Aclaris Therapeutics (ACRS) 10-Q5 Aug 212021 Q2 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2021	Jul. 30, 2021
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	001-37581
Entity Registrant Name	Aclaris Therapeutics, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	46-0571712
Entity Address, Address Line One	640 Lee Road, Suite 200
Entity Address, City or Town	Wayne
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19087
City Area Code	484
Local Phone Number	324-7933
Title of 12(b) Security	Common Stock, $0.00001 par value
Trading Symbol	ACRS
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	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		61,215,707
Entity Central Index Key	0001557746
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 113,447	$ 22,063
Short-term marketable securities	118,227	32,068
Accounts receivable, net	939	772
Prepaid expenses and other current assets	8,648	2,590
Total current assets	241,261	57,493
Marketable securities	34,503
Property and equipment, net	1,287	1,654
Intangible assets	7,086	7,123
Other assets	3,909	4,514
Total assets	288,046	70,784
Current liabilities:
Accounts payable	4,244	5,254
Accrued expenses	6,931	5,906
Current portion of lease liabilities	647	603
Discontinued operations - current liabilities	3,094	3,111
Total current liabilities	14,916	14,874
Other liabilities	2,917	3,179
Long-term debt, net	10,731	10,653
Contingent consideration	25,300	4,061
Deferred tax liability	367	367
Total liabilities	54,231	33,134
Commitments and contingencies (Note 17)
Stockholders' Equity:
Preferred stock, $0.00001 par value; 10,000,000 shares authorized and no shares issued or outstanding at June 30, 2021 and December 31, 2020
Common stock, $0.00001 par value; 100,000,000 shares authorized at June 30, 2021 and December 31, 2020; 61,204,987 and 45,109,314 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively	1
Additional paid-in capital	785,455	542,286
Accumulated other comprehensive loss	(184)	(94)
Accumulated deficit	(551,457)	(504,542)
Total stockholders' equity	233,815	37,650
Total liabilities and stockholders' equity	$ 288,046	$ 70,784

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2021	Dec. 31, 2020
CONDENSED CONSOLIDATED BALANCE SHEETS
Preferred stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	61,204,987	45,109,314
Common stock, shares outstanding	61,204,987	45,109,314

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Total revenue	$ 1,824	$ 2,046	$ 3,601	$ 3,453
Costs and expenses:
Cost of revenue	1,263	1,389	2,465	2,658
Research and development	7,897	6,466	15,735	14,142
General and administrative	5,870	5,572	10,697	11,773
Revaluation of contingent consideration	4,800		21,239	1,767
Total costs and expenses	19,830	13,427	50,136	30,340
Loss from operations	(18,006)	(11,381)	(46,535)	(26,887)
Other expense, net	(155)	(189)	(380)	(11)
Loss from continuing operations	(18,161)	(11,570)	(46,915)	(26,898)
Loss from discontinued operations		(27)		(285)
Net loss	$ (18,161)	$ (11,597)	$ (46,915)	$ (27,183)
Net loss per share, basic and diluted	$ (0.34)	$ (0.28)	$ (0.90)	$ (0.65)
Weighted average common shares outstanding, basic and diluted	53,968,405	42,133,646	52,163,136	41,876,037
Other comprehensive income (loss):
Unrealized gain (loss) on marketable securities, net of tax of $0	$ 25	$ (37)	$ (10)	$ 23
Foreign currency translation adjustment	(69)	5	(80)	58
Total other comprehensive income (loss)	(44)	(32)	(90)	81
Comprehensive loss	(18,205)	(11,629)	(47,005)	(27,102)
Contract research
Total revenue	1,606	1,853	3,141	3,042
Other revenue
Total revenue	$ 218	$ 193	$ 460	$ 411

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
Unrealized gain (loss) on marketable securities, tax	$ 0	$ 0	$ 0	$ 0

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit	Total
Balance at beginning of period at Dec. 31, 2019		$ 523,505	$ (66)	$ (453,527)	$ 69,912
Balance at beginning of period (in shares) at Dec. 31, 2019	41,485,638
Increase (Decrease) in Stockholders' Equity
Vesting of restricted stock units		(121)			(121)
Vesting of restricted stock units (in shares)	346,582
Fair value of warrants issued		378			378
Unrealized gain (loss) on marketable securities			60		60
Foreign currency translation adjustment			53		53
Stock-based compensation expense		3,453			3,453
Net loss				(15,586)	(15,586)
Balance at end of period at Mar. 31, 2020		527,215	47	(469,113)	58,149
Balance at end of period (in shares) at Mar. 31, 2020	41,832,220
Balance at beginning of period at Dec. 31, 2019		523,505	(66)	(453,527)	69,912
Balance at beginning of period (in shares) at Dec. 31, 2019	41,485,638
Increase (Decrease) in Stockholders' Equity
Unrealized gain (loss) on marketable securities					23
Net loss					(27,183)
Balance at end of period at Jun. 30, 2020		530,061	15	(480,710)	49,366
Balance at end of period (in shares) at Jun. 30, 2020	42,691,114
Balance at beginning of period at Dec. 31, 2019		523,505	(66)	(453,527)	69,912
Balance at beginning of period (in shares) at Dec. 31, 2019	41,485,638
Balance at end of period at Dec. 31, 2020		542,286	(94)	(504,542)	$ 37,650
Balance at end of period (in shares) at Dec. 31, 2020	45,109,314				45,109,314
Balance at beginning of period at Mar. 31, 2020		527,215	47	(469,113)	$ 58,149
Balance at beginning of period (in shares) at Mar. 31, 2020	41,832,220
Increase (Decrease) in Stockholders' Equity
Vesting of restricted stock units		(463)			(463)
Vesting of restricted stock units (in shares)	858,894
Unrealized gain (loss) on marketable securities			(37)		(37)
Foreign currency translation adjustment			5		5
Stock-based compensation expense		3,309			3,309
Net loss				(11,597)	(11,597)
Balance at end of period at Jun. 30, 2020		530,061	15	(480,710)	49,366
Balance at end of period (in shares) at Jun. 30, 2020	42,691,114
Balance at beginning of period at Dec. 31, 2020		542,286	(94)	(504,542)	$ 37,650
Balance at beginning of period (in shares) at Dec. 31, 2020	45,109,314				45,109,314
Increase (Decrease) in Stockholders' Equity
Issuance of common stock in connection with exercise of stock options and warrants and vesting of restricted stock units		(2,579)			$ (2,579)
Issuance of common stock in connection with exercise of stock options and warrants and vesting of restricted stock units (in shares)	666,144
Issuance of common stock in connection with public offering		103,348			103,348
Issuance of common stock in connection with public offering (in shares)	6,306,271
Unrealized gain (loss) on marketable securities			(35)		(35)
Foreign currency translation adjustment			(11)		(11)
Stock-based compensation expense		2,675			2,675
Net loss				(28,754)	(28,754)
Balance at end of period at Mar. 31, 2021		645,730	(140)	(533,296)	112,294
Balance at end of period (in shares) at Mar. 31, 2021	52,081,729
Balance at beginning of period at Dec. 31, 2020		542,286	(94)	(504,542)	$ 37,650
Balance at beginning of period (in shares) at Dec. 31, 2020	45,109,314				45,109,314
Increase (Decrease) in Stockholders' Equity
Unrealized gain (loss) on marketable securities					$ (10)
Net loss					(46,915)
Balance at end of period at Jun. 30, 2021	$ 1	785,455	(184)	(551,457)	$ 233,815
Balance at end of period (in shares) at Jun. 30, 2021	61,204,987				61,204,987
Balance at beginning of period at Mar. 31, 2021		645,730	(140)	(533,296)	$ 112,294
Balance at beginning of period (in shares) at Mar. 31, 2021	52,081,729
Increase (Decrease) in Stockholders' Equity
Issuance of common stock in connection with exercise of stock options and warrants and vesting of restricted stock units		1,041			1,041
Issuance of common stock in connection with exercise of stock options and warrants and vesting of restricted stock units (in shares)	1,024,666
Issuance of common stock in connection with public offering	$ 1	134,851			134,852
Issuance of common stock in connection with public offering (in shares)	8,098,592
Unrealized gain (loss) on marketable securities			25		25
Foreign currency translation adjustment			(69)		(69)
Stock-based compensation expense		3,833			3,833
Net loss				(18,161)	(18,161)
Balance at end of period at Jun. 30, 2021	$ 1	$ 785,455	$ (184)	$ (551,457)	$ 233,815
Balance at end of period (in shares) at Jun. 30, 2021	61,204,987				61,204,987

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2021	Mar. 31, 2021
Public Offering
Offering costs netted against proceeds	$ 8,899	$ 7,011

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities:
Net loss	$ (46,915)	$ (27,183)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	535	1,182
Stock-based compensation expense	6,507	6,762
Revaluation of contingent consideration	21,239	1,767
Changes in operating assets and liabilities:
Accounts receivable	(167)	4,895
Prepaid expenses and other assets	(5,223)	890
Accounts payable	(1,290)	(6,026)
Accrued expenses	861	87
Net cash used in operating activities	(24,453)	(17,626)
Cash flows from investing activities:
Purchases of property and equipment	(52)	(141)
Purchases of marketable securities	(147,289)	(27,139)
Proceeds from sales and maturities of marketable securities	26,557	30,735
Net cash provided by (used in) investing activities	(120,784)	3,455
Cash flows from financing activities:
Proceeds from issuance of common stock in connection with public offerings, net of issuance costs	238,200
Proceeds from debt financing (including warrants), net of issuance costs		10,913
Restricted stock unit employee tax withholdings	(3,038)
Finance lease payments		(92)
Proceeds from exercise of employee stock options and the issuance of stock	1,459
Net cash provided by financing activities	236,621	10,821
Net increase (decrease) in cash, cash equivalents and restricted cash	91,384	(3,350)
Cash, cash equivalents and restricted cash at beginning of period	22,063	35,937
Cash, cash equivalents and restricted cash at end of period	113,447	32,587
Supplemental disclosure of non-cash investing and financing activities:
Additions to property and equipment included in accounts payable	37	339
Fair value of warrants issued in connection with debt financing		$ 378
Offering costs included in accounts payable	$ 28

