Kala Pharmaceuticals (KALA) 10-Q 8 Nov 22 2022 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2022	Nov. 07, 2022
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	001-38150
Entity Registrant Name	KALA PHARMACEUTICALS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-0604595
Entity Address, Address Line One	1167 Massachusetts Avenue
Entity Address, City or Town	Arlington
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02476
City Area Code	781
Local Phone Number	996-5252
Title of 12(b) Security	Common Stock, $0.001 par value per share
Trading Symbol	KALA
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		1,518,424
Entity Central Index Key	0001479419
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 52,393	$ 92,136
Short-term restricted cash		2,042
Accounts receivable, net	190	15,345
Inventory	0	8,639
Prepaid expenses and other current assets (Note 8)	22,576	6,204
Current assets held for sale (Note 4)	9,513	0
Total current assets	84,672	124,366
Non-current assets:
Property and equipment, net	517	2,722
Long-term inventory		9,578
Right-of-use assets	34	1,299
Restricted cash and other long-term assets	475	1,462
Total assets	85,698	139,427
Current liabilities:
Accounts payable	7,348	4,899
Accrued expenses and other current liabilities	25,368	20,986
Deferred gain on sale of commercial business	3,408
Current portion of lease liabilities	32	711
Current portion of contingent consideration	3,923	3,817
Current portion of deferred purchase consideration	162	7,009
Total current liabilities	40,241	37,422
Long-term liabilities:
Long-term lease liabilities		548
Long-term debt	42,642	78,929
Long-term contingent consideration	3,783	4,841
Long-term deferred purchase consideration		883
Total long-term liabilities	46,425	85,201
Total liabilities	86,666	122,623
Commitments and Contingencies (Note 17)
Stockholders' equity:
Common stock, $0.001 par value; 120,000,000 shares authorized as of September 30, 2022 and December 31, 2021; 1,464,177 and 1,320,003 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively	1	1
Additional paid-in capital	573,398	559,191
Accumulated deficit	(574,367)	(542,388)
Total stockholders' (deficit) equity	(968)	16,804
Total liabilities and stockholders' (deficit) equity	85,698	139,427
Series D redeemable preferred stock
Mezzanine equity:
Preferred stock, $0.001 par value; 5,000,000 shares authorized as of September 30, 2022 and December 31, 2021; 73,208 and 0 Series D redeemable preferred shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2022	Dec. 31, 2021
Common stock, par value	$ 0.001	$ 0.001
Common stock, authorized	120,000,000	120,000,000
Common stock, shares issued	1,476,637	1,322,464
Common stock, shares outstanding	1,476,637	1,322,464
Series D Redeemable Preferred Stock [Member]
Redeemable preferred stock, par value	$ 0.001	$ 0.001
Redeemable preferred stock, authorized	5,000,000	5,000,000
Redeemable preferred stock, issued	73,208	0
Redeemable preferred stock, outstanding	73,208	0

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
Product revenues, net	$ 420	$ 3,067	$ 3,892	$ 9,384
Costs and expenses:
Cost of product revenues	11	908	2,560	2,679
Selling, general and administrative	9,549	25,349	59,204	81,034
Research and development	5,391	2,881	14,330	9,101
(Gain) loss on fair value remeasurement of deferred purchase consideration	(57)		205
Loss (gain) on fair value remeasurement of contingent consideration	95		(952)
Total costs and expenses	14,989	29,138	75,347	92,814
Loss from operations	(14,569)	(26,071)	(71,455)	(83,430)
Other income (expense):
Interest income	234	16	310	92
Interest expense	(1,447)	(2,072)	(5,689)	(6,304)
Loss on extinguishment of debt	(2,583)		(2,583)	(5,395)
Gain on sale of commercial business	46,995		46,995
Other income (expense), net	443		443
Total interest and other income (expense)	43,642	(2,056)	39,476	(11,607)
Net income (loss)	$ 29,073	$ (28,127)	$ (31,979)	$ (95,037)
Net income (loss) per share-basic (in dollar per share)	$ 19.39	$ (21.41)	$ (21.46)	$ (73.80)
Net income (loss) per share- diluted (in dollar per share)	$ 19.25	$ (21.41)	$ (21.46)	$ (73.80)
Weighted average shares outstanding-basic (in shares)	1,499,001	1,313,466	1,490,159	1,287,772
Weighted average shares outstanding-diluted (in shares)	1,510,421	1,313,466	1,490,159	1,287,772
Statement of Comprehensive Income (Loss)
Net income (loss)	$ 29,073	$ (28,127)	$ (31,979)	$ (95,037)
Other comprehensive income (loss):
Change in unrealized gains on investments	1			(4)
Total other comprehensive income (loss)	1			(4)
Total comprehensive income (loss)	$ 29,074	$ (28,127)	$ (31,979)	$ (95,041)

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN MEZZANINE EQUITY AND STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income	Accumulated Deficit	Series D redeemable preferred stock	Total
Balance as of beginning of period at Dec. 31, 2020	$ 1	$ 499,773	$ 4	$ (399,783)		$ 99,995
Balance as of beginning of period (in shares) at Dec. 31, 2020	1,190,763
Stockholders' Equity
At the market offering, net of sales agent commission		41,063				41,063
At the market offering, net of sales agent commission (in shares)	113,950
Exercise of stock options		248				248
Exercise of stock options (in shares)	1,778
Issuance of common stock for vested restricted stock units (in shares)	2,156
Issuance of common stock under employee stock purchase plan		1,337				1,337
Issuance of common stock under employee stock purchase plan (in shares)	5,515
Stock-based compensation expense		13,867				13,867
Change in fair value of investments			(4)			(4)
Net income (loss)				(95,037)		(95,037)
Balance as of end of period at Sep. 30, 2021	$ 1	556,288		(494,820)		61,469
Balance as of end of period (in shares) at Sep. 30, 2021	1,314,162
Balance as of beginning of period at Jun. 30, 2021	$ 1	550,962		(466,693)		84,270
Balance as of beginning of period (in shares) at Jun. 30, 2021	1,307,860
Stockholders' Equity
At the market offering, net of sales agent commission		333				333
At the market offering, net of sales agent commission (in shares)	2,283
Issuance of common stock under employee stock purchase plan		906				906
Issuance of common stock under employee stock purchase plan (in shares)	4,019
Stock-based compensation expense		4,087				4,087
Net income (loss)				(28,127)		(28,127)
Balance as of end of period at Sep. 30, 2021	$ 1	556,288		(494,820)		61,469
Balance as of end of period (in shares) at Sep. 30, 2021	1,314,162
Balance as of beginning of period at Dec. 31, 2021
Balance as of beginning of period (in shares) at Dec. 31, 2021					0
Mezzanine equity:
Issuance of redeemable non-controlling Series D preferred stock (in shares)					73,208
Balance as of end of period at Sep. 30, 2022
Balance as of end of period (in shares) at Sep. 30, 2022					73,208
Balance as of beginning of period at Dec. 31, 2021	$ 1	559,191		(542,388)		16,804
Balance as of beginning of period (in shares) at Dec. 31, 2021	1,322,464
Stockholders' Equity
Exercise of stock options		3				3
Exercise of stock options (in shares)	102
Issuance of common stock for vested restricted stock units (in shares)	3,966
Issuance of common stock to satisfy deferred purchase consideration		7,936				7,936
Issuance of common stock to satisfy deferred purchase consideration (in shares)	136,314
Issuance of common stock under employee stock purchase plan		298				298
Issuance of common stock under employee stock purchase plan (in shares)	13,791
Stock-based compensation expense		5,970				5,970
Net income (loss)				(31,979)		(31,979)
Balance as of end of period at Sep. 30, 2022	$ 1	573,398		(574,367)		(968)
Balance as of end of period (in shares) at Sep. 30, 2022	1,476,637
Mezzanine equity:
Issuance of redeemable non-controlling Series D preferred stock (in shares)					73,208
Balance as of end of period at Sep. 30, 2022
Balance as of end of period (in shares) at Sep. 30, 2022					73,208
Balance as of beginning of period at Jun. 30, 2022	$ 1	571,886	(1)	(603,440)		(31,554)
Balance as of beginning of period (in shares) at Jun. 30, 2022	1,465,949
Stockholders' Equity
Issuance of common stock under employee stock purchase plan		138				138
Issuance of common stock under employee stock purchase plan (in shares)	10,688
Stock-based compensation expense		1,374				1,374
Change in fair value of investments			$ 1			1
Net income (loss)				29,073		29,073
Balance as of end of period at Sep. 30, 2022	$ 1	$ 573,398		$ (574,367)		$ (968)
Balance as of end of period (in shares) at Sep. 30, 2022	1,476,637

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN MEZZANINE EQUITY AND STOCKHOLDERS' EQUITY (DEFICIT) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN MEZZANINE EQUITY AND STOCKHOLDERS' EQUITY (DEFICIT)
Sales agent commission	$ 9
Offering costs		$ 1,161

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Cash flows from operating activities:
Net loss		$ (31,979)	$ (95,037)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization		457	763
Non-cash operating lease cost		421	1,711
Gain on sale of commercial business	$ (46,995)	(46,995)
Loss on extinguishment of debt	2,583	2,583	5,395
Loss on fair value remeasurement of deferred purchase consideration	(57)	205
Gain on fair value remeasurement of contingent consideration	95	(952)
Amortization of debt discount and other non-cash interest		1,130	1,080
Stock-based compensation		6,048	13,340
Other non-cash (gains) losses, net		76	8
Change in operating assets and liabilities:
Accounts receivable		15,143	(3,026)
Prepaid expenses and other current assets		(16,928)	(1,239)
Inventory		(1,011)	(6,772)
Accounts payable		2,433	4,251
Accrued expenses and other current liabilities		4,531	495
Lease liabilities and other long-term liabilities		(335)	(1,300)
Net cash used in operating activities		(65,173)	(80,331)
Cash flows from investing activities:
Proceeds from sale of commercial business, net of transaction costs		62,908
Purchases of property and equipment and other assets		(291)	(874)
Proceeds from sale of property and equipment		41	50
Purchases of short-term investments		(4,992)
Proceeds from sales or maturities of short-term investments		5,000	76,250
Net cash provided by investing activities		62,666	75,426
Cash flows from financing activities:
Proceeds from issuance of debt, net of debt issuance costs of $2,218			77,782
Payment of principal, prepayment premium and final payment fee on debt		(40,000)	(78,010)
Proceeds from common stock offerings, net of offering costs			41,063
Payment of principal on finance lease		(29)	(26)
Proceeds from exercise of stock options and issuance of common stock under employee stock purchase plan		301	1,585
Net cash (used in) provided by financing activities		(39,728)	42,394
Net (decrease) increase in cash, cash equivalents and restricted cash:		(42,235)	37,489
Cash, cash equivalents and restricted cash at beginning of period		94,878	89,756	$ 89,756
Cash, cash equivalents and restricted cash at end of period	52,643	52,643	127,245	94,878
Reconciliation of cash, cash equivalents and restricted cash:
Cash, cash equivalents, and restricted cash at end of period	52,643	52,643	127,245	94,878
Less restricted cash (Notes 10 and 11)	(250)	(250)	(2,742)
Cash and cash equivalents at end of period	$ 52,393	52,393	124,503	$ 92,136
Non-cash investing and financing activities:
Purchases of property and equipment in accounts payable and accrued expenses		16
Supplemental disclosure:
Cash paid for interest		4,747	5,200
Right-of-use assets obtained in exchange of operating lease obligations		$ 424	$ 1,211

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Thousands	Sep. 30, 2021 USD ($)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Debt issuance costs	$ 2,218

