VYNE Therapeutics (VYNE) 10-Q 10 Nov 21 2021 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2021	Nov. 03, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Document Transition Report	false
Entity File Number	001-38356
Entity Registrant Name	VYNE THERAPEUTICS INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	45-3757789
Entity Address, Address Line One	520 U.S. Highway 22, Suite 204
Entity Address, City or Town	Bridgewater
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	08807
City Area Code	800
Local Phone Number	775-7936
Title of 12(b) Security	Common Stock, par value $0.0001
Trading Symbol	VYNE
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		53,517,912
Entity Central Index Key	0001566044
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Current Assets:
Cash and cash equivalents	$ 52,306	$ 57,563
Restricted cash	605	855
Investment in marketable securities (Note 6)	0	1,027
Trade receivables, net of allowances	10,084	15,819
Prepaid and other assets	5,064	4,591
Inventory (Note 7)	8,070	7,404
Total Current Assets	76,129	87,259
Property and equipment, net	472	555
Operating lease right-of-use assets (Note 10)	1,036	1,583
Prepaid and other assets	3,678	4,345
Total Assets	81,315	93,742
Current Liabilities:
Trade payables	7,621	4,780
Accrued expenses (Note 4)	9,613	11,452
Debt (Note 8)	0	0
Employee related obligations	3,382	4,360
Operating lease liabilities (Note 10)	277	757
Other	104	104
Total Current Liabilities	20,997	21,453
Liability for employee severance benefits	206	312
Operating lease liabilities (Note 10)	775	853
Long-term debt (Note 8)	0	33,174
Other liabilities	451	457
Total Liabilities	22,429	56,249
Commitments and Contingencies (Note 11)	0	0
Shareholders' Equity:
Preferred stock: $0.0001 par value; 20,000,000 shares authorized at September 30, 2021 and December 31, 2020, respectively; no shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively	0	0
Common stock: $0.0001 par value; 150,000,000 shares and 75,000,000 shares authorized at September 30, 2021 and December 31, 2020, respectively; 53,510,599 and 43,205,221 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively	5	4
Additional paid-in capital	686,836	603,685
Accumulated deficit	(627,955)	(566,196)
Total Shareholders' Equity	58,886	37,493
Total Liabilities and Shareholders’ Equity	$ 81,315	$ 93,742

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	20,000,000	20,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock shares authorized (in shares)	150,000,000	75,000,000
Common stock shares issued (in shares)	53,510,599	43,205,221
Common stock shares outstanding (in shares)	53,510,599	43,205,221

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Total Revenues	$ 4,086	$ 3,269	$ 12,463	$ 16,707
Cost of goods sold	1,049	371	2,445	858
Operating Expenses:
Research and development	6,981	6,623	19,723	35,695
Selling, general and administrative	13,832	19,766	46,283	71,640
Goodwill and in-process research & development impairments	0	0	0	54,345
Contingent Stock Right Remeasurement	0	0	0	84,726
Total Operating Expenses	20,813	26,389	66,006	246,406
Operating Loss	17,776	23,491	55,988	230,557
Interest expense (Note 8)	3,474	1,092	5,610	3,229
Other expense (income), net	35	130	161	(1,141)
Loss Before Income Tax	21,285	24,713	61,759	232,645
Income tax expense (benefit)	0	1	0	(258)
Net Loss	$ 21,285	$ 24,714	$ 61,759	$ 232,387
Loss per share basic (in dollars per share)	$ 0.41	$ 0.59	$ 1.22	$ 7.98
Loss per share diluted (in dollars per share)	$ 0.41	$ 0.59	$ 1.22	$ 7.98
Weighted average shares outstanding - basic (in shares)	52,028	41,934	50,776	29,132
Weighted average shares outstanding - diluted (in shares)	52,028	41,934	50,776	29,132
Product sales
Total Revenues	$ 3,953	$ 2,863	$ 11,805	$ 6,096
License revenues
Total Revenues	0	0	0	10,000
Royalty revenues
Total Revenues	$ 133	$ 406	$ 658	$ 611

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Comprehensive Income [Abstract]
Net Loss	$ 21,285	$ 24,714	$ 61,759	$ 232,387
Other Comprehensive Loss:
Net unrealized (gains) losses from marketable securities	0	(2)	0	(1)
Losses on marketable securities reclassified into net loss	0	2	0	6
Total Other Comprehensive Loss	0	0	0	5
Total Comprehensive Loss	$ 21,285	$ 24,714	$ 61,759	$ 232,392

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	At-the-market Offering	Public Offering	Common stock	Common stockAt-the-market Offering	Common stockPublic Offering	Additional paid-in capital	Additional paid-in capitalAt-the-market Offering	Additional paid-in capitalPublic Offering	Accumulated deficit	Accumulated other comprehensive Income (loss)
Balance (shares) at Dec. 31, 2019				9,120,078
Balance at Dec. 31, 2019	$ 17,575			$ 1			$ 328,156			$ (310,587)	$ 5
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive (loss) income	(232,392)									(232,387)	(5)