Organization and Nature of Busi

Organization and Nature of Business	6 Months Ended
Organization and Nature of Business	Jun. 30, 2021
Organization and Nature of Business
Organization and Nature of Business	1. Organization and Nature of Business Overview Aclaris Therapeutics, Inc. was incorporated under the laws of the State of Delaware in 2012. In July 2015, Aclaris Therapeutics International Limited (“ATIL”) was established under the laws of the United Kingdom as a wholly-owned subsidiary of Aclaris Therapeutics, Inc. In August 2017, Confluence Life Sciences, Inc. (now known as Aclaris Life Sciences, Inc.) (“Confluence”) was acquired by Aclaris Therapeutics, Inc. and became a wholly-owned subsidiary thereof. Aclaris Therapeutics, Inc., ATIL and Confluence are referred to collectively as the “Company.” The Company is a clinical-stage biopharmaceutical company focused on developing novel drug candidates for immuno-inflammatory diseases. In addition to developing its novel drug candidates, the Company is pursuing strategic alternatives, including identifying and consummating transactions with third-party partners, to further develop, obtain marketing approval for and/or commercialize its novel drug candidates. Liquidity The Company’s condensed consolidated financial statements have been prepared on the basis of continuity of operations, realization of assets and the satisfaction of liabilities in the ordinary course of business. As of June 30, 2021, the Company had cash, cash equivalents and marketable securities of $266.2 million and an accumulated deficit of $551.5 million. Since inception, the Company has incurred net losses and negative cash flows from its operations. Prior to the acquisition of Confluence in August 2017, the Company had never generated revenue. There can be no assurance that profitable operations will ever be achieved, and, if achieved, will be sustained on a continuing basis. In addition, development activities, including clinical and preclinical testing of the Company’s drug candidates, will require significant additional financing. The future viability of the Company is dependent on its ability to successfully develop its drug candidates and to generate revenue from identifying and consummating transactions with third-party partners to further develop, obtain marketing approval for and/or commercialize its development assets or to raise additional capital to finance its operations. The Company will require additional capital to complete the clinical development of ATI-450 and ATI-1777, to develop its preclinical compounds, and to support its discovery efforts. Additional funds may not be available on a timely basis, on commercially acceptable terms, or at all, and such funds, if raised, may not be sufficient to enable the Company to continue to implement its long-term business strategy. The Company’s ability to raise additional capital may be adversely impacted by potential worsening global economic conditions and the recent disruptions to, and volatility in, the credit and financial markets in the United States and worldwide resulting from the ongoing COVID-19 pandemic. If the Company is unable to raise sufficient additional capital or generate revenue from transactions with potential third-party partners for the development and/or commercialization of its drug candidates, it may need to substantially curtail planned operations. The Company’s failure to raise capital as and when needed could have a negative impact on its financial condition and ability to pursue its business strategies. In accordance with Accounting Standards Update (“ASU”) 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (Subtopic 205-40), the Company evaluated whether there are conditions and events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that its condensed consolidated financial statements are issued. As of the report date, the Company does not believe that substantial doubt exists about its ability to continue as a going concern. The Company believes its existing cash, cash equivalents and marketable securities are sufficient to fund its operating and capital expenditure requirements for a period greater than 12 months from the date of issuance of these condensed consolidated financial statements.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
Summary of Significant Accounting Policies	Jun. 30, 2021
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Unaudited Interim Financial Information The accompanying condensed consolidated balance sheet as of June 30, 2021, the condensed consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2021 and 2020, the condensed consolidated statement of stockholders’ equity for the three and six months ended June 30, 2021 and 2020, and the condensed consolidated statements of cash flows for the six months ended June 30, 2021 and 2020 are unaudited. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited annual financial statements contained in the Company’s annual report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 25, 2021 and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the Company’s financial position as of June 30, 2021, the results of its operations and comprehensive loss for the three and six months ended June 30, 2021 and 2020, its changes in stockholders’ equity for the three and six months ended June 30, 2021 and 2020 and its cash flows for the six months ended June 30, 2021 and 2020. The condensed consolidated balance sheet data as of December 31, 2020 was derived from audited financial statements but does not include all disclosures required by generally accepted accounting principles in the United States (“GAAP”). The financial data and other information disclosed in these notes related to the three and six months ended June 30, 2021 and 2020 are unaudited. The results for the three and six months ended June 30, 2021 are not necessarily indicative of results to be expected for the year ending December 31, 2021, any other interim periods, or any future year or period. The unaudited interim financial statements of the Company included herein have been prepared, pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted from this report, as is permitted by such rules and regulations. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto for the year ended December 31, 2020 included in the Company’s annual report on Form 10-K filed with the SEC on February 25, 2021. Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in conformity with GAAP. The condensed consolidated financial statements of the Company include the accounts of the operating parent company, Aclaris Therapeutics, Inc., and its wholly-owned subsidiaries, ATIL and Confluence. All intercompany transactions have been eliminated. Based upon the Company’s revenue, the Company believes that gross profit does not provide a meaningful measure of profitability and, therefore, has not included a line item for gross profit on the condensed consolidated statement of operations. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting periods. Significant estimates and assumptions reflected in these financial statements include, but are not limited to, research and development expenses, contingent consideration and the valuation of stock-based awards. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. The COVID-19 pandemic has resulted in a global slowdown in economic activity. As of the date of issuance of these financial statements, the Company is not aware of any specific event or circumstance that would require an update to its estimates, assumptions and judgments or revise the carrying value of its assets or liabilities. Actual results could differ from the Company’s estimates. Reclassifications Certain prior year amounts have been reclassified to conform to the current year financial statement presentation. Significant Accounting Policies The Company’s significant accounting policies are disclosed in the audited consolidated financial statements for the year ended December 31, 2020 included in the Company’s annual report on Form 10-K filed with the SEC on February 25, 2021. Except as set forth below, there have been no changes to the Company’s significant accounting policies from those disclosed in the annual report. Contingent Consideration The Company initially recorded a contingent consideration liability at fair value on the date of acquisition related to future potential payments resulting from the acquisition of Confluence based upon significant unobservable inputs including the achievement of development, regulatory and commercial milestones, as well as estimated future sales levels and the discount rates applied to calculate the present value of the potential payments. Significant judgement was involved in determining the appropriateness of these assumptions. These assumptions are considered Level 3 inputs. Revaluation of the contingent consideration liability can result from changes to one or more of these assumptions. The Company evaluates the fair value estimate of the contingent consideration liability on a quarterly basis with changes, if any, recorded as income or expense in the condensed consolidated statement of operations. The fair value of contingent consideration is estimated using a probability-weighted expected payment model for regulatory milestone payments and a Monte Carlo simulation model for commercial milestone and royalty payments and then applying a risk-adjusted discount rate to calculate the present value of the potential payments. Significant assumptions used in the Company’s estimates include the probability of achieving regulatory milestones and commencing commercialization, which are based on an asset’s current stage of development and a review of existing clinical data. Probability of success assumptions ranged between 4% and 40% . Additionally, estimated future sales levels and the risk-adjusted discount rate applied to the potential payments are also significant assumptions used in calculating the fair value. The discount rate ranged between 5.7% and 8.0% depending on the year of each potential payment.

Fair Value of Financial Assets

Fair Value of Financial Assets and Liabilities	6 Months Ended
Fair Value of Financial Assets and Liabilities	Jun. 30, 2021
Fair Value of Financial Assets and Liabilities
Fair Value of Financial Assets and Liabilities	3. Fair Value of Financial Assets and Liabilities The following tables present information about the fair value measurements of the Company’s financial assets and liabilities which are measured at fair value on a recurring and non-recurring basis, and indicate the level of the fair value hierarchy utilized to determine such fair values: June 30, 2021 (In thousands) Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 103,855 $ — $ — $ 103,855 Marketable securities — 152,730 — 152,730 Total assets $ 103,855 $ 152,730 $ — $ 256,585 Liabilities: Contingent consideration $ — $ — $ 25,300 $ 25,300 Total liabilities $ — $ — $ 25,300 $ 25,300 December 31, 2020 (In thousands) Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 14,955 $ 1,500 $ — $ 16,455 Marketable securities — 32,068 — 32,068 Total assets $ 14,955 $ 33,568 $ — $ 48,523 Liabilities: Contingent consideration $ — $ — $ 4,061 $ 4,061 Total liabilities $ — $ — $ 4,061 $ 4,061 As of June 30, 2021 and December 31, 2020, the Company’s cash equivalents consisted of a money market fund, which was valued based upon Level 1 inputs. The Company’s cash equivalents as of December 31, 2020 also included commercial paper, which was valued based upon Level 2 inputs. The Company’s marketable securities as of June 30, 2021 and December 31, 2020 consisted of commercial paper and asset-backed and U.S. government agency debt securities, which were valued based upon Level 2 inputs. The Company’s marketable securities as of June 30, 2021 also included corporate debt securities, which were valued based upon Level 2 inputs. In determining the fair value of its Level 2 investments, the Company relied on quoted prices for identical securities in markets that are not active. These quoted prices were obtained by the Company with the assistance of a third-party pricing service based on available trade, bid and other observable market data for identical securities. Quarterly, the Company compares the quoted prices obtained from the third-party pricing service to other available independent pricing information to validate the reasonableness of the quoted prices provided. The Company evaluates whether adjustments to third-party pricing are necessary and, historically, the Company has not made adjustments to quoted prices obtained from the third-party pricing service. During the six months ended June 30, 2021 and 2020, there were no transfers between Level 1, Level 2 and Level 3. The increase in contingent consideration of $21.2 million during the six months ended June 30, 2021 resulted from updates to the Company’s probability of achieving regulatory milestones and commencing commercialization and estimated future sales level assumptions as a result of the completion of a Phase 2a clinical trial of ATI-450 in subjects with moderate to severe rheumatoid arthritis and the inclusion of estimated future sales of ATI-450 for the potential treatment of hidradenitis suppurativa and psoriatic arthritis, which are additional planned indications for ATI-450, as well as a result of the completion of a Phase 2a clinical trial of ATI-1777 in subjects with moderate to severe atopic dermatitis. As of June 30, 2021 and December 31, 2020, the fair value of the Company’s available for sale marketable securities by type of security was as follows: June 30, 2021 Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gain Loss Value Marketable securities: Corporate debt securities $ 28,548 $ 3 $ (7) $ 28,544 Commercial paper 70,518 — — 70,518 Asset-backed debt securities 30,951 1 (7) 30,945 U.S. government agency debt securities 22,721 3 (1) 22,723 Total marketable securities $ 152,738 $ 7 $ (15) $ 152,730 December 31, 2020 Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gain Loss Value Marketable securities: Commercial paper $ 20,483 $ — $ — $ 20,483 Asset-backed debt securities 4,036 1 — 4,037 U.S. government agency debt securities 7,547 1 — 7,548 Total marketable securities $ 32,066 $ 2 $ — $ 32,068

Property and Equipment, Net

Property and Equipment, Net	6 Months Ended
Property and Equipment, Net	Jun. 30, 2021
Property and Equipment, Net
Property and Equipment, Net	4. Property and Equipment, Net Property and equipment, net consisted of the following: June 30, December 31, (In thousands) 2021 2020 Computer equipment $ 1,232 $ 1,197 Lab equipment 1,354 1,340 Furniture and fixtures 620 617 Leasehold improvements 1,123 1,123 Property and equipment, gross 4,329 4,277 Accumulated depreciation (3,042) (2,623) Property and equipment, net $ 1,287 $ 1,654 Depreciation expense was $0.2 million and $0.3 million for the three months ended June 30, 2021 and 2020, respectively, and $0.4 million and $0.6 million for the six months ended June 30, 2021 and 2020, respectively.