NATURE OF BUSINESS AND BASIS OF

NATURE OF BUSINESS AND BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2022
NATURE OF BUSINESS AND BASIS OF PRESENTATION
NATURE OF BUSINESS AND BASIS OF PRESENTATION	1. NATURE OF BUSINESS AND BASIS OF PRESENTATION ​ Nature of Business On November 15, 2021, the Company and its newly formed, direct wholly owned subsidiary, Ceres Merger Sub, Inc. (the “Merger Subsidiary”), entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Combangio, Inc. (“Combangio”) and Fortis Advisors LLC, solely in its capacity as Combangio Equityholder Representative in connection with the Merger Agreement, pursuant to which on November 15, 2021, the Merger Subsidiary merged with and into Combangio with Combangio surviving such merger and becoming a direct wholly owned subsidiary of the Company (the “Combangio Acquisition”). Combangio was a clinical-stage biotechnology company focused on developing regenerative biotherapeutics for severe ocular diseases based on mesenchymal stem cell secretomes (“MSC-S”) platform, including its lead product candidate, CMB-012 for the treatment of persistent corneal epithelial defects (“PCED”), which the Company now refers to as KPI-012. The Company expects to commercialize in the United States any of its product candidates that receive marketing approval. In connection with the determination to focus its research and development efforts on KPI-012, The Company previously developed and commercialized two marketed products, EYSUVIS ® (loteprednol etabonate ophthalmic suspension) 0.25%, for the short-term (up to two weeks) treatment of the signs and symptoms of dry eye disease, and INVELTYS ® (loteprednol etabonate ophthalmic suspension) 1%, a topical twice-a-day ocular steroid for the treatment of post-operative inflammation and pain following ocular surgery. Both products applied a proprietary mucus-penetrating particle drug delivery technology, which the Company referred to as the AMPPLIFY ® Drug Delivery Technology. On July 8, 2022, the Company closed the transaction (the “Alcon Transaction”), contemplated by the asset purchase agreement, dated as of May 21, 2022 (the “Asset Purchase Agreement”), by and between the Company, Alcon Pharmaceuticals Ltd. and Alcon Vision, LLC (together referred to as “Alcon”), pursuant to which Alcon purchased the rights to manufacture, sell, distribute, market and commercialize EYSUVIS and INVELTYS and to develop, manufacture, market and otherwise exploit the Company’s AMPPLIFY Drug Delivery Technology (collectively, the “Commercial Business”). Alcon also assumed certain liabilities with respect to the Commercial Business. See Note 3, “Sale of Commercial Business to Alcon”, for additional information about the Alcon Transaction. The Company’s success is dependent upon its ability to develop, obtain regulatory approval for and commercialize KPI-012 and any other product candidate it may develop in the future, the success of its research and development efforts, whether it receives the commercial-based sales milestone payments from Alcon, its ability to raise additional capital when needed and, ultimately, attain profitable operations. ​ Reverse Stock Split 50 50 exercise price and the number of shares of common stock that may be purchased upon exercise of outstanding stock options and warrants, and the number of shares of common stock reserved for future issuance under our 2017 Equity Incentive Plan and Employee Stock Purchase Plan. Series D Preferred Stock one one-thousandth ​ The Company held a special meeting of stockholders on October 19, 2022 (the “Special Meeting”) for the purpose of voting on the Reverse Stock Split Proposal and an Adjournment Proposal. All shares of Series D Preferred Stock that were not present in person or by proxy at the Special Meeting were automatically redeemed by the Company immediately prior to the opening of the polls at Special Meeting (the “Initial Redemption”). All shares that were not redeemed pursuant to the Initial Redemption were redeemed automatically upon the approval by the Company’s stockholders of the Reverse Stock Split Proposal at the Special Meeting (the “Subsequent Redemption” and, together with the Initial Redemption, the “Redemption”). Each share of Series D Preferred Stock was entitled to receive $0.10 in cash for each 100 whole shares of Series D Preferred Stock immediately prior to the Redemption. As of September 30, 2022, there were 73,208 shares of Series D Preferred Stock issued The Company was not solely in control of the Redemption of the shares of Series D Preferred Stock since the holders had the option of deciding whether to return a proxy card for the Special Meeting, which determined whether a given holder’s shares of Series D Preferred Stock were redeemed in the Initial Redemption or the Subsequent Redemption. Since the Redemption of the Series D Preferred Stock was not solely in the control of the Company, the shares of Series D Preferred Stock are classified within mezzanine equity in the Company’s unaudited condensed consolidated balance sheet. The shares of Series D Preferred Stock were initially measured at redemption value. The value of the shares of Series D Preferred Stock as of September 30, 2022 was de minimis Liquidity achievement of specified commercial sales-based milestones with respect to EYSUVIS and INVELTYS, there can be no assurance when the Company may receive such milestone payments or the amount of milestone payments the Company may receive, if any. The Company expects to continue to incur significant expenses and operating losses for the foreseeable future, including in connection with its continued development, regulatory approval efforts and commercialization, if any, of KPI-012. The Company may never achieve or maintain profitability. Net losses may fluctuate significantly from quarter-to-quarter and year-to-year. The Company expects that its cash and cash equivalents as of September 30, 2022, will enable it to fund its operating expenses, debt service obligations and capital expenditure requirements for at least twelve months from the date these condensed consolidated financial statements were issued. This evaluation is based on relevant conditions and events that are known and reasonably knowable at the date that the condensed consolidated financial statements are issued. To the extent these conditions or events change, the Company could deplete its available capital resources sooner than it currently expects. This evaluation also assumes that the Company remains in compliance with the covenants under the Loan Agreement (defined below), including the covenant that the Company’s common stock remain listed on the Nasdaq Global Select Market. A delisting of the Company’s common stock from the Nasdaq Global Select Market is an event of default under the Loan Agreement, and the occurrence of an event of default would permit the lender to accelerate the amounts due under the Loan Agreement. On May 24, 2022, the Company received a deficiency letter from the Nasdaq Stock Market LLC (“Nasdaq”) notifying it that, for 30 consecutive business days, the bid price of its common stock had closed below the $1.00 per share minimum bid price requirement for continued inclusion on Nasdaq pursuant to Nasdaq Listing Rule 5450(a)(1), and on July 6, 2022, the Company received another deficiency letter from Nasdaq notifying it that it was not in compliance with Nasdaq Listing Rules 5450(b)(2)(A), as the market value of its common stock was less than $50.0 million for each of the previous 30 consecutive business days, 5450(b)(1)(A), as its stockholders’ equity was less than $10.0 million and 5450(b)(3)(A) as its total assets and total revenue for the most recently completed fiscal year or for two of the three most recently completed fiscal years were less than $50.0 million. On November 4, 2022, the Company received a letter from Nasdaq notifying the Company that it had regained compliance with the $1.00 per share minimum bid price requirement. The letter noted that the Company’s common stock had a closing bid price of at least $1.00 per share for a minimum of ten consecutive business days from October 21, 2022 through November 3, 2022, and the Company had regained compliance with Nasdaq Listing Rule 5450(a)(1). The Company remains out of compliance with Nasdaq Listing Rule 5450(b). A company that has its primary equity security listed on the Nasdaq Global Select Market must satisfy at least one of the standards in Nasdaq Listing Rule 5450(b). If the Company is unable to cure such deficiency or otherwise regain compliance with Nasdaq Listing Rule 5450(b) by January 2, 2023, the Company’s common stock will be subject to delisting. ​ The matters described above may impact the Company’s ability to remain in compliance with the covenants under the Loan Agreement beginning January 3, 2023. If an event of default or a breach of the covenants under the Loan Agreement occurs, including as a result of the delisting of the Company's common stock from the Nasdaq Global Select Market, and the Company fails to secure a waiver or forbearance from the third-party lender, such breach or failure would accelerate the repayment of the outstanding indebtedness under the Loan Agreement. In such event, the Company may not be able to make accelerated payments, and the lender could seek to enforce security interests in the collateral securing such indebtedness. Acceleration of the repayment of the outstanding indebtedness would raise substantial doubt about the Company’s ability to continue as a going concern, shorten the period for which the Company will be able to fund its operations and capital expenditure requirements and would adversely affect its financial condition and ability to pursue our business strategy. COVID-19 In addition, government restrictions have at times led to moratoria on elective ocular surgeries in many jurisdictions, which had significantly reduced the demand for INVELTYS, which is indicated for the treatment of post-operative inflammation and pain following ocular surgery. While surgeries have returned to historical levels, the COVID-19 pandemic had negatively impacted revenues from INVELTYS in prior periods. In addition, the COVID-19 pandemic has generally had an adverse impact on the launch of pharmaceutical products, and the Company believes the pandemic impacted the launch of EYSUVIS. The Company cannot predict whether the COVID-19 pandemic will impact Alcon’s ability to commercialize EYSUVIS and INVELTYS, and as a result, it cannot be certain whether the COVID-19 pandemic might adversely affect when the Company may receive milestone payments from Alcon, which milestone payments the Company may receive and if the Company will receive any milestone payments at all. The Company also does not know the extent to which the COVID-19 pandemic will impact its development of KPI-012 or any other product candidate it develops. commercialization efforts of EYSUVIS and INVELTYS, the Company’s development of KPI-012 and any other product candidate it may develop in the future and the Company’s Use of Estimates Net Income (Loss) per Share The weighted average number of common shares included in the computation of diluted net income (loss) gives effect to all potentially dilutive common equivalent shares, including outstanding stock options, warrants and unvested RSUs and PSUs. Common stock equivalent shares are excluded from the computation of diluted net income (loss) per share if their effect is antidilutive. In periods in which the Company reports a net loss attributable to common stockholders, diluted net loss per share attributable to common stockholders is the same as basic net loss per share attributable to common stockholders since dilutive common shares are not assumed to have been issued if their effect is anti-dilutive. The Company reported net income attributable to common stockholders for the three months ended September 30, 2022 and a net loss attributable to common stockholders for the nine months ended September 30, 2022 and the three and nine months ended September 30, 2021. (See Note 15). Unaudited Interim Financial Information prepared in accordance with U.S. GAAP have been condensed or omitted from this report, as is permitted by such rules and regulations. The accompanying condensed consolidated financial statements reflect all adjustments consisting of normal, recurring adjustments, that are necessary for a fair presentation of the financial position, results of operations, statement of stockholders’ equity and cash flows for the interim periods presented. Interim results are not necessarily indicative of results for a full year. Accordingly, these condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 (the “Annual Report”). The unaudited condensed consolidated financial statements include the accounts of Kala Pharmaceuticals, Inc. and its wholly owned subsidiaries, Kala Pharmaceuticals Security Corporation and Combangio, Inc. All intercompany transactions and balances have been eliminated in consolidation.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company’s significant accounting policies are described in Note 2, “Summary of Significant Accounting Policies,” to the consolidated financial statements included in the Annual Report. There have been no material changes to the significant accounting policies during the nine months ended September 30, 2022 , other than as described below Assets Held for Sale ​ The Company classifies its long-lived assets to be sold as held for sale, as specified by ASC 360, Property, Plant, and Equipment ​ As of September 30, 2022, certain assets met the criteria to be classified as held for sale and the Company concluded there was an impairment loss of $91 related to held for sale assets for the three and nine months ended September 30, 2022. Fair value was determined based on the estimated proceeds from the sale of the assets. The Company reclassified the inventory and property and equipment, which had a combined carrying value of $9,513, to current assets held for sale on the condensed consolidated balance sheet as of September 30, 2022. See Note 4, “Assets Held for Sale”, for additional information. There were no assets that met the criteria for classification as held for sale as of December 31, 2021. ​ Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) , public business entities that meet the definition of an SEC filer, excluding entities eligible to be , for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years and for all other entities, including SRCs, The Company is currently evaluating the impact of the on its consolidated financial statements and related disclosures. The

SALE OF COMMERCIAL BUSINESS TO

SALE OF COMMERCIAL BUSINESS TO ALCON	9 Months Ended
	Sep. 30, 2022
SALE OF COMMERCIAL BUSINESS TO ALCON
SALE OF COMMERCIAL BUSINESS TO ALCON	3. SALE OF COMMERCIAL BUSINESS TO ALCON On July 8, 2022, the Company closed the Alcon Transaction contemplated by the Asset Purchase Agreement, pursuant to which Alcon purchased the Commercial Business and assumed certain liabilities with respect to the Commercial Business. Alcon paid to the Company an upfront cash payment of $60,000 upon the closing of the Alcon Transaction. In addition, pursuant to the Asset Purchase Agreement, the Company is eligible to receive from Alcon up to four commercial-based sales milestone payments as follows: (1) $25,000 upon the achievement of $50,000 or more in aggregate worldwide net sales of EYSUVIS and INVELTYS in a calendar year from 2023 to 2028, (2) $65,000 upon the achievement of $100,000 or more in aggregate worldwide net sales of EYSUVIS and INVELTYS in a calendar year from 2023 to 2028, (3) $75,000 upon the achievement of $175,000 or more in aggregate worldwide net sales of EYSUVIS and INVELTYS in a calendar year from 2023 to 2029 and (4) $160,000 upon the achievement of $250,000 or more in aggregate worldwide net sales of EYSUVIS and INVELTYS in a calendar year from 2023 to 2029. Each milestone payment will only become payable once, if at all, upon the first time such milestone is achieved, and only one milestone payment will be paid with respect to a calendar year. In the event that more than one milestone is achieved in a calendar year, the higher milestone payment will become payable and the lower milestone payment will become payable only if the corresponding milestone is achieved again in a subsequent calendar year. ​ Pursuant to the Asset Purchase Agreement, on July 8, 2022, the Company entered into supply and commercial agreements under which the Company agreed to supply EYSUVIS and INVELTYS to Alcon and distribute EYSUVIS and INVELTYS to third-party customers of the Commercial Business on behalf of Alcon for a period of six months following the closing of the Alcon Transaction, subject to early termination. In addition, the Company entered into a transition services agreement under which the Company agreed to provide agreed upon transition services to Alcon on a cost-plus pricing arrangement for up to six months following the closing of the Alcon Transaction. Pursuant to the supply agreement, Alcon purchased from the Company, at the closing of the Alcon Transaction, $5,027 of EYSUVIS and INVELTYS inventory on-hand at the Company. Together, the supply, commercial and transition services agreements will be referred to herein as the “Transition Agreement.” ​ The Company has determined that the disposition of these assets does not qualify for reporting as a discontinued operation as it was not considered a component of an entity that comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the Company. During the three and nine months ended September 30, 2022, the Company recognized a net gain on the sale of the Commercial Business as follows: ​ ​ ​ ​ ​ Gross consideration from the sale of the Commercial Business ​ $ 65,027 Closing and transaction costs ​ ​ 2,119 Net proceeds from the sale of the Commercial Business ​ ​ 62,908 Book value of assets transferred ​ ​ ​ Inventories ​ ​ 8,915 Prepaid expenses and other current assets ​ ​ 556 Property and equipment, net ​ ​ 1,819 Other long-term assets ​ ​ 434 Total book value of assets transferred ​ ​ 11,724 Gain on sale of the Commercial Business ​ ​ 51,184 Deferred gain on sale of Commercial Business ​ ​ 4,189 Net gain on sale of the Commercial Business ​ $ 46,995 ​ Alcon has the right to purchase any remaining inventory owned by the Company (“Remaining Inventory”) at an agreed upon discounted price upon termination or expiration of the Supply Agreement. As the overall components of the Alcon Transaction should be reflected at fair value, the Company has deferred a portion of the gross consideration related to the discounted pricing on the Remaining Inventory. The deferred gain on the sale of the Commercial Business of $4,189 was recorded on the condensed consolidated balance sheet as of the transaction date as deferred gain on sale of Commercial Business. As of September 30, 2022, the deferred gain on the sale of the Commercial Business recorded as of the transaction date was reduced by $781 as a result of the subsequent write off of $2,605 of expiring Remaining Inventory in the three and nine-months ended September 30, 2022. ​ The Company collected and will continue to collect cash on behalf of Alcon for revenue generated by sales of EYSUVIS and INVELTYS from July 8, 2022 through the transition period and the Company is obligated to transfer cash generated by such sales to Alcon. The Company’s condensed consolidated balance sheet as of September 30, 2022 reflected $2,808 of cash collected on behalf of Alcon and a receivable within prepaid and other current assets of $10,083 for cash to be collected on behalf of Alcon for units of EYSUVIS and INVELTYS sold through September 30, 2022. The combined total of $12,891 was recorded within accrued expenses and other current liabilities on the condensed consolidated balance sheet as of September 30, 2022 and $11,964 represents a payable to Alcon and $927 represents a payable to third parties on behalf of Alcon. ​ The receivables due from Alcon for reimbursement for services performed under the Transition Agreement and invoices processed on Alcon’s behalf were $2,361 and $7,536, respectively, for a total receivable of $9,897 included in prepaid and other current assets on the condensed consolidated balance sheet as of September 30, 2022. The Company recorded income from the Transition Agreement of $2,361 which is presented in other income on the condensed consolidated statement of operations for the three and nine months ended September 30, 2022 and which offsets $2,293 of operating expenses related to the Transition Agreement captured within loss from operations. The Company’s condensed consolidated balance sheet as of September 30, 2022 reflected an additional $8,287 in payables to third parties of which $4,775 was included within accounts payable and $3,512 was included within accrued expenses and other current liabilities related to invoices the Company will pay on Alcon’s behalf.

