, marketing, selling and distributing the third party’s developed drugs, and may also involve certain license rights granted to the parties for use of the other party’s intellectual property while providing defined services under the arrangements. The Company assesses the nature of each such arrangement and the various rights granted and services performed thereunder, and determines the applicable accounting standard, which may include ASC 808 , Collaborative Arrangements (“ASC 808”) or ASC 606 . Royalty revenue from licenses provided to the Company’s collaboration partners, which is based on sales to third parties of licensed products and technology, is recorded based on the later of when the third-party sale occurs or the performance obligation to which some or all of the royalty has been allocated has been satisfied. This royalty revenue is included in license and collaboration revenue in the accompanying consolidated statements of operations and comprehensive loss. When the Company performs and incurs marketing and promotional services expense under an arrangement that is determined to be within the scope of ASC 808, and where such services are on behalf of a collaboration partner that is not considered a customer under ASC 606, the Company recognizes a contra-expense that reflects the value of the cost reimbursement to which the Company is expected to be entitled in exchange for those services. Such contractually required reimbursements are reported as a liability or an asset within the accompanying consolidated balance sheets based upon the timing of cash receipt from the collaboration partner. Government research contracts and grants revenue
Cost of Goods Sold	Cost of Goods Sold Cost of goods sold includes the direct costs attributable to the Company’s product revenue and any licenses of the Company’s commercial products. It includes the cost of the purchased finished goods, shipping and storage costs related to the Company’s marketed drug products, sales based royalty and milestone expenses, and certain third-party intellectual property licensing costs.
Advertising Costs	Advertising Costs Promotion, marketing and advertising costs are expensed as incurred. Promotion, marketing and advertising costs for the year ended December 31, 2022, were approximately $1,434. There were no costs for the year ended December 31, 2021. The costs are included in selling, general and administrative expenses in the consolidated statement of operations and comprehensive loss.
Research and Development Expenses	Research and Development Expenses Research and development expenses include all direct and indirect development costs incurred for the development of the Company’s drug candidates. These expenses include salaries and related costs, including stock-based compensation and travel costs for research and development personnel, allocated facility costs, laboratory and manufacturing materials and supplies, consulting fees, product development, preclinical studies, clinical trial costs, licensing fees and milestone payments under license agreements and other fees and costs related to the development of drug candidates. The costs of tangible and intangible assets that are acquired for use on a particular research and development project, have no alternative future uses, and are not required to be capitalized in accordance with the Company’s capitalization policy, are expensed as research and development costs as incurred.
Accrued Outside Research and Development Expenses	Accrued Outside Research and Development Expenses The Company is required to estimate its expenses resulting from its obligations under contracts with clinical research organizations, clinical site agreements, vendors, and consultants in connection with conducting clinical trials and preclinical development. The financial terms of these contracts are subject to negotiations which vary from contract to contract and may result in payment flows that do not match the periods over which materials or services are provided to the Company under such contracts. The Company’s objective is to reflect the appropriate development and clinical trial expenses in its financial statements by matching those expenses with the period in which the services and efforts are expended. For clinical trials, the Company accounts for these expenses according to the progress of the trial as measured by actual hours expended by contract research organization personnel, investigator performance or completion of specific tasks, patient progression, or timing of various aspects of the trial. During the course of a clinical trial, the Company adjusts its rate of clinical trial expense recognition if actual results differ from its estimates. The Company utilizes judgment and experience to estimate its accrued expenses as of each balance sheet date in its financial statements based on facts and circumstances known at that time. Although the Company does not expect its estimates to be materially different from amounts actually incurred, its understanding of status and timing of services performed relative to the actual status and timing of services performed may vary and may result in increases or decreases in research and development expenses in future periods when the actual results become known. For preclinical development services performed by outside service providers, the Company determines accrual estimates through financial models, considering development progress data received from outside service providers and discussions with applicable Company and service provider personnel.
Contingent Consideration	Contingent ConsiderationContingent consideration is recorded as a liability and is the estimate of the fair value of potential milestone payments related to the EPI Health Acquisition. The estimated fair value of contingent consideration was determined based on a probability-weighted valuation model that measures the present value of the probable cash payments based upon the future milestone events of EPI Health at a discount rate that captures the risk associated with the liability and also based on a Monte Carlo simulation, whereby EPI Health’s forecasted net sales from the EPI Health legacy products were simulated over the measurement period to calculate the contingent consideration.Contingent consideration is remeasured at each reporting date and any changes in the liability are recorded within the consolidated statement of operations and comprehensive loss.
Classification of Warrants Issued in Connection with Offerings of Common Stock	Classification of Warrants Issued in Connection with Offerings of Common Stock The Company accounts for common stock warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in ASC 480, Distinguishing Liabilities from Equity (“ASC 480”) and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, whether the warrants meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s own common stock and whether the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance. For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of additional paid-in capital at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded at their initial fair value on the date of issuance, and remeasured each balance sheet date thereafter. Changes in the estimated fair value of the liability-classified warrants are recognized as a non-cash gain or loss in the accompanying consolidated statements of operations and comprehensive loss.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The carrying values of cash equivalents, accounts receivable, accounts payable and accrued liabilities as of December 31, 2022 and December 31, 2021 approximated their fair values due to the short-term nature of these items. The Company has categorized its financial instruments, based on the priority of the inputs used to value the investments, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and lowest priority to unobservable inputs (Level 3). If the inputs used to measure the investments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. Financial instruments recorded in the accompanying consolidated balance sheets are categorized based on the inputs to valuation techniques as follows: Level 1 - Observable inputs that reflect unadjusted quoted market prices for identical assets or liabilities in active markets. Level 2 - Observable inputs other than Level 1 that are observable, either directly or indirectly, in the marketplace for identical or similar assets and liabilities. Level 3 - Unobservable inputs that are supported by little or no market data, where values are derived from techniques in which one or more significant inputs are unobservable.
Stock-Based Compensation	Stock-Based Compensation Equity-Based Awards The Company applies the fair value method of accounting for stock-based compensation, which requires all such compensation to employees, including the grant of employee stock options and restricted stock units, to be recognized in the accompanying consolidated statements of operations and comprehensive loss based on its fair value at the measurement date (generally the grant date). The expense associated with stock-based compensation is recognized over the requisite service period of each award. For awards with only service conditions and graded-vesting features, the Company recognizes compensation cost on a straight-line basis over the requisite service period. Stock-based awards granted to non-employee directors as compensation for serving on the Company’s board of directors are accounted for in the same manner as employee stock-based compensation awards. The fair value of each option grant is estimated using a Black-Scholes option-pricing model on the grant date using expected volatility, risk-free interest rate, expected life of options and fair value per share assumptions. The Company uses the simplified method of estimating the expected life of options for all options granted given the Company’s limited history of option exercises. The risk-free rate is based on the United States Treasury yield curve during the expected life of the option. The Company estimates forfeitures based on the historical experience of the Company and adjusts the estimated forfeiture rate based upon actual experience. Liability-Based Awards Stock appreciation rights (“SARs”) that include cash settlement features are accounted for as liability-based awards pursuant to ASC 718 Share Based Payments . The fair value of such SARs is estimated using a Black-Scholes option-pricing model on each financial reporting date using expected volatility, risk-free interest rate, expected life and fair value per share assumptions. The fair value of obligations under the Tangible Stockholder Return Plan were estimated using a Monte Carlo simulation approach. The Company’s common stock price is simulated under the Geometric Brownian Motion framework under each simulation path. The other assumptions for the Monte Carlo simulation include the risk-free interest rate, estimated volatility and the expected term. The fair value of each liability award is estimated with a valuation model that uses certain assumptions, such as the award date, expected volatility, risk-free interest rate, expected life of the award and fair value per share assumptions. The Company estimates stock price volatility based on the Company’s actual historical volatility over a historical period equal to the expected remaining life of the award. The expected term for liability-based awards is the estimated contractual life. The risk-free rate is based on the United States Treasury yield curve during the expected life of the award.
Income Taxes	Income Taxes Deferred tax assets and liabilities are determined based on the temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities using the enacted tax rates in effect in the years in which the differences are expected to reverse. In estimating future tax consequences, all expected future events are considered other than enactment of changes in the tax law or rates. The Company did not record a federal or state income tax benefit for the years ended December 31, 2022 and December 31, 2021 due to its conclusion that a full valuation allowance is required against the Company’s deferred tax assets. The determination of recording or releasing a tax valuation allowance is made, in part, pursuant to an assessment performed by management regarding the likelihood that the Company will generate future taxable income against which benefits of its deferred tax assets may or may not be realized. This assessment requires management to exercise judgment and make estimates with respect to its ability to generate taxable income in future periods. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The Company’s policy for recording interest and penalties is to record them as a component of general and administrative expenses. As of December 31, 2022 and December 31, 2021, the Company accrued no interest and penalties related to uncertain tax positions. Tax years 2019-2021 remain open to examination by the major taxing jurisdictions to which the Company is subject. Additionally, years prior to 2019 are also open to examination to the extent of loss and credit carryforwards from those years. In accordance with Section 382 of the Internal Revenue Code of 1986, as amended, a change in equity ownership of greater than 50% within a three-year period results in an annual limitation on the Company’s ability to utilize its net operating loss carryforwards and general business credits, including the research and development credits, created during the tax periods prior to the change in ownership.
Comprehensive Loss	Comprehensive LossComprehensive loss is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources.
Net Loss Per Share	Net Loss Per Share Basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding for the period.
Segment and Geographic Information	Segment and Geographic InformationOperating segments are identified as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker. The Company’s chief operating decision maker reviews financial information on a disaggregated basis for purposes of allocating resources and evaluating financial performance.
Recently Issued Accounting Standards	Recently Issued Accounting Standards Accounting Pronouncements Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which is designed to provide financial statement users with more information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. When determining such expected credit losses, the guidance requires companies to apply a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The adoption of this new accounting guidance, as of January 1, 2022, did not have a material impact on the Company’s consolidated financial statements.

Organization and Significant _3

Organization and Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Schedule of Property and Equipment	Property and equipment are recorded at cost and depreciated using the straight-line method over their estimated useful lives as follows: Computer and office equipment 3 years Furniture and fixtures 5-7 years Laboratory equipment 7 years Property and equipment consisted of the following: December 31, 2022 2021 Computer equipment $ 58 $ 58 Furniture and fixtures 43 23 Laboratory equipment 6,195 4,134 Office equipment 177 177 Leasehold improvements 10,117 9,391 Property and equipment, gross 16,590 13,783 Less: Accumulated depreciation and amortization (2,708) (1,582) Total property and equipment, net $ 13,882 $ 12,201
Summary of Anti-dilutive Securities Excluded from Calculation of Weighted Average Common Shares Outstanding	The following securities, presented on a common stock equivalent basis, have been excluded from the calculation of weighted average common shares outstanding for the years ended December 31, 2022 and December 31, 2021 because the effect is anti-dilutive due to the net loss reported in each of those periods. All share amounts presented in the table below represent the total number outstanding as of the end of each period. December 31, 2022 2021 Warrants to purchase common stock (Note 11) 5,535,637 1,274,176 Stock options outstanding under the 2008 and 2016 Plans (Note 16) 1,031,320 517,303 Nonvested restricted stock units (Note 16) 457,406 — Stock appreciation rights outstanding under the 2016 Plan (Note 16) 60,000 60,000 Inducement stock options outstanding (Note 16) 1,250 1,250