Intangible Assets

Intangible Assets	6 Months Ended
Intangible Assets	Jun. 30, 2021
Intangible Assets
Intangible Assets	5. Intangible Assets Intangible assets consisted of the following: Gross Cost Accumulated Amortization Remaining June 30, December 31, June 30, December 31, (In thousands, except years) Life (years) 2021 2020 2021 2020 Other intangible assets 6.1 $ 751 $ 751 $ 294 $ 257 In-process research and development n/a 6,629 6,629 — — Total intangible assets $ 7,380 $ 7,380 $ 294 $ 257 As of June 30, 2021, estimated future amortization expense was as follows: Year Ending (In thousands) December 31, 2021 $ 37 2022 75 2023 75 2024 75 2025 75 Thereafter 120 Total $ 457

Accrued Expenses

Accrued Expenses	6 Months Ended
Accrued Expenses	Jun. 30, 2021
Accrued Expenses
Accrued Expenses	6. Accrued Expenses Accrued expenses consisted of the following: June 30, December 31, (In thousands) 2021 2020 Employee compensation expenses $ 1,922 $ 3,971 Research and development expenses 704 761 Litigation settlements (see Note 17) 3,075 — Other 1,230 1,174 Total accrued expenses $ 6,931 $ 5,906

Debt

Debt	6 Months Ended
Debt	Jun. 30, 2021
Debt
Debt	7. Debt Loan and Security Agreement – Silicon Valley Bank In March 2020, the Company entered into a Loan and Security Agreement with Silicon Valley Bank (“SVB”). The Loan and Security Agreement provided for $11.0 million in term loans, of which the Company borrowed the entire amount on March 30, 2020. In connection with the Loan and Security Agreement, the Company issued to SVB a warrant to purchase up to 460,251 shares of common stock (the “Warrant”) (see Note 8). The proceeds of the Loan and Security Agreement were allocated to the term loan and Warrant using a relative fair value approach. As of June 30, 2021 and December 31, 2020 the outstanding principal balance on the Loan and Security Agreement was $11.0 million. In July 2021, the Company repaid in full the $11.0 million that was outstanding under the Loan and Security Agreement, together with all accrued and unpaid interest and fees as of the payoff date, for a total payment of $11.7 million (see Note 18). The term loan repayment schedule provided for interest only payments beginning April 1, 2020 and continuing through March 1, 2022, followed by 24 consecutive equal monthly installments of principal, plus monthly payments of accrued interest, starting on April 1, 2022 and continuing through the maturity date of March 1, 2024. The Loan and Security Agreement provided for an annual interest rate equal to the greater of (i) the prime rate then in effect as reported in The Wall Street Journal plus 2% and (ii) 6.75%. The Loan and Security Agreement included a final payment fee equal to 5% of the original principal amount borrowed. The Company had the option to prepay the outstanding balance of the term loans in full, subject to a prepayment premium of (i) 3% of the original principal amount borrowed for any prepayment on or prior to the first anniversary of March 30, 2020, (ii) 2% of the original principal amount borrowed for any prepayment after the first anniversary and on or before the second anniversary of March 30, 2020 or (iii) 1% of the original principal amount borrowed for any prepayment after the second anniversary of March 30, 2020 but before March 1, 2024.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
Stockholders' Equity	Jun. 30, 2021
Stockholders' Equity
Stockholders' Equity	8. Stockholders’ Equity Preferred Stock As of June 30, 2021 and December 31, 2020, the Company’s amended and restated certificate of incorporation authorized the Company to issue 10,000,000 shares of undesignated preferred stock. There were no shares of preferred stock outstanding as of June 30, 2021 or December 31, 2020. Common Stock As of June 30, 2021 and December 31, 2020, the Company’s amended and restated certificate of incorporation authorized the Company to issue 100,000,000 shares of $0.00001 par value common stock. Each share of common stock entitles the holder to one vote on all matters submitted to a vote of the Company’s stockholders. Common stockholders are entitled to receive dividends, as may be declared by the board of directors, if any, subject to any preferential dividend rights of any series of preferred stock that may be outstanding. No dividends have been declared through June 30, 2021. Warrants The Warrant issued to SVB in March 2020 had an initial exercise price of $0.956 per share, subject to adjustment as provided in the Warrant. The Warrant became immediately exercisable in full upon the funding of the term loan facility. The Company assigned a fair value of $0.4 million to the Warrant using a Black-Scholes valuation methodology, and also concluded that the Warrant was indexed to its own stock and therefore classified the Warrant as an equity instrument. In January 2021, SVB net exercised the Warrant in full, and the Company issued to SVB 388,119 shares of common stock. Equity Purchase Agreement with Lincoln Park Capital Fund, LLC In August 2020, the Company entered into an equity purchase agreement (the “Purchase Agreement”) with Lincoln Park Capital Fund, LLC (“Lincoln Park”) which provided that, upon the terms and subject to the conditions and limitations set forth therein, the Company could sell to Lincoln Park, at its discretion, up to $15.0 million of shares of its common stock over the 36-month term of the Purchase Agreement. U January 2021 Public Offering In January 2021, the Company closed a public offering in which it sold 6,306,271 shares of common stock at a price to the public of $17.50 per share, for aggregate gross proceeds of $110.4 million. The Company paid underwriting discounts and commissions of $6.6 million, and also incurred expenses of $0.4 million in connection with the offering. As a result, the net offering proceeds received by the Company, after deducting underwriting discounts, commissions and offering expenses, were $103.3 million. June 2021 Public Offering In June 2021, the Company closed a public offering in which it sold 8,098,592 shares of common stock at a price to the public of $17.75 per share, for aggregate gross proceeds of $143.8 million. The Company paid underwriting discounts and commissions of $8.6 million, and also incurred expenses of $0.3 million in connection with the offering. As a result, the net offering proceeds received by the Company, after deducting underwriting discounts, commissions and offering expenses, were $134.9 million.

Stock-Based Awards

Stock-Based Awards	6 Months Ended
Stock-Based Awards	Jun. 30, 2021
Stock-Based Awards
Stock-Based Awards	9. Stock-Based Awards 2015 Equity Incentive Plan In September 2015, the Company’s board of directors adopted the 2015 Equity Incentive Plan (the “2015 Plan”), and the Company’s stockholders approved the 2015 Plan. The 2015 Plan became effective in connection with the Company’s initial public offering in October 2015. Beginning at the time the 2015 Plan became effective, no further grants may be made under the Company’s 2012 Equity Compensation Plan, as amended and restated (the “2012 Plan”). The 2015 Plan provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock awards, restricted stock unit (“RSU”) awards, performance stock awards, cash-based awards and other stock-based awards. The number of shares initially reserved for issuance under the 2015 Plan was 1,643,872 shares of common stock. The number of shares of common stock that may be issued under the 2015 Plan will automatically increase on January 1 of each year ending on January 1, 2025, in an amount equal to the lesser of (i) 4.0% of the shares of the Company’s common stock outstanding on December 31st of the preceding calendar year or (ii) an amount determined by the Company’s board of directors. The shares of common stock underlying any awards that expire, are otherwise terminated, settled in cash or repurchased by the Company under the 2015 Plan and the 2012 Plan will be added back to the shares of common stock available for issuance under the 2015 Plan. As of January 1, 2021, the number of shares of common stock that may be issued under the 2015 Plan was increased by 1,804,372 shares. As of June 30, 2021, 2,799,230 shares remained available for grant under the 2015 Plan. The Company had 2,833,405 stock options and 1,476,308 RSUs outstanding as of June 30, 2021 under the 2015 Plan. 2017 Inducement Plan In July 2017, the Company’s board of directors adopted the 2017 Inducement Plan (the “2017 Inducement Plan”). The 2017 Inducement Plan is a non-stockholder approved stock plan adopted pursuant to the “inducement exception” provided under Nasdaq listing rules. The Company had 421,075 stock options and 22,408 RSUs outstanding as of June 30, 2021 under the 2017 Inducement Plan. All shares of common stock that were eligible for issuance under the 2017 Inducement Plan after October 1, 2018, including any shares underlying any awards that expire or are otherwise terminated, reacquired to satisfy tax withholding obligations, settled in cash or repurchased by the Company in the future that would have been eligible for re-issuance under the 2017 Inducement Plan, were retired. 2012 Equity Compensation Plan Upon the 2015 Plan becoming effective, no further grants can be made under the 2012 Plan. The Company granted stock options to purchase a total of 1,140,524 shares under the 2012 Plan, of which 484,145 were outstanding as of June 30, 2021. Stock options granted under the 2012 Plan expire after ten years. Stock Option Valuation The weighted average assumptions the Company used to estimate the fair value of stock options granted during the six months ended June 30, 2021 and 2020 were as follows: Six Months Ended June 30, 2021 2020 Risk-free interest rate 0.91 % 0.87 % Expected term (in years) 6.2 6.1 Expected volatility 76.60 % 85.19 % Expected dividend yield 0 % 0 % The Company recognizes compensation expense for awards over their vesting period. Compensation expense for awards includes the impact of forfeitures in the period when they occur. Stock Options The following table summarizes stock option activity for the six months ended June 30, 2021: Weighted Weighted Average Average Remaining Aggregate Number Exercise Contractual Intrinsic (In thousands, except share and per share data and years) of Shares Price Term Value (in years) Outstanding as of December 31, 2020 2,871,498 $ 15.16 6.8 $ 4,890 Granted 993,600 23.88 Exercised (115,548) 12.63 $ 1,373 Forfeited and cancelled (10,925) 21.78 Outstanding as of June 30, 2021 3,738,625 $ 17.54 7.2 $ 17,541 Options vested and expected to vest as of June 30, 2021 3,738,625 $ 17.54 7.2 $ 17,541 Options exercisable as of June 30, 2021 2,044,235 $ 17.51 5.8 $ 10,090 The weighted average grant date fair value of stock options granted during the six months ended June 30, 2021 was $15.96 per share. Restricted Stock Units The following table summarizes RSU activity for the six months ended June 30, 2021: Weighted Average Grant Date Aggregate Number Fair Value Intrinsic (In thousands, except share and per share data) of Shares Per Share Value Outstanding as of December 31, 2020 2,244,157 $ 3.83 Granted 607,148 24.00 Vested (1,314,214) 2.87 $ 31,049 Forfeited and cancelled (38,375) 6.86 Outstanding as of June 30, 2021 1,498,716 $ 12.76 Stock-Based Compensation Stock-based compensation expense included in total costs and expenses on the condensed consolidated statement of operations included the following: Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2021 2020 2021 2020 Cost of revenue $ 335 $ 252 $ 582 $ 512 Research and development 1,154 939 2,030 1,755 General and administrative 2,343 2,118 3,895 4,495 Total stock-based compensation expense $ 3,832 $ 3,309 $ 6,507 $ 6,762 As of June 30, 2021, the Company had unrecognized stock-based compensation expense for stock options and RSUs of $16.7 million and $16.7 million, respectively, which is expected to be recognized over a weighted average period of 3.1 years and 3.2 years, respectively.