ASSETS HELD FOR SALE

ASSETS HELD FOR SALE	9 Months Ended
	Sep. 30, 2022
ASSETS HELD FOR SALE
ASSETS HELD FOR SALE	4. ASSETS HELD FOR SALE As of September 30, 2022, the Company presented assets to be disposed of ​ The following is a summary of the major categories of assets that have been reclassified to held for sale on the : ​ ​ ​ ​ ​ ​ ​ September 30, ​ 2022 Inventories ​ $ 9,454 Property and equipment, net ​ ​ 59 Total assets held for sale ​ $ 9,513 ​ See Note 2, “Summary of Significant Accounting Policies”, and Note 3, “Sale of Commercial Business to Alcon”, for further information on the sale of the Company’s Commercial Business.

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	9 Months Ended
	Sep. 30, 2022
FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS	5. FAIR VALUE OF FINANCIAL INSTRUMENTS Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures, ● Level 1—Quoted prices in active markets for identical assets or liabilities. ● Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. ● Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. The Company’s financial instruments as of September 30, 2022 and December 31, 2021 consisted primarily of cash equivalents and contingent consideration. Cash equivalents, short-term investments, if any, and contingent consideration are reported at their respective fair values on the Company’s condensed consolidated balance sheets. T he Company acquired Combangio in November 2021 and in connection with the closing of the Combangio Acquisition, an aggregate of 155,799 shares (the “Deferred Purchase Consideration”) of the Company’s common stock to former Combangio stockholders and other equityholders (the “Combangio Equityholders”) consisting of (i) an aggregate of 136,314 shares of common stock issued on January 3, 2022 (the “Upfront Shares”) and (ii) an aggregate of 19,485 shares of common stock that have been held back by the Company and will be issuable subject to the terms of the Merger Agreement to the Combangio Equityholders on the date that is fifteen months after the closing (the “Escrow Release Date”). The Company established liabilities for the Deferred Purchase Consideration. T ​ Additionally, the purchase price in connection with the Combangio Acquisition included potential future payments of up to $105,000 that are contingent upon the achievement of specified development, regulatory and commercialization milestones and are required to be recorded at fair value. Contingent consideration liabilities related to acquisitions are measured at fair value each reporting period using Level 3 unobservable inputs. The fair values of the contingent consideration liabilities were based on a probability-adjusted discounted cash flow calculation using Level 3 fair value measurements. Changes in these estimates and assumptions could have a significant impact on the fair value of the contingent consideration liabilities. Any changes in the fair value of these contingent consideration liabilities are included in loss from operations in the condensed consolidated statements of operations and comprehensive loss. During the three and nine months ended September 30, 2022, the change in fair value of the contingent consideration liabilities was a loss of $95 and a gain of $952, respectively, primarily due to changes in discount rates, partially offset by the passage of time, and were recognized as a (gain) loss on fair value remeasurement of contingent consideration in the condensed consolidated statements of operations and comprehensive loss for the three and nine months ended September 30, 2022. ​ The following tables set forth the fair value of the Company’s financial instruments by level within the fair value hierarchy as of September 30, 2022 and December 31, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2022 ​ ​ Fair Value ​ Level 1 ​ Level 2 ​ Level 3 Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash equivalents ​ $ 36,329 ​ $ 36,329 ​ $ — ​ $ — Total Assets ​ $ 36,329 ​ $ 36,329 ​ $ — ​ $ — Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred purchase consideration ​ $ 162 ​ $ — ​ $ — ​ $ 162 Contingent consideration ​ ​ 7,706 ​ ​ — ​ ​ — ​ ​ 7,706 Total Liabilities ​ $ 7,868 ​ $ — ​ $ — ​ $ 7,868 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2021 ​ ​ Fair Value ​ Level 1 ​ Level 2 ​ Level 3 Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash equivalents ​ $ 86,135 ​ $ 86,135 ​ $ — ​ $ — Total Assets ​ $ 86,135 ​ $ 86,135 ​ $ — ​ $ — Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred purchase consideration ​ $ 7,892 ​ $ — ​ $ — ​ $ 7,892 Contingent consideration ​ ​ 8,658 ​ ​ — ​ ​ — ​ ​ 8,658 Total Liabilities ​ $ 16,550 ​ $ — ​ $ — ​ $ 16,550 ​ The following tables summarize quantitative information and assumptions pertaining to the fair value measurement of the Level 3 inputs as of September 30, 2022 and December 31, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value at ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ ​ ​ ​ ​ Range Financial Instrument ​ 2022 ​ Valuation Technique ​ Unobservable Input ​ (Average) Deferred purchase consideration ​ $ 162 ​ Option pricing model ​ Discount for lack of marketability ​ 25% ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contingent consideration ​ $ 7,706 ​ Probability-adjusted ​ Period of expected milestone achievement ​ 2022 - 2027 (2025) ​ ​ ​ ​ ​ discounted cash flow model ​ Probabilities of achievement ​ 18.9% - 90.0% (42.5%) ​ ​ ​ ​ ​ ​ ​ Discount rate ​ 17.5% ​ ​ ​ ​ ​ ​ ​ Discount for lack of marketability ​ 20.0% ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value at ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ ​ ​ ​ Range Financial Instrument ​ 2021 ​ Valuation Technique ​ Unobservable Input ​ (Average) Deferred purchase consideration ​ $ 7,892 ​ Option pricing model ​ Discount for lack of marketability ​ 15.0% - 25.0% (20.0%) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contingent consideration ​ $ 8,658 ​ Probability-adjusted ​ Period of expected milestone achievement ​ 2022 - 2027 (2025) ​ ​ ​ ​ ​ discounted cash flow model ​ Probabilities of achievement ​ 18.9% - 90.0% (42.5%) ​ ​ ​ ​ ​ ​ ​ Discount rate ​ 10.3% ​ ​ ​ ​ ​ ​ ​ Discount for lack of marketability ​ 12.0% ​ The following table summarizes the changes in the Deferred Purchase Consideration and contingent consideration liabilities measured at fair value using Level 3 inputs for the three and nine months ended September 30, 2022: ​ ​ ​ ​ ​ Deferred purchase consideration ​ ​ ​ Balance at January 1, 2022 ​ $ 7,892 Fair value adjustments ​ ​ 1,051 Settlements ​ ​ (7,935) Balance at March 31, 2022 ​ $ 1,008 Fair value adjustments ​ ​ (789) Balance at June 30, 2022 ​ $ 219 Fair value adjustments ​ ​ (57) Balance at September 30, 2022 ​ $ 162 ​ ​ ​ ​ Contingent consideration ​ ​ ​ Balance at January 1, 2022 ​ $ 8,658 Fair value adjustments ​ ​ (988) Balance at March 31, 2022 ​ $ 7,670 Fair value adjustments ​ ​ (59) Balance at June 30, 2022 ​ $ 7,611 Fair value adjustments ​ ​ 95 Balance at September 30, 2022 ​ $ 7,706 ​ During the three and nine months ended September 30, 2022 and the year ended December 31, 2021, there were no transfers between Level 1 , Level 2 , and Level 3 .

REVENUE & ACCOUNTS RECEIVABLE,

REVENUE & ACCOUNTS RECEIVABLE, NET	9 Months Ended
	Sep. 30, 2022
REVENUE & ACCOUNTS RECEIVABLE, NET
REVENUE & ACCOUNTS RECEIVABLE, NET	6. REVENUE & ACCOUNTS RECEIVABLE, NET Following the sale of its Commercial Business to Alcon in July 2022, the Company no longer has any commercial products in its portfolio. The Company accounted for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers Product revenues, net The Company sold EYSUVIS and INVELTYS primarily to wholesalers in the United States (collectively, “Customers”). These Customers subsequently resold the Company’s products to specialty and other retail pharmacies. In addition to agreements with Customers, the Company entered into arrangements with third-party payors that provided for government-mandated and/or privately-negotiated rebates, chargebacks and discounts for the purchase of the Company’s products. The goods promised in the Company’s product sales contracts represented a single performance obligation. The Company recognized revenue from product sales at the point the Customer obtained control of the product, which occurred upon delivery. The transaction price (“net sales price”) that was recognized as revenue for product sales included the selling price to the Customer and an estimate of variable consideration. Components of variable consideration included prompt pay and other discounts, product returns, government rebates, third-party payor rebates, coverage gap rebates, incentives such as patient co-pay assistance, and other fees paid to Customers and other third-party payors where a distinct good or service was not received. Variable consideration was recorded on the condensed consolidated balance sheet as either a reduction of accounts receivable, if payable to a Customer, or as a current liability, if payable to a third-party other than a Customer. The Company considered all relevant information when estimating variable consideration such as assessment of its then current and anticipated sales and demand forecasts, actual payment history, information from third parties regarding the payor mix for products, information from third parties regarding the units remaining in the distribution channel, specific known market events and trends, industry data and current contractual and statutory requirements that were reasonably available. The Company included estimated amounts for variable consideration in the net sales price to the extent it was determined probable that a significant reversal of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration was resolved. Payment terms with Customers did not exceed one year and, therefore, the Company did not account for a significant financing component in its arrangements. The Company expensed incremental cost of obtaining a contract with a Customer when incurred as the period of benefit was generally less than one year. Reserves for Variable Consideration Trade Discounts and Allowances The Company provided its Customers with certain trade discounts and allowances including discounts for prompt payments and other discounts and fees paid for distribution, data and administrative services. These discounts and fees were based on contractually-determined percentages and were recorded as a reduction of revenue and accounts receivable in the period in which the related product revenue was recognized. Chargebacks Chargebacks for fees and discounts to providers represent the estimated obligations resulting from contractual commitments to sell products to qualified healthcare providers at prices lower than the list prices charged to Customers who directly purchased the product from the Company. Customers charged the Company for the difference between what they paid for the product and the ultimate selling price to the qualified healthcare providers. These components of variable consideration were established in the same period that the related revenue was recognized, resulting in a reduction of product revenue and accounts receivable. Reserves for chargebacks consisted of credits the Company expected to issue for units that remained in the distribution channel at the end of each reporting period and that the Company expected would be sold to qualified healthcare providers, as well as chargebacks that Customers had claimed, but for which the Company had not yet issued a credit. Product Returns Consistent with industry practice, the Company has a product returns policy that provides Customers right of return for product purchased within a specified period prior to and subsequent to the product’s expiration date. The Company estimated the amount of its products that may be returned and presented this amount as a reduction of revenue in the period the related product revenue was recognized, in addition to establishing a liability. The Company’s estimates for product returns were based upon available industry data and its own sales information, including its visibility into the inventory remaining in the distribution channel as well as historical returns, which developed over time. Commercial Payor and Medicare Part D Rebates The Company contracted with certain third-party payors, primarily pharmacy benefit managers (“PBMs”) and health plans (“Plans”), for the payment of rebates with respect to utilization of its product. These rebates were based on contractual percentages applied to the amount of product prescribed to patients who were covered by the PBMs or the Plans with which it contracted. The Company estimated the rebates for commercial and Medicare Part D payors based on the contractual discount percentage, the various payor mix for EYSUVIS and INVELTYS as well as future rebates that would be made for product that had been recognized as revenue but remained in the distribution channel at the end of each reporting period. The Company also estimated the number of patients in the prescription drug coverage gap for whom it would owe an additional liability under the Medicare Part D program. Such estimates were recorded in the same period the related revenue was recognized, resulting in a reduction of product revenue and the establishment of a current liability. Government Rebates The Company was subject to discount obligations under Medicaid and other government programs. For Medicaid, reserves were based on actual payment history, and estimates of future Medicaid beneficiary utilization applied to the Medicaid unit rebate formula established by the Centers for Medicaid and Medicare Services. The Company’s liability for these rebates consisted of estimates of claims for the current period and estimated future claims that would be made for product that had been recognized as revenue but remained in the distribution channel at the end of each reporting period. These reserves were recorded in the same period the related revenue was recognized, resulting in a reduction of product revenue and the establishment of a current liability. Co-pay Assistance Programs The Company offered co-pay assistance programs (the “co-pay programs”), which were intended to provide financial assistance to patients who may or may not be covered by commercial insurance or, with respect to INVELTYS, who opt out of Medicare Part D programs. The calculation of accruals for the co-pay programs was based on actual claims processed during the period as well as an estimate of the number and cost per claim that the Company expected to receive associated with product that had been recognized as revenue but remained in the distribution channel at the end of each reporting period. Allowances for estimated co-pay claims were recorded in the same period the related revenue was recognized, resulting in a reduction of product revenue and the establishment of a current liability. The following tables summarize activity in each of the Company’s product revenue provision and allowance categories for the three and nine months ended September 30, 2022 and 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Trade Discounts, ​ ​ ​ ​ ​ ​ ​ ​ Allowances and ​ ​ ​ ​ Rebates and ​ ​ Chargebacks (1) Product Returns (2) Incentives (3) Balance as of December 31, 2021 ​ $ 2,672 ​ $ 1,140 ​ $ 11,280 Provision related to current period sales ​ ​ 2,133 ​ ​ 210 ​ ​ 13,359 Changes in estimate related to prior period sales ​ ​ (1) ​ ​ (138) ​ ​ (242) Credit/payments made ​ ​ (3,261) ​ ​ (415) ​ ​ (10,108) Balance as of March 31, 2022 ​ $ 1,543 ​ $ 797 ​ $ 14,289 Provision related to current period sales ​ ​ 2,602 ​ ​ 214 ​ ​ 15,413 Changes in estimate related to prior period sales ​ ​ (41) ​ ​ (199) ​ ​ (107) Credit/payments made ​ ​ (2,041) ​ ​ (112) ​ ​ (14,878) Balance as of June 30, 2022 ​ $ 2,063 ​ $ 700 ​ $ 14,717 Provision related to current period sales ​ ​ 91 ​ ​ 4 ​ ​ 525 Changes in estimate related to prior period sales ​ ​ 176 ​ ​ 150 ​ ​ (680) Credit/payments made ​ ​ (2,310) ​ ​ (263) ​ ​ (9,562) Balance as of September 30, 2022 ​ $ 20 ​ $ 591 ​ $ 5,000 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Trade Discounts, ​ ​ ​ ​ ​ ​ ​ ​ Allowances and ​ ​ ​ ​ Rebates and ​ ​ Chargebacks (1) Product Returns (2) Incentives (3) Balance as of December 31, 2020 ​ $ 1,157 ​ $ 600 ​ $ 4,904 Provision related to current period sales ​ ​ 2,201 ​ ​ 245 ​ ​ 10,216 Changes in estimate related to prior period sales ​ ​ 3 ​ ​ 30 ​ ​ (26) Credit/payments made ​ ​ (1,823) ​ ​ (419) ​ ​ (7,880) Balance as of March 31, 2021 ​ $ 1,538 ​ $ 456 ​ $ 7,214 Provision related to current period sales ​ ​ 2,103 ​ ​ 356 ​ ​ 11,193 Changes in estimate related to prior period sales ​ ​ 30 ​ ​ 142 ​ ​ (353) Credit/payments made ​ ​ (2,260) ​ ​ (253) ​ ​ (9,801) Balance as of June 30, 2021 ​ $ 1,411 ​ $ 701 ​ $ 8,253 Provision related to current period sales ​ ​ 2,137 ​ ​ 490 ​ ​ 11,686 Changes in estimate related to prior period sales ​ ​ 18 ​ ​ 109 ​ ​ (647) Credit/payments made ​ ​ (2,110) ​ ​ (632) ​ ​ (9,861) Balance as of September 30, 2021 ​ $ 1,456 ​ $ 668 ​ $ 9,431 (1) Trade discounts, allowances and chargebacks included fees for distribution service fees, prompt pay and other discounts, and chargebacks. Estimated trade discounts, allowances and chargebacks were deducted from gross revenue at the time revenues were recognized and were recorded as a reduction to accounts receivable on the Company’s condensed consolidated balance sheets. (2) Estimated provisions for product returns were deducted from gross revenues at the time revenues were recognized and were included in accrued expenses and other current liabilities on the Company’s condensed consolidated balance sheets. (3) Rebates and incentives included managed care rebates, government rebates, co-pay program incentives, and sales incentives and allowances. Estimated provisions for rebates and discounts were deducted from gross revenues at the time revenues were recognized and were included in accrued expenses and other current liabilities on the Company’s condensed consolidated balance sheets. ​ Accounts Receivable, net Accounts receivable are reported on the condensed consolidated balance sheets at outstanding amounts due from customers for product sales. The Company deducted sales discounts for prompt payments and other discounts, contractual fees for service arrangements and chargebacks from accounts receivable. The Company evaluates the collectability of accounts receivable on a regular basis, by reviewing the financial condition and payment history of customers, an overall review of collections experience on other accounts, and economic factors or events expected to affect future collections experience. An allowance for doubtful accounts is recorded when a receivable is deemed to be uncollectible. The Company recorded no allowance for doubtful accounts as of September 30, 2022 or December 31, 2021. The Company recorded an allowance of $20 and $2,672 for expected sales discounts, related to prompt pay discounts and other discounts, contractual fee for service arrangements and chargebacks, to wholesalers and distributors as of September 30, 2022 and December 31, 2021, respectively.