Acquisition of EPI Health (Tabl

Acquisition of EPI Health (Tables)	12 Months Ended
	Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]
Schedule of Acquisitions	The following table presents the estimated fair value of purchase consideration as of each interim reporting period end date since the EPI Health Acquisition date, including measurement period adjustments made during each interim period. The estimated fair value of purchase consideration is then allocated to the estimated fair values of the net assets acquired at the EPI Health Acquisition date, as described further following the table under the section entitled Allocation of Purchase Consideration to Estimated Fair Values of Net Assets Acquired. As of March 11, 2022 Measurement Period Adjustments As of June 30, 2022 Measurement Period Adjustments As of September 30, 2022 Measurement Period Adjustments As of December 31, 2022 Initial cash consideration to Seller $ 11,000 $ — $ 11,000 $ — $ 11,000 $ — $ 11,000 Secured promissory note issued to Seller 16,500 — 16,500 (3,195) (B) 13,305 — 13,305 Closing date fair value of contingent consideration liability 3,773 — 3,773 (125) (C) 3,648 — 3,648 Remaining working capital adjustment to be paid 4,069 (969) (A) 3,100 — 3,100 — 3,100 Working capital adjustment paid at close 993 — 993 — 993 — 993 Total estimated purchase consideration $ 36,335 $ (969) $ 35,366 $ (3,320) $ 32,046 $ — $ 32,046 A. On July 7, 2022, the Company and EPG agreed to the final net working capital adjustment amount (the “Total Adjustment Amount”), as defined in the EPI Health Purchase Agreement, as part of the post-closing adjustment to the estimated purchase price for the EPI Health Acquisition. The Total Adjustment Amount was determined to be positive and in the amount of $3,100, which was paid to EPG on July 7, 2022. As of March 31, 2022, the Company had previously estimated that the Total Adjustment Amount would be $4,069. Therefore, the Company has reflected a $969 measurement period adjustment to the estimated fair value of total purchase consideration. As this adjustment related to the estimated fair value of purchase consideration and did not affect the fair value of any assets acquired or liabilities assumed, it resulted in a reduction of goodwill. B. During the third quarter of 2022, the Company continued to conduct a fair value assessment of the Seller Note as of the EPI Health Acquisition date of March 11, 2022. The Company completed the fair value assessment and updated the Seller Note fair value estimate as of March 11, 2022 to $13,305 via a downward measurement period adjustment of $3,195 during the interim quarterly period ended September 30, 2022. The Seller Note fair value assessment included both quantitative and qualitative analyses. The quantitative analysis utilized observable credit spreads for market debt transactions with credit ratings similar to the Company’s credit ratings. The qualitative analysis took into consideration the fact pattern leading up to the Seller Note’s original issuance in March 2022 as well as the subsequent period through July 2022 when the Seller Note was settled and terminated. These qualitative and quantitative analyses were used in conjunction with one another to determine the best estimate of the Seller Note’s fair value as of March 11, 2022. See Note 10—“Notes Payable” to these consolidated financial statements for further discussion regarding the Seller Note, including its repayment and termination during the third quarter of 2022. C. During the third quarter of 2022, the Company continued to conduct a fair value assessment of the contingent consideration liability as of the EPI Health Acquisition date of March 11, 2022. The Company updated the contingent consideration provisional fair value estimate as of March 11, 2022 to $3,648 via a downward measurement period adjustment of $125 during the interim quarterly period ended September 30, 2022, based on progression of the fair value assessment procedures conducted.
Schedule of Purchase Consideration, Assets Acquired and Liabilities Assumed	The total estimated purchase consideration was allocated to the estimated fair values of the assets acquired and liabilities assumed as of March 11, 2022 as follows: As of March 11, 2022 Measurement Period Adjustments As of June 30, 2022 Measurement Period Adjustments As of September 30, 2022 Measurement Period Adjustments As of December 31, 2022 Assets acquired and liabilities assumed: Accounts receivable, net of $282 allowance $ 20,083 $ — $ 20,083 $ — $ 20,083 $ (279) (e) $ 19,804 Inventory 1,710 — 1,710 (410) (b) 1,300 (121) (e) 1,179 Prepaid expenses and other current assets 3,692 — 3,692 — 3,692 — 3,692 Property and equipment 100 — 100 — 100 — 100 Intangible assets 33,000 — 33,000 (4,000) (c) 29,000 — 29,000 Other assets 27 — 27 — 27 — 27 Right-of-use lease assets 400 — 400 — 400 — 400 Total assets $ 59,012 $ — $ 59,012 $ (4,410) $ 54,602 $ (400) $ 54,202 Accounts payable $ 947 $ — $ 947 $ — $ 947 $ — $ 947 Accrued expenses 24,892 — 24,892 — 24,892 (467) (e) 24,425 Operating lease liabilities, current portion 208 — 208 — 208 — 208 Operating lease liabilities, net of current portion 342 — 342 — 342 — 342 Other long-term liabilities 290 — 290 — 290 — 290 Total liabilities $ 26,679 $ — $ 26,679 $ — $ 26,679 $ (467) $ 26,212 Total identifiable net assets acquired $ 32,333 $ — $ 32,333 $ (4,410) $ 27,923 $ 67 $ 27,990 Goodwill 4,002 (969) (a) 3,033 1,090 (d) 4,123 (67) (e) 4,056 Total estimated purchase consideration $ 36,335 $ (969) $ 35,366 $ (3,320) $ 32,046 $ — $ 32,046 a. On July 7, 2022, the Company and EPG agreed to the final net working capital adjustment amount (the “Total Adjustment Amount”), as defined in the EPI Health Purchase Agreement, as part of the post-closing adjustment to the estimated purchase price for the EPI Health Acquisition. The Total Adjustment Amount was determined to be positive and in the amount of $3,100, which was paid to EPG on July 7, 2022. As of March 31, 2022, the Company had previously estimated that the Total Adjustment Amount would be $4,069. Therefore, the Company has reflected a $969 measurement period downward adjustment to the estimated fair value of total purchase consideration. As this adjustment related to the estimated fair value of purchase consideration and did not affect the fair value of any assets acquired or liabilities assumed, it resulted in a reduction of goodwill. b. During the third quarter of 2022, the Company continued to conduct a fair value assessment of the trade inventory on hand as of the EPI Health Acquisition date of March 11, 2022. The Company updated the trade inventory’s provisional fair value estimate as of March 11, 2022 to $1,300 via a downward measurement period adjustment of $410 during the interim quarterly period ended September 30, 2022, based on progression of the fair value assessment procedures conducted. c. During the third quarter of 2022, the Company continued to conduct a fair value assessment of the acquired definite-lived intangible product rights assets as of the EPI Health Acquisition date of March 11, 2022, which included further analysis of the forecasts used in the initial preliminary valuation. This downward measurement period adjustment also resulted in the recognition of $192 of additional amortization expense during the interim quarterly period ended September 30, 2022. d. The aforementioned measurement period adjustments made to the acquired assets and assumed liabilities, as well as the measurement period adjustments made to the estimated fair value of purchase consideration in the preceding section entitled Purchase Consideration , result in an updated goodwill balance of $4,123 as of September 30, 2022 based on a net upward adjustment of $1,090 during the interim quarterly period ended September 30, 2022. e. During the fourth quarter of 2022, the Company continued and completed its fair value assessment of accounts receivable, trade inventory and accrued expenses as of the EPI Health Acquisition date of March 11, 2022, which included analysis based upon year to date activity of those related balances. The related measurement period downward adjustments related to (i) $141 associated with the collectability of certain trade accounts receivable, (ii) $121 related to both inventory and accrued expenses for finished goods purchases that should not have been included in the acquisition date balances, (iii) $138 related to amounts due from a collaboration partner that should not have been included in the acquisition date balances, and (iv) $346 of certain previously accrued legal costs that should not have been accrued. The net results of these adjustments resulted in a reduction to goodwill of $67 during the quarterly period ended December 31, 2022.
Schedule of Pro Forma Financial Information	The pro forma financial information has been calculated after applying the Company’s accounting policies and includes adjustments for transaction-related costs. Twelve Months Ended December 31, 2022 December 31, 2021 Total revenue $ 27,701 $ 19,047 Net loss and comprehensive loss (32,365) (59,748) Net loss per share, basic and diluted $ (1.47) $ (3.50)

Inventory, net (Tables)

Inventory, net (Tables)	12 Months Ended
	Dec. 31, 2022
Inventory Disclosure [Abstract]
Schedule of Inventory	The major components of inventory, net, were as follows: December 31, 2022 Finished goods available for sale $ 2,037 Reserve for obsolescence (841) Inventory, net $ 1,196

Prepaid Expenses and Other Cu_2

Prepaid Expenses and Other Current Assets (Tables)	12 Months Ended
	Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Prepaid Expenses and Other Current Assets	The following table represents the components of prepaid expenses and other current assets as of: December 31, 2022 December 31, 2021 Inventory and raw material deposits $ 1,280 $ — Prepaid service contracts 121 — Prepaid insurance 1,341 1,697 Prepaid Prescription Drug User Fee Act (PDUFA) fees 1,182 — Product samples 1,362 — Other current assets related to leasing arrangement — 109 Prepaid expenses and other current assets 521 766 Total prepaid expenses and other current assets $ 5,807 $ 2,572

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	12 Months Ended
	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment are recorded at cost and depreciated using the straight-line method over their estimated useful lives as follows: Computer and office equipment 3 years Furniture and fixtures 5-7 years Laboratory equipment 7 years Property and equipment consisted of the following: December 31, 2022 2021 Computer equipment $ 58 $ 58 Furniture and fixtures 43 23 Laboratory equipment 6,195 4,134 Office equipment 177 177 Leasehold improvements 10,117 9,391 Property and equipment, gross 16,590 13,783 Less: Accumulated depreciation and amortization (2,708) (1,582) Total property and equipment, net $ 13,882 $ 12,201

Leases (Tables)

Leases (Tables)	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Lease Payments	Future minimum lease payments, net of amounts expected to be received related to the tenant improvement allowance, as of December 31, 2022 were as follows: Maturity of Lease Liabilities Operating Leases 2023 $ 229 2024 626 2025 645 2026 665 2027 685 2028 and beyond 3,016 Total future undiscounted lease payments $ 5,866 Less: imputed interest (1,936) Total reported lease liability $ 3,930
Components of Lease Assets and Liabilities	Components of lease assets and liabilities as of December 31, 2022 were as follows: As of December 31, 2022 Assets Right-of-use lease assets $ 1,756 Total lease assets $ 1,756 Liabilities Operating lease liabilities, current portion $ 191 Operating lease liabilities, net of current portion 3,739 Total lease liabilities $ 3,930

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets, net (Tables)	12 Months Ended
	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Indefinite-Lived Intangible Assets	The following table presents both definite and indefinite lived intangible assets as of December 31, 2022, comprised primarily of acquired product rights related to the EPI Health Acquisition: Initial Carrying Value Accumulated Amortization Net Book Value Remaining Useful Life (Years) Rhofade $ 15,500 $ 835 $ 14,665 14.25 Wynzora 2,000 108 1,892 14.25 Minolira 8,500 458 8,042 14.25 Cloderm 1,000 54 946 14.25 Sitavig 2,000 145 1,855 13.94 Website domain 75 — 75 Total intangible assets $ 29,075 $ 1,600 $ 27,475
Schedule of Finite-Lived Intangible Assets	The following table presents both definite and indefinite lived intangible assets as of December 31, 2022, comprised primarily of acquired product rights related to the EPI Health Acquisition: Initial Carrying Value Accumulated Amortization Net Book Value Remaining Useful Life (Years) Rhofade $ 15,500 $ 835 $ 14,665 14.25 Wynzora 2,000 108 1,892 14.25 Minolira 8,500 458 8,042 14.25 Cloderm 1,000 54 946 14.25 Sitavig 2,000 145 1,855 13.94 Website domain 75 — 75 Total intangible assets $ 29,075 $ 1,600 $ 27,475
Schedule of Annual Amortization Expense	The following table represents annual amortization of definite lived intangible assets for the next five fiscal years, and thereafter: 2023 $ 1,935 2024 1,941 2025 1,935 2026 1,935 2027 1,935 Thereafter 17,719 Total amortization $ 27,400