Net Loss per Share

Net Loss per Share	6 Months Ended
Net Loss per Share	Jun. 30, 2021
Net Loss per Share
Net Loss per Share	10. Net Loss per Share Basic and diluted net loss per share is summarized in the following table: Three Months Ended Six Months Ended June 30, June 30, (In thousands, except for share and per share data) 2021 2020 2021 2020 Numerator: Net loss $ (18,161) $ (11,597) $ (46,915) $ (27,183) Denominator: Weighted average shares of common stock outstanding, basic and diluted 53,968,405 42,133,646 52,163,136 41,876,037 Net loss per share, basic and diluted $ (0.34) $ (0.28) $ (0.90) $ (0.65) The Company’s potentially dilutive securities, which included stock options, RSUs and warrants, have been excluded from the computation of diluted net loss per share since the effect would be to reduce the net loss per share. Therefore, the weighted average number of shares of common stock outstanding used to calculate both basic and diluted net loss per share is the same. The following table presents potential shares of common stock excluded from the calculation of diluted net loss per share for the three and six months ended June 30, 2021 and 2020. All share amounts presented in the table below represent the total number outstanding as of June 30, 2021 and 2020. June 30, 2021 2020 Options to purchase common stock 3,738,625 3,279,799 Restricted stock unit awards 1,498,716 2,528,401 Warrants — 460,251 Total potential shares of common stock 5,237,341 6,268,451

Leases

Leases	6 Months Ended
Leases	Jun. 30, 2021
Leases
Leases	11. Leases Operating Leases Agreements for Office Space The Company has a sublease agreement with Auxilium Pharmaceuticals, LLC (the “Sublandlord”) pursuant to which it subleases 33,019 square feet of office space for its headquarters in Wayne, Pennsylvania. The sublease has a term that runs through October 2023. If for any reason the lease between Chesterbrook Partners, LP (“Landlord”) and Sublandlord is terminated or expires prior to October 2023, the Company’s sublease will automatically terminate. In December 2020, the Company entered into a sub-sublease agreement under which it sub-subleased 8,115 square feet. The sub-sublease term runs concurrently with the original sublease agreement. In February 2019, the Company entered into a sublease agreement with a third party for 20,433 square feet of office and laboratory space in St. Louis, Missouri. The lease commenced in June 2019 and has a term that runs through June 2029. Supplemental balance sheet information related to operating leases is as follows: June 30, December 31, (In thousands) 2021 2020 Operating Leases: Gross cost $ 5,240 $ 5,240 Accumulated amortization (1,450) (1,111) Other assets $ 3,790 $ 4,129 Current portion of lease liabilities $ 647 $ 603 Other liabilities 2,559 2,894 Total operating lease liabilities $ 3,206 $ 3,497 Amortization expense related to operating lease right-of-use assets and accretion of operating lease liabilities totaled $0.3 million for each of the three months ended June 30, 2021 and 2020 and $0.5 million for each of the six months ended June 30, 2021 and 2020. Finance Leases Laboratory Equipment The Company leased laboratory equipment which it used in its laboratory space in St. Louis, Missouri under two finance lease financing arrangements which the Company entered into in August 2017 and October 2017, with terms ended in October 2020 and December 2020, respectively.

Related Party Transactions

Related Party Transactions	6 Months Ended
Related Party Transactions	Jun. 30, 2021
Related Party Transactions
Related Party Transactions	12. Related Party Transactions Mallinckrodt plc In April 2018, Bryan Reasons was appointed to the Company’s board of directors. Subsequently, in March 2019, Mr. Reasons became the Chief Financial Officer of Mallinckrodt plc. Prior to Mr. Reasons joining Mallinckrodt plc, the Company entered into a master services agreement with a subsidiary of Mallinckrodt plc, pursuant to which Confluence provides laboratory services to the subsidiary (“Mallinckrodt”) in the ordinary course of business. Mr. Reasons was not involved in the negotiation or execution of the agreement, but may be deemed to have an interest in the ongoing transactions based on his employment as an executive officer of Mallinckrodt plc. During the six months ended June 30, 2021 and 2020, the Company invoiced Mallinckrodt for $24 thousand and $0.3 million, respectively, under the master services agreement. As of June 30, 2021 and December 31, 2020, the Company had $0 and $24 thousand, respectively, of outstanding accounts receivable balances from Mallinckrodt. Mr. Reasons had no financial interest in these transactions.

Agreements Related to Intellect

Agreements Related to Intellectual Property	6 Months Ended
Agreements Related to Intellectual Property	Jun. 30, 2021
Agreements Related to Intellectual Property
Agreements Related to Intellectual Property	13. Agreements Related to Intellectual Property Asset Purchase Agreement – EPI Health, LLC In October 2019, the Company sold RHOFADE (oxymetazoline hydrochloride) cream, 1% (“RHOFADE”) to EPI Health, LLC (“EPI Health”) pursuant to an asset purchase agreement. EPI Health agreed to pay the Company a high single-digit royalty calculated as a percentage of net sales on a country-by-country basis until the date that the patent rights related to RHOFADE have expired or, if later, ten years from the date of the first commercial sale of RHOFADE in such country. The Company recorded royalty income under the asset purchase agreement of $0.4 million during each of the six months ended June 30, 2021 and 2020. Royalty income is included in other revenue on the condensed consolidated statements of operations and comprehensive loss. EPI Health has also agreed to pay the Company potential sales milestone payments of up to $20.0 million in the aggregate upon the achievement of specified levels of net sales of products covered by the asset purchase agreement, and 25% of any upfront, license, milestone, maintenance or fixed payment received by EPI Health in connection with any license or sublicense of the assets transferred in the disposition in any territory outside of the United States, subject to specified exceptions. Agreement and Plan of Merger – Confluence In August 2017, the Company entered into an Agreement and Plan of Merger, pursuant to which it acquired Confluence (the “Confluence Agreement”). In November 2018, a development milestone specified in the Confluence Agreement was achieved, as a result of which the Company paid the former Confluence equity holders $2.5 million in cash and issued 253,208 shares of its common stock with a fair value of $2.2 million. Under the Confluence Agreement, the Company also agreed to pay the former Confluence equity holders aggregate remaining contingent consideration of up to $75.0 million based upon the achievement of specified regulatory and commercial milestones set forth in the Confluence Agreement. In addition, the Company agreed to pay the former Confluence equity holders future royalty payments calculated as a low single-digit percentage of annual net sales, subject to specified reductions, limitations and other adjustments, until the date that all of the patent rights for that product have expired, as determined on a country-by-country and product-by-product basis or, in specified circumstances, ten years from the first commercial sale of such product. In addition to the payments described above, if the Company sells, licenses or transfers any of the intellectual property acquired from Confluence pursuant to the Confluence Agreement to a third party, the Company will be obligated to pay the former Confluence equity holders a portion of any consideration received from such sale, license or transfer in specified circumstances. As of June 30, 2021 and December 31, 2020, the balance of the Company’s contingent consideration liability was $25.3 million and $4.1 million, respectively (see Note 3).

Income Taxes

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2021
Income Taxes
Income Taxes	14. Income Taxes The Company did not record a federal or state income tax benefit for losses incurred during each of the three and six months ended June 30, 2021 and 2020. The Company concluded that it is more likely than not that its deferred tax assets will not be realized which resulted in recording a full valuation allowance during those periods.