INVENTORY

INVENTORY	9 Months Ended
	Sep. 30, 2022
INVENTORY
INVENTORY	7. INVENTORY Inventory held and used consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2022 2021 ​ ​ ​ ​ ​ ​ ​ Raw materials ​ $ — ​ $ 1,328 Work in progress ​ ​ — ​ ​ 9,799 Finished goods ​ ​ — ​ ​ 7,090 Total inventory ​ $ — ​ $ 18,217 ​ As of September 30, 2022, the Company had no held and used inventory and had $9,454 of inventory classified as held for sale (s ee Note 4, “Assets Held for Sale”)

PREPAID EXPENSES AND OTHER CURR

PREPAID EXPENSES AND OTHER CURRENT ASSETS	9 Months Ended
	Sep. 30, 2022
PREPAID EXPENSES AND OTHER CURRENT ASSETS
PREPAID EXPENSES AND OTHER CURRENT ASSETS	​ 8. PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets, consists of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2022 2021 ​ ​ ​ ​ ​ ​ ​ Due from third parties in connection with Transition Agreement ​ $ 10,083 ​ $ — Due from Alcon ​ ​ 9,897 ​ ​ — Insurance ​ ​ 1,003 ​ ​ 1,307 Other non-trade receivables ​ ​ 836 ​ ​ 2,110 Deposits ​ ​ 149 ​ ​ 911 Other ​ ​ 608 ​ ​ 1,876 Prepaid expenses and other current assets ​ $ 22,576 ​ $ 6,204 ​

ACCRUED EXPENSES AND OTHER CURR

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	9 Months Ended
	Sep. 30, 2022
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	9. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2022 2021 ​ ​ ​ ​ ​ ​ ​ Due to Alcon ​ $ 11,964 ​ $ — Due to third parties in connection with Transition Agreement (1) ​ ​ 4,439 ​ ​ — Compensation and benefits ​ ​ 3,465 ​ ​ 6,324 Accrued revenue reserves (2) ​ ​ 2,046 ​ ​ 10,300 Professional services ​ ​ 1,268 ​ ​ 881 Contract manufacturing ​ ​ 759 ​ ​ 396 Development costs ​ ​ 591 ​ ​ 127 Commercial costs ​ ​ 414 ​ ​ 2,134 Other ​ ​ 422 ​ ​ 824 Accrued expenses ​ $ 25,368 ​ $ 20,986 (1) There were additional amounts due to third parties in connection with the Transition Agreement included in accounts payable of $4,775 as of September 30, 2022. (2) There were additional revenue reserves included in accounts payable of $3,545 and $2,120, as of September 30, 2022 and December 31, 2021, respectively.

LEASES

LEASES	9 Months Ended
	Sep. 30, 2022
LEASES
LEASES	10. LEASES Operating leases Terminated Watertown Lease On February 28, 2018, the Company entered into a lease agreement with 480 Arsenal Group LLC for the lease of a portion of the building located at 490 Arsenal Way, Watertown, Massachusetts (the “Watertown Lease”). The initial term of the Watertown Lease was eight years with an option to extend On November 12, 2021, the Company entered into a lease termination agreement (the “Lease Termination Agreement”) with the landlord of the Watertown Lease, which Lease Termination Agreement was amended on December 22, 2021, which modified the lease to accelerate the lease termination date to January 11, 2022 (the “Lease Termination Date”). Under the terms of the Lease Termination Agreement, the Company was entitled to receive a payment of $2,000 due from the landlord in January 2022, which was collected during the nine months ended 30, 2022. The Company was obligated to make rent payments outlined in the lease agreement until the Lease Termination Date. In connection with the signing of the Lease Termination Agreement, the Company remeasured the lease liability and right-of-use asset and recognized a gain of approximately $1,311 , which was included in gain on lease modification in the consolidated statements of operations and comprehensive loss for the year ended December 31, 2021. Additionally, pursuant to the Lease Termination Agreement, $2,042 of restricted cash was released during the nine months 30, 2022 that was pledged as collateral under a letter of credit with cash on deposit. The restricted cash was included within short-term restricted cash on the consolidated balance sheet as of December 31, 2021. Vehicle Fleet lease During the year ended December 31, 2019, the Company entered into a master fleet lease agreement (the “Vehicle Fleet Lease”). The Vehicle Fleet Lease commenced upon the delivery of the initial vehicles in March 2019 and has been subject to modifications as the number of leased vehicles has increased or decreased. As of September 30, 2022 and in connection with the closing of the Alcon Transaction, the Company initiated the termination of the Vehicle Fleet Lease and there is no remaining right-of-use asset or corresponding lease liability ​ The components of lease expense and related cash flows were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2022 2021 2022 2021 Lease cost ​ ​ ​ ​ Operating lease cost ​ $ 9 ​ $ 1,266 ​ $ 404 ​ $ 3,750 Short-term lease cost ​ ​ 49 ​ ​ — ​ ​ 143 ​ ​ — Variable lease cost ​ ​ 114 ​ ​ 528 ​ ​ 740 ​ ​ 1,621 Total lease cost ​ $ 172 ​ $ 1,794 ​ $ 1,287 ​ $ 5,371 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating cash outflows from operating leases ​ $ 338 ​ $ 1,675 ​ $ 1,308 ​ $ 4,918 ​ The weighted average remaining lease term and weighted average discount rate of operating leases are as follows: ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2022 ​ 2021 Weighted average remaining lease term 0.5 years ​ 2.4 years Weighted average discount rate 10.3% ​ 2.6% ​

DEBT

DEBT	9 Months Ended
	Sep. 30, 2022
DEBT
DEBT	​ 11. DEBT ​ Athyrium Credit Facility On October 1, 2018, the Company entered into a credit agreement (the “Athyrium Credit Facility”) with Athyrium Opportunities III Acquisition LP (“Athyrium”) for up to $110,000. The Athyrium Credit Facility provided for a Term Loan A in the aggregate principal amount of $75,000 (the “Term Loan A”), and a Term Loan B in the aggregate principal amount of $35,000 (the “Term Loan B”). On October 1, 2018, the Company borrowed the entire principal amount of the Term Loan A, which bore interest at a rate of 9.875% per annum, with quarterly, interest-only payments until the fourth anniversary of the Term Loan A. The maturity date of the Athyrium Credit Facility was October 1, 2024, the six-year anniversary of the close. As of March 31, 2021, the unpaid principal balance on the Athyrium Credit Facility was $75,000. On May 4, 2021, the Company repaid all amounts owed under the Athyrium Credit Facility and terminated all commitments by Athyrium to extend further credit thereunder and all guarantees and security interests granted by the Company to the lenders thereunder. In connection with the termination of the Athyrium Credit Facility, the Company paid to the lenders a prepayment premium of $2,250 and an exit fee of $750. The transaction resulted in a loss on extinguishment of debt of $5,395 for the year ended December 31, 2021, consisting of the prepayment premium, the unamortized debt discount and issuance costs and the unaccreted exit fee. Additionally, in May 2021, the Company released $10,000 of restricted Athyrium Credit Facility. Loan and Security Agreement ​ On May 4, 2021 (the “Closing Date”), the Company entered into a Loan and Security Agreement (the “Loan Agreement”) with Oxford Finance, in its capacity as lender (in such capacity, the “Lender”), and in its capacity as collateral agent (in such capacity, the “Agent”), pursuant to which a term loan of up to an aggregate principal amount of $125,000 is available to the Company, consisting of (i) a tranche A term loan that was disbursed on the Closing Date in the aggregate principal amount of $80,000; (ii) a contingent tranche B term loan in the aggregate principal amount of $20,000 available to the Company through June 30, 2023 and within 90 days of the Company achieving trailing 6-month 6-month ​ The term loans bear interest at a floating rate equal to the greater of (i) 30-day LIBOR and (ii) 0.11%, plus 7.89%. The Loan Agreement, prior to the Loan Amendment (as defined below), provided for interest-only payments until December 1, 2024 if neither the tranche B term loan nor the tranche C term loan are made, and until June 1, 2025 if either the tranche B term loan or the tranche C term loan is made (the “Amortization Date”). The aggregate outstanding principal balance of the term loans were required to be repaid in monthly installments starting on the Amortization Date based on a repayment schedule equal to (i) 18 months if neither the tranche B term loan nor the tranche C term loan is made and (ii) 12 months if either the tranche B term loan or the tranche C term loan is made. All unpaid principal and accrued and unpaid interest with respect to each term loan is due and payable in full on May 1, 2026 (the “Maturity Date”). ​ The Company paid a facility fee of $400 on the Closing Date and has agreed to pay a facility fee of $100 upon closing of the tranche B term loan and a $125 facility fee upon the closing of the tranche C term loan. The Company will be required to make a final payment fee of 7.00% of the original principal amount of any funded term loan payable on the earlier of (i) the prepayment of the term loan in full or (ii) the Maturity Date. At the Company’s option, the Company may elect to make partial repayments of the term loan to the Lender, subject to specified conditions, including the payment of applicable fees and accrued and unpaid interest on the principal amount of the term loan being repaid. ​ In connection with its entry into the Loan Agreement, the Company granted the Agent a security interest in substantially all of the Company’s personal property owned or later acquired, including intellectual property and the Commercial Business. The Loan Agreement also contains customary representations and warranties and affirmative and negative covenants, as well as customary events of default, including the delisting of its common stock from The Nasdaq Global Select Market. On May 24, 2022, the Company received a deficiency letter from the Nasdaq Stock Market LLC (“Nasdaq”) notifying it that, for 30 consecutive business days, the bid price of its common stock had closed below the $1.00 per share minimum bid price requirement for continued inclusion on Nasdaq pursuant to Nasdaq Listing Rule 5450(a)(1), and on July 6, 2022, the Company received another deficiency letter from Nasdaq notifying it that it was not in compliance with Nasdaq Listing Rules 5450(b)(2)(A), as the market value of its common stock was less than $50,000,000 for the previous 30 consecutive business days, 5450(b)(1)(A), as its Stockholders’ Equity was less than $10 million and 5450(b)(3)(A) as its total assets and total revenue for the most recently completed fiscal year or for two of the three most recently completed fiscal years were less than $50 million. A company that has its primary equity security listed on the Nasdaq Global Select Market must continue to substantially meet all of the requirements set forth in Rule 5450(a) and at least one of the standards in Rule 5450(b). Each of the deficiency letters indicated that if the Company is unable to cure such deficiency or otherwise regain compliance with the Nasdaq Listing Rules within 180 calendar days from the date of the respective deficiency letter, the Company’s common stock will be subject to delisting. Certain of the customary negative covenants limit the ability of the Company and certain of its subsidiaries, among other things, to incur future debt, grant liens, make investments, make acquisitions, distribute dividends, make certain restricted payments and sell assets, subject in each case to certain exceptions. ​ The Loan Agreement includes features requiring (i) additional interest rate upon an event of default accrued at an additional 5% , and (ii) the Lender’s right to declare all outstanding principal and interest immediately payable upon an event of default. These two features were analyzed and determined to be embedded derivatives to be valued as separate financial instruments. These embedded derivatives were bundled and valued as one compound derivative in accordance with the applicable accounting guidance for derivatives and hedging transactions. The Company determined that the value of the embedded derivatives is not material as of September 30, 2022. The derivative liability will be remeasured at fair value at each reporting date, with changes in fair value being recorded as other income (expense) in the condensed consolidated statements of operations and comprehensive loss. In addition, in connection with the Loan Agreement, the Company paid certain fees to the Lender and other third-party service providers. The fees paid to the Lender were recorded as a debt discount while the fees paid to other third-party service providers were recorded as debt issuance cost. These costs are being amortized using the effective interest method over the term of the Loan Agreement. The amortization of debt discount and debt issuance cost is included in interest expense within the condensed consolidated statements of operations and comprehensive loss. As of September 30, 2022, the effective interest rate was 13.05%, which takes into consideration the non-cash accretion of the exit fee and the amortization of the debt discount and issuance costs. On May 21, 2022, in connection with its entry into the Asset Purchase Agreement, the Company entered into an amendment to the Loan Agreement (the “Loan Amendment”). Pursuant to the Loan Amendment, the Lender and Agent consented to the entry by the Company into the Asset Purchase Agreement and the sale of the Commercial Business to Alcon and agreed to release its liens on the Commercial Business in consideration for the payment by the Company at the closing of the Alcon Transaction of an aggregate amount of $40,000 (the “Prepayment”) to the Lender and Agent, representing a partial prepayment of principal in the amount of $36,697 of the $80,000 principal amount outstanding under the term loan advanced by the Lender under the Loan Agreement, plus a prepayment fee of $734 and a final payment fee of $2,569. In addition, the Company was required to pay all accrued and unpaid interest on the principal amount of the term loan being repaid. In addition, under the Loan Amendment, the Lender and Agent agreed that, following the closing of the Alcon Transaction and the Prepayment, the Amortization Date would be extended from December 1, 2024 to January 1, 2026, at which time the aggregate principal balance of the term loan then outstanding under the Loan Agreement is required to be repaid in five monthly installments. Pursuant to the Loan Amendment, the Company may also make partial prepayments of the term loan to the Lender, subject to specified conditions, including the payment of applicable fees and accrued and unpaid interest on the principal amount of the term loan being repaid. On July 8, 2022, the Prepayment was paid in connection with the closing of Alcon Transaction, and as such, the Amortization Date was extended to January 1, 2026. The transaction resulted in a loss on extinguishment of debt of $2,583 for the three and nine months ended September 30, 2022, consisting of the prepayment premium, a pro-rata portion of the unamortized debt discount and issuance costs and the unaccreted exit fee due upon the Prepayment. During the three months ended September 30, 2022 and 2021, the Company recognized interest expense of $1,447 and $2,071, respectively, for the This consisted of amortization of debt discount of $52 and $110 for the three months ended 30, 2022 and 30, 2021, respectively, accretion of the final payment fee of $206 and $325 for the three months ended 30, 2022 and 30, 2021, respectively, and the contractual coupon interest expense of $1,189 and $1,636 for the three months ended 30, 2022 and September 30, 2021, respectively. for the Athyrium Credit Facility This consisted of amortization of debt discount of $281 and $501 for the nine months ended 30, 2022 and 30, 2021, respectively, accretion of the final payment fee of $849 and $579 for the nine months ended 30, 2022 and 30, 2021, respectively, and the contractual coupon interest expense of $4,573 and $5,197 for the nine months ended 30, 2022 and 30, 2021, respectively. ​ The components of the carrying value of the debt as of September 30, 2022 and December 31, 2021 are detailed below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2022 2021 Principal loan balance ​ $ 43,303 ​ $ 80,000 Unamortized debt discount and issuance cost ​ ​ (867) ​ ​ (1,927) Cumulative accretion of exit fee ​ ​ 206 ​ ​ 856 Long-term debt, net ​ $ 42,642 ​ $ 78,929 ​ The annual principal payments due under the Loan Agreement as of September 30, 2022 were as follows: ​ ​ ​ ​ ​ Years Ending December 31, ​ ​ 2022 (remaining three months) ​ $ — 2023 ​ ​ — 2024 ​ ​ — 2025 ​ ​ — 2026 ​ ​ 43,303 Total ​ $ 43,303 ​