Accounts Payable and Accrued _2

Accounts Payable and Accrued Expenses (Tables)	12 Months Ended
	Dec. 31, 2022
Payables and Accruals [Abstract]
Schedule of Accrued Expenses	The following table represents the components of accounts payable as of December 31, 2022 and December 31, 2021: December 31, 2022 December 31, 2021 Rebates, coupons, discounts and chargebacks $ 9,509 $ — Finished goods inventory 721 — Construction in process — 451 Outside research and development services 721 140 Facility service providers — 87 Legal and professional fees 530 193 SB206 regulatory activities 422 417 SB206 pre-commercial and marketing 153 682 Other payables 1,633 200 Total accounts payable $ 13,689 $ 2,170 The following table represents the components of accrued expenses as of December 31, 2022 and December 31, 2021: December 31, 2022 December 31, 2021 Accrued rebates, coupons, discounts and chargebacks $ 8,671 $ — Accrued returns 3,011 — Accrued compensation 937 1,543 Accrued outside research and development services 410 194 Accrued legal and professional fees 542 427 Accrued royalties 675 — Accrued milestones 1,250 — Accrued construction in process — 1,020 Accrued insurance 747 — Accrued SB206 regulatory activities 165 — Accrued Wynzora payments due to collaborator 532 — Accrued MC2 collaboration deposit 1,149 — Accrued other expenses 535 1,804 Total accrued expenses $ 18,624 $ 4,988

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Schedule of Milestone Payments	In connection with the Rhofade Acquisition Agreement, EPI Health is required to make the following milestone payments to the seller upon reaching the following net sales thresholds during any calendar year following the closing date, as defined in the Rhofade Acquisition Agreement: Calendar Year Net Sales Threshold Milestone Payment $ 50,000 $ 5,000 $ 75,000 $ 5,000 $ 100,000 $ 10,000 Cumulative Net Sales Threshold Milestone Payment $ 10,000 $ 1,000 $ 20,000 $ 1,000 Each additional $ 20,000 $ 1,500

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	12 Months Ended
	Dec. 31, 2022
Equity [Abstract]
Schedule of Reserved Shares of Common Stock for Future Issuance	The following table presents the Company’s outstanding warrants to purchase common stock for the periods indicated. December 31, Exercise 2022 2021 Warrants to purchase common stock issued in the January 2018 Offering — 999,850 $ 46.60 Warrants to purchase common stock issued in the June 2022 Registered Direct Offering 5,261,311 — 2.851 Warrants to purchase common stock issued in the March 2020 Public Offering 252,417 252,417 3.00 Underwriter warrants to purchase common stock associated with the March 2020 Public Offering 11,304 11,304 3.75 Placement agent warrants to purchase common stock issued in the March 2020 Registered Direct Offering 10,605 10,605 5.375 5,535,637 1,274,176 The Company had reserved shares of common stock for future issuance as follows: December 31, 2022 2021 Outstanding warrants to purchase common stock (Note 11) 5,535,637 1,274,176 Outstanding stock options (Note 16) 1,032,570 518,553 Nonvested restricted stock units (Note 16) 457,406 — Outstanding stock appreciation rights (Note 16) 60,000 60,000 For possible future issuance under the 2016 Stock Plan (Note 16) 241,801 1,213,224 7,327,414 3,065,953

Net Product Revenues (Tables)

Net Product Revenues (Tables)	12 Months Ended
	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Summary of Net Product Revenues	Net product revenues are summarized as follows: Year Ended December 31, 2022 Total Net Product Revenues Percentage of Net Product Revenues Rhofade $ 11,488 72.7 % Wynzora 1,640 10.4 % Minolira 1,572 10.0 % Cloderm 505 3.2 % Other 591 3.7 % Net product revenues $ 15,796 100.0 %

License and Collaboration Rev_2

License and Collaboration Revenues (Tables)	12 Months Ended
	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Summary of License and Collaboration Revenue	The Company has license and collaboration revenues summarized as follows: Year Ended December 31, 2022 Total License and Collaboration Revenues Percentage of License and Collaboration Revenues Sato Agreement - SB206 and SB204 $ 2,586 33.1 % Sato Rhofade Agreement 5,000 64.0 % Prasco Agreement - Cloderm AG 227 2.9 % License and collaboration revenues $ 7,813 100.0 %
Schedule of Contract Assets and Contract Liabilities	The following tables present the Company’s contract assets, contract liabilities and deferred revenue balances for the dates indicated. Contract Asset Contract Liability Net Deferred Revenue December 31, 2021 $ — $ 13,251 $ 13,251 December 31, 2022 $ — $ 10,665 $ 10,665 Short-term Deferred Revenue Long-term Deferred Revenue Net Deferred Revenue December 31, 2021 $ 2,586 $ 10,665 $ 13,251 December 31, 2022 $ 2,586 $ 8,079 $ 10,665

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Schedule of Share-based Compensation Expenses	During the years ended December 31, 2022 and December 31, 2021, the Company recorded employee stock-based compensation expense, including fair value adjustments of the Tangible Stockholder Return Plan, as follows: Year Ended December 31, 2022 2021 Stock options $ 1,333 $ 826 Restricted stock units 547 — Stock appreciation rights — 115 Tangible Stockholder Return Plan — (666) Total $ 1,880 $ 275 Total stock-based compensation expense for the years ended December 31, 2022 and December 31, 2021 included in the accompanying consolidated statements of operations and comprehensive loss is as follows: Year Ended December 31, 2022 2021 Research and development $ 449 $ (250) General and administrative 1,431 525 Total $ 1,880 $ 275
Schedule of Fair Value Assumptions	The fair value of each option grant is estimated on the grant date using the Black-Scholes option-pricing model, and the following weighted average assumptions: Year Ended December 31, 2022 2021 Estimated dividend yield — % — % Expected volatility 110.97 % 107.54 % Risk-free interest rate 2.59 % 1.02 % Expected life of options (in years) 5.95 5.79 Weighted-average fair value per share $ 2.72 $ 7.13
Summary of Stock Option Activity	Stock compensation activity for the periods indicated is as follows: Shares Shares Weighted- Weighted- Aggregate Options outstanding as of December 31, 2020 52,378 199,199 $ 30.71 Additional shares reserved under plan 1,500,000 — SARs forfeited 1,000 — Options granted (385,885) 385,885 8.82 Options forfeited 45,731 (53,689) 26.72 Options exercised — (12,842) 4.74 Options outstanding as of December 31, 2021 1,213,224 518,553 $ 15.48 RSUs granted (479,606) — RSUs forfeited 22,200 — Options granted (543,300) 543,300 3.25 Options forfeited 29,283 (29,283) 4.92 Options outstanding as of December 31, 2022 241,801 1,032,570 $ 9.34 8.47 $ — Vested and expected to vest as of 470,773 $ 16.24 8.67 $ 2 Exercisable as of December 31, 2021 200,638 $ 26.59 7.46 $ 2 Vested and expected to vest as of 943,355 $ 9.82 8.42 $ — Exercisable as of December 31, 2022 352,915 $ 18.70 7.38 $ —
Summary of RSU Activity	RSU activity for the year ended December 31, 2022 is as follows: Shares Weighted- Nonvested RSUs outstanding as of December 31, 2021 — $ — RSUs granted 479,606 2.87 RSUs forfeited (22,200) 2.98 RSUs vested — — Nonvested RSUs outstanding as of December 31, 2022 457,406 $ 2.86

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Reconciliation of Federal Income Tax Rate to Losses Before Income Tax Benefit	The reasons for the difference between actual income tax benefit for the years ended December 31, 2022 and December 31, 2021, and the amount computed by applying the statutory federal income tax rate to losses before income tax benefit are as follows: Year Ended December 31, 2022 2021 Income tax benefit at federal statutory rate $ (6,569) $ (6,235) State income taxes, net of federal benefit (389) — Non-deductible expenses 98 63 Research and development tax credits (775) (768) Change in State Tax Rate (545) 1,532 Other 163 (96) Change in valuation allowance 8,017 5,504 Total income tax provision $ — $ —
Significant Components of Company's Deferred Tax Assets and Deferred Tax Liabilities	As of December 31, 2022 2021 Deferred tax assets: Accrued compensation $ 28 $ 247 Accrued liabilities 2,332 117 Tax loss carryforwards 22,041 21,008 Intangible assets 7 213 Stock-based compensation 778 499 Tax credits 2,427 1,653 Research and development service obligation 5,701 5,575 Right-of-use lease liabilities 867 736 Deferred revenue 2,377 1,849 Capitalized research expenses 3,454 — Fixed assets — 305 Other 280 50 Total deferred tax assets 40,292 32,252 Less valuation allowance (39,823) (31,808) Net deferred tax asset 469 444 Deferred tax liabilities: Fixed assets (18) — Right-of-use lease assets (389) (356) Other (62) (88) Net noncurrent deferred tax asset (liability) $ — $ —

Fair Value (Tables)

Fair Value (Tables)	12 Months Ended
	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Schedule of Change in Fair Value of Level 3 Inputs for Contingent Consideration	The following table summarizes the change in fair value, as determined by Level 3 inputs for the contingent consideration liabilities for the year ended December 31, 2022: Balance at March 31, 2022 $ 3,773 Change in fair value (454) Balance at June 30, 2022 $ 3,319 Change in fair value 186 Measurement period adjustment (see Note 2) (125) Balance at September 30, 2022 $ 3,380 Change in fair value (892) Balance at December 31, 2022 $ 2,488 Contingent consideration liability, current portion $ 451 Contingent consideration liability, net of current portion 2,037 Balance at December 31, 2022 $ 2,488
Schedule of Significant Inputs and Valuation Methodologies Used for Fair Value of Contingent Consideration	The following tables present the significant inputs and valuation methodologies used for the Company’s fair value of the contingent consideration liabilities as of March 11, 2022, in addition to EPI Health’s forecasted net sales from the EPI Health legacy products: Transition Services Agreement Sitavig Milestone (Regulatory) Valuation methodology Probability-Weighted Probability-Weighted Term 0.81 1.89 Payment term 1.05 2.14 Adjusted discount rate 12.11 % 13.15 % First Sales Based Legacy Milestone Wynzora Milestone Second Sales Based Legacy Milestone Sitavig Milestone (Commercial) Valuation methodology Monte Carlo Monte Carlo Monte Carlo Monte Carlo Risk-adjusted discount rates (minimum) 5.39% 5.39% 5.39% 6.89% Risk-adjusted discount rates (maximum) 6.99% 6.23% 6.99% 7.15% Net sales volatility (per annum) 13.0% 12.0% 13.0% 13.0% Credit spread (continuous) 10.42% 10.55% 10.42% 11.13% The following tables present the significant inputs and valuation methodologies used for the Company’s fair value of the contingent consideration liabilities as of December 31, 2022, in addition to EPI Health’s forecasted net sales from the EPI Health legacy products: Transition Services Agreement Sitavig Milestone (Regulatory) Valuation methodology Probability-Weighted Probability-Weighted Term 0.2 3.25 Payment term 0.44 3.5 Adjusted discount rate 19.17 % 19.50 % First Sales Based Legacy Milestone Wynzora Milestone Second Sales Based Legacy Milestone Sitavig Milestone (Commercial) Valuation methodology Monte Carlo Monte Carlo Monte Carlo Monte Carlo Risk-adjusted discount rates (minimum) 8.90% 8.90% 8.90% 8.70% Risk-adjusted discount rates (maximum) 9.53% 8.97% 9.53% 8.90% Net sales volatility (per annum) 13.0% 12.0% 13.0% 13.0% Credit spread (continuous) 14.82% 14.01% 14.82% 15.57%
Schedule of Contingent Consideration Classification and Earn Out Periods	The following table presents information about the classification and potential earnout periods for the Company’s contingent consideration liabilities as of December 31, 2022: Fair Value Classification Earnout Period Transition Services Agreement $ 451 Current portion 11-Mar-2022 to 11-Mar-2023 First Sales Based Legacy Milestone — Current portion 1-Apr-2022 to 31-Mar-2023 Wynzora Milestone — Current portion 1-Apr-2022 to 31-Mar-2023 Second Sales Based Legacy Milestone 620 Non-current portion 1-Apr-2023 to 31-Mar-2026 Sitavig Milestones 1,417 Non-current portion 1-Apr-2026 to 1-Oct-2036 $ 2,488