Discontinued Operations

Discontinued Operations	6 Months Ended
Discontinued Operations	Jun. 30, 2021
Discontinued Operations
Discontinued Operations	15. Discontinued Operations The following table presents information related to liabilities reported as discontinued operations in the Company’s condensed consolidated balance sheet: June 30, December 31, (In thousands) 2021 2020 Accounts payable $ 936 $ 1,175 Accrued expenses 2,158 1,936 Discontinued operations - current liabilities $ 3,094 $ 3,111

Segment Information

Segment Information	6 Months Ended
Segment Information	Jun. 30, 2021
Segment Information
Segment Information	16. Segment Information The Company has two reportable segments, therapeutics and contract research. The therapeutics segment is focused on identifying and developing innovative therapies to address significant unmet needs for immuno-inflammatory diseases. The contract research segment earns revenue from the provision of laboratory services. Contract research revenue is generally evidenced by contracts with clients which are on an agreed upon fixed-price, fee-for-service basis. Corporate and other includes general and administrative expenses as well as eliminations of intercompany transactions. The Company does not report balance sheet information by segment since it is not reviewed by the chief operating decision maker, and all of the Company’s tangible assets are held in the United States. The Company’s results of operations by segment for the three and six months ended June 30, 2021 and 2020 are summarized in the tables below: (In thousands) Contract Corporate Total Three Months Ended June 30, 2021 Therapeutics Research and Other Company Total revenue $ 218 $ 3,481 $ (1,875) $ 1,824 Cost of revenue — 3,024 (1,761) 1,263 Research and development 8,011 — (114) 7,897 General and administrative — 879 4,991 5,870 Revaluation of contingent consideration 4,800 — — 4,800 Loss from operations $ (12,593) $ (422) $ (4,991) $ (18,006) (In thousands) Contract Corporate Total Three Months Ended June 30, 2020 Therapeutics Research and Other Company Total revenue $ 193 $ 3,657 $ (1,804) $ 2,046 Cost of revenue — 3,082 (1,693) 1,389 Research and development 6,577 — (111) 6,466 General and administrative — 688 4,884 5,572 Loss from operations $ (6,384) $ (113) $ (4,884) $ (11,381) Loss from discontinued operations $ (27) $ — $ — $ (27) (In thousands) Contract Corporate Total Six Months Ended June 30, 2021 Therapeutics Research and Other Company Total revenue $ 460 $ 6,681 $ (3,540) $ 3,601 Cost of revenue — 5,793 (3,328) 2,465 Research and development 15,946 — (211) 15,735 General and administrative — 1,507 9,190 10,697 Revaluation of contingent consideration 21,239 — — 21,239 Loss from operations $ (36,725) $ (619) $ (9,191) $ (46,535) (In thousands) Contract Corporate Total Six Months Ended June 30, 2020 Therapeutics Research and Other Company Total revenue $ 411 $ 7,064 $ (4,022) $ 3,453 Cost of revenue — 6,468 (3,810) 2,658 Research and development 14,354 — (212) 14,142 General and administrative — 1,440 10,333 11,773 Revaluation of contingent consideration 1,767 — — 1,767 Loss from operations $ (15,710) $ (844) $ (10,333) $ (26,887) Loss from discontinued operations $ (284) $ — $ (1) $ (285) Intersegment Revenue Revenue for the contract research segment included $1.9 million and $1.8 million for services performed on behalf of the therapeutics segment for the three months ended June 30, 2021 and 2020, respectively and $3.5 million and $4.0 million for the six months ended June 30, 2021 and 2020, respectively. All intersegment revenue has been eliminated in the Company’s condensed consolidated statement of operations.

Legal Proceedings

Legal Proceedings	6 Months Ended
Legal Proceedings	Jun. 30, 2021
Legal Proceedings
Legal Proceedings	17. Legal Proceedings Securities Class Action On July 30, 2019, plaintiff Linda Rosi (“Rosi”) filed a putative class action complaint captioned Rosi v. Aclaris Therapeutics, Inc., et al. On September 5, 2019, an additional plaintiff, Robert Fulcher (“Fulcher”), filed a substantially identical putative class action complaint captioned Fulcher v. Aclaris Therapeutics, Inc., et al. On November 6, 2019, the court consolidated the Rosi and Fulcher actions (together, the “Consolidated Securities Action”) and appointed Fulcher “lead plaintiff” for the putative class. On January 24, 2020, Fulcher filed a consolidated amended complaint in the Consolidated Securities Action, naming two additional executive officers as defendants, extending the putative class period to August 12, 2019, and adding allegations concerning, among other things, alleged statements and omissions throughout the putative class period concerning ESKATA’s risks, tolerability and effectiveness. The defendants filed a motion to dismiss the consolidated amended complaint on April 17, 2020. Following briefing and oral argument on February 25, 2021, the motion was granted in part and denied in part on March 29, 2021, and the issues in dispute significantly narrowed. The defendants filed an answer to the remaining aspects of the consolidated amended complaint on April 19, 2021. In June 2021, the defendants and the plaintiffs agreed to settle the Consolidated Securities Action. The parties signed and filed a settlement agreement in July 2021. The settlement agreement is subject to preliminary approval by the U.S. District Court for the Southern District of New York, notice to the putative class, and subsequent final approval by the court. The Company accrued a liability of $2.65 million as of June 30, 2021 for its estimated financial obligation. The Company expects its financial obligation to be within the limits of its insurance coverage and accordingly recorded a receivable for an insurance recovery equal to the settlement amount. The insurance recovery receivable and the litigation settlement liability are recorded in prepaid expenses and other current assets and accrued expenses, respectively, in the condensed consolidated balance sheet. Stockholder Derivative Action On November 15, 2019, plaintiff Keith Allred (“Allred”) filed a derivative stockholder complaint captioned Allred v. Walker et al. On November 25, 2019, an additional plaintiff, Bruce Brown (“Brown”), filed a substantially identical complaint captioned Brown v. Walker et al. On December 12, 2019, the court consolidated the Allred and Brown actions under the caption In re Aclaris Therapeutics, Inc. Derivative Litigation In June 2021, the defendants and the plaintiffs agreed to settle the Consolidated Derivative Action. The agreed terms provide for the Company to implement certain policies and for attorneys’ fees to be paid to plaintiff’s counsel. The parties signed and filed a settlement agreement in July 2021. The settlement agreement is subject to preliminary approval by the U.S. District Court for the Southern District of New York, notice to the Company’s stockholders, and subsequent final approval by the court. The Company accrued a liability of $425 thousand as of June 30, 2021 for its estimated financial obligation. The Company expects its financial obligation to be within the limits of its insurance coverage and accordingly recorded a receivable for an insurance recovery equal to the settlement amount. The insurance recovery receivable and the litigation settlement liability are recorded in prepaid expenses and other current assets and accrued expenses, respectively, in the condensed consolidated balance sheet. Product Liability Lawsuit On December 18, 2020, plaintiff Daurie Mancini filed an amended complaint under the caption Daurie Mancini v. Aclaris Therapeutics, Inc. et al

Subsequent Event

Subsequent Event	6 Months Ended
Subsequent Event	Jun. 30, 2021
Subsequent Event.
Subsequent Event	18. Subsequent Event Repayment of the Term Loan Facility with SVB In July 2021, the Company repaid in full the $11.0 million borrowed under the Loan and Security Agreement with SVB (see Note 7). In addition, the Company paid (i) accrued and unpaid interest as of the payoff date of $45 thousand, (ii) a final payment fee of $550 thousand and (iii) a prepayment fee of $120 thousand. Following this repayment, all of the Company’s obligations under the Loan and Security Agreement are deemed to be terminated, except as set forth in the agreement.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2021
Summary of Significant Accounting Policies
Unaudited Interim Financial Information	Unaudited Interim Financial Information The accompanying condensed consolidated balance sheet as of June 30, 2021, the condensed consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2021 and 2020, the condensed consolidated statement of stockholders’ equity for the three and six months ended June 30, 2021 and 2020, and the condensed consolidated statements of cash flows for the six months ended June 30, 2021 and 2020 are unaudited. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited annual financial statements contained in the Company’s annual report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 25, 2021 and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the Company’s financial position as of June 30, 2021, the results of its operations and comprehensive loss for the three and six months ended June 30, 2021 and 2020, its changes in stockholders’ equity for the three and six months ended June 30, 2021 and 2020 and its cash flows for the six months ended June 30, 2021 and 2020. The condensed consolidated balance sheet data as of December 31, 2020 was derived from audited financial statements but does not include all disclosures required by generally accepted accounting principles in the United States (“GAAP”). The financial data and other information disclosed in these notes related to the three and six months ended June 30, 2021 and 2020 are unaudited. The results for the three and six months ended June 30, 2021 are not necessarily indicative of results to be expected for the year ending December 31, 2021, any other interim periods, or any future year or period. The unaudited interim financial statements of the Company included herein have been prepared, pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted from this report, as is permitted by such rules and regulations. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto for the year ended December 31, 2020 included in the Company’s annual report on Form 10-K filed with the SEC on February 25, 2021.
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in conformity with GAAP. The condensed consolidated financial statements of the Company include the accounts of the operating parent company, Aclaris Therapeutics, Inc., and its wholly-owned subsidiaries, ATIL and Confluence. All intercompany transactions have been eliminated. Based upon the Company’s revenue, the Company believes that gross profit does not provide a meaningful measure of profitability and, therefore, has not included a line item for gross profit on the condensed consolidated statement of operations.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting periods. Significant estimates and assumptions reflected in these financial statements include, but are not limited to, research and development expenses, contingent consideration and the valuation of stock-based awards. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. The COVID-19 pandemic has resulted in a global slowdown in economic activity. As of the date of issuance of these financial statements, the Company is not aware of any specific event or circumstance that would require an update to its estimates, assumptions and judgments or revise the carrying value of its assets or liabilities. Actual results could differ from the Company’s estimates.
Reclassifications	Reclassifications Certain prior year amounts have been reclassified to conform to the current year financial statement presentation.
Significant Accounting Policies	Significant Accounting Policies The Company’s significant accounting policies are disclosed in the audited consolidated financial statements for the year ended December 31, 2020 included in the Company’s annual report on Form 10-K filed with the SEC on February 25, 2021. Except as set forth below, there have been no changes to the Company’s significant accounting policies from those disclosed in the annual report.
Contingent Consideration	Contingent Consideration The Company initially recorded a contingent consideration liability at fair value on the date of acquisition related to future potential payments resulting from the acquisition of Confluence based upon significant unobservable inputs including the achievement of development, regulatory and commercial milestones, as well as estimated future sales levels and the discount rates applied to calculate the present value of the potential payments. Significant judgement was involved in determining the appropriateness of these assumptions. These assumptions are considered Level 3 inputs. Revaluation of the contingent consideration liability can result from changes to one or more of these assumptions. The Company evaluates the fair value estimate of the contingent consideration liability on a quarterly basis with changes, if any, recorded as income or expense in the condensed consolidated statement of operations. The fair value of contingent consideration is estimated using a probability-weighted expected payment model for regulatory milestone payments and a Monte Carlo simulation model for commercial milestone and royalty payments and then applying a risk-adjusted discount rate to calculate the present value of the potential payments. Significant assumptions used in the Company’s estimates include the probability of achieving regulatory milestones and commencing commercialization, which are based on an asset’s current stage of development and a review of existing clinical data. Probability of success assumptions ranged between 4% and 40% . Additionally, estimated future sales levels and the risk-adjusted discount rate applied to the potential payments are also significant assumptions used in calculating the fair value. The discount rate ranged between 5.7% and 8.0% depending on the year of each potential payment.