Exercise of options, vesting of restricted stock units and shares issued under employee stock purchase plan (in shares)				301,913
Exercise of options, vesting of restricted stock units and shares issued under employee stock purchase plan	342						342
Stock-based compensation	15,147						15,147
Deemed dividend to warrants holders due to warrant modifications	0						41			(41)
Classification of stock awards to derivative liability	(975)						(975)
Issuance of common stock, net of issuance costs (in shares)						7,776,875
Issuance of common stock, net of issuance costs			$ 53,649	$ 1					$ 53,648
Issuance of stock related to merger (in shares)				24,765,999
Issuance of stock related to merger	196,170			$ 2			196,168
Balance (shares) at Sep. 30, 2020				41,964,865
Balance at Sep. 30, 2020	49,516			$ 4			592,527			(543,015)	0
Balance (shares) at Jun. 30, 2020				41,920,952
Balance at Jun. 30, 2020	71,528			$ 4			589,825			(518,301)	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive (loss) income	(24,714)									(24,714)
Exercise of options, vesting of restricted stock units and shares issued under employee stock purchase plan (in shares)				43,913
Exercise of options, vesting of restricted stock units and shares issued under employee stock purchase plan	82						82
Stock-based compensation	2,620						2,620
Balance (shares) at Sep. 30, 2020				41,964,865
Balance at Sep. 30, 2020	$ 49,516			$ 4			592,527			(543,015)	0
Balance (shares) at Dec. 31, 2020	43,205,221			43,205,221
Balance at Dec. 31, 2020	$ 37,493			$ 4			603,685			(566,196)	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive (loss) income	(61,759)									(61,759)
Exercise of options, vesting of restricted stock units and shares issued under employee stock purchase plan (in shares)				305,105
Exercise of options, vesting of restricted stock units and shares issued under employee stock purchase plan	393						393
Stock-based compensation	$ 6,748						6,748
Issuance of common stock, net of issuance costs (in shares)					4,726,012	5,274,261
Issuance of common stock, net of issuance costs		$ 29,187	$ 46,824	$ 1				$ 29,187	$ 46,823
Balance (shares) at Sep. 30, 2021	53,510,599			53,510,599
Balance at Sep. 30, 2021	$ 58,886			$ 5			686,836			(627,955)	0
Balance (shares) at Jun. 30, 2021				51,511,845
Balance at Jun. 30, 2021	74,893			$ 5			681,558			(606,670)	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive (loss) income	(21,285)									(21,285)
Exercise of options, vesting of restricted stock units and shares issued under employee stock purchase plan (in shares)				50,754
Exercise of options, vesting of restricted stock units and shares issued under employee stock purchase plan	(10)						(10)
Stock-based compensation	$ 2,405						2,405
Issuance of common stock, net of issuance costs (in shares)					1,948,000
Issuance of common stock, net of issuance costs		$ 2,883						$ 2,883
Balance (shares) at Sep. 30, 2021	53,510,599			53,510,599
Balance at Sep. 30, 2021	$ 58,886			$ 5			$ 686,836			$ (627,955)	$ 0

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021	Sep. 30, 2020
At-the-market Offering
Payments of stock issuance costs	$ 184	$ 998
Public Offering
Payments of stock issuance costs		$ 3,177	$ 3,903

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash Flows From Operating Activities:
Net Loss	$ 61,759	$ 232,387
Adjustments required to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	83	254
Goodwill and in-process research & development impairments	0	54,345
Contingent stock right remeasurement	0	84,726
Changes in marketable securities and bank deposits, net	0	(142)
Changes in accrued liability for employee severance benefits, net of retirement fund profit	(108)	(15)
Stock-based compensation	6,748	15,147
Non-cash finance loss/(income), net	1,281	(727)
Debt prepayment premium	1,432	0
Changes in operating assets and liabilities, net of effects of businesses acquired:
Decrease (increase) in trade receivables, prepaid and other assets	5,262	(11,383)
Decrease (increase) in other non-current assets	1,217	(4,430)
Increase (decrease) in accounts payable and accruals	167	(11,801)
Increase in inventory	(666)	(5,294)
Increase in other liabilities	(6)	0
Net cash used in operating activities	(46,349)	(111,707)
Cash Flows From Investing Activities:
Purchase of fixed assets	0	(113)
Cash acquired through merger	0	38,641
Proceeds from sale and maturity of marketable securities	1,027	48,577
Net cash provided by investing activities	1,027	87,105
Cash Flows From Financing Activities:
Proceeds related to issuance of common shares through offerings, net of issuance costs	76,010	53,646
Debt repayment (see Note 8)	(36,432)	0
Proceeds related to issuance of stock for stock-based compensation arrangements, net	237	182