Segment Information (Tables)

Segment Information (Tables)	12 Months Ended
	Dec. 31, 2022
Segment Reporting [Abstract]
Schedule of Segment Information	Segment revenue, net and comprehensive loss and total assets were as follows: Twelve Months Ended Twelve Months Ended December 31, 2022 December 31, 2021 Revenue Commercial operations $ 21,023 $ — Research and Development operations 2,659 2,958 Total revenue $ 23,682 $ 2,958 Net loss Commercial operations $ (1,776) $ — Research and Development operations (29,535) (29,692) Net loss and comprehensive loss $ (31,311) $ (29,692) As of December 31, 2022 Assets Commercial operations $ 63,564 Research and Development operations 26,766 Total assets $ 90,330

Organization and Significant _4

Organization and Significant Accounting Policies - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	May 25, 2021
Organization And Significant Accounting Policies [Line Items]
Accumulated deficit	$ (310,280,000)	$ (278,969,000)
Cash and cash equivalents	$ 12,316,000	$ 47,085,000
Common stock, shares outstanding (in shares)	24,722,308	18,815,892	15,170,678
Prepaid insurance	$ 1,341,000	$ 1,697,000
Prepaid expenses and other current assets	5,807,000	2,572,000
Other accrued expenses	535,000	1,804,000
Accounts receivable, allowance for credit loss	141,000	0
Accrued expenses	18,624,000	4,988,000
Advertising expense	1,434,000	0
Accrued interest or penalties related to uncertain tax positions	$ 0	$ 0
Sato Rhofade Agreement | Accounts receivable | Customer concentration risk
Organization And Significant Accounting Policies [Line Items]
Concentration risk percentage	23%
Sato Agreement - SB206 and SB204 | Accounts receivable | Customer concentration risk
Organization And Significant Accounting Policies [Line Items]
Concentration risk percentage		97%
Customer one | Accounts receivable | Customer concentration risk
Organization And Significant Accounting Policies [Line Items]
Concentration risk percentage	25%
Customer two | Accounts receivable | Customer concentration risk
Organization And Significant Accounting Policies [Line Items]
Concentration risk percentage	13%
Customer three | Accounts receivable | Customer concentration risk
Organization And Significant Accounting Policies [Line Items]
Concentration risk percentage	12%
Revision of prior period, reclassification adjustment
Organization And Significant Accounting Policies [Line Items]
Other accrued expenses		$ 2,164,000
Accrued expenses		2,164,000
Revision of prior period, reclassification adjustment | Reclass Of Prepaid Insurance
Organization And Significant Accounting Policies [Line Items]
Prepaid insurance		1,697,000
Prepaid expenses and other current assets		1,697,000
Revision of prior period, reclassification adjustment | Reclass Of Leasing Arrangement Assets
Organization And Significant Accounting Policies [Line Items]
Prepaid expenses and other current assets		109,000
Other current asset related to leasing arrangement, net		$ 109,000
Board Members | Affiliated Entity
Organization And Significant Accounting Policies [Line Items]
Common stock, shares outstanding (in shares)	27,654	100,497

Organization and Significant _5

Organization and Significant Accounting Policies - Schedule of Estimated Useful Lives of Property and Equipment (Details)	12 Months Ended
	Dec. 31, 2022
Computer and office equipment
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	3 years
Furniture and fixtures | Minimum
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	5 years
Furniture and fixtures | Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	7 years
Laboratory equipment
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	7 years

Organization and Significant _6

Organization and Significant Accounting Policies - Summary of Anti-dilutive Securities Excluded from Calculation of Weighted Average Common Shares Outstanding (Details) - shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Warrants to purchase common stock (Note 11)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	5,535,637	1,274,176
Stock options | 2008 and 2016 Plans
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	1,031,320	517,303
Stock options | Inducement Options Outstanding
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	1,250	1,250
Nonvested restricted stock units (Note 16)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	457,406	0
Stock appreciation rights | 2016 Stock Plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	60,000	60,000

Acquisition of EPI Health - Nar

Acquisition of EPI Health - Narrative (Details) - USD ($) $ in Thousands						10 Months Ended	12 Months Ended
	Dec. 31, 2022	Sep. 30, 2022	Aug. 01, 2022	Jun. 30, 2022	Mar. 11, 2022	Dec. 31, 2022	Dec. 31, 2022	Dec. 31, 2021
Business Acquisition [Line Items]
Payment for EPI Health Acquisition							$ 15,093	$ 0
Revenue of acquiree since acquisition date						$ 21,023
Net loss of acquiree since acquisition date						$ (1,776)
EPI Health
Business Acquisition [Line Items]
Total estimated purchase consideration	$ 32,046	$ 32,046		$ 35,366	$ 36,335
Consideration transferred, at closing					27,500
Secured promissory note issued to Seller	13,305	13,305		16,500	16,500
Contingent consideration					$ 23,000
Percentage of outstanding shares					19,990%
Acquisition related costs							4,981	$ 290
EPI Health | Previously reported
Business Acquisition [Line Items]
Total estimated purchase consideration					$ 32,046
EPI Health | Initial consideration payment
Business Acquisition [Line Items]
Payment for EPI Health Acquisition	11,000	11,000		11,000	11,000
EPI Health | Working capital adjustment payment
Business Acquisition [Line Items]
Payment for EPI Health Acquisition	$ 993	$ 993	$ 3,100	$ 993	993		$ 4,093
EPI Health | Performance of transition services
Business Acquisition [Line Items]
Contingent consideration					500
EPI Health | Achievement of net sales milestone
Business Acquisition [Line Items]
Contingent consideration					3,000
Net sales milestone					30,000
EPI Health | Quarterly installments, net sales of product
Business Acquisition [Line Items]
Contingent consideration					2,500
Net sales milestone					12,500
EPI Health | First occurrence, post-closing net sales milestone achievement
Business Acquisition [Line Items]
Contingent consideration					5,000
Net sales milestone					35,000
EPI Health | Net sales milestone, switch license agreement
Business Acquisition [Line Items]
Contingent consideration					$ 12,000

Acquisition of EPI Health - Pur

Acquisition of EPI Health - Purchase Consideration (Details) - USD ($) $ in Thousands								3 Months Ended		4 Months Ended	12 Months Ended
	Dec. 31, 2022	Sep. 30, 2022	Aug. 01, 2022	Jul. 07, 2022	Jun. 30, 2022	Mar. 31, 2022	Mar. 11, 2022	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021
Business Acquisition [Line Items]
Initial cash consideration to Seller											$ 15,093	$ 0
EPI Health
Business Acquisition [Line Items]
Secured promissory note issued to Seller	$ 13,305	$ 13,305			$ 16,500		$ 16,500
Secured promissory note issued to Seller, measurement period adjustments								$ 0	$ (3,195)	$ 0
Closing date fair value of contingent consideration liability	3,648	3,648			3,773		3,773
Closing date fair value of contingent consideration liability, measurement period adjustments								0	(125)	0
Remaining working capital adjustment to be paid	3,100	3,100		$ 3,100	3,100	$ 4,069	4,069
Remaining working capital adjustment to be paid, measurement period adjustments								0	0	(969)
Total estimated purchase consideration	32,046	32,046			35,366		36,335
Total estimated purchase consideration, measurement period adjustments								0	(3,320)	(969)
Initial consideration payment | EPI Health
Business Acquisition [Line Items]
Initial cash consideration to Seller	11,000	11,000			11,000		11,000
Initial cash consideration to Seller, measurement period adjustments								0	0	0
Working capital adjustment payment | EPI Health
Business Acquisition [Line Items]
Initial cash consideration to Seller	$ 993	$ 993	$ 3,100		$ 993		$ 993				$ 4,093
Working capital adjustment paid at close								$ 0	$ 0	$ 0

Acquisition of EPI Health - Ass

Acquisition of EPI Health - Assets Acquired and Liabilities Assumed (Details) - USD ($)							3 Months Ended		4 Months Ended
	Dec. 31, 2022	Sep. 30, 2022	Jul. 07, 2022	Jun. 30, 2022	Mar. 31, 2022	Mar. 11, 2022	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Business Acquisition [Line Items]
Goodwill	$ 4,056,000						$ 4,056,000			$ 0
Accounts receivable, allowance for credit loss	141,000						141,000			$ 0
EPI Health
Business Acquisition [Line Items]
Accounts receivable, net of $282 allowance	19,804,000	$ 20,083,000		$ 20,083,000		$ 20,083,000	19,804,000	$ 20,083,000	$ 20,083,000
Accounts receivable, measurement period adjustments							(279,000)	0	0
Inventory	1,179,000	1,300,000		1,710,000		1,710,000	1,179,000	1,300,000	1,710,000
Inventory, measurement period adjustments							(121,000)	(410,000)	0
Prepaid expenses and other current assets	3,692,000	3,692,000		3,692,000		3,692,000	3,692,000	3,692,000	3,692,000
Prepaid expenses and other current assets, measurement period adjustments							0	0	0
Property and equipment	100,000	100,000		100,000		100,000	100,000	100,000	100,000
Property and equipment, measurement period adjustment							0	0	0
Intangible assets	29,000,000	29,000,000		33,000,000		33,000,000	29,000,000	29,000,000	33,000,000
Intangible assets, measurement period adjustments							0	(4,000,000)	0
Other assets	27,000	27,000		27,000		27,000	27,000	27,000	27,000
Other assets, measurement period adjustments							0	0	0
Right-of-use lease assets	400,000	400,000		400,000		400,000	400,000	400,000	400,000
Right-of-use lease asset, measurement period adjustments							0	0	0
Total assets	54,202,000	54,602,000		59,012,000		59,012,000	54,202,000	54,602,000	59,012,000
Total assets, measurement period adjustments							(400,000)	(4,410,000)	0
Accounts payable	947,000	947,000		947,000		947,000	947,000	947,000	947,000
Accounts payable, measurement period adjustments							0	0	0
Accrued expenses	24,425,000	24,892,000		24,892,000		24,892,000	24,425,000	24,892,000	24,892,000
Accrued expenses, measurement period adjustments							(467,000)	0	0
Operating lease liabilities, current portion	208,000	208,000		208,000		208,000	208,000	208,000	208,000
Operating lease liabilities, current portion, measurement period adjustment							0	0	0
Operating lease liabilities, net of current portion	342,000	342,000		342,000		342,000	342,000	342,000	342,000
Operating lease liabilities, net of current portion, measurement period adjustments							0	0	0
Other long-term liabilities	290,000	290,000		290,000		290,000	290,000	290,000	290,000
Other long-term liabilities, measurement period adjustments							0	0	0
Total liabilities	26,212,000	26,679,000		26,679,000		26,679,000	26,212,000	26,679,000	26,679,000
Total liabilities, measurement period adjustments							(467,000)	0	0
Total identifiable net assets acquired	27,990,000	27,923,000		32,333,000		32,333,000	27,990,000	27,923,000	32,333,000
Total identifiable net assets acquired, measurement period adjustments							67,000	(4,410,000)	0
Goodwill	4,056,000	4,123,000		3,033,000		4,002,000	4,056,000	4,123,000	3,033,000
Goodwill, Purchase Accounting Adjustments							(67,000)	1,090,000	(969,000)
Total estimated purchase consideration	32,046,000	32,046,000		35,366,000		36,335,000
Total estimated purchase consideration, measurement period adjustments							0	(3,320,000)	(969,000)
Remaining working capital adjustment to be paid	3,100,000	$ 3,100,000	$ 3,100,000	$ 3,100,000	$ 4,069,000	$ 4,069,000
Remaining working capital adjustment to be paid, measurement period adjustments							0	0	$ 969,000
Additional interim amortization expense								$ 192,000
Accounts receivable, allowance for credit loss	$ 282,000						282,000
Trade accounts receivable, measurement period adjustments							(141,000)
Inventory and accrued expenses, measurement period adjustments							(121,000)
Due from a collaboration partner, measurement period adjustments							(138,000)
Accrued legal costs, measurement period adjustments							$ (346,000)