WARRANTS

WARRANTS	9 Months Ended
	Sep. 30, 2022
WARRANTS.
WARRANTS	12. WARRANTS The following table summarizes the common stock warrants outstanding as of September 30, 2022 and December 31, 2021, each exercisable into the number of shares of common stock set forth below as of the specified dates: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Shares Exercisable at ​ ​ Exercise Expiration Exercisable September 30, December 31, Issued Price Per Share ​ Date ​ From ​ 2022 ​ 2021 2014 ​ $ 375.00 November 2024 July 2017 ​ 320 ​ 320 2016 ​ $ 413.50 October 2026 September 2017 ​ 290 ​ 290 2018 ​ $ 609.23 ​ October 2025 ​ October 2018 ​ 3,693 ​ 3,693 ​ ​ ​ ​ ​ ​ ​ ​ ​ 4,303 ​ 4,303 ​

EQUITY FINANCINGS

EQUITY FINANCINGS	9 Months Ended
	Sep. 30, 2022
EQUITY FINANCINGS
EQUITY FINANCINGS	13. EQUITY FINANCINGS On August 9, 2018, the Company filed a shelf registration statement on Form S-3 with the SEC, which was declared effective on August 27, 2018 (the “2018 Shelf Registration”) and registered up to $250,000 of a variety of securities, including common stock. Under the 2018 Shelf Registration, which expired in August 2021, the Company issued an aggregate of 611,000 shares of common stock, including under the ATM Offering, resulting in aggregate gross proceeds of $231,666. On May 7, 2020, the Company filed a shelf registration statement on Form S-3 with the SEC, which was declared effective on May 19, 2020 (the “2020 Shelf Registration”). Under the 2020 Shelf Registration, the Company may offer and sell up to $350,000 of a variety of securities including common stock, preferred stock, warrants, depositary shares, debt securities or units during the three-year period that commenced upon the 2020 Shelf Registration becoming effective. In connection with the filing of the 2020 Shelf Registration, the Company entered into an amended and restated sales agreement with Jefferies pursuant to which

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2022
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION	14. STOCK‑BASED COMPENSATION During the nine months ended September 30, 2022, the Company granted options for the purchase of 81,561 shares of common stock, including options with performance criteria as described below, options to directors and inducement grant options to purchase 2,800 shares of common stock to new employees made outside of our 2017 Equity Incentive Plan and 6,910 restricted stock units. In January and July 2022, employees of the Company purchased an aggregate of 3,074 and 10,657 shares, respectively, under the Employee Stock Purchase Plan. The assumptions used in determining fair value of the stock options granted during the nine months ended September 30, 2022 are as follows: ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, 2022 Expected volatility 72.9% – 84.5% Risk-free interest rate 1.43% – 3.59% Expected dividend yield ​ 0% ​ Expected term (in years) 5.50 – 6.10 ​ During the nine months ended September 30, 2022, the weighted average grant-date fair value of options granted was $41.12. In January 2022, the Company granted stock options to purchase up to 14,850 shares of common stock to certain executives tied to certain performance criteria. The options will vest, if at all, upon satisfying the performance criteria. The Company has assessed the probability of achievement of the performance criteria and has recorded related stock compensation expense to the extent they are determined to be probable as of 30, 2022. ​ In June 2020, the Company issued 13,854 PSUs to certain executives and other employees tied to certain performance criteria, which vested as to 50% of the PSUs in October 2021 on the first anniversary of satisfying the performance criteria and the remaining 50% will vest upon the second anniversary of satisfying the performance criteria. The Company has determined that the performance criteria for these awards has been achieved but not all of the awards have vested as of September 30, 2022. As of September 30, 2022, a total of 14,879 RSUs and PSUs were outstanding, consisting of 11,420 unvested shares and 3,460 vested and deferred shares by directors. Stock-based compensation expense was classified in the condensed consolidated statements of operations and comprehensive loss as follows for the three and nine months ended September 30, 2022 and 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2022 2021 2022 2021 Cost of product revenues ​ $ 4 ​ $ 38 ​ $ 166 ​ $ 109 Research and development ​ ​ 238 ​ ​ 869 ​ ​ 1,085 ​ ​ 2,821 Selling, general and administrative ​ ​ 1,085 ​ ​ 3,021 ​ ​ 4,797 ​ ​ 10,410 Total ​ $ 1,327 ​ $ 3,928 ​ $ 6,048 ​ $ 13,340 ​

INCOME (LOSS) PER SHARE

INCOME (LOSS) PER SHARE	9 Months Ended
	Sep. 30, 2022
INCOME (LOSS) PER SHARE
INCOME (LOSS) PER SHARE	​ ​ 15. INCOME (LOSS) PER SHARE ​ Basic and diluted net income (loss) per share attributable to common stockholders was calculated as follows for the three and nine months ended 30, 2022 and 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ September 30, ​ September 30, ​ 2022 2021 2022 2021 Numerator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) attributable to common stockholders $ 29,073 ​ $ (28,127) ​ $ (31,979) ​ $ (95,037) Denominator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average common shares outstanding, basic (1) ​ 1,499,001 ​ ​ 1,313,466 ​ ​ 1,490,159 ​ ​ 1,287,772 Effect of dilutive securities ​ 11,420 ​ ​ — ​ ​ — ​ ​ — Weighted-average common shares outstanding, diluted (1) ​ 1,510,421 ​ ​ 1,313,466 ​ ​ 1,490,159 ​ ​ 1,287,772 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) per share attributable to common stockholders, basic $ 19.39 ​ $ (21.41) ​ $ (21.46) ​ $ (73.80) Net income (loss) per share attributable to common stockholders, diluted $ 19.25 ​ $ (21.41) ​ $ (21.46) ​ $ (73.80) (1) Included in the weighted-average common shares outstanding, basic and diluted for the three and nine months ended September 30, 2022 is an aggregate of 19,485 shares of common stock that have been held back by the Company and will be issuable subject to the terms of the Merger Agreement to the Combangio Equityholders on the Escrow Release Date of February 15, 2023. The following potential common stock equivalents, presented based on amounts outstanding at each period end, were excluded from the calculation of diluted net income (loss) per share for the periods indicated because including them would have had an anti-dilutive effect: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ September 30, ​ September 30, ​ 2022 ​ 2021 ​ 2022 ​ 2021 Options to purchase shares of common stock ​ 221,747 ​ ​ 203,250 ​ ​ 242,234 ​ ​ 202,035 Unvested RSUs and PSUs ​ — ​ ​ 25,007 ​ ​ 11,328 ​ ​ 25,958 Unexercised warrants ​ 4,303 ​ ​ 4,303 ​ ​ 4,303 ​ ​ 4,525 ​ ​ 226,050 ​ ​ 232,560 ​ ​ 257,865 ​ ​ 232,518 ​

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2022
INCOME TAXES
INCOME TAXES	16. INCOME TAXES The Company did not record a provision or benefit for income taxes during the three and nine months ended September 30, 2022 and 2021. The Company continues to maintain a full valuation allowance for its U.S. federal and state deferred tax assets. The Company has evaluated the positive and negative evidence bearing upon its ability to realize the deferred tax assets. Management has considered the Company’s history of cumulative net losses incurred since inception and its generation of limited revenue from product sales since inception and has concluded that it is more likely than not that the Company will not realize the benefits of the deferred tax assets. Management reevaluates the positive and negative evidence at each reporting period. Realization of the future tax benefits is dependent on many factors, including the Company’s ability to generate taxable income within the net operating loss carryforward period. Under the provisions of Section 382 of the Internal Revenue Code of 1986, as amended, certain substantial changes in the Company’s ownership, including a sale of the Company, or significant changes in ownership due to sales of equity, may have limited, or may limit in the future, the amount of net operating loss carryforwards, which could be used annually to offset future taxable income. The Company previously completed an analysis and determined that an ownership change has materially limited the net operating loss carryforwards and research and development tax credits available to offset future tax liabilities. The Company may be further limited by any changes that may have occurred or may occur subsequent to December 31, 2021. The Company files its corporate income tax returns in the United States and various states. All tax years since the date of incorporation remain open to examination by the major taxing jurisdictions (state and federal) to which the Company is subject, as carryforward attributes generated in years past may still be adjusted upon examination by the Internal Revenue Service (“IRS”) or other authorities if they have or will be used in a future period. The Company is not currently under examination by the IRS or any other jurisdictions for any tax year. As of September 30, 2022 and December 31, 2021, the Company had no uncertain tax positions. The Company’s policy is to recognize interest and penalties related to income tax matters as a component of income tax expense, of which no interest or penalties were recorded for the three and nine months ended September 30, 2022 and 2021.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2022
COMMITMENTS AND CONTINGENCIES.
COMMITMENTS AND CONTINGENCIES	17. COMMITMENTS AND CONTINGENCIES Johns Hopkins University License Agreement After 2016 and until the first commercial sale of product, which occurred in January 2019, the minimum annual payment was $38. Upon the first commercial sale of INVELTYS, the annual minimum payment increased to $113. The Company was obligated to pay JHU low single-digit running royalties based upon a percentage of net sales of the licensed products, which was applied to the annual minimum payment. During the three and nine months ended September 30, 2022 and 2021, amounts paid to JHU for royalties were de minimis The Company paid JHU a $150 milestone payment during the nine months ended 30, 2021, which was triggered by the first commercial sale of EYSUVIS in the United States in December 2020. de minimis Stanford License Agreement de minimis Litigation Other Commitments The commercial supply agreement contains annual minimum purchase requirements, which follow the contract year from July 1st to June 30th. ​ Contingencies related to the Merger Agreement

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Assets Held for Sale	Assets Held for Sale ​ The Company classifies its long-lived assets to be sold as held for sale, as specified by ASC 360, Property, Plant, and Equipment ​ As of September 30, 2022, certain assets met the criteria to be classified as held for sale and the Company concluded there was an impairment loss of $91 related to held for sale assets for the three and nine months ended September 30, 2022. Fair value was determined based on the estimated proceeds from the sale of the assets. The Company reclassified the inventory and property and equipment, which had a combined carrying value of $9,513, to current assets held for sale on the condensed consolidated balance sheet as of September 30, 2022. See Note 4, “Assets Held for Sale”, for additional information. There were no assets that met the criteria for classification as held for sale as of December 31, 2021.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) , public business entities that meet the definition of an SEC filer, excluding entities eligible to be , for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years and for all other entities, including SRCs, The Company is currently evaluating the impact of the on its consolidated financial statements and related disclosures. The

SALE OF COMMERCIAL BUSINESS T_2

SALE OF COMMERCIAL BUSINESS TO ALCON (Tables)	9 Months Ended
	Sep. 30, 2022
SALE OF COMMERCIAL BUSINESS TO ALCON
Schedule of dispositions of business	​ ​ ​ ​ ​ Gross consideration from the sale of the Commercial Business ​ $ 65,027 Closing and transaction costs ​ ​ 2,119 Net proceeds from the sale of the Commercial Business ​ ​ 62,908 Book value of assets transferred ​ ​ ​ Inventories ​ ​ 8,915 Prepaid expenses and other current assets ​ ​ 556 Property and equipment, net ​ ​ 1,819 Other long-term assets ​ ​ 434 Total book value of assets transferred ​ ​ 11,724 Gain on sale of the Commercial Business ​ ​ 51,184 Deferred gain on sale of Commercial Business ​ ​ 4,189 Net gain on sale of the Commercial Business ​ $ 46,995

ASSETS HELD FOR SALE (Tables)

ASSETS HELD FOR SALE (Tables)	9 Months Ended
	Sep. 30, 2022
ASSETS HELD FOR SALE
Schedule of the major categories of assets that have been reclassified to held for sale	​ ​ ​ ​ ​ ​ ​ September 30, ​ 2022 Inventories ​ $ 9,454 Property and equipment, net ​ ​ 59 Total assets held for sale ​ $ 9,513