Fair Value of Financial Asset_2

Fair Value of Financial Assets and Liabilities (Tables)	6 Months Ended
Fair Value of Financial Assets and Liabilities (Tables)	Jun. 30, 2021
Fair Value of Financial Assets and Liabilities
Schedule of assets and liabilities measured at fair value on a recurring basis	June 30, 2021 (In thousands) Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 103,855 $ — $ — $ 103,855 Marketable securities — 152,730 — 152,730 Total assets $ 103,855 $ 152,730 $ — $ 256,585 Liabilities: Contingent consideration $ — $ — $ 25,300 $ 25,300 Total liabilities $ — $ — $ 25,300 $ 25,300 December 31, 2020 (In thousands) Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 14,955 $ 1,500 $ — $ 16,455 Marketable securities — 32,068 — 32,068 Total assets $ 14,955 $ 33,568 $ — $ 48,523 Liabilities: Contingent consideration $ — $ — $ 4,061 $ 4,061 Total liabilities $ — $ — $ 4,061 $ 4,061
Schedule of the fair value of available for sale marketable securities	June 30, 2021 Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gain Loss Value Marketable securities: Corporate debt securities $ 28,548 $ 3 $ (7) $ 28,544 Commercial paper 70,518 — — 70,518 Asset-backed debt securities 30,951 1 (7) 30,945 U.S. government agency debt securities 22,721 3 (1) 22,723 Total marketable securities $ 152,738 $ 7 $ (15) $ 152,730 December 31, 2020 Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gain Loss Value Marketable securities: Commercial paper $ 20,483 $ — $ — $ 20,483 Asset-backed debt securities 4,036 1 — 4,037 U.S. government agency debt securities 7,547 1 — 7,548 Total marketable securities $ 32,066 $ 2 $ — $ 32,068

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	6 Months Ended
Property and Equipment, Net (Tables)	Jun. 30, 2021
Property and Equipment, Net
Schedule of property and equipment, net	June 30, December 31, (In thousands) 2021 2020 Computer equipment $ 1,232 $ 1,197 Lab equipment 1,354 1,340 Furniture and fixtures 620 617 Leasehold improvements 1,123 1,123 Property and equipment, gross 4,329 4,277 Accumulated depreciation (3,042) (2,623) Property and equipment, net $ 1,287 $ 1,654

Intangible Assets (Tables)

Intangible Assets (Tables)	6 Months Ended
Intangible Assets (Tables)	Jun. 30, 2021
Intangible Assets
Schedule of intangible assets	Gross Cost Accumulated Amortization Remaining June 30, December 31, June 30, December 31, (In thousands, except years) Life (years) 2021 2020 2021 2020 Other intangible assets 6.1 $ 751 $ 751 $ 294 $ 257 In-process research and development n/a 6,629 6,629 — — Total intangible assets $ 7,380 $ 7,380 $ 294 $ 257
Schedule of estimated future amortization expenses	Year Ending (In thousands) December 31, 2021 $ 37 2022 75 2023 75 2024 75 2025 75 Thereafter 120 Total $ 457

Accrued Expenses (Tables)

Accrued Expenses (Tables)	6 Months Ended
Accrued Expenses (Tables)	Jun. 30, 2021
Accrued Expenses
Schedule of accrued expenses	June 30, December 31, (In thousands) 2021 2020 Employee compensation expenses $ 1,922 $ 3,971 Research and development expenses 704 761 Litigation settlements (see Note 17) 3,075 — Other 1,230 1,174 Total accrued expenses $ 6,931 $ 5,906

Stock-Based Awards (Tables)

Stock-Based Awards (Tables)	6 Months Ended
Stock-Based Awards (Tables)	Jun. 30, 2021
Stock-Based Awards
Assumptions used to determine fair value of stock options granted	Six Months Ended June 30, 2021 2020 Risk-free interest rate 0.91 % 0.87 % Expected term (in years) 6.2 6.1 Expected volatility 76.60 % 85.19 % Expected dividend yield 0 % 0 %
Summary of stock option activity	Weighted Weighted Average Average Remaining Aggregate Number Exercise Contractual Intrinsic (In thousands, except share and per share data and years) of Shares Price Term Value (in years) Outstanding as of December 31, 2020 2,871,498 $ 15.16 6.8 $ 4,890 Granted 993,600 23.88 Exercised (115,548) 12.63 $ 1,373 Forfeited and cancelled (10,925) 21.78 Outstanding as of June 30, 2021 3,738,625 $ 17.54 7.2 $ 17,541 Options vested and expected to vest as of June 30, 2021 3,738,625 $ 17.54 7.2 $ 17,541 Options exercisable as of June 30, 2021 2,044,235 $ 17.51 5.8 $ 10,090
Summary of restricted stock units activity	Weighted Average Grant Date Aggregate Number Fair Value Intrinsic (In thousands, except share and per share data) of Shares Per Share Value Outstanding as of December 31, 2020 2,244,157 $ 3.83 Granted 607,148 24.00 Vested (1,314,214) 2.87 $ 31,049 Forfeited and cancelled (38,375) 6.86 Outstanding as of June 30, 2021 1,498,716 $ 12.76
Stock-based compensation expense	Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2021 2020 2021 2020 Cost of revenue $ 335 $ 252 $ 582 $ 512 Research and development 1,154 939 2,030 1,755 General and administrative 2,343 2,118 3,895 4,495 Total stock-based compensation expense $ 3,832 $ 3,309 $ 6,507 $ 6,762

Net Loss per Share (Tables)

Net Loss per Share (Tables)	6 Months Ended
Net Loss per Share (Tables)	Jun. 30, 2021
Net Loss per Share
Basic and diluted net loss per share	Three Months Ended Six Months Ended June 30, June 30, (In thousands, except for share and per share data) 2021 2020 2021 2020 Numerator: Net loss $ (18,161) $ (11,597) $ (46,915) $ (27,183) Denominator: Weighted average shares of common stock outstanding, basic and diluted 53,968,405 42,133,646 52,163,136 41,876,037 Net loss per share, basic and diluted $ (0.34) $ (0.28) $ (0.90) $ (0.65)
Potential common shares excluded from the calculation of diluted net loss per share attributable to common stockholders	June 30, 2021 2020 Options to purchase common stock 3,738,625 3,279,799 Restricted stock unit awards 1,498,716 2,528,401 Warrants — 460,251 Total potential shares of common stock 5,237,341 6,268,451

Leases (Tables)

Leases (Tables)	6 Months Ended
Leases (Tables)	Jun. 30, 2021
Leases
Schedule of supplemental balance sheet information related to operating leases	June 30, December 31, (In thousands) 2021 2020 Operating Leases: Gross cost $ 5,240 $ 5,240 Accumulated amortization (1,450) (1,111) Other assets $ 3,790 $ 4,129 Current portion of lease liabilities $ 647 $ 603 Other liabilities 2,559 2,894 Total operating lease liabilities $ 3,206 $ 3,497

Discontinued Operations (Tables

Discontinued Operations (Tables)	6 Months Ended
Discontinued Operations (Tables)	Jun. 30, 2021
Discontinued Operations
Schedule of discontinued operations	June 30, December 31, (In thousands) 2021 2020 Accounts payable $ 936 $ 1,175 Accrued expenses 2,158 1,936 Discontinued operations - current liabilities $ 3,094 $ 3,111

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
Segment Information (Tables)	Jun. 30, 2021
Segment Information
Summary of results of operations by segment	(In thousands) Contract Corporate Total Three Months Ended June 30, 2021 Therapeutics Research and Other Company Total revenue $ 218 $ 3,481 $ (1,875) $ 1,824 Cost of revenue — 3,024 (1,761) 1,263 Research and development 8,011 — (114) 7,897 General and administrative — 879 4,991 5,870 Revaluation of contingent consideration 4,800 — — 4,800 Loss from operations $ (12,593) $ (422) $ (4,991) $ (18,006) (In thousands) Contract Corporate Total Three Months Ended June 30, 2020 Therapeutics Research and Other Company Total revenue $ 193 $ 3,657 $ (1,804) $ 2,046 Cost of revenue — 3,082 (1,693) 1,389 Research and development 6,577 — (111) 6,466 General and administrative — 688 4,884 5,572 Loss from operations $ (6,384) $ (113) $ (4,884) $ (11,381) Loss from discontinued operations $ (27) $ — $ — $ (27) (In thousands) Contract Corporate Total Six Months Ended June 30, 2021 Therapeutics Research and Other Company Total revenue $ 460 $ 6,681 $ (3,540) $ 3,601 Cost of revenue — 5,793 (3,328) 2,465 Research and development 15,946 — (211) 15,735 General and administrative — 1,507 9,190 10,697 Revaluation of contingent consideration 21,239 — — 21,239 Loss from operations $ (36,725) $ (619) $ (9,191) $ (46,535) (In thousands) Contract Corporate Total Six Months Ended June 30, 2020 Therapeutics Research and Other Company Total revenue $ 411 $ 7,064 $ (4,022) $ 3,453 Cost of revenue — 6,468 (3,810) 2,658 Research and development 14,354 — (212) 14,142 General and administrative — 1,440 10,333 11,773 Revaluation of contingent consideration 1,767 — — 1,767 Loss from operations $ (15,710) $ (844) $ (10,333) $ (26,887) Loss from discontinued operations $ (284) $ — $ (1) $ (285)