Acquisition of EPI Health - Pro

Acquisition of EPI Health - Pro Forma Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Business Acquisition [Line Items]
Total revenue	$ 27,701	$ 19,047
Net loss	(32,365)	(59,748)
Comprehensive loss	$ (32,365)	$ (59,748)
Net loss per share, basic (in dollars per share)	$ (1.47)	$ (3.50)
Net loss per share, diluted (in dollars per share)	$ (1.47)	$ (3.50)

Inventory, net (Details)

Inventory, net (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Finished goods available for sale	$ 2,037
Reserve for obsolescence	(841)
Inventory, net	$ 1,196	$ 0

Prepaid Expenses and Other Cu_3

Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Inventory and raw material deposits	$ 1,280	$ 0
Prepaid service contracts	121	0
Prepaid insurance	1,341	1,697
Prepaid Prescription Drug User Fee Act (PDUFA) fees	1,182	0
Product samples	1,362	0
Other current assets related to leasing arrangement	0	109
Prepaid expenses and other current assets	521	766
Prepaid expenses and other current assets	$ 5,807	$ 2,572

Property and Equipment, Net - C

Property and Equipment, Net - Components of Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 16,590	$ 13,783
Less: Accumulated depreciation and amortization	(2,708)	(1,582)
Property and equipment, net	13,882	12,201
Computer equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	58	58
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	43	23
Laboratory equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	6,195	4,134
Office equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	177	177
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 10,117	$ 9,391

Property and Equipment, Net - A

Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense	$ 1,178	$ 344
Leasehold improvements
Property, Plant and Equipment [Line Items]
Construction in progress	$ 210	$ 7,485

Leases - Additional Information

Leases - Additional Information (Details) $ in Thousands				12 Months Ended
	Mar. 03, 2022 USD ($) ft²	Nov. 18, 2021 USD ($)	Jan. 18, 2021 USD ($) ft² paymentInstallment $ / ft²	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Nov. 23, 2021 ft²	Nov. 22, 2021 ft²
Commitments And Contingencies [Line Items]
Tenant improvement allowance				$ 2,450
Rent expense				562	$ 467
Short-term rent expense				245	539
Proceeds from tenant improvement allowance				$ 508	$ 1,523
New corporate headquarters
Commitments And Contingencies [Line Items]
Square footage of leased space (in square feet) | ft²			19,265				15,623
Additional square footage of lease space (in square feet) | ft²						3,642
Optional term of extending lease agreement			5 years
Monthly base rent		$ 49	$ 40
Monthly base rent increase			3%
Rent abatement period			3 months
Weighted average remaining lease term, operating leases				9 years 2 months 1 day
Weighted average discount rate, operating lease liabilities				8.35%
New corporate headquarters | Maximum
Commitments And Contingencies [Line Items]
Tenant improvement allowance (in dollars per square foot) | $ / ft²			130
New corporate headquarters | Letter of credit
Commitments And Contingencies [Line Items]
Letter of credit			$ 583
Second amendment
Commitments And Contingencies [Line Items]
Tenant improvement allowance (in dollars per square foot) | $ / ft²			115
Tenant improvement allowance			$ 419
Number of payment installments (in payment installments) | paymentInstallment			4
Meeting Street Lease
Commitments And Contingencies [Line Items]
Square footage of leased space (in square feet) | ft²	6,000
Monthly base rent	$ 20
Weighted average remaining lease term, operating leases				2 months 1 day
Weighted average discount rate, operating lease liabilities				8.35%

Leases - Schedule of Future Min

Leases - Schedule of Future Minimum Lease Payments (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2023	$ 229
2024	626
2025	645
2026	665
2027	685
2028 and beyond	3,016
Total future undiscounted lease payments	5,866
Less: imputed interest	(1,936)
Total reported lease liability	$ 3,930

Leases - Components of Lease As

Leases - Components of Lease Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Assets
Right-of-use lease assets	$ 1,756	$ 1,693
Total lease assets	1,756
Liabilities
Operating lease liabilities, current portion	191	0
Operating lease liabilities, net of current portion	3,739	$ 3,613
Total lease liabilities	$ 3,930

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets, net - Additional Information (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 4,056	$ 0
Goodwill, tax deductible	$ 0

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets, net - Definite and Indefinite Lived Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Accumulated Amortization	$ 1,600
Total amortization	27,400
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Initial Carrying Value	29,075
Accumulated Amortization	1,600
Net Book Value	27,475	$ 75
Website domain
Indefinite-lived Intangible Assets [Line Items]
Indefinite-Lived Intangible Assets (Excluding Goodwill)	75
Rhofade
Finite-Lived Intangible Assets [Line Items]
Initial Carrying Value	15,500
Accumulated Amortization	835
Total amortization	$ 14,665
Remaining Useful Life (Years)	14 years 3 months
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated Amortization	$ 835
Wynzora
Finite-Lived Intangible Assets [Line Items]
Initial Carrying Value	2,000
Accumulated Amortization	108
Total amortization	$ 1,892
Remaining Useful Life (Years)	14 years 3 months
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated Amortization	$ 108
Minolira
Finite-Lived Intangible Assets [Line Items]
Initial Carrying Value	8,500
Accumulated Amortization	458
Total amortization	$ 8,042
Remaining Useful Life (Years)	14 years 3 months
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated Amortization	$ 458
Cloderm
Finite-Lived Intangible Assets [Line Items]
Initial Carrying Value	1,000
Accumulated Amortization	54
Total amortization	$ 946
Remaining Useful Life (Years)	14 years 3 months
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated Amortization	$ 54
Sitavig
Finite-Lived Intangible Assets [Line Items]
Initial Carrying Value	2,000
Accumulated Amortization	145
Total amortization	$ 1,855
Remaining Useful Life (Years)	13 years 11 months 8 days
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated Amortization	$ 145

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets, net Finite-Lived Intangible Assets, Future Amortization Expense - (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2023	$ 1,935
2024	1,941
2025	1,935
2026	1,935
2027	1,935
Thereafter	17,719
Total amortization	$ 27,400

Accounts Payable and Accrued _3

Accounts Payable and Accrued Expenses - Accounts Payable (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Rebates, coupons, discounts and chargebacks	$ 9,509	$ 0
Finished goods inventory	721	0
Construction in process	0	451
Outside research and development services	721	140
Facility service providers	0	87
Legal and professional fees	530	193
SB206 regulatory activities	422	417
SB206 pre-commercial and marketing	153	682
Other payables	1,633	200
Total accounts payable	$ 13,689	$ 2,170

Accounts Payable and Accrued _4

Accounts Payable and Accrued Expenses - Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Accrued rebates, coupons, discounts and chargebacks	$ 8,671	$ 0
Accrued returns	3,011	0
Accrued compensation	937	1,543
Accrued outside research and development services	410	194
Accrued legal and professional fees	542	427
Accrued royalties	675	0
Accrued milestones	1,250	0
Accrued construction in process	0	1,020
Accrued insurance	747	0
Accrued SB206 regulatory activities	165	0
Accrued Wynzora payments due to collaborator	532	0
Accrued MC2 collaboration deposit	1,149	0
Accrued other expenses	535	1,804
Total accrued expenses	$ 18,624	$ 4,988

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($)		12 Months Ended
	Dec. 01, 2022	Dec. 31, 2022	Dec. 31, 2021	Sep. 28, 2018
Other Commitments [Line Items]
Factoring arrangement payable		$ 10,302,000	$ 0
Amount at which royalty payments are due				$ 20,833,000
Maximum royalty payment				$ 6,500,000
Interest Expense
Other Commitments [Line Items]
Financing costs		185,000
Selling, General and Administrative Expenses
Other Commitments [Line Items]
Financing costs		$ 73,000
Bay View Funding | Factoring Facility
Other Commitments [Line Items]
Maximum credit	$ 15,000,000
Factoring rate	70%
Floating rate per annum	2%
Factoring fee	0.35%
Factoring fee, period	30 days
Trade accounts receivable, credit period	90 days
Term		12 months
Factoring fee, notice period	60 days
Factoring termination fee	0.25%
Bay View Funding | Factoring Facility | Wholesale Customer
Other Commitments [Line Items]
Trade accounts receivable, credit period	100 days

Commitments and Contingencies_2

Commitments and Contingencies - Milestone Payments (Details) - USD ($) $ in Thousands	Oct. 10, 2019	Aug. 20, 2018
Milestone one
Other Commitments [Line Items]
Calendar Year Net Sales Threshold		$ 10,000
Milestone Payment		1,000
Milestone two
Other Commitments [Line Items]
Calendar Year Net Sales Threshold		20,000
Milestone Payment		1,000
Milestone three
Other Commitments [Line Items]
Calendar Year Net Sales Threshold		20,000
Milestone Payment		$ 1,500
Rhofade | Milestone one
Other Commitments [Line Items]
Calendar Year Net Sales Threshold	$ 50,000
Milestone Payment	5,000
Rhofade | Milestone two
Other Commitments [Line Items]
Calendar Year Net Sales Threshold	75,000
Milestone Payment	5,000
Rhofade | Milestone three
Other Commitments [Line Items]
Calendar Year Net Sales Threshold	100,000
Milestone Payment	$ 10,000

Notes Payable - Additional Info

Notes Payable - Additional Information (Details)			12 Months Ended
	Jul. 13, 2022 USD ($)	Mar. 11, 2022 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Apr. 22, 2020 USD ($)
Debt Instrument [Line Items]
Gain on debt extinguishment			$ 4,340,000	$ 956,000
Notes payable | Seller Note
Debt Instrument [Line Items]
Principal amount		$ 16,500,000
Term		24 months
Early repayment penalty		$ 0
Interest expense on debt			1,375,000
Repayment of debt	$ 10,000,000
Discount on original principal	0.39
Gain on debt extinguishment	$ 4,340,000
Fair value less settlement value	3,939,000
Estimated fair value	13,939,000
Write-off of accrued interest	$ 401,000
Notes payable | Seller Note | First 90 days after closing date
Debt Instrument [Line Items]
Term		90 days
Interest rate		5%
Notes payable | Seller Note | Following 12 months
Debt Instrument [Line Items]
Term		12 months
Interest rate		15%
Notes payable | Seller Note | Remainder of term
Debt Instrument [Line Items]
Interest rate		18%
Notes payable | Seller Note | Adjustments
Debt Instrument [Line Items]
Interest expense on debt			$ 635,000
Paycheck Protection Program Loan
Debt Instrument [Line Items]
Principal amount					$ 956,000
Interest rate					1%

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details)

1 Months Ended

12 Months Ended

Jun. 09, 2022 USD ($) $ / shares shares

Jan. 09, 2022 shares

Jun. 17, 2021 USD ($) $ / shares shares

May 25, 2021 shares

Jul. 28, 2020

Jul. 21, 2020 USD ($) $ / shares shares

Jul. 31, 2020 USD ($)

Mar. 31, 2020 shares

Apr. 30, 2016 USD ($) shares

Dec. 31, 2022 USD ($) $ / shares shares

Dec. 31, 2021 USD ($) $ / shares shares

Mar. 11, 2022 USD ($) $ / shares

Dec. 31, 2020 shares

Mar. 26, 2020 $ / shares shares

Mar. 03, 2020 $ / shares

Class of Stock [Line Items]

Capital stock, shares authorized (in shares)

210,000,000

Common stock, shares authorized (in shares)

200,000,000

200,000,000

Common stock, par value (in USD per share) | $ / shares

$ 0.0001

$ 0.0001

Preferred stock, shares authorized (in shares)

10,000,000

10,000,000

Preferred stock, par value (in USD per share) | $ / shares

$ 0.0001

Reverse stock split conversion ratio

0.1

Reverse stock split, conversion ratio

10

Common stock, shares issued (in shares)

15,170,678

24,723,258

18,816,842

Common stock, shares outstanding (in shares)