Net cash provided by financing activities	39,815	53,828
(Decrease)/Increase in cash, cash equivalents and restricted cash	(5,507)	29,226
Effect of exchange rate on cash, cash equivalents and restricted cash	0	1
Cash, cash equivalents and restricted cash at beginning of the period	58,418	44,584
Cash, cash equivalents and restricted cash at end of the period	52,911	73,811
Cash and cash equivalents	52,306	72,956
Restricted cash	605	855
Total cash, cash equivalents and restricted cash shown in statement of cash flows	52,911	73,811
Supplementary information on investing and financing activities not involving cash flows:
Issuance of shares under employee stock purchase plan	144	163
Additions to operating lease right of use assets	0	1,120
Additions to operating lease liabilities	0	1,120
Supplemental disclosure of cash flow information:
Interest received	15	232
Interest paid	2,385	2,936
Fair value of assets acquired	0	117,270
Less liabilities assumed	0	5,827
Net acquired (See “Note 3- Business combination”)	0	111,443
Less cash acquired	0	38,641
Merger net of cash acquired	$ 0	$ 72,802

NATURE OF OPERATIONS

NATURE OF OPERATIONS	9 Months Ended
	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF OPERATIONS	NATURE OF OPERATIONS VYNE Therapeutics Inc. ("VYNE" or the "Company") is a biopharmaceutical company focused on developing proprietary, innovative and differentiated therapies for the treatment of immuno-inflammatory conditions and rare skin diseases of high unmet medical need. The Company is a Delaware corporation, has its principal executive offices in Bridgewater, New Jersey and operates as one business segment. The Company currently has two commercial products, AMZEEQ® (minocycline) topical foam, 4%, and ZILXI® (minocycline) topical foam, 1.5%. In August 2021, the Company initiated a process to explore a possible sale or license of its topical minocycline franchise, as discussed in greater detail below. Strategic Business Review Beginning in the second quarter of 2021, the Company conducted a review of its commercial and research and development portfolio to determine how to optimally deploy capital and drive shareholder value. During the course of this review, the Company carefully considered the revenues received from the commercialization of AMZEEQ and ZILXI and the associated costs to drive those revenues, the protracted negative impact of the COVID-19 pandemic during the commercial launches of both AMZEEQ and ZILXI, the current payor landscape, as well as the costs to develop each of its pipeline products. During this process, the Company evaluated several strategic options including the acquisition of marketed assets, out-licensing its approved products outside of the United States, and possible partnering or co-development relationships with interested parties. Following its review, the Company determined to initiate a process to explore a possible sale or license of its topical minocycline franchise, including AMZEEQ, ZILXI, FCD105 (the Company’s Phase 3 proprietary novel topical combination foam formulation of minocycline and adapalene for the treatment of moderate-to-severe acne vulgaris) and the underlying Molecule Stabilizing Technology platform. By leveraging its drug development and clinical development capabilities and strong network of discovery and preclinical science partners, the Company has transitioned its strategic focus to develop therapies for the treatment of immuno-inflammatory conditions and rare skin diseases of high unmet medical need. The Company expects to continue to invest in FMX114 for the treatment of mild to moderate atopic dermatitis and enrolled the first patient in its Phase 1b/2a proof-of-concept study in October 2021. The Company expects results from this study early in the first quarter of 2022. In addition, on August 12, 2021, the Company announced a transaction with In4Derm Limited, a company incorporated and registered in Scotland (“In4Derm”). In4Derm is a spin-out of the University of Dundee’s School of Life Sciences which has discovered and is developing proprietary Bromodomain and Extra-Terminal Domain ("BET") inhibitors for the treatment of immunology and oncology conditions. On April 30, 2021, the parties entered into an Evaluation and Option Agreement (the “Option Agreement”) pursuant to which In4Derm granted the Company an exclusive option to obtain exclusive worldwide rights to research, develop and commercialize products containing In4Derm’s BET inhibitor compounds, which are new chemical entities, in both topical (the “Topical BETi Option”) and oral (the “Oral BETi Option”) treatments in all fields for any disease, disorder or condition in humans. On August 6, 2021, the Company exercised the Topical BETi Option and the parties entered into a