FAIR VALUE OF FINANCIAL INSTR_2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	9 Months Ended
	Sep. 30, 2022
FAIR VALUE OF FINANCIAL INSTRUMENTS
Schedule of assets and liabilities measured at fair value on a recurring basis	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2022 ​ ​ Fair Value ​ Level 1 ​ Level 2 ​ Level 3 Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash equivalents ​ $ 36,329 ​ $ 36,329 ​ $ — ​ $ — Total Assets ​ $ 36,329 ​ $ 36,329 ​ $ — ​ $ — Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred purchase consideration ​ $ 162 ​ $ — ​ $ — ​ $ 162 Contingent consideration ​ ​ 7,706 ​ ​ — ​ ​ — ​ ​ 7,706 Total Liabilities ​ $ 7,868 ​ $ — ​ $ — ​ $ 7,868 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2021 ​ ​ Fair Value ​ Level 1 ​ Level 2 ​ Level 3 Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash equivalents ​ $ 86,135 ​ $ 86,135 ​ $ — ​ $ — Total Assets ​ $ 86,135 ​ $ 86,135 ​ $ — ​ $ — Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred purchase consideration ​ $ 7,892 ​ $ — ​ $ — ​ $ 7,892 Contingent consideration ​ ​ 8,658 ​ ​ — ​ ​ — ​ ​ 8,658 Total Liabilities ​ $ 16,550 ​ $ — ​ $ — ​ $ 16,550
Schedule of fair values of warrants, using the Black Scholes option pricing model	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value at ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ ​ ​ ​ ​ Range Financial Instrument ​ 2022 ​ Valuation Technique ​ Unobservable Input ​ (Average) Deferred purchase consideration ​ $ 162 ​ Option pricing model ​ Discount for lack of marketability ​ 25% ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contingent consideration ​ $ 7,706 ​ Probability-adjusted ​ Period of expected milestone achievement ​ 2022 - 2027 (2025) ​ ​ ​ ​ ​ discounted cash flow model ​ Probabilities of achievement ​ 18.9% - 90.0% (42.5%) ​ ​ ​ ​ ​ ​ ​ Discount rate ​ 17.5% ​ ​ ​ ​ ​ ​ ​ Discount for lack of marketability ​ 20.0% ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value at ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ ​ ​ ​ Range Financial Instrument ​ 2021 ​ Valuation Technique ​ Unobservable Input ​ (Average) Deferred purchase consideration ​ $ 7,892 ​ Option pricing model ​ Discount for lack of marketability ​ 15.0% - 25.0% (20.0%) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contingent consideration ​ $ 8,658 ​ Probability-adjusted ​ Period of expected milestone achievement ​ 2022 - 2027 (2025) ​ ​ ​ ​ ​ discounted cash flow model ​ Probabilities of achievement ​ 18.9% - 90.0% (42.5%) ​ ​ ​ ​ ​ ​ ​ Discount rate ​ 10.3% ​ ​ ​ ​ ​ ​ ​ Discount for lack of marketability ​ 12.0%
Schedule of changes in Level 3 fair value measurements	​ ​ ​ ​ ​ Deferred purchase consideration ​ ​ ​ Balance at January 1, 2022 ​ $ 7,892 Fair value adjustments ​ ​ 1,051 Settlements ​ ​ (7,935) Balance at March 31, 2022 ​ $ 1,008 Fair value adjustments ​ ​ (789) Balance at June 30, 2022 ​ $ 219 Fair value adjustments ​ ​ (57) Balance at September 30, 2022 ​ $ 162 ​ ​ ​ ​ Contingent consideration ​ ​ ​ Balance at January 1, 2022 ​ $ 8,658 Fair value adjustments ​ ​ (988) Balance at March 31, 2022 ​ $ 7,670 Fair value adjustments ​ ​ (59) Balance at June 30, 2022 ​ $ 7,611 Fair value adjustments ​ ​ 95 Balance at September 30, 2022 ​ $ 7,706

REVENUE & ACCOUNTS RECEIVABLE_2

REVENUE & ACCOUNTS RECEIVABLE, NET (Tables)	9 Months Ended
	Sep. 30, 2022
REVENUE & ACCOUNTS RECEIVABLE, NET
Schedule of co-pay assistance program	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Trade Discounts, ​ ​ ​ ​ ​ ​ ​ ​ Allowances and ​ ​ ​ ​ Rebates and ​ ​ Chargebacks (1) Product Returns (2) Incentives (3) Balance as of December 31, 2021 ​ $ 2,672 ​ $ 1,140 ​ $ 11,280 Provision related to current period sales ​ ​ 2,133 ​ ​ 210 ​ ​ 13,359 Changes in estimate related to prior period sales ​ ​ (1) ​ ​ (138) ​ ​ (242) Credit/payments made ​ ​ (3,261) ​ ​ (415) ​ ​ (10,108) Balance as of March 31, 2022 ​ $ 1,543 ​ $ 797 ​ $ 14,289 Provision related to current period sales ​ ​ 2,602 ​ ​ 214 ​ ​ 15,413 Changes in estimate related to prior period sales ​ ​ (41) ​ ​ (199) ​ ​ (107) Credit/payments made ​ ​ (2,041) ​ ​ (112) ​ ​ (14,878) Balance as of June 30, 2022 ​ $ 2,063 ​ $ 700 ​ $ 14,717 Provision related to current period sales ​ ​ 91 ​ ​ 4 ​ ​ 525 Changes in estimate related to prior period sales ​ ​ 176 ​ ​ 150 ​ ​ (680) Credit/payments made ​ ​ (2,310) ​ ​ (263) ​ ​ (9,562) Balance as of September 30, 2022 ​ $ 20 ​ $ 591 ​ $ 5,000 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Trade Discounts, ​ ​ ​ ​ ​ ​ ​ ​ Allowances and ​ ​ ​ ​ Rebates and ​ ​ Chargebacks (1) Product Returns (2) Incentives (3) Balance as of December 31, 2020 ​ $ 1,157 ​ $ 600 ​ $ 4,904 Provision related to current period sales ​ ​ 2,201 ​ ​ 245 ​ ​ 10,216 Changes in estimate related to prior period sales ​ ​ 3 ​ ​ 30 ​ ​ (26) Credit/payments made ​ ​ (1,823) ​ ​ (419) ​ ​ (7,880) Balance as of March 31, 2021 ​ $ 1,538 ​ $ 456 ​ $ 7,214 Provision related to current period sales ​ ​ 2,103 ​ ​ 356 ​ ​ 11,193 Changes in estimate related to prior period sales ​ ​ 30 ​ ​ 142 ​ ​ (353) Credit/payments made ​ ​ (2,260) ​ ​ (253) ​ ​ (9,801) Balance as of June 30, 2021 ​ $ 1,411 ​ $ 701 ​ $ 8,253 Provision related to current period sales ​ ​ 2,137 ​ ​ 490 ​ ​ 11,686 Changes in estimate related to prior period sales ​ ​ 18 ​ ​ 109 ​ ​ (647) Credit/payments made ​ ​ (2,110) ​ ​ (632) ​ ​ (9,861) Balance as of September 30, 2021 ​ $ 1,456 ​ $ 668 ​ $ 9,431 (1) Trade discounts, allowances and chargebacks included fees for distribution service fees, prompt pay and other discounts, and chargebacks. Estimated trade discounts, allowances and chargebacks were deducted from gross revenue at the time revenues were recognized and were recorded as a reduction to accounts receivable on the Company’s condensed consolidated balance sheets. (2) Estimated provisions for product returns were deducted from gross revenues at the time revenues were recognized and were included in accrued expenses and other current liabilities on the Company’s condensed consolidated balance sheets. (3) Rebates and incentives included managed care rebates, government rebates, co-pay program incentives, and sales incentives and allowances. Estimated provisions for rebates and discounts were deducted from gross revenues at the time revenues were recognized and were included in accrued expenses and other current liabilities on the Company’s condensed consolidated balance sheets.

INVENTORY (Tables)

INVENTORY (Tables)	9 Months Ended
	Sep. 30, 2022
INVENTORY
Schedule of Inventory	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2022 2021 ​ ​ ​ ​ ​ ​ ​ Raw materials ​ $ — ​ $ 1,328 Work in progress ​ ​ — ​ ​ 9,799 Finished goods ​ ​ — ​ ​ 7,090 Total inventory ​ $ — ​ $ 18,217

PREPAID EXPENSES AND OTHER CU_2

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)	9 Months Ended
	Sep. 30, 2022
PREPAID EXPENSES AND OTHER CURRENT ASSETS
Schedule of prepaid expenses and other current assets	Prepaid expenses and other current assets, consists of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2022 2021 ​ ​ ​ ​ ​ ​ ​ Due from third parties in connection with Transition Agreement ​ $ 10,083 ​ $ — Due from Alcon ​ ​ 9,897 ​ ​ — Insurance ​ ​ 1,003 ​ ​ 1,307 Other non-trade receivables ​ ​ 836 ​ ​ 2,110 Deposits ​ ​ 149 ​ ​ 911 Other ​ ​ 608 ​ ​ 1,876 Prepaid expenses and other current assets ​ $ 22,576 ​ $ 6,204

ACCRUED EXPENSES (Tables)

ACCRUED EXPENSES (Tables)	9 Months Ended
	Sep. 30, 2022
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Schedule of accrued expenses	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2022 2021 ​ ​ ​ ​ ​ ​ ​ Due to Alcon ​ $ 11,964 ​ $ — Due to third parties in connection with Transition Agreement (1) ​ ​ 4,439 ​ ​ — Compensation and benefits ​ ​ 3,465 ​ ​ 6,324 Accrued revenue reserves (2) ​ ​ 2,046 ​ ​ 10,300 Professional services ​ ​ 1,268 ​ ​ 881 Contract manufacturing ​ ​ 759 ​ ​ 396 Development costs ​ ​ 591 ​ ​ 127 Commercial costs ​ ​ 414 ​ ​ 2,134 Other ​ ​ 422 ​ ​ 824 Accrued expenses ​ $ 25,368 ​ $ 20,986 (1) There were additional amounts due to third parties in connection with the Transition Agreement included in accounts payable of $4,775 as of September 30, 2022. (2) There were additional revenue reserves included in accounts payable of $3,545 and $2,120, as of September 30, 2022 and December 31, 2021, respectively.

LEASES (Tables)

LEASES (Tables)	9 Months Ended
	Sep. 30, 2022
LEASES
Schedule of lease cost	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2022 2021 2022 2021 Lease cost ​ ​ ​ ​ Operating lease cost ​ $ 9 ​ $ 1,266 ​ $ 404 ​ $ 3,750 Short-term lease cost ​ ​ 49 ​ ​ — ​ ​ 143 ​ ​ — Variable lease cost ​ ​ 114 ​ ​ 528 ​ ​ 740 ​ ​ 1,621 Total lease cost ​ $ 172 ​ $ 1,794 ​ $ 1,287 ​ $ 5,371 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating cash outflows from operating leases ​ $ 338 ​ $ 1,675 ​ $ 1,308 ​ $ 4,918
Schedule of weighted average remaining lease term and weighted average discount rate of operating leases	​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2022 ​ 2021 Weighted average remaining lease term 0.5 years ​ 2.4 years Weighted average discount rate 10.3% ​ 2.6%

DEBT (Tables)

DEBT (Tables)	9 Months Ended
	Sep. 30, 2022
DEBT
Schedule of carrying value of debt	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2022 2021 Principal loan balance ​ $ 43,303 ​ $ 80,000 Unamortized debt discount and issuance cost ​ ​ (867) ​ ​ (1,927) Cumulative accretion of exit fee ​ ​ 206 ​ ​ 856 Long-term debt, net ​ $ 42,642 ​ $ 78,929
Schedule of maturities of long-term debt	​ ​ ​ ​ ​ Years Ending December 31, ​ ​ 2022 (remaining three months) ​ $ — 2023 ​ ​ — 2024 ​ ​ — 2025 ​ ​ — 2026 ​ ​ 43,303 Total ​ $ 43,303

WARRANTS (Tables)

WARRANTS (Tables)	9 Months Ended
	Sep. 30, 2022
WARRANTS.
Schedule of outstanding warrants	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Shares Exercisable at ​ ​ Exercise Expiration Exercisable September 30, December 31, Issued Price Per Share ​ Date ​ From ​ 2022 ​ 2021 2014 ​ $ 375.00 November 2024 July 2017 ​ 320 ​ 320 2016 ​ $ 413.50 October 2026 September 2017 ​ 290 ​ 290 2018 ​ $ 609.23 ​ October 2025 ​ October 2018 ​ 3,693 ​ 3,693 ​ ​ ​ ​ ​ ​ ​ ​ ​ 4,303 ​ 4,303

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2022
STOCK-BASED COMPENSATION
Schedule of assumptions used in determining fair value of the stock options granted	​ ​ ​ ​ ​ ​ Nine Months Ended September 30, 2022 Expected volatility 72.9% – 84.5% Risk-free interest rate 1.43% – 3.59% Expected dividend yield ​ 0% ​ Expected term (in years) 5.50 – 6.10
Schedule of stock based compensation expense	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2022 2021 2022 2021 Cost of product revenues ​ $ 4 ​ $ 38 ​ $ 166 ​ $ 109 Research and development ​ ​ 238 ​ ​ 869 ​ ​ 1,085 ​ ​ 2,821 Selling, general and administrative ​ ​ 1,085 ​ ​ 3,021 ​ ​ 4,797 ​ ​ 10,410 Total ​ $ 1,327 ​ $ 3,928 ​ $ 6,048 ​ $ 13,340