15,170,678

24,722,308

18,815,892

Net proceeds from the offering | $

$ 14,252,000

$ 37,600,000

Proceeds from exercise of common stock warrants | $

0

461,000

Common stock issued during period (in shares)

3,636,364

2,108,333

Percentage of common stock sold related to warrants issued

3%

3%

Period of option to purchase additional shares

30 days

Common stock, maximum additional shares available for purchase (in shares)

545,454

Proceeds from issuance of common stock under common stock purchase agreement | $

$ 0

$ 6,334,000

Treasury stock acquired (in shares)

950

Treasury stock acquired | $

$ 155,000

Preferred stock, shares outstanding (in shares)

0

0

January 2018 Public Offering

Class of Stock [Line Items]

Warrants exercised during period (in shares)

0

150

Number of securities expired (in shares)

999,850

March 20022 Equity Distribution Agreement

Class of Stock [Line Items]

Common stock, par value (in USD per share) | $ / shares

$ 0.0001

Maximum value of shares of common stock authorized to be sold | $

$ 50,000,000

Number of shares sold (in shares)

645,105

Average price per share sold (in USD per share) | $ / shares

$ 2.66

Net proceeds from the offering | $

$ 1,665,000

June 2021 Public Offering

Class of Stock [Line Items]

Net proceeds from the offering | $

$ 37,236,000

Underwriting discounts and commissions and offering expenses | $

$ 2,764,000

Oppenheimer | March 20022 Equity Distribution Agreement

Class of Stock [Line Items]

Sales commission percentage

3%

Oppenheimer | June 2022 Registered Direct Offering

Class of Stock [Line Items]

Placement agent fee

5%

Aspire Capital | July 2020 Common Stock Purchase Agreement

Class of Stock [Line Items]

Maximum value of shares of common stock authorized to be sold | $

$ 30,000,000

Number of shares sold (in shares)

555,555

Average price per share sold (in USD per share) | $ / shares

$ 1.28

Common stock issued during period (in shares)

0

493,163

Common stock purchase agreement term

30 months

Closing sale price of common stock (in USD per share) | $ / shares

$ 9

Proceeds from issuance of common stock under common stock purchase agreement | $

$ 5,000,000

$ 6,334,000

Shares of common stock issued for commitment fee (in shares)

100,000

Value of commitment fee shares issued | $

$ 847,000

Maximum

Class of Stock [Line Items]

Reverse stock split conversion ratio

0.5

Minimum

Class of Stock [Line Items]

Reverse stock split conversion ratio

0.067

Common warrant

Class of Stock [Line Items]

Warrant exercise price (in USD per share) | $ / shares

$ 3

Warrants expiration period

5 years

Warrants exercised during period (in shares)

0

10,000

Common warrant | March 2020 Public Offering

Class of Stock [Line Items]

Proceeds from exercise of common stock warrants | $

$ 30,000

Common warrant | June 2022 Registered Direct Offering

Class of Stock [Line Items]

Restriction of additional issuance as a percentage of total issuance

0.50

Common stock issued during period (in shares)

2,080,696

Warrant exercise price (in USD per share) | $ / shares

$ 2.851

$ 1.20

Warrants expiration period

5 years

Historical volatility period

100 days

Settlement amount as a percentage

1

Percentage of common stock sold related to warrants issued

4.99%

Common warrant | Maximum | June 2022 Registered Direct Offering

Class of Stock [Line Items]

Percentage of common stock sold related to warrants issued

9.99%

Underwriter Warrant

Class of Stock [Line Items]

Warrants issued (in shares)

59,496

Warrant exercise price (in USD per share) | $ / shares

$ 3.75

Warrants exercised during period (in shares)

0

48,192

Underwriter Warrant | March 2020 Public Offering

Class of Stock [Line Items]

Proceeds from exercise of common stock warrants | $

$ 181,000

Placement Agent Warrant

Class of Stock [Line Items]

Proceeds from exercise of common stock warrants | $

$ 243,000

Warrant exercise price (in USD per share) | $ / shares

$ 5.375

Warrants expiration period

5 years

Warrants exercised during period (in shares)

0

45,209

Placement Agent Warrant | Maximum

Class of Stock [Line Items]

Warrants issued (in shares)

55,814

Pre Funded Warrant | June 2022 Registered Direct Offering

Class of Stock [Line Items]

Common stock issued during period (in shares)

3,180,615

Warrant exercise price (in USD per share) | $ / shares

$ 0.01

Warrants to purchase common stock (Note 11)

Class of Stock [Line Items]

Weighted average exercise price per share (in USD per share) | $ / shares

$ 2.86

$ 37.24

Warrants owned (in shares)

5,535,637

1,274,176

Warrants to purchase common stock (Note 11) | June 2022 Registered Direct Offering

Class of Stock [Line Items]

Net proceeds from the offering | $

$ 14,020,000

Offering costs | $

$ 948,000

Warrants to purchase common stock (Note 11) | Common warrant | March 2020 Public Offering

Class of Stock [Line Items]

Warrant exercise price (in USD per share) | $ / shares

$ 3

Warrants owned (in shares)

252,417

252,417

Warrants to purchase common stock (Note 11) | Common warrant | January 2018 Public Offering

Class of Stock [Line Items]

Warrant exercise price (in USD per share) | $ / shares

$ 46.60

Warrants owned (in shares)

0

999,850

Warrants to purchase common stock (Note 11) | Common warrant | June 2022 Registered Direct Offering

Class of Stock [Line Items]

Warrants issued (in shares)

2,080,696

Warrant exercise price (in USD per share) | $ / shares

$ 2.851

$ 2.851

Warrants owned (in shares)

5,261,311

0

Warrants to purchase common stock (Note 11) | Underwriter Warrant | Registered Direct Offering

Class of Stock [Line Items]

Warrant exercise price (in USD per share) | $ / shares

$ 3.75

Warrants owned (in shares)

11,304

11,304

Warrants to purchase common stock (Note 11) | Placement Agent Warrant | Registered Direct Offering

Class of Stock [Line Items]

Warrant exercise price (in USD per share) | $ / shares

$ 5.375

Warrants owned (in shares)

10,605

10,605

Warrants to purchase common stock (Note 11) | Pre Funded Warrant | June 2022 Registered Direct Offering

Class of Stock [Line Items]

Warrants issued (in shares)

3,180,615

Warrant exercise price (in USD per share) | $ / shares

$ 2.841

Warrants owned (in shares)

0

Common Stock

Class of Stock [Line Items]

Common stock, shares outstanding (in shares)

24,722,308

18,815,892

14,570,009

Price per share (in USD per share) | $ / shares

$ 11

Common Stock | Pre Funded Warrant | June 2022 Registered Direct Offering

Class of Stock [Line Items]

Common stock issued during period (in shares)

2,080,696

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Outstanding Warrants to Purchase Common Stock (Details) - $ / shares	Dec. 31, 2022	Jun. 09, 2022	Dec. 31, 2021	Mar. 26, 2020	Mar. 03, 2020
Warrants to purchase common stock (Note 11)
Class of Stock [Line Items]
Warrants owned (in shares)	5,535,637		1,274,176
Common warrant
Class of Stock [Line Items]
Warrant exercise price (in USD per share)					$ 3
Common warrant | June 2022 Registered Direct Offering
Class of Stock [Line Items]
Warrant exercise price (in USD per share)	$ 1.20	$ 2.851
Common warrant | Warrants to purchase common stock (Note 11) | January 2018 Public Offering
Class of Stock [Line Items]
Warrants owned (in shares)	0		999,850
Warrant exercise price (in USD per share)	$ 46.60
Common warrant | Warrants to purchase common stock (Note 11) | June 2022 Registered Direct Offering
Class of Stock [Line Items]
Warrants owned (in shares)	5,261,311		0
Warrant exercise price (in USD per share)	$ 2.851	$ 2.851
Common warrant | Warrants to purchase common stock (Note 11) | March 2020 Public Offering
Class of Stock [Line Items]
Warrants owned (in shares)	252,417		252,417
Warrant exercise price (in USD per share)	$ 3
Underwriter Warrant
Class of Stock [Line Items]
Warrant exercise price (in USD per share)				$ 3.75
Underwriter Warrant | Warrants to purchase common stock (Note 11) | Registered Direct Offering
Class of Stock [Line Items]
Warrants owned (in shares)	11,304		11,304
Warrant exercise price (in USD per share)	$ 3.75
Placement Agent Warrant
Class of Stock [Line Items]
Warrant exercise price (in USD per share)				$ 5.375
Placement Agent Warrant | Warrants to purchase common stock (Note 11) | Registered Direct Offering
Class of Stock [Line Items]
Warrants owned (in shares)	10,605		10,605
Warrant exercise price (in USD per share)	$ 5.375

Stockholders' Equity - Schedu_2

Stockholders' Equity - Schedule of Reserved Shares of Common Stock for Future Issuance (Details) - shares	Dec. 31, 2022	Dec. 31, 2021
Class of Stock [Line Items]
Common stock shares reserved for future issuance (in shares)	7,327,414	3,065,953
2016 Stock Plan
Class of Stock [Line Items]
Common stock shares reserved for future issuance (in shares)	241,801	1,213,224
Outstanding stock options
Class of Stock [Line Items]
Common stock shares reserved for future issuance (in shares)	1,032,570	518,553
Nonvested restricted stock units (Note 16)
Class of Stock [Line Items]
Common stock shares reserved for future issuance (in shares)	457,406	0
Stock appreciation rights
Class of Stock [Line Items]
Common stock shares reserved for future issuance (in shares)	60,000	60,000
Warrants to purchase common stock (Note 11)
Class of Stock [Line Items]
Common stock shares reserved for future issuance (in shares)	5,535,637	1,274,176

Licensing and Collaboration A_2

Licensing and Collaboration Arrangements (Details)					12 Months Ended
	Nov. 07, 2021	Feb. 21, 2020 USD ($)	Oct. 13, 2017 USD ($)	Dec. 29, 2015	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($) agreement	Sep. 30, 2022 USD ($)	Jan. 01, 2022 USD ($)	Sep. 28, 2018 USD ($)	Dec. 30, 2015	Jun. 27, 2012 USD ($)
Collaborative Arrangements Transactions [Line Items]
Amount at which royalty payments are due									$ 20,833,000
Maximum royalty payment									$ 6,500,000
Milestone and royalty payments					$ 0	$ 0
KNOW Bio
Collaborative Arrangements Transactions [Line Items]
Written notice to terminate, period					90 days
Percentage of outstanding member interests of KNOW Bio distributed to stockholders										100%
Option term for development and commercialization of products rights				3 years
Upfront license agreement payment due upon execution			$ 250,000
Licensing Agreements
Collaborative Arrangements Transactions [Line Items]
Accrual for future payments							$ 0
UNC License Agreement
Collaborative Arrangements Transactions [Line Items]
Potential regulatory and commercial milestones payable under agreement											$ 425,000
MC2 Agreement | Royalty Payment, Mid-Teens Percentage
Collaborative Arrangements Transactions [Line Items]
Amount at which royalty payments are due								$ 65,000,000
MC2 Agreement | Royalty Payment, Upper Single Digits Percentage
Collaborative Arrangements Transactions [Line Items]
Amount at which royalty payments are due								105,000,000
MC2 Agreement | Incentive Fee
Collaborative Arrangements Transactions [Line Items]
Amount at which royalty payments are due								$ 30,000,000
Incentive fee percentage								5%
Maximum incentive fee								$ 1,500,000
Aspect Agreement and Rhofade Acquisition Agreement
Collaborative Arrangements Transactions [Line Items]
Royalty percentage due						25%
Abbreviated New Drug Application (ANDA) Settlement Agreements
Collaborative Arrangements Transactions [Line Items]
Number of settlement agreements (in agreements) | agreement						2
OTC License Agreement
Collaborative Arrangements Transactions [Line Items]
Termination period without notice		9 months
Term of arrangement		10 years
OTC License Agreement | Regulatory Milestones
Collaborative Arrangements Transactions [Line Items]
Maximum royalty payment		$ 9,500,000
OTC License Agreement | Commercial Milestones
Collaborative Arrangements Transactions [Line Items]
Maximum royalty payment		$ 20,000,000
OTC License Agreement | Minimum
Collaborative Arrangements Transactions [Line Items]
Royalty percentage due		32%
Termination notice period		60 days
OTC License Agreement | Maximum
Collaborative Arrangements Transactions [Line Items]
Royalty percentage due		50%
Termination notice period		3 months
Nuvail Agreements
Collaborative Arrangements Transactions [Line Items]
Renewal term of agreement	5 years
Termination notice period	12 months
Gross sales period by which termination fee is determined	12 months