License Agreement granting the Company a worldwide, exclusive license that is sublicensable through multiple tiers to exploit certain of In4Derm’s BET inhibitor compounds identified to be suitable for topical administration in all fields. The Company paid a $1.0 million cash payment to In4Derm upon the execution of the Option Agreement and $0.5 million in connection with the exercise of the Topical BETi Option. Pursuant to the License Agreement, the Company has agreed to make cash payments to In4Derm upon the achievement of specified clinical development and regulatory approval milestones with respect to each licensed topical product in the U.S. of up to $15.75 million for all indications. In addition, the Company currently expects to exercise the Oral BETi Option following the selection of a lead candidate for the program. Upon exercise of the exclusive Oral BETi Option, the parties will sign a license agreement (the “Oral License Agreement”), and the Company will be required to pay In4Derm a $4.0 million cash payment. The Oral License Agreement will include cash payments of up to $43.75 million payable to In4Derm upon the achievement of specified clinical development and regulatory approval milestones with respect to each licensed oral product in the U.S. for all indications. The license agreements also provide for tiered royalty payments of up to 10% of net annual sales across licensed BET inhibitor products by the Company. In4Derm is entitled to additional milestones upon the achievement of regulatory approvals in certain jurisdictions outside the U.S. The initial BET inhibitor candidates that the Company plans to develop are VYN201 and VYN202. VYN201 is a pan-bromodomain or pan-BD BET inhibitor. It is a first-in-class “soft” pan-BD BET inhibitor that is designed to mitigate systemic drug exposure and will be developed for topical applications. The Company intends to progress VYN201 into rare dermatological indications where there is significant unmet need due to a lack of indicated treatment options. The Company plans to communicate the initial indication it will be pursuing for VYN201 after the prerequisite non-clinical safety assessments have been completed and enter this program into the clinic in 2022. The second candidate, VYN202, is an orally-delivered, first-in-class BET inhibitor that is highly selective for Bromodomain 2 (“BD2”). By selectively inhibiting BD2, the Company believes VYN202 could have a more targeted anti-inflammatory effect with an improved benefit/risk profile. Upon the selection of a lead candidate, VYNE intends to exercise its exclusive option with In4Derm Limited and commence an IND-enabling non-clinical safety program. As the Company continues to transition from a commercial organization to one focused on research and development, the Company expects to further streamline operations by continuing to eliminate the vast majority of planned expenditures supporting its commercial operations. Furthermore, the Company is in the process of reducing its workforce by terminating approximately 70 employees, which the Company expects to be completed by December 31, 2021. The Company incurred a one-time charge of $1.0 million in the three months ended September 30, 2021 in connection with this restructuring plan, consisting of $0.9 million of employee termination costs, including severance and other benefits, and retention payments of $0.1 million. The Company anticipates incurring an additional charge of $0.3 million related to employee termination costs, including severance and other benefits during the fourth quarter of 2021. These charges will be substantially paid out by December 31, 2021. Additional charges of $0.4 million related to retention payments are anticipated through June 30, 2022. Reverse Merger On November 10, 2019, Menlo, Foamix Pharmaceuticals Ltd. (“Foamix”) and Giants Merger Subsidiary Ltd. (“Merger Sub”), a wholly-owned subsidiary of Menlo, entered into an Agreement and Plan of Merger (as amended by Amendment No. 1 to the Agreement and Plan of Merger, dated as of December 4, 2019, the “Merger Agreement”). Pursuant to the terms of the Merger Agreement, Merger Sub merged with and into Foamix, with Foamix surviving as a wholly-owned subsidiary of Menlo (the “Merger”) on March 9, 2020 (the “Effective Date”). For accounting purposes, the Merger is treated as a “reverse acquisition” under generally accepted accounting principles in the United States (“U.S. GAAP”) and Foamix is considered the accounting acquirer. Accordingly, upon consummation of the Merger, the historical financial statements of Foamix became the Company’s historical financial statements, and the historical financial statements of Foamix are included in the comparative prior periods. See “Note 3 – Business Combination” for more information on the Merger. Reverse stock split and recasting of per-share amounts On February 10, 2021, the Company's Board of Directors approved a one-for-four reverse stock split of its outstanding shares of common stock. The reverse stock split was effected on February 12, 2021, at 5:00 p.m. Eastern time. At the effective time, every four issued and outstanding shares of the Company's common stock were converted into one share of common stock. No fractional shares were issued in connection with the reverse stock split, and in lieu thereof, each stockholder holding fractional shares was entitled to receive a cash payment (without interest or deduction) from the Company's transfer agent in an amount equal to such stockholder's respective pro rata shares of the total net proceeds from the Company's transfer agent sale of all fractional shares at the then-prevailing prices on the open market. In connection with the reverse stock split, the number of authorized shares of the Company's common stock was also reduced on a one-for-four basis, from 300 million shares to 75 million shares. The par value of each share of common stock remained unchanged. A proportionate adjustment was also made to the maximum number of shares issuable under the Company's 2019 Equity Incentive Plan, 2018 Omnibus Incentive Plan and 2019 Employee Share Purchase Plan. Unless otherwise noted, all common shares and per share amounts contained in the unaudited interim condensed consolidated financial statements have been retroactively adjusted to reflect the reverse stock split. Topical Minocycline Franchise In January 2020, the Company launched AMZEEQ ® , a once-daily topical antibiotic for the treatment of inflammatory lesions of non-nodular moderate-to-severe acne vulgaris in patients 9 years of age and older. On May 28, 2020, the U.S. Food and Drug Administration (the "FDA") approved ZILXI ® for the treatment of inflammatory lesions of rosacea in adults. ZILXI became available in pharmacies nationwide in October 2020. AMZEEQ and ZILXI are the first topical minocycline products approved by the FDA for any condition. AMZEEQ and ZILXI utilize the Company’s proprietary Molecule Stabilizing Technology (MST) ™ that is also being used in the development of the Company’s product candidate FCD105, a topical foam comprising minocycline and adapalene for the treatment of acne vulgaris. On June 2, 2020, the Company announced positive results from a Phase II clinical trial evaluating the preliminary safety and efficacy of FCD105 (3% minocycline / 0.3% adapalene foam), the first ever topical minocycline- based combination product, for the treatment of moderate-to-severe acne vulgaris. The Company held an end-of-Phase II meeting with the FDA in the fourth quarter of 2020. See "Note 1 - Strategic Business Review" for more information. Serlopitant Additionally, the Company was developing serlopitant, a small molecule inhibitor of the neurokinin 1 receptor, or NK1-R, given as a once-daily, oral tablet, for the treatment of pruritus, or itch, associated with various conditions including prurigo nodularis, or PN. On April 6, 2020, the Company announced top line results from two Phase III clinical trials evaluating the safety and efficacy of once-daily oral serlopitant for the treatment of pruritus (itch) associated with PN, studies MTI-105 and MTI-106. Neither study met their respective primary endpoint of demonstrating statistically significant reduction in pruritus in patients treated with serlopitant compared to placebo based on a 4-point improvement responder analysis. The Company does not currently intend to further pursue the development of serlopitant. As a result, in the second quarter of 2020, the Company recorded a full impairment charge related to the IPR&D and Goodwill assets in its unaudited condensed consolidated statement of operations and comprehensive loss. See "Note 3 - Business Combination" for more information. Liquidity and Capital Resources The Company launched AMZEEQ in the United States in January 2020 and commenced generating product revenues in the first quarter of 2020. The Company also launched ZILXI in the United States in October 2020 and commenced generating revenues in the fourth quarter of 2020. The Company’s activities prior to the commercial launches of AMZEEQ and ZILXI had primarily consisted of raising capital, developing product candidates, and performing research and development activities. Since inception, the Company has incurred recurring losses and negative cash flows from operations. For the nine months ended September 30, 2021, the Company incurred a net loss of $61.8 million and used $46.3 million of cash in operations. As of September 30, 2021, the Company had cash, cash