Organization and Nature of Bu_2

Organization and Nature of Business (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Organization and Nature of Business
Cash, cash equivalents and marketable securities	$ 266,200
Accumulated deficit	$ 551,457	$ 504,542

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details)	6 Months Ended
Summary of Significant Accounting Policies (Details)	Jun. 30, 2021
Minimum
Contingent Consideration [Abstract]
Probability of success assumptions	4.00%
Discount range	5.70%
Maximum
Contingent Consideration [Abstract]
Probability of success assumptions	40.00%
Discount range	8.00%

Fair Value of Financial Asset_3

Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Assets:
Marketable securities	$ 152,730	$ 152,730		$ 32,068
Liabilities:
Transfers from Level 1 to Level 2	0	0	$ 0
Transfers from Level 2 to Level 1	0	0	0
Transfers into or out of Level 3		0	0
Revaluation of contingent consideration	4,800	21,239	$ 1,767
Confluence
Liabilities:
Revaluation of contingent consideration		21,200
Recurring
Assets:
Cash equivalents	103,855	103,855		16,455
Marketable securities	152,730	152,730		32,068
Total assets measured at fair value	256,585	256,585		48,523
Liabilities:
Contingent consideration	25,300	25,300		4,061
Total liabilities measured at fair value	25,300	25,300		4,061
Recurring \| Level 1
Assets:
Cash equivalents	103,855	103,855		14,955
Total assets measured at fair value	103,855	103,855		14,955
Recurring \| Level 2
Assets:
Cash equivalents				1,500
Marketable securities	152,730	152,730		32,068
Total assets measured at fair value	152,730	152,730		33,568
Recurring \| Level 3
Liabilities:
Contingent consideration	25,300	25,300		4,061
Total liabilities measured at fair value	$ 25,300	$ 25,300		$ 4,061

Fair Value of Financial Asset_4

Fair Value of Financial Assets and Liabilities - By Type (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Marketable securities:
Amortized Cost	$ 152,738	$ 32,066
Gross Unrealized Gain	7	2
Gross Unrealized Loss	(15)
Fair Value	152,730	32,068
Corporate debt securities
Marketable securities:
Amortized Cost	28,548
Gross Unrealized Gain	3
Gross Unrealized Loss	(7)
Fair Value	28,544
Commercial paper
Marketable securities:
Amortized Cost	70,518	20,483
Fair Value	70,518	20,483
Asset-backed securities
Marketable securities:
Amortized Cost	30,951	4,036
Gross Unrealized Gain	1	1
Gross Unrealized Loss	(7)
Fair Value	30,945	4,037
U.S. government agency debt securities
Marketable securities:
Amortized Cost	22,721	7,547
Gross Unrealized Gain	3	1
Gross Unrealized Loss	(1)
Fair Value	$ 22,723	$ 7,548

Property and Equipment, Net (De

Property and Equipment, Net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Property and Equipment, Net
Property and equipment, gross	$ 4,329		$ 4,329		$ 4,277
Accumulated depreciation	(3,042)		(3,042)		(2,623)
Property and equipment, net	1,287		1,287		1,654
Depreciation expense	200	$ 300	400	$ 600
Computer equipment
Property and Equipment, Net
Property and equipment, gross	1,232		1,232		1,197
Lab equipment
Property and Equipment, Net
Property and equipment, gross	1,354		1,354		1,340
Furniture and fixtures
Property and Equipment, Net
Property and equipment, gross	620		620		617
Leasehold improvements
Property and Equipment, Net
Property and equipment, gross	$ 1,123		$ 1,123		$ 1,123

Intangible Assets (Details)

Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended
Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Definite-lived intangible assets
Accumulated Amortization	$ 294	$ 257
Intangible assets, net
Gross cost	7,380	7,380
In-process research and development
Definite-lived intangible assets
Gross Cost	$ 6,629	6,629
Other intangible assets
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items]
Remaining life	6 years 1 month 6 days
Definite-lived intangible assets
Gross Cost	$ 751	751
Accumulated Amortization	$ 294	$ 257

Intangible Assets - Future Amor

Intangible Assets - Future Amortization Expenses (Details) $ in Thousands	Jun. 30, 2021USD ($)
Future amortization expenses
2021	$ 37
2022	75
2023	75
2024	75
2025	75
Thereafter	120
Total	$ 457

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Accrued Expenses
Employee compensation expenses	$ 1,922	$ 3,971
Research and development expenses	704	761
Litigation settlements (see Note 17)	3,075
Other	1,230	1,174
Total accrued expenses	$ 6,931	$ 5,906

Debt (Details)

Debt (Details) $ in Millions	Mar. 30, 2020	Jul. 31, 2021USD ($)	Mar. 31, 2020USD ($)installmentshares	Jun. 30, 2021USD ($)	Jan. 31, 2021shares	Dec. 31, 2020USD ($)
SVB
Debt Instrument [Line Items]
Common stock warrants \| shares			460,251		388,119
Term Loan Facility
Debt Instrument [Line Items]
Loan borrowed			$ 11
Number of consecutive monthly installments \| installment			24
Annual interest rate			6.75%
Final payment fee percentage			5.00%
Term Loan Facility \| SVB
Debt Instrument [Line Items]
Loan borrowed				$ 11		$ 11
Term Loan Facility \| SVB \| Subsequent event
Debt Instrument [Line Items]
Loan borrowed		$ 11
Loan repaid		$ 11.7
Term Loan Facility \| Prepayment prior to the first anniversary of the Funding Date
Debt Instrument [Line Items]
Prepayment fee percentage	3.00%
Term Loan Facility \| Prepayment between the first and second anniversaries of the Funding Date
Debt Instrument [Line Items]
Prepayment fee percentage	2.00%
Term Loan Facility \| Prepayment after the second anniversary of the Funding Date but before March 1, 2024
Debt Instrument [Line Items]
Prepayment fee percentage	1.00%
Term Loan Facility \| Prime Rate
Debt Instrument [Line Items]
Basis spread over LIBOR			2.00%

Stockholders' Equity (Details)

Stockholders' Equity (Details) $ / shares in Units, $ in Thousands	1 Months Ended			6 Months Ended	12 Months Ended
	Jun. 30, 2021USD ($)$ / sharesshares	Jan. 31, 2021USD ($)$ / sharesshares	Aug. 31, 2020USD ($)shares	Jun. 30, 2021USD ($)Vote$ / sharesshares	Dec. 31, 2020USD ($)$ / sharesshares	Mar. 31, 2020USD ($)$ / sharesshares
Class of Stock [Line Items]
Preferred stock, shares authorized \| shares	10,000,000			10,000,000	10,000,000
Preferred stock, shares outstanding \| shares	0			0	0
Common stock, shares authorized \| shares	100,000,000			100,000,000	100,000,000
Common stock, par value (in dollars per share) \| $ / shares	$ 0.00001			$ 0.00001	$ 0.00001
Dividend declared	$ 0			$ 0
Number of votes per share \| Vote				1
January 2021 Public Offering
Class of Stock [Line Items]
Shares, issued \| shares		6,306,271
Shares issued, price per share \| $ / shares		$ 17.50
Aggregate gross proceeds		$ 110,400
Underwriting discounts and commissions		6,600
Payments of stock offering costs		400
Proceeds from common stock		$ 103,300
June 2021 Public Offering
Class of Stock [Line Items]
Shares, issued \| shares	8,098,592			8,098,592
Shares issued, price per share \| $ / shares	$ 17.75			$ 17.75
Aggregate gross proceeds	$ 143,800
Underwriting discounts and commissions	8,600
Payments of stock offering costs	300
Proceeds from common stock	$ 134,900
Lincoln Park Capital Fund, LLC \| Purchase Agreement
Class of Stock [Line Items]
Common stock sell			$ 15,000
Purchase agreement term			36 months
Common stock shares issued \| shares			121,584
Aggregate fair value			$ 300
Common stock, sold \| shares					2,111,170
Proceeds from common stock					$ 7,700
SVB
Class of Stock [Line Items]
Common stock warrants \| shares		388,119				460,251
Initial exercise price \| $ / shares						$ 0.956
Fair value of warrants						$ 400

Stock-Based Awards (Details)

Stock-Based Awards (Details) - shares	Jan. 01, 2021	Jun. 30, 2021	Jun. 30, 2020	Sep. 14, 2015	Dec. 31, 2020	Sep. 30, 2015
Stock-based awards
Options granted (in shares)		993,600
Options outstanding		3,738,625			2,871,498
Stock Option Valuation
Risk-free interest rate (as a percent)		0.91%	0.87%
Expected term (in years)		6 years 2 months 12 days	6 years 1 month 6 days
Expected volatility (as a percent)		76.60%	85.19%
Expected dividend yield (as a percent)		0.00%	0.00%
2017 Inducement Plan
Stock-based awards
Options outstanding		421,075
2017 Inducement Plan \| Restricted stock unit awards
Stock-based awards
Number of shares outstanding		22,408
2015 Equity Incentive Plan
Stock-based awards
Number of shares authorized						1,643,872
Number of shares available for grant		2,799,230
Percentage increase to shares available for grant from common outstanding as of preceding December 31 (as a percent)		4.00%
Additional shares available	1,804,372
Options outstanding		2,833,405
2015 Equity Incentive Plan \| Restricted stock unit awards
Stock-based awards
Number of shares outstanding		1,476,308
2012 Equity Compensation Plan
Stock-based awards
Number of shares available for grant		0
Options granted (in shares)				1,140,524
Options outstanding		484,145
Term of award (in years)		10 years