Net Product Revenues - Summary

Net Product Revenues - Summary (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Net product revenues
Disaggregation of Revenue [Line Items]
Total Net Product Revenues	$ 15,796	$ 0
Rhofade
Disaggregation of Revenue [Line Items]
Total Net Product Revenues	11,488
Wynzora
Disaggregation of Revenue [Line Items]
Total Net Product Revenues	1,640
Minolira
Disaggregation of Revenue [Line Items]
Total Net Product Revenues	1,572
Cloderm
Disaggregation of Revenue [Line Items]
Total Net Product Revenues	505
Other
Disaggregation of Revenue [Line Items]
Total Net Product Revenues	$ 591
Product concentration risk | Net product revenues | Revenue benchmark
Disaggregation of Revenue [Line Items]
Percentage of Net Product Revenues	100%
Product concentration risk | Rhofade | Revenue benchmark
Disaggregation of Revenue [Line Items]
Percentage of Net Product Revenues	72.70%
Product concentration risk | Wynzora | Revenue benchmark
Disaggregation of Revenue [Line Items]
Percentage of Net Product Revenues	10.40%
Product concentration risk | Minolira | Revenue benchmark
Disaggregation of Revenue [Line Items]
Percentage of Net Product Revenues	10%
Product concentration risk | Cloderm | Revenue benchmark
Disaggregation of Revenue [Line Items]
Percentage of Net Product Revenues	3.20%
Product concentration risk | Other | Revenue benchmark
Disaggregation of Revenue [Line Items]
Percentage of Net Product Revenues	3.70%

Net Product Revenues - Addition

Net Product Revenues - Additional Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Commercial operations
Concentration Risk [Line Items]
Accrued expense related to royalties on net sales	$ 3,995
License and collaboration revenue | MC2 Agreement
Concentration Risk [Line Items]
Contra expense	8,284
Accrued deposit liability	$ 1,149
Customer concentration risk | Revenue benchmark | Largest customer
Concentration Risk [Line Items]
Concentration risk percentage	12%

License and Collaboration Rev_3

License and Collaboration Revenues - Summary (Details) - License and collaboration revenue - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Collaborative Arrangements Transactions [Line Items]
Revenue from contract with customer	$ 7,813	$ 2,822
Product concentration risk | Revenue benchmark
Collaborative Arrangements Transactions [Line Items]
Concentration risk percentage	100%
Sato Agreement - SB206 and SB204
Collaborative Arrangements Transactions [Line Items]
Revenue from contract with customer	$ 2,586	$ 2,822
Sato Agreement - SB206 and SB204 | Product concentration risk | Revenue benchmark
Collaborative Arrangements Transactions [Line Items]
Concentration risk percentage	33.10%
Sato Rhofade Agreement
Collaborative Arrangements Transactions [Line Items]
Revenue from contract with customer	$ 5,000
Sato Rhofade Agreement | Product concentration risk | Revenue benchmark
Collaborative Arrangements Transactions [Line Items]
Concentration risk percentage	64%
Prasco Agreement - Cloderm AG
Collaborative Arrangements Transactions [Line Items]
Revenue from contract with customer	$ 227
Prasco Agreement - Cloderm AG | Product concentration risk | Revenue benchmark
Collaborative Arrangements Transactions [Line Items]
Concentration risk percentage	2.90%

License and Collaboration Rev_4

License and Collaboration Revenues - Additional Information (Details) ¥ in Millions

12 Months Ended

Dec. 31, 2022 USD ($)

Nov. 07, 2019 USD ($)

Nov. 07, 2019 JPY (¥)

Mar. 14, 2019 USD ($)

Mar. 14, 2019 JPY (¥)

Oct. 23, 2018 USD ($)

Oct. 23, 2018 JPY (¥)

Oct. 05, 2018 USD ($)

Sep. 28, 2018

Jan. 19, 2017 USD ($)

Jan. 19, 2017 JPY (¥)

Jan. 12, 2017 USD ($)

Dec. 31, 2022 USD ($)

Dec. 31, 2022 JPY (¥)

Feb. 28, 2022 USD ($)

Feb. 28, 2022 JPY (¥)

May 20, 2021 USD ($)

May 20, 2021 JPY (¥)

Sep. 13, 2019 JPY (¥)

Feb. 14, 2019 JPY (¥)

Dec. 31, 2018 USD ($)

Dec. 31, 2018 JPY (¥)

Oct. 05, 2018 JPY (¥)

Disaggregation of Revenue [Line Items]

Accrued expense including cumulative sales-based milestones and upfront payments

$ 1,407,000

$ 1,407,000

Estimated performance period

10 years

Sato Agreement - SB206 and SB204

Disaggregation of Revenue [Line Items]

License agreement additional term

2 years

Maximum preclinical studies amount

$ 1,000,000

Written notice to terminate, period

120 days

Written notice to terminate due to material breach, term

60 days

Upfront fee refundable in event of termination

$ 0

Payment received under license agreement

$ 4,554,000

¥ 500

$ 4,460,000

¥ 500

$ 2,224,000

¥ 250

$ 10,813,000

¥ 1,250

Milestone payment received following initiation of Phase 1 trial

$ 2,162,000

¥ 250

Upfront payment receivable | ¥

¥ 1,250

Upfront payment installments | ¥

¥ 500

¥ 500

250

Aggregate becoming payable upon earlier of specified future dates or achievement of milestone events | ¥

1,000

Non contingent milestone payment received under license agreement

$ 4,323,000

¥ 500

$ 4,572,000

¥ 500

Aggregate commercial milestone payments potentially receivable under license agreement | ¥

¥ 500

¥ 3,900

Sato Rhofade Agreement

Disaggregation of Revenue [Line Items]

License agreement additional term

2 years

Written notice to terminate, period

120 days

Written notice to terminate due to material breach, term

60 days

Upfront payment receivable

$ 5,000,000

$ 5,000,000

Aggregate commercial milestone payments potentially receivable under license agreement

$ 2,500,000

$ 2,500,000

Upfront and milestone payments payable, percentage

25%

License agreement additional extension termination notice period

1 year

Prasco Agreement - Cloderm AG

Disaggregation of Revenue [Line Items]

License agreement additional term

1 year

Written notice to terminate, period

9 months

Estimated performance period

5 years

License and Collaboration Rev_5

License and Collaboration Revenues - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Contract Asset	$ 0	$ 0
Contract Liability	10,665	13,251
Net Deferred Revenue	10,665	13,251
Short-term Deferred Revenue	2,586	2,586
Long-term Deferred Revenue	$ 8,079	$ 10,665

License and Collaboration Rev_6

License and Collaboration Revenues - Performance Obligations, Expected Timing of Satisfaction (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Revenue from Contract with Customer [Abstract]
Performance obligations under long-term contracts unsatisfied	$ 10,665
Revenue remaining performance obligation percentage	24%

Research and Development Agre_2

Research and Development Agreements (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	May 04, 2019	Apr. 29, 2019
Ligand Pharmaceuticals Incorporated
Collaborative Arrangements Transactions [Line Items]
Immediate funding			$ 12,000,000
Potential regulatory and commercial milestones payable under agreement			$ 20,000,000
Minimum | Ligand Pharmaceuticals Incorporated
Collaborative Arrangements Transactions [Line Items]
Tiered royalties, percentage			7%
Maximum | Ligand Pharmaceuticals Incorporated
Collaborative Arrangements Transactions [Line Items]
Tiered royalties, percentage			10%
SB206 | Ligand Pharmaceuticals Incorporated
Collaborative Arrangements Transactions [Line Items]
Immediate funding			$ 12,000,000
Research and development contra expense	$ (968,000)	$ (88,000)
Reedy Creek Investments LLC
Collaborative Arrangements Transactions [Line Items]
Immediate funding				$ 25,000,000
Reedy Creek Investments LLC | Cash and Cash Equivalents
Collaborative Arrangements Transactions [Line Items]
Immediate funding				$ 25,000,000

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) $ / shares in Units, $ in Thousands			12 Months Ended
	May 04, 2021 shares	Jan. 06, 2020 $ / shares shares	Dec. 31, 2022 USD ($) shares	Dec. 31, 2021 USD ($) shares	Dec. 31, 2020 shares	Aug. 02, 2018 tranche
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additional awards to be granted under the plan (in shares)				1,500,000
Shares available for future issuance (in shares)			241,801	1,213,224	52,378
Stock options expiration period		10 years
RSUs granted (in shares)			479,606
Number of options granted to employees (in shares)			543,300	385,885
Options outstanding (in shares)			1,032,570	518,553	199,199
Forfeiture estimate percentage			12.20%	11.90%
Total intrinsic value of options exercised | $			$ 0	$ 3
Total unrecognized compensation expense related to non-vested share based compensation | $			$ 1,912	$ 1,852
Weighted average period for nonvested share recognition			1 year 10 months 28 days	2 years 3 months 3 days
SARs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employment agreement, number of SARs granted on a contingent basis (in shares)		60,000
Exercise price (in USD per share) | $ / shares		$ 8.20
Nonvested restricted stock units (Note 16)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs granted (in shares)			479,606	0
Weighted average period for nonvested share recognition			11 months 15 days
Unrecognized compensation expense | $			$ 762
Nonvested restricted stock units (Note 16) | Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs granted (in shares)			263,000
Nonvested restricted stock units (Note 16) | Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs granted (in shares)			216,606
2008 Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options expiration period			10 years
2016 Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additional awards to be granted under the plan (in shares)	1,500,000
Shares available for future issuance (in shares)			241,801
Stock options expiration period			10 years
Inducement Grants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options vesting period			3 years
Options outstanding (in shares)			1,250
Tangible Stockholder Return Plan | Deferred Bonus
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of tranches (in tranches) | tranche						2

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 1,880	$ 275
Tangible Stockholder Return Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	0	(666)
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	1,333	826
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	547	0
Stock appreciation rights
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 0	$ 115

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of SAR Assumptions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 1,880	$ 275
Tangible Stockholder Return Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	0	(666)
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	1,333	826
SARs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 0	$ 115

Stock-Based Compensation - Sc_2

Stock-Based Compensation - Schedule of Stock-based Compensation Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 1,880	$ 275
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	449	(250)
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 1,431	$ 525

Share-Based Compensation - Fair

Share-Based Compensation - Fair Value of Option Grant Estimated on Grant Date Using Black-Scholes Option-pricing Model (Details) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share-Based Payment Arrangement [Abstract]
Estimated dividend yield	0%	0%
Expected volatility	110.97%	107.54%
Risk-free interest rate	2.59%	1.02%
Expected life of options (in years)	5 years 11 months 12 days	5 years 9 months 14 days
Weighted-average fair value per share (in USD per share)	$ 2.72	$ 7.13