equivalents and restricted cash of $52.9 million and an accumulated deficit of $628.0 million. On August 11, 2021, the Company prepaid the entirety of its outstanding indebtedness, including a prepayment premium and accrued but unpaid interest, for a total amount of approximately $36.5 million. The Company had no outstanding debt as of September 30, 2021. The COVID-19 pandemic and government measures taken in response to the pandemic have had a negative impact on the Company's operations. Access to healthcare providers has been limited, which has negatively impacted sales and the Company's ability to execute its commercial strategy with respect to AMZEEQ and ZILXI. In addition, the commercial launches of both AMZEEQ and ZILXI have been negatively impacted by unfavorable payor decisions in March 2021 on product pricing. These conditions have impaired the Company's ability to generate revenue consistent with internal forecasts, which has had a negative impact on its financial condition and liquidity. Following discussions with the Company's lenders during the second quarter of 2021 regarding the revenue targets included in the Amended and Restated Credit Agreement, the revenue expected to be generated for the trailing twelve month period ended June 30, 2021 and the Company's strategic transition discussed above, the Company determined to prepay its outstanding indebtedness in addition to a 4% prepayment fee and accrued but unpaid interest in the total amount of approximately $36.5 million on August 11, 2021. Following the prepayment, the Amended and Restated Credit Agreement and the security interests thereunder were terminated. As a result of the foregoing, the Company determined that its projected cash flows from operations, combined with its cash balance after the debt prepayment, would not provide sufficient resources to fund its existing operations, for at least the next twelve months from the issuance of these financial statements. As discussed above, the Company completed a strategic review of its business and initiated a process to explore a sale or license of its minocycline franchise, including AMZEEQ, ZILXI, FCD105 and the underlying MST platform. The Company will refocus its resources on its immuno-inflammatory pipeline and intends to support the FMX114 and the BET inhibitor development programs. Research and development activities for these programs, including preclinical and clinical 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 pivot to its research and development business strategy and develop commercially viable drug candidates and raise additional capital to finance its operations. The Company’s ability to continue as a going concern is contingent on its ability to sell or license its minocycline franchise, develop future commercially viable products and/or to raise sufficient working capital through either debt or equity financing. There is no assurance the Company will be able to achieve these objectives under acceptable terms or at all. 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 has 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 unaudited condensed consolidated financial statements are issued. The accompanying unaudited condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	SIGNIFICANT ACCOUNTING POLICIES a. Basis of Presentation The unaudited interim condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial statements. In the opinion of management, the Company has made all necessary adjustments, which include normal recurring adjustments necessary for a fair statement of the Company’s unaudited condensed consolidated financial position, results of operations, cash flow and statement of stockholders' equity for the interim periods presented. Certain information and disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. Certain prior period amounts have been reclassified to conform to current year presentation. These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements contained in the Company's Current Report on Form 8-K dated August 12, 2021. The results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results expected for the year ending December 31, 2021. b. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany balances and transactions have been eliminated upon consolidation. c. Use of Estimates The preparation of unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and reported amounts of income and expenses during the reporting periods. Significant items subject to such estimates and assumptions include accounting for business combinations, impairments of goodwill and intangible assets and revenue recognition. Actual results could differ from the Company’s estimates. The COVID-19 pandemic and government measures taken in response to the pandemic have had a negative impact on the Company's operations. Access to healthcare providers has been limited, which has negatively impacted sales and the Company's ability to execute its commercial strategy with respect to AMZEEQ and ZILXI. The length of time and extent to which the COVID-19 pandemic will directly or indirectly impact the Company's business, results of operations and financial condition and liquidity will depend on future developments that are highly uncertain, subject to change and will continue to evolve with geographical re-openings, surges in cases, the emergence of new strains and the vaccination effort. In addition, the Company further assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company and the unknown future impacts of COVID-19 as of September 30, 2021 and through the date of this report. The accounting matters assessed included, but were not limited to, the Company’s allowance for doubtful accounts and credit losses, inventory and related reserves, impairments of long-lived assets and revenue recognition. In 2020, the Company recorded impairments of goodwill and certain indefinite-lived intangible assets; however, these were unrelated to the impact of COVID-19 (See "Note 3 - Business Combination" for more information). The Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in material impacts to the Company’s consolidated financial statements in future reporting periods d. Business Acquisition The Company’s unaudited interim condensed consolidated financial statements include the operations of an acquired business after the completion of the acquisition. The Company accounts for acquired businesses using the acquisition method of accounting, which requires, among other things, that most assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date and that the fair value of In-Process Research and Development and Goodwill be recorded on the balance sheet. Transaction costs are expensed as incurred. Amounts recorded in connection with an acquisition can result from a complex series of judgments about future events and uncertainties and can rely heavily on estimates and assumptions. The Company is required to measure certain assets and liabilities at fair value, either upon initial recognition or for subsequent accounting or reporting. For example, the Company uses fair value in the initial recognition of net assets acquired in a business combination and when measuring impairment losses. The Company estimates fair value using an exit price approach, which requires, among other things, that Company determine the price that would be received to sell an asset or paid to transfer a liability in an orderly market. The determination of an exit price is considered from the perspective of market participants, considering the highest and best use of non-financial assets and, for liabilities, assuming that the risk of non-performance will be the same before and after the transfer. When estimating fair value, depending on the nature and complexity of the asset or liability, the Company may use one or all of the following techniques: • Income approach, which is based on the present value of a future stream of net cash flows. • Market approach, which is based on market prices and other information from market transactions involving identical or comparable assets or liabilities. • Cost approach, which is based on the cost to acquire or construct comparable assets, less an allowance for functional and/or economic obsolescence. Our fair value methodologies depend on the following types of inputs: • Quoted prices for identical assets or liabilities in active markets (Level 1 inputs). • Quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are directly or indirectly observable, or inputs that are derived principally from, or corroborated by, observable market data by correlation or other means (Level 2 inputs). • Unobservable inputs that reflect estimates and assumptions (Level 3 inputs). A single estimate of fair value can result from a complex series of judgments about future events and uncertainties and can rely heavily on estimates and assumptions. Asset Impairment The Company reviews all of its long-lived assets for impairment indicators throughout the year. Impairment testing is performed for indefinite-lived intangible assets annually (or sooner if warranted) and for all other long-lived assets whenever impairment indicators are present. When necessary, the Company records charges for impairments of long-lived assets for the amount by which the fair value is less than the carrying value of these assets. e. Revenue Recognition The Company accounts for its revenue transactions under FASB ASC Topic 606, Revenue from Contracts with Customers. In accordance with ASC Topic 