INCOME (LOSS) PER SHARE (Tables

INCOME (LOSS) PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2022
INCOME (LOSS) PER SHARE
Schedule of computation of basic and diluted net loss per share	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ September 30, ​ September 30, ​ 2022 2021 2022 2021 Numerator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) attributable to common stockholders $ 29,073 ​ $ (28,127) ​ $ (31,979) ​ $ (95,037) Denominator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average common shares outstanding, basic (1) ​ 1,499,001 ​ ​ 1,313,466 ​ ​ 1,490,159 ​ ​ 1,287,772 Effect of dilutive securities ​ 11,420 ​ ​ — ​ ​ — ​ ​ — Weighted-average common shares outstanding, diluted (1) ​ 1,510,421 ​ ​ 1,313,466 ​ ​ 1,490,159 ​ ​ 1,287,772 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) per share attributable to common stockholders, basic $ 19.39 ​ $ (21.41) ​ $ (21.46) ​ $ (73.80) Net income (loss) per share attributable to common stockholders, diluted $ 19.25 ​ $ (21.41) ​ $ (21.46) ​ $ (73.80) (1) Included in the weighted-average common shares outstanding, basic and diluted for the three and nine months ended September 30, 2022 is an aggregate of 19,485 shares of common stock that have been held back by the Company and will be issuable subject to the terms of the Merger Agreement to the Combangio Equityholders on the Escrow Release Date of February 15, 2023.
Schedule of outstanding securities excluded from the computation of diluted weighted average shares outstanding as they would have been anti-dilutive	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ September 30, ​ September 30, ​ 2022 ​ 2021 ​ 2022 ​ 2021 Options to purchase shares of common stock ​ 221,747 ​ ​ 203,250 ​ ​ 242,234 ​ ​ 202,035 Unvested RSUs and PSUs ​ — ​ ​ 25,007 ​ ​ 11,328 ​ ​ 25,958 Unexercised warrants ​ 4,303 ​ ​ 4,303 ​ ​ 4,303 ​ ​ 4,525 ​ ​ 226,050 ​ ​ 232,560 ​ ​ 257,865 ​ ​ 232,518

NATURE OF BUSINESS AND BASIS _2

NATURE OF BUSINESS AND BASIS OF PRESENTATION (Details) $ / shares in Units, $ in Thousands	Oct. 22, 2022 shares	Oct. 19, 2022 $ / shares shares	Nov. 03, 2022 shares	Sep. 30, 2022 USD ($) shares	Aug. 18, 2022	Jul. 08, 2022 USD ($)	Dec. 31, 2021 USD ($) shares
Acquisition of Combangio, Inc
Common stock, authorized				120,000,000			120,000,000
Accumulated deficit | $				$ 574,367			$ 542,388
Subsequent Events
Acquisition of Combangio, Inc
Reverse stock split	0.02
Common stock, authorized	120,000,000
Series D redeemable preferred stock
Acquisition of Combangio, Inc
Shares Issued				73,208			0
Shares Outstanding				73,208			0
Redeemable preferred stock dividend declared ratio					0.001
Series D redeemable preferred stock | Subsequent Events
Acquisition of Combangio, Inc
Shares Outstanding			0
Aggregate dividends paid during the period for each whole share of redeemable preferred stock outstanding | $ / shares		$ 0.10
Number of shares in whole shares		100
Commercial Business Sale to Alcon | Disposed of by sale not discontinued operations
Acquisition of Combangio, Inc
Amount receivable upon the achievement of specified commercial sales-based milestones | $						$ 325,000

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022	Dec. 31, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Assets reclassified to current assets held for sale	$ 9,513	$ 9,513
Assets Held for sale	9,513	9,513	$ 0
Disposed of by sale not discontinued operations | Commercial Business Sale to Alcon
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Impairment loss related to held for sale assets	91	91
Assets reclassified to current assets held for sale	$ 9,513	$ 9,513	$ 0

SALE OF COMMERCIAL BUSINESS T_3

SALE OF COMMERCIAL BUSINESS TO ALCON (Details) $ in Thousands		3 Months Ended	9 Months Ended
	Jul. 08, 2022 USD ($) item	Sep. 30, 2022 USD ($)	Sep. 30, 2022 USD ($)
Dispositions disclosures
Number Of Milestone Payments | item	1
Deferred gain on sale of Commercial Business		$ 3,408	$ 3,408
Due to Alcon		11,964	11,964
Due from third parties in connection with TSA Agreement		9,897	9,897
Due to third parties		4,439	4,439
Accounts payable
Dispositions disclosures
Due to third parties		4,775	4,775
Transition Service Agreement
Dispositions disclosures
Due to third parties		8,287	8,287
Transition Service Agreement | Other income
Dispositions disclosures
Collaborative arrangement other income		2,361	2,361
Transition Service Agreement | Loss from operations
Dispositions disclosures
Collaborative arrangement expenses		2,293	2,293
Transition Service Agreement | Prepaid expenses and other current assets
Dispositions disclosures
Cash collected on behalf of Alcon		2,808	2,808
Cash to be collected collected on behalf of Alcon		10,083	10,083
Due from Alcon for reimbursement for services		2,361	2,361
Due from Alcon for payment on Alcon's behalf		7,536	7,536
Due from third parties in connection with TSA Agreement		9,897	9,897
Transition Service Agreement | Accrued expenses and other current liabilities
Dispositions disclosures
Due to Alcon		12,891	12,891
Payable to Alcon		11,964	11,964
Due to third parties		3,512	3,512
Payable to third parties on behalf of Alcon		927	927
Transition Service Agreement | Accounts payable
Dispositions disclosures
Due to third parties		4,775	4,775
Commercial Business Sale to Alcon
Dispositions disclosures
Upfront payment	$ 60,000
Commercial Business Sale to Alcon | Disposed of by sale not discontinued operations
Dispositions disclosures
Number of commercial-based sales milestone payments | item	4
Amount receivable upon the achievement of specified commercial sales-based milestones	$ 325,000
Proceeds from inventory transfer	5,027
Deferred gain on sale of Commercial Business		4,189	4,189
Deferred gain			781
Write off		$ 2,605	$ 2,605
Commercial Business Sale to Alcon | Disposed of by sale not discontinued operations | Achievement of $50,000 or more in aggregate worldwide net sales
Dispositions disclosures
Sales based milestone achievement	50,000
Amount receivable upon the achievement of specified commercial sales-based milestones	25,000
Commercial Business Sale to Alcon | Disposed of by sale not discontinued operations | Achievement of $100,000 or more in aggregate worldwide net sales
Dispositions disclosures
Sales based milestone achievement	100,000
Amount receivable upon the achievement of specified commercial sales-based milestones	65,000
Commercial Business Sale to Alcon | Disposed of by sale not discontinued operations | Achievement of $175,000 or more in aggregate worldwide net sales
Dispositions disclosures
Sales based milestone achievement	175,000
Amount receivable upon the achievement of specified commercial sales-based milestones	75,000
Commercial Business Sale to Alcon | Disposed of by sale not discontinued operations | Achievement of $250,000 or more in aggregate worldwide net sales
Dispositions disclosures
Sales based milestone achievement	250,000
Amount receivable upon the achievement of specified commercial sales-based milestones	$ 160,000

SALE OF COMMERCIAL BUSINESS T_4

SALE OF COMMERCIAL BUSINESS TO ALCON - Net Gain on Sale of Commercial Business (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2022 USD ($)
Book value of assets transferred
Inventories	$ 9,454	$ 9,454
Deferred gain on sale of Commercial Business	3,408	3,408
Net gain on sale of the Commercial Business	46,995	46,995
Commercial Business Sale to Alcon | Disposed of by sale not discontinued operations
Dispositions Disclosures [Line Items]
Gross consideration from the sale of the Commercial Business	65,027	65,027
Closing and transaction costs		2,119
Net proceeds from the sale of the Commercial Business		62,908
Book value of assets transferred
Inventories	8,915	8,915
Prepaid expenses and other current assets	556	556
Property and equipment, net	1,819	1,819
Other long-term assets	434	434
Total book value of assets transferred	11,724	11,724
Gain on sale of the Commercial Business		51,184
Deferred gain on sale of Commercial Business	$ 4,189	4,189
Net gain on sale of the Commercial Business		$ 46,995

ASSETS HELD FOR SALE (Details)

ASSETS HELD FOR SALE (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022	Dec. 31, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Assets reclassified to current assets held for sale	$ 9,513	$ 9,513
Commercial Business Sale to Alcon | Disposed of by sale not discontinued operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Assets reclassified to current assets held for sale	9,513	9,513	$ 0
Impairment loss related to held for sale assets	91	91
impairment of long-Lived assets to be disposed of inventory held for sale	$ 0	$ 0

ASSETS HELD FOR SALE - Major Ca

ASSETS HELD FOR SALE - Major Categories of Assets (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Major categories of assets that have been reclassified to held for sale on the condensed consolidated balance sheet a
Inventories	$ 9,454
Property and equipment, net	59
Total assets held for sale	$ 9,513

FAIR VALUE OF FINANCIAL INSTR_3

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands		3 Months Ended	9 Months Ended
	Nov. 15, 2021	Sep. 30, 2022	Sep. 30, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Settled liability upon the issuance of Upfront Shares			$ 7,935
Gain (loss) on fair value remeasurement of deferred purchase consideration		$ 57	$ (205)
Shares Not Issued Until Escrow Release date of February 15, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of shares		19,485	19,485
Combangio, Inc
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of shares	155,799
Combangio, Inc | Shares Issued on January 3, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of shares	136,314
Combangio, Inc | Shares Not Issued Until Escrow Release date of February 15, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of shares	19,485
Combangio, Inc | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent milestone consideration	$ 105,000

FAIR VALUE OF FINANCIAL INSTR_4

FAIR VALUE OF FINANCIAL INSTRUMENTS - Recurring and Nonrecurring Fair value Measurements Within Hierarchy (Details) - Fair Value - Recurring - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Fair Value Assets Measured on Recurring and Non recurring Basis
Financial assets by level within fair value hierarchy	$ 36,329	$ 86,135
Fair Value Liabilities Measured on Recurring and Non recurring Basis
Financial liabilities by level within fair value hierarchy	7,868	16,550
Deferred purchase consideration
Fair Value Liabilities Measured on Recurring and Non recurring Basis
Financial liabilities by level within fair value hierarchy	162	7,892
Contingent Consideration
Fair Value Liabilities Measured on Recurring and Non recurring Basis
Financial liabilities by level within fair value hierarchy	7,706	8,658
Cash equivalents
Fair Value Assets Measured on Recurring and Non recurring Basis
Financial assets by level within fair value hierarchy	36,329	86,135
Level 1
Fair Value Assets Measured on Recurring and Non recurring Basis
Financial assets by level within fair value hierarchy	36,329	86,135
Level 1 | Cash equivalents
Fair Value Assets Measured on Recurring and Non recurring Basis
Financial assets by level within fair value hierarchy	36,329	86,135
Level 3
Fair Value Liabilities Measured on Recurring and Non recurring Basis
Financial liabilities by level within fair value hierarchy	7,868	16,550
Level 3 | Deferred purchase consideration
Fair Value Liabilities Measured on Recurring and Non recurring Basis
Financial liabilities by level within fair value hierarchy	162	7,892
Level 3 | Contingent Consideration
Fair Value Liabilities Measured on Recurring and Non recurring Basis
Financial liabilities by level within fair value hierarchy	$ 7,706	$ 8,658

FAIR VALUE OF FINANCIAL INSTR_5

FAIR VALUE OF FINANCIAL INSTRUMENTS - Quantitative Information and Assumptions (Details) - Level 3 $ in Thousands	Sep. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Deferred purchase consideration
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Financial liabilities by level within fair value hierarchy	$ 162	$ 7,892
Measurement input	0.25
Business Combination, Contingent Consideration, Liability, Valuation Technique [Extensible Enumeration]	Option pricing model	Option pricing model
Business Combination, Contingent Consideration, Liability, Measurement Input [Extensible Enumeration]	Discount for lack of marketability	Discount for lack of marketability
Deferred purchase consideration | Option pricing model | Discount for lack of marketability | Minimum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Measurement input		0.150
Deferred purchase consideration | Option pricing model | Discount for lack of marketability | Maximum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Measurement input		0.250
Deferred purchase consideration | Option pricing model | Discount for lack of marketability | Average
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Measurement input		0.200
Contingent Consideration
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Financial liabilities by level within fair value hierarchy	$ 7,706	$ 8,658
Contingent Consideration | Discounted cash flow model | Discount for lack of marketability
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Measurement input	0.200	0.120
Contingent Consideration | Discounted cash flow model | Probabilities of achievement | Minimum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Measurement input	0.189	0.189
Contingent Consideration | Discounted cash flow model | Probabilities of achievement | Maximum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Measurement input	0.900	0.900
Contingent Consideration | Discounted cash flow model | Probabilities of achievement | Average
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Measurement input	0.425	0.425
Contingent Consideration | Discounted cash flow model | Discount rate
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Measurement input	0.175	0.103

FAIR VALUE OF FINANCIAL INSTR_6

FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair Value Measurement Levels (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended	12 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2022	Dec. 31, 2021
Transfer from level 1 to level 2, Assets	$ 0			$ 0	$ 0
Transfer from level 2 to level 1, Assets	0			0	0
Transfer from level 1 to level 2, Liability	0			0	0
Transfer from level 2 to level 1, Liability	0			0	0
Transfer into level 3, Assets	0			0	0
Transfer out of level 3, Assets	0			0	0
Transfer into level 3, Liability	0			0	0
Transfer out of level 3, Liability	0			0	0
Settlements				(7,935)
Level 3 | Deferred purchase consideration
Beginning balance	219	$ 1,008	$ 7,892	7,892
Fair value adjustments	(57)	(789)	1,051
Settlements			(7,935)
Ending balance	162	219	1,008	162	7,892
Level 3 | Contingent Consideration
Beginning balance	7,611	7,670	8,658	8,658
Fair value adjustments	95	(59)	(988)
Settlements	95			(952)
Ending balance	$ 7,706	$ 7,611	$ 7,670	$ 7,706	$ 8,658

REVENUE & ACCOUNTS RECEIVABLE_3

REVENUE & ACCOUNTS RECEIVABLE, NET - Product Revenue Provision and Allowance Categories (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021
Trade Discounts, Allowances and Chargebacks
Product Information [Line Items]
Beginning balance	$ 2,063	$ 1,543	$ 2,672	$ 1,411	$ 1,538	$ 1,157
Provision related to current period sales	91	2,602	2,133	2,137	2,103	2,201
Changes in estimate related to prior period sales	176	(41)	(1)	18	30	3
Credit/payments made	(2,310)	(2,041)	(3,261)	(2,110)	(2,260)	(1,823)
Ending balance	20	2,063	1,543	1,456	1,411	1,538
Product Returns
Product Information [Line Items]
Beginning balance	700	797	1,140	701	456	600
Provision related to current period sales	4	214	210	490	356	245
Changes in estimate related to prior period sales	150	(199)	(138)	109	142	30
Credit/payments made	(263)	(112)	(415)	(632)	(253)	(419)
Ending balance	591	700	797	668	701	456
Rebates and Incentives
Product Information [Line Items]
Beginning balance	14,717	14,289	11,280	8,253	7,214	4,904
Provision related to current period sales	525	15,413	13,359	11,686	11,193	10,216
Changes in estimate related to prior period sales	(680)	(107)	(242)	(647)	(353)	(26)
Credit/payments made	(9,562)	(14,878)	(10,108)	(9,861)	(9,801)	(7,880)
Ending balance	$ 5,000	$ 14,717	$ 14,289	$ 9,431	$ 8,253	$ 7,214