Share-Based Compensation - Summ

Share-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Shares Available for Grant
Options outstanding, beginning balance (in shares)	1,213,224	52,378
SARs forfeited (in shares)		1,000
RSUs granted (in shares)	(479,606)
RSUs forfeited (in shares)	22,200
Options granted (in shares)	(543,300)	(385,885)
Options forfeited (in shares)	29,283	45,731
Options exercised (in shares)		0
Additional shares reserved under plan (in shares)		1,500,000
Options outstanding, ending balance (in shares)	241,801	1,213,224
Shares Subject to Outstanding Options
Options outstanding, beginning balance (in shares)	518,553	199,199
Options granted (in shares)	543,300	385,885
Options forfeited (in shares)	(29,283)	(53,689)
Options exercised (in shares)		(12,842)
Options outstanding, ending balance (in shares)	1,032,570	518,553
Vested and expected to vest (in shares)	943,355	470,773
Exercisable (in shares)	352,915	200,638
Weighted- Average Exercise Price Per Share
Options outstanding, beginning balance (in USD per share)	$ 15.48	$ 30.71
Options granted (in USD per share)	3.25	8.82
Options forfeited (in USD per share)	4.92	26.72
Options exercised (in USD per share)		4.74
Options outstanding, ending balance (in USD per share)	9.34	15.48
Vested and expected (in USD per share)	9.82	16.24
Exercisable (in USD per share)	$ 18.70	$ 26.59
Weighted- Average Remaining Contractual Term (in years)
Options outstanding	8 years 5 months 19 days
Vested and expected	8 years 5 months 1 day	8 years 8 months 1 day
Exercisable	7 years 4 months 17 days	7 years 5 months 15 days
Aggregate Intrinsic Value
Options outstanding	$ 0
Vested and expected to vest	0	$ 2
Exercisable	$ 0	$ 2

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of RSU Activity (Details) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Shares Subject to Outstanding RSUs
RSUs granted (in shares)	479,606
RSUs forfeited (in shares)	(22,200)
RSUs
Shares Subject to Outstanding RSUs
RSUs outstanding (in shares)	0
RSUs granted (in shares)	479,606	0
RSUs forfeited (in shares)	(22,200)
RSUs vested (in shares)	0
RSUs outstanding (in shares)	457,406	0
Weighted- Average Grant Date Fair Value
RSUs outstanding (in dollars per share)	$ 0
RSUs granted (in dollars per share)	2.87
RSUs forfeited (in dollars per share)	2.98
RSUs vested (in dollars per share)	0
RSUs outstanding (in dollars per share)	$ 2.86	$ 0

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Operating Loss Carryforwards [Line Items]
Income tax benefit	$ 0	$ 0
Tax loss carryforwards	22,041,000	21,008,000
Reduction of tax credit carryforward	2,427,000	1,653,000
Unrecognized tax benefits	0	0
Prior To Tax Year 2030 | North Carolina
Operating Loss Carryforwards [Line Items]
Tax loss carryforwards		$ 0
Tax Year 2030 | North Carolina
Operating Loss Carryforwards [Line Items]
Gradual income tax decrease rate		0%
Research Tax Credit Carryforward
Operating Loss Carryforwards [Line Items]
Reduction of tax credit carryforward	2,427,000
Federal
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards reduction	(104,745,000)
Federal | Adjustments
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards reduction		$ 113,800,000
State
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards reduction	$ (65,061,000)
State | Adjustments
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards reduction		$ 149,400,000

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of Federal Income Tax Rate to Losses Before Income Tax Benefit (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Income tax benefit at federal statutory rate	$ (6,569,000)	$ (6,235,000)
State income taxes, net of federal benefit	(389,000)	0
Non-deductible expenses	98,000	63,000
Research and development tax credits	(775,000)	(768,000)
Change in State Tax Rate	(545,000)	1,532,000
Other	163,000	(96,000)
Change in valuation allowance	8,017,000	5,504,000
Total income tax provision	$ 0	$ 0

Income Taxes - Significant Comp

Income Taxes - Significant Components of Company's Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Deferred tax assets:
Accrued compensation	$ 28	$ 247
Accrued liabilities	2,332	117
Tax loss carryforwards	22,041	21,008
Intangible assets	7	213
Stock-based compensation	778	499
Tax credits	2,427	1,653
Research and development service obligation	5,701	5,575
Right-of-use lease liabilities	867	736
Deferred revenue	2,377	1,849
Capitalized research expenses	3,454	0
Fixed assets	0	305
Other	280	50
Total deferred tax assets	40,292	32,252
Less valuation allowance	(39,823)	(31,808)
Net deferred tax asset	469	444
Deferred tax liabilities:
Fixed assets	(18)	0
Right-of-use lease assets	(389)	(356)
Other	(62)	(88)
Net noncurrent deferred tax asset (liability)	$ 0	$ 0

Retirement Plan (Details)

Retirement Plan (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Defined Contribution Plan Disclosure [Line Items]
Employer contribution amount	$ 524	$ 258
Maximum
Defined Contribution Plan Disclosure [Line Items]
Discretionary matching contributions (as a percent)	5%	5%

Fair Value - Change in Fair Val

Fair Value - Change in Fair Value of Level 3 Inputs for Contingent Consideration (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Change in fair value of contingent consideration			$ (1,160)	$ 0
Ending balance			2,488
Contingent consideration liability, current portion			451	0
Contingent consideration liability, net of current portion			2,037	$ 0
Total			2,488
EPI Health
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Change in fair value of contingent consideration			(1,160)
Level 3 | EPI Health
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 3,319	$ 3,773
Change in fair value of contingent consideration	186	(454)	(892)
Measurement period adjustment (see Note 2)	(125)
Ending balance	3,380	3,319	2,488
Contingent consideration liability, current portion			451
Contingent consideration liability, net of current portion			2,037
Total	$ 3,380	$ 3,319	$ 2,488

Fair Value - Significant Inputs

Fair Value - Significant Inputs and Valuation Methodologies Used in Fair Value of Contingent Consideration (Details) - EPI Health - Level 3 - Monte Carlo	Dec. 31, 2022 Decimal	Mar. 11, 2022 Decimal
Term | Transition Services Agreement
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input, contingent consideration liability	0.2	0.81
Term | Sitavig Milestones (Regulatory)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input, contingent consideration liability	3.25	1.89
Payment term | Transition Services Agreement
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input, contingent consideration liability	0.44	1.05
Payment term | Sitavig Milestones (Regulatory)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input, contingent consideration liability	3.5	2.14
Adjusted discount rate | Transition Services Agreement
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input, contingent consideration liability	0.1917	0.1211
Adjusted discount rate | Sitavig Milestones (Regulatory)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input, contingent consideration liability	0.1950	0.1315
Adjusted discount rate | First Sales Based Legacy Milestone | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input, contingent consideration liability	0.0890	0.0539
Adjusted discount rate | First Sales Based Legacy Milestone | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input, contingent consideration liability	0.0953	0.0699
Adjusted discount rate | Wynzora Milestone | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input, contingent consideration liability	0.0890	0.0539
Adjusted discount rate | Wynzora Milestone | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input, contingent consideration liability	0.0897	0.0623
Adjusted discount rate | Second Sales Based Legacy Milestone | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input, contingent consideration liability	0.0890	0.0539
Adjusted discount rate | Second Sales Based Legacy Milestone | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input, contingent consideration liability	0.0953	0.0699
Adjusted discount rate | Sitavig Milestones | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input, contingent consideration liability	0.0870	0.0689
Adjusted discount rate | Sitavig Milestones | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input, contingent consideration liability	0.0890	0.0715
Net sales volatility (per annum) | First Sales Based Legacy Milestone
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input, contingent consideration liability	0.130	0.130
Net sales volatility (per annum) | Wynzora Milestone
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input, contingent consideration liability	0.120	0.120
Net sales volatility (per annum) | Second Sales Based Legacy Milestone
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input, contingent consideration liability	0.130	0.130
Net sales volatility (per annum) | Sitavig Milestones
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input, contingent consideration liability	0.130	0.130
Credit spread (continuous) | First Sales Based Legacy Milestone
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input, contingent consideration liability	0.1482	0.1042
Credit spread (continuous) | Wynzora Milestone
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input, contingent consideration liability	0.1401	0.1055
Credit spread (continuous) | Second Sales Based Legacy Milestone
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input, contingent consideration liability	0.1482	0.1042
Credit spread (continuous) | Sitavig Milestones
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input, contingent consideration liability	0.1557	0.1113

Fair Value - Narrative (Details

Fair Value - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Change in fair value of contingent consideration	$ (1,160)	$ 0
EPI Health
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Change in fair value of contingent consideration	$ (1,160)

Fair Value - Contingent Conside

Fair Value - Contingent Consideration Classification and Earn Out Periods (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Collaborative Arrangements Transactions [Line Items]
Fair value of contingent consideration liability	$ 2,488
Transition Services Agreement
Collaborative Arrangements Transactions [Line Items]
Fair value of contingent consideration liability	451
First Sales Based Legacy Milestone
Collaborative Arrangements Transactions [Line Items]
Fair value of contingent consideration liability	0
Wynzora Milestone
Collaborative Arrangements Transactions [Line Items]
Fair value of contingent consideration liability	0
Second Sales Based Legacy Milestone
Collaborative Arrangements Transactions [Line Items]
Fair value of contingent consideration liability	620
Sitavig Milestones
Collaborative Arrangements Transactions [Line Items]
Fair value of contingent consideration liability	$ 1,417

Segment Information - Narrative

Segment Information - Narrative (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022 segment	Dec. 31, 2022 USD ($) segment	Dec. 31, 2021 USD ($)
Segment Reporting Information [Line Items]
Number of segments (in segments) | segment	1	2
Total revenue		$ 23,682	$ 2,958
Percentage of total revenue generated from Japan licensing partner		32%	95%
Research and Development operations
Segment Reporting Information [Line Items]
Total revenue		$ 2,586
License and collaboration revenue
Segment Reporting Information [Line Items]
Revenue from contract with customer		7,813	$ 2,822
License and collaboration revenue | Sato Agreement - SB206 and SB204
Segment Reporting Information [Line Items]
Revenue from contract with customer		2,586	$ 2,822
License and collaboration revenue | Sato Agreement - SB206 and SB204 | JAPAN
Segment Reporting Information [Line Items]
Revenue from contract with customer		$ 7,586

Segment Information - Segment,

Segment Information - Segment, Revenue, Comprehensive Loss and Total Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Segment Reporting Information [Line Items]
Total revenue	$ 23,682	$ 2,958
Net loss	(31,311)	(29,692)
Comprehensive loss	(31,311)	(29,692)
Assets	90,330	68,960
Operating segments
Segment Reporting Information [Line Items]
Assets	90,330
Commercial operations
Segment Reporting Information [Line Items]
Total revenue	5,000
Commercial operations | Operating segments
Segment Reporting Information [Line Items]
Total revenue	21,023	0
Net loss	(1,776)	0
Comprehensive loss	(1,776)	0
Assets	63,564
Research and Development operations
Segment Reporting Information [Line Items]
Total revenue	2,586
Research and Development operations | Operating segments
Segment Reporting Information [Line Items]
Total revenue	2,659	2,958
Net loss	(29,535)	(29,692)
Comprehensive loss	(29,535)	$ (29,692)
Assets	$ 26,766

Subsequent Events - Narrative (

Subsequent Events - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands			3 Months Ended
	Mar. 17, 2023	Mar. 13, 2023	Mar. 30, 2023	Dec. 31, 2022	Jun. 09, 2022	Mar. 03, 2020
Common warrant
Subsequent Event [Line Items]
Warrant exercise price (in USD per share)						$ 3
June 2022 Registered Direct Offering | Common warrant
Subsequent Event [Line Items]
Warrant exercise price (in USD per share)				$ 1.20	$ 2.851
Subsequent events
Subsequent Event [Line Items]
Warrants delayed exercise period	6 months
Subsequent events | Equity Distribution Agreement
Subsequent Event [Line Items]
Number of shares sold (in shares)	12,869,671		543,063
Purchase price per share sold (in USD per share)			$ 1.64
Gross proceeds			$ 865
Subsequent events | Securities Purchase Agreement
Subsequent Event [Line Items]
Number of shares sold (in shares)		5,042,017
Warrants issued (in shares)		5,042,017
Purchase price per share sold (in USD per share)		$ 1.19
Gross proceeds		$ 6,000
Proceeds from issuance or sale of shares and warrants		$ 5,400
Subsequent events | June 2022 Registered Direct Offering | Common warrant
Subsequent Event [Line Items]
Warrant exercise price (in USD per share)	$ 1.03