Stock-Based Awards - Option Act

Stock-Based Awards - Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Options, Number of Shares
Number of Shares, beginning balance	2,871,498
Number of Shares, Granted	993,600
Number of Shares, Exercised	(115,548)
Number of Shares, Forfeited and cancelled	(10,925)
Number of Shares, ending balance	3,738,625	2,871,498
Number of Shares, Options vested and expected to vest	3,738,625
Number of Shares, Options exercisable	2,044,235
Options, Weighted Average Exercise Price
Weighted Average Exercise Price, beginning balance (in dollars per share)	$ 15.16
Weighted Average Exercise Price, Granted (in dollars per share)	23.88
Weighted Average Exercise Price, Exercised (in dollars per share)	12.63
Weighted Average Exercise Price, Forfeited and cancelled (in dollars per share)	21.78
Weighted Average Exercise Price, ending balance (in dollars per share)	17.54	$ 15.16
Weighted Average Exercise Price, Options vested and expected to vest (in dollars per share)	17.54
Weighted Average Exercise Price, Options exercisable (in dollars per share)	$ 17.51
Options, Weighted Average Remaining Contractual Term
Weighted Average Remaining Contractual Term (in years)	7 years 2 months 12 days	6 years 9 months 18 days
Weighted Average Remaining Contractual Term, Options vested and expected to vest (in years)	7 years 2 months 12 days
Weighted Average Remaining Contractual Term, Options exercisable (in years)	5 years 9 months 18 days
Aggregate Intrinsic Value
Aggregate Intrinsic Value	$ 17,541	$ 4,890
Aggregate Intrinsic Value, Exercised	1,373
Aggregate Intrinsic Value, Options vested and expected to vest	17,541
Aggregate Intrinsic Value, Options exercisable	$ 10,090
Weighted average grant-date fair value of stock options granted (in dollars per share)	$ 15.96

Stock-Based Awards - RSUs (Deta

Stock-Based Awards - RSUs (Details) - Restricted stock unit awards $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2021USD ($)$ / sharesshares
RSU, Number of Units
Units outstanding, beginning of period \| shares	2,244,157
Granted \| shares	607,148
Vested \| shares	(1,314,214)
Forfeited and cancelled \| shares	(38,375)
Units outstanding, end of period \| shares	1,498,716
RSU, Weighted Average Grant Date Fair Value Per Unit
Weighted average grant date fair value, beginning balance (in dollars per share) \| $ / shares	$ 3.83
Weighted average grant date fair value, granted (in dollars per share) \| $ / shares	24
Weighted average grant date fair value, vested (in dollars per share) \| $ / shares	2.87
Forfeited and cancelled, estimated grant date fair value (in dollars per share) \| $ / shares	6.86
Weighted average grant date fair value, ending balance (in dollars per share) \| $ / shares	$ 12.76
Aggregate intrinsic value of awards that vested during the period \| $	$ 31,049

Stock-Based Awards - Compensati

Stock-Based Awards - Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Stock-based compensation expense
Stock-based compensation expense	$ 3,832	$ 3,309	$ 6,507	$ 6,762
Unrecognized stock-based compensation expense, options	16,700		16,700
Unrecognized stock-based compensation expense, RSUs	16,700		16,700
Cost of revenue.
Stock-based compensation expense
Stock-based compensation expense	335	252	582	512
Research and development
Stock-based compensation expense
Stock-based compensation expense	1,154	939	2,030	1,755
General and administrative
Stock-based compensation expense
Stock-based compensation expense	$ 2,343	$ 2,118	$ 3,895	$ 4,495
Options to purchase common stock
Stock-based compensation expense
Weighted average recognition period unrecognized stock-based compensation cost (in years)			3 years 1 month 6 days
Restricted stock unit awards
Stock-based compensation expense
Weighted average recognition period unrecognized stock-based compensation cost (in years)			3 years 2 months 12 days

Net Loss per Share (Details)

Net Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Numerator:
Net loss	$ (18,161)	$ (28,754)	$ (11,597)	$ (15,586)	$ (46,915)	$ (27,183)
Denominator:
Weighted average shares of common stock outstanding, basic and diluted (in shares)	53,968,405		42,133,646		52,163,136	41,876,037
Net loss per share, basic and diluted	$ (0.34)		$ (0.28)		$ (0.90)	$ (0.65)

Net Loss per Share - Anti-dilut

Net Loss per Share - Anti-dilution (Details) - shares	6 Months Ended
Net Loss per Share - Anti-dilution (Details) - shares	Jun. 30, 2021	Jun. 30, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potential common shares excluded from the calculation of diluted net loss per share attributable to common stockholders	5,237,341	6,268,451
Options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potential common shares excluded from the calculation of diluted net loss per share attributable to common stockholders	3,738,625	3,279,799
Restricted stock unit awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potential common shares excluded from the calculation of diluted net loss per share attributable to common stockholders	1,498,716	2,528,401
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potential common shares excluded from the calculation of diluted net loss per share attributable to common stockholders		460,251

Leases (Details)

Leases (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
Leases (Details) $ in Thousands	Jun. 30, 2021USD ($)ft²	Jun. 30, 2020USD ($)	Jun. 30, 2021USD ($)ft²item	Jun. 30, 2020USD ($)	Dec. 31, 2020USD ($)ft²	Feb. 28, 2019ft²
Lessee, Lease, Description [Line Items]
Area leased, sublease agreement \| ft²	33,019		33,019			20,433
Number of lease financing arrangements \| item			2
Amortization expense	$ 300	$ 300	$ 500	$ 500
Sub-subleased \| ft²					8,115
Operating Leases:
Gross cost	4,329		4,329		$ 4,277
Accumulated amortization	(3,042)		(3,042)		(2,623)
Property and equipment, net	1,287		1,287		1,654
Current portion of lease liabilities	$ 647		$ 647		$ 603
Financial position	Current portion of lease liabilities		Current portion of lease liabilities		Current portion of lease liabilities
Other liabilities	$ 2,559		$ 2,559		$ 2,894
Financial position	Other liabilities		Other liabilities		Other liabilities
Total operating lease liabilities	$ 3,206		$ 3,206		$ 3,497
Operating Leases
Operating Leases:
Gross cost	5,240		5,240		5,240
Accumulated amortization	(1,450)		(1,450)		(1,111)
Property and equipment, net	$ 3,790		$ 3,790		$ 4,129

Related Party Transactions (Det

Related Party Transactions (Details) - Mallinckrodt plc. - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020
Related Party Transactions
Invoice amount	$ 24		$ 300
Outstanding accounts receivable	$ 0	$ 24

Agreements Related to Intelle_2

Agreements Related to Intellectual Property (Details) - USD ($) $ in Thousands	1 Months Ended			3 Months Ended		6 Months Ended
	Oct. 31, 2019	Nov. 30, 2018	Aug. 31, 2017	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Agreements Related to Intellectual Property
Revenue, Net				$ 1,824	$ 2,046	$ 3,601	$ 3,453
Contingent consideration				25,300		25,300		$ 4,061
EPI Health LLC
Agreements Related to Intellectual Property
Percentage of Sale of EPI Health Cream	1.00%
Potential milestone payments				$ 20,000		20,000
Percentage of upfront and license fees	25.00%
Term of agreement	10 years
EPI Health LLC \| Royalty
Agreements Related to Intellectual Property
Revenue, Net						$ 400	$ 400
Agreement and Plan of Merger \| Confluence
Agreements Related to Intellectual Property
Payment in cash		$ 2,500
Number of shares		253,208
Fair value of common stock		$ 2,200
Additional contingent consideration based on milestones, maximum, per Agreement			$ 75,000
Royalty term			10 years

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Taxes
Federal income tax benefit	$ 0	$ 0	$ 0	$ 0
State income tax benefit	$ 0	$ 0	$ 0	$ 0

Discontinued Operations (Detail

Discontinued Operations (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract]
Accounts payable	$ 936	$ 1,175
Accrued expenses	2,158	1,936
Discontinued operations - current liabilities	$ 3,094	$ 3,111

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
Segment Information (Details) $ in Thousands	Jun. 30, 2021USD ($)	Jun. 30, 2020USD ($)	Jun. 30, 2021USD ($)segment	Jun. 30, 2020USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments \| segment			2
Total revenue	$ 1,824	$ 2,046	$ 3,601	$ 3,453
Cost of revenue	1,263	1,389	2,465	2,658
Research and development	7,897	6,466	15,735	14,142
General and administrative	5,870	5,572	10,697	11,773
Revaluation of contingent consideration	4,800		21,239	1,767
Loss from operations	(18,006)	(11,381)	(46,535)	(26,887)
Loss from discontinued operations		(27)		(285)
Dermatology Therapeutics Segment
Segment Reporting Information [Line Items]
Total revenue	218	193	460	411
Research and development	8,011	6,577	15,946	14,354
Revaluation of contingent consideration	4,800		21,239	1,767
Loss from operations	(12,593)	(6,384)	(36,725)	(15,710)
Loss from discontinued operations		(27)		(284)
Contract Research Segment
Segment Reporting Information [Line Items]
Total revenue	3,481	3,657	6,681	7,064
Cost of revenue	3,024	3,082	5,793	6,468
General and administrative	879	688	1,507	1,440
Loss from operations	(422)	(113)	(619)	(844)
Corporate and Other
Segment Reporting Information [Line Items]
Total revenue	(1,875)	(1,804)	(3,540)	(4,022)
Cost of revenue	(1,761)	(1,693)	(3,328)	(3,810)
Research and development	(114)	(111)	(211)	(212)
General and administrative	4,991	4,884	9,190	10,333
Loss from operations	(4,991)	(4,884)	(9,191)	(10,333)
Loss from discontinued operations				(1)
Intersegment Eliminations \| Contract Research Segment
Segment Reporting Information [Line Items]
Total revenue	$ 1,900	$ 1,800	$ 3,500	$ 4,000

Legal Proceedings (Details)

Legal Proceedings (Details) $ in Thousands	Jan. 24, 2020item	Jun. 30, 2021USD ($)
Other Commitments [Line Items]
Accrual for estimated financial obligation		$ 3,075
Consolidated Securities Action
Other Commitments [Line Items]
Accrual for estimated financial obligation		2,650
Consolidated Securities Action \| Executive officer
Other Commitments [Line Items]
Number of defendants \| item	2
Consolidated Derivative Action
Other Commitments [Line Items]
Accrual for estimated financial obligation		$ 425

Subsequent Event (Details)

Subsequent Event (Details) - Term Loan Facility - USD ($) $ in Thousands	1 Months Ended
	Jul. 31, 2021	Jun. 30, 2021	Dec. 31, 2020	Mar. 31, 2020
Subsequent events
Loan amount				$ 11,000
SVB
Subsequent events
Loan amount		$ 11,000	$ 11,000
Subsequent event \| SVB
Subsequent events
Loan amount	$ 11,000
Payment of interest	45
Final payment fee	550
Prepayment fee	$ 120