REVENUE & ACCOUNTS RECEIVABLE_4

REVENUE & ACCOUNTS RECEIVABLE, NET (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Product Information [Line Items]
Allowance for doubtful accounts	$ 0	$ 0
Sales discounts and contractual fee for service arrangements
Product Information [Line Items]
Product revenue provision and allowance	$ 20	$ 2,672

INVENTORY (Details)

INVENTORY (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
INVENTORY
Raw Materials		$ 1,328
Work in Progress		9,799
Finished Goods		7,090
Total inventory		18,217
Current inventory	$ 0	8,639
Inventories classified as held for sale	$ 9,454
Long-term inventory		$ 9,578

PREPAID EXPENSES AND OTHER CU_3

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
PREPAID EXPENSES AND OTHER CURRENT ASSETS
Due from third parties in connection with Transition Agreement	$ 10,083
Due from Alcon	9,897
Insurance	1,003	$ 1,307
Other non-trade receivables	836	2,110
Deposits	149	911
Other	608	1,876
Prepaid expenses and other current assets	$ 22,576	$ 6,204

ACCRUED EXPENSES AND OTHER CU_2

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Due to Alcon	$ 11,964
Due to third parties in connection with Transition Agreement (1)	4,439
Compensation and benefits	3,465	$ 6,324
Accrued revenue reserves (2)	2,046	10,300
Professional services	1,268	881
Contract manufacturing	759	396
Commercial costs	414	2,134
Development costs	591	127
Other	422	824
Accrued expenses	25,368	20,986
Accounts payable
Due to third parties in connection with Transition Agreement (1)	4,775
Accrued revenue reserves (2)	$ 3,545	$ 2,120

LEASES (Details)

LEASES (Details) - USD ($)		1 Months Ended	3 Months Ended		9 Months Ended
	Feb. 28, 2018	Jan. 31, 2022	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Leases
Short-term restricted cash							$ 2,042,000
Right-of-use assets			$ 34,000		$ 34,000		$ 1,299,000
Lease liability			0		0
Amount borrowed			450,000		450,000
Lease cost
Operating lease cost			9,000	$ 1,266,000	404,000	$ 3,750,000
Short-term lease cost			49,000		143,000
Variable lease cost			114,000	528,000	740,000	1,621,000
Total lease cost			172,000	1,794,000	1,287,000	5,371,000
Operating cash outflows from operating leases			$ 338,000	$ 1,675,000	$ 1,308,000	$ 4,918,000
Weighted average remaining lease term			6 months		6 months		2 years 4 months 24 days
Weighted average discount rate			10.30%		10.30%		2.60%
Vehicle Fleet Lease
Leases
Right-of-use assets			$ 0		$ 0
Watertown Lease
Leases
Lease term	8 years
Existence of option to extend	true
Payment received from lease termination		$ 2,000,000
Restricted cash			$ 2,042,000		2,042,000
Renewal term	5 years
Watertown Lease | Gain on lease termination
Leases
Remeasured the lease liability and right-of-use asset and recognized					$ 1,311,000

DEBT- Athyrium Credit Facility

DEBT- Athyrium Credit Facility (Details) $ in Thousands			3 Months Ended	9 Months Ended		12 Months Ended
	May 04, 2021 USD ($)	Oct. 01, 2018 USD ($)	Sep. 30, 2022 USD ($) item	Sep. 30, 2022 USD ($) item	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)	Mar. 31, 2021 USD ($)
Debt Instrument [Line Items]
Aggregate principal amount			$ 43,303	$ 43,303		$ 80,000
Restricted Cash, Statement of Financial Position [Extensible Enumeration]	Restricted Cash And Other Assets Noncurrent
Loss on extinguishment of debt			$ 2,583	$ 2,583	$ 5,395
Athyrium Credit Facility
Debt Instrument [Line Items]
Aggregate principal amount							$ 75,000
Restricted Cash	$ 10,000
Prepayment fees paid	2,250
Exit fees paid	$ 750
Loss on extinguishment of debt						$ (5,395)
Athyrium
Debt Instrument [Line Items]
Number of derivatives | item			1	1
Athyrium | Athyrium Credit Facility
Debt Instrument [Line Items]
Aggregate principal amount		$ 110,000
Debt term (in years)		6 years
Additional interest rate upon an event of default accrued (as a percent)		5%
Athyrium | Tranche A term loan
Debt Instrument [Line Items]
Aggregate principal amount		$ 75,000
Interest rate (as a percent)		9.875%
Athyrium | Contingent tranche B term loan
Debt Instrument [Line Items]
Aggregate principal amount		$ 35,000

DEBT - Oxford Finance Loan and

DEBT - Oxford Finance Loan and Security Agreement (Details) $ in Thousands			3 Months Ended		9 Months Ended		12 Months Ended
	Jul. 08, 2022 USD ($) installment	May 04, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)	Mar. 31, 2021 USD ($)
Debt instruments
Aggregate principal amount			$ 43,303		$ 43,303		$ 80,000
Loss on extinguishment of debt			(2,583)		(2,583)	$ (5,395)
Interest expense			1,447	$ 2,072	5,689	6,304
Athyrium Credit Facility
Debt instruments
Aggregate principal amount								$ 75,000
Amount of principal outstanding			43,303		43,303
Prepayment fees paid		$ 2,250
Loss on extinguishment of debt							$ 5,395
Accretion of final prepayment fee			206	325	849	579
Interest expense			1,447	2,071	5,703	6,277
Amortization of debt discount			52	110	281	501
Contractual coupon interest			$ 1,189	$ 1,636	$ 4,573	$ 5,197
Loan and Security Agreement with Oxford Finance LLC
Debt instruments
Aggregate principal amount		$ 125,000
Floating interest rate (as a percent)		0.11%
Facility fees paid		$ 400
Percentage of final payment fees		7%
Effective interest rate			13.05%		13.05%
Debt repayments	$ 40,000
Partial prepayment	36,697
Amount of principal outstanding	80,000
Prepayment fees paid	734
Final prepayment fee	$ 2,569
Number of monthly installments | installment	5
Loss on extinguishment of debt			$ 2,583		$ 2,583
Loan and Security Agreement with Oxford Finance LLC | Neither the tranche B term loan nor the tranche C term loan is made
Debt instruments
Duration of periodic monthly payment installments under a scenario		18 months
Loan and Security Agreement with Oxford Finance LLC | Either tranche B term loan nor tranche C term loan is made
Debt instruments
Duration of periodic monthly payment installments under a scenario		12 months
Loan and Security Agreement with Oxford Finance LLC | 30-day LIBOR
Debt instruments
Spread on variable rate		7.89%
Tranche A term loan
Debt instruments
Aggregate principal amount		$ 80,000
Contingent tranche B term loan
Debt instruments
Aggregate principal amount		$ 20,000
Revenue achievement trailing period		6 months
Minimum target revenue		$ 75,000
Facility fees paid		100
Contingent tranche C term loan
Debt instruments
Aggregate principal amount		$ 25,000
Revenue achievement trailing period		6 months
Minimum target revenue		$ 100,000
Facility fees paid		$ 125

DEBT - Carrying Value (Details)

DEBT - Carrying Value (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
DEBT
Principal Loan Balance	$ 43,303	$ 80,000
Unamortized debt discount and issuance cost	(867)	(1,927)
Cumulative accretion of exit fee	206	856
Long-term debt, net	$ 42,642	$ 78,929

DEBT - Future Annual Principal

DEBT - Future Annual Principal Payments (Details) - Athyrium Credit Facility $ in Thousands	Sep. 30, 2022 USD ($)
Maturities of long-term debt
2026	$ 43,303
Total	$ 43,303

WARRANTS (Details)

WARRANTS (Details) - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Preferred stock warrants
Shares Exercisable	4,303	4,303
Warrants 2014
Preferred stock warrants
Exercise Price Per Share	$ 375
Shares Exercisable	320	320
Warrants 2016
Preferred stock warrants
Exercise Price Per Share	$ 413.50
Shares Exercisable	290	290
Warrants 2018
Preferred stock warrants
Exercise Price Per Share	$ 609.23
Shares Exercisable	3,693	3,693

EQUITY FINANCINGS (Details)

EQUITY FINANCINGS (Details) - USD ($) $ in Thousands		1 Months Ended	3 Months Ended	9 Months Ended	12 Months Ended
	May 07, 2020	Aug. 31, 2021	Sep. 30, 2021	Sep. 30, 2021	Dec. 31, 2021	Sep. 30, 2022	Aug. 27, 2018
Shelf Registration
Equity Offerings
Additional authorized value of securities						$ 275,000
Common stock offering, net of issuance cost and underwriting fees (in shares)		611,000
Common stock offering, net of issuance cost and underwriting fees		$ 231,666
Registration period	3 years
Shelf Registration | Maximum
Equity Offerings
Additional authorized value of securities	$ 350,000						$ 250,000
ATM
Equity Offerings
Additional authorized value of securities						$ 11,344
Common stock offering, net of issuance cost and underwriting fees (in shares)			2,283	113,950	171,626
Net proceeds			$ 332	$ 41,063	$ 61,843
ATM | Maximum
Equity Offerings
Additional authorized value of securities	$ 75,000

STOCK-BASED COMPENSATION - Indu

STOCK-BASED COMPENSATION - Inducement Stock Option Awards (Details) - $ / shares	1 Months Ended		9 Months Ended
	Jul. 31, 2022	Jan. 31, 2022	Sep. 30, 2022
Stock-based compensation
Granted, options (in shares)			81,561
Weighted average grant date fair value of options granted			$ 41.12
Stock Options
Stock-based compensation
Granted, options (in shares)			2,800
Stock Options | Executive Officer | Maximum
Stock-based compensation
Number of common stock issuable upon exercise of rights under equity compensation plans		14,850
ESPP
Stock-based compensation
Issuance of common stock under employee stock purchase plan (in shares)	10,657	3,074

STOCK-BASED COMPENSATION - Fair

STOCK-BASED COMPENSATION - Fair Value Assumptions (Details)	9 Months Ended
	Sep. 30, 2022
Assumptions used in determining fair value of the stock options granted
Expected volatility (minimum)	72.90%
Expected volatility (maximum)	84.50%
Risk-free interest rate (minimum)	1.43%
Risk-free interest rate (maximum)	3.59%
Expected dividend yield	0%
Minimum
Assumptions used in determining fair value of the stock options granted
Expected term (in years)	5 years 6 months
Maximum
Assumptions used in determining fair value of the stock options granted
Expected term (in years)	6 years 1 month 6 days

STOCK-BASED COMPENSATION - RSUs

STOCK-BASED COMPENSATION - RSUs and PSUs (Details)	1 Months Ended	9 Months Ended
	Jun. 30, 2020 shares	Sep. 30, 2022 USD ($) shares
RSU
Stock-based compensation
Granted, other than options (in shares)		6,910
RSU and PSU
Stock-based compensation
Outstanding balance at end of period (in shares)		14,879
Unvested outstanding balance at end of period (in shares) | $		11,420
Vested and deferred (in shares)		3,460
Executive Officer | PSU | First anniversary
Stock-based compensation
Granted, other than options (in shares)	13,854
Vesting percentage	50%
Executive Officer | PSU | Second anniversary
Stock-based compensation
Vesting percentage	50%

STOCK-BASED COMPENSATION - Stoc

STOCK-BASED COMPENSATION - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Stock-based compensation
Stock based compensation expense	$ 1,327	$ 3,928	$ 6,048	$ 13,340
Cost of product revenues
Stock-based compensation
Stock based compensation expense	4	38	166	109
Research and development
Stock-based compensation
Stock based compensation expense	238	869	1,085	2,821
Selling, general and administrative
Stock-based compensation
Stock based compensation expense	$ 1,085	$ 3,021	$ 4,797	$ 10,410

INCOME (LOSS) PER SHARE (Detail

INCOME (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Numerator:
Net income (loss) attributable to common stockholders	$ 29,073	$ (28,127)	$ (31,979)	$ (95,037)
Denominator:
Weighted average shares outstanding-basic (in shares)	1,499,001	1,313,466	1,490,159	1,287,772
Effect of dilutive securities	11,420
Weighted average shares outstanding-diluted (in shares)	1,510,421	1,313,466	1,490,159	1,287,772
Net income (loss) per share attributable to common stockholders, basic	$ 19.39	$ (21.41)	$ (21.46)	$ (73.80)
Net income (loss) per share attributable to common stockholders, diluted	$ 19.25	$ (21.41)	$ (21.46)	$ (73.80)
Shares Not Issued Until Escrow Release date of February 15, 2023
Denominator:
Number of shares	19,485		19,485

INCOME (LOSS) PER SHARE - Antid

INCOME (LOSS) PER SHARE - Antidilutive Securities (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Outstanding securities excluded from the computation of diluted weighted average shares outstanding as they would have been anti dilutive:
Outstanding securities excluded from the computation of diluted weighted average shares outstanding (in shares)	226,050	232,560	257,865	232,518
Stock Options
Outstanding securities excluded from the computation of diluted weighted average shares outstanding as they would have been anti dilutive:
Outstanding securities excluded from the computation of diluted weighted average shares outstanding (in shares)	221,747	203,250	242,234	202,035
RSU and PSU
Outstanding securities excluded from the computation of diluted weighted average shares outstanding as they would have been anti dilutive:
Outstanding securities excluded from the computation of diluted weighted average shares outstanding (in shares)		25,007	11,328	25,958
Warrants
Outstanding securities excluded from the computation of diluted weighted average shares outstanding as they would have been anti dilutive:
Outstanding securities excluded from the computation of diluted weighted average shares outstanding (in shares)	4,303	4,303	4,303	4,525

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
INCOME TAXES
Uncertain tax positions	$ 0		$ 0		$ 0
Interest or penalties recorded	$ 0	$ 0	$ 0	$ 0

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - License Agreement (Details) - The Johns Hopkins University ("JHU") - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Contingencies
Minimum annual payment	$ 38
License fee, if the company achieves the first commercial sale	$ 113
Milestone payment		$ 150

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES - Contingencies Related to Merger Agreement (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Nov. 15, 2021
Supply Commitment | Woodstock Sterile Solutions, Inc.
Other Commitments [Line Items]
Remaining amount due	$ 1,466
Combangio, Inc
Other Commitments [Line Items]
Contingent upon specified development, regulatory and commercialization milestones		$ 40,000
Combangio, Inc | Achievement of sales based milestone relating to KPI-012 product
Other Commitments [Line Items]
Potential maximum payout for contingent consideration		$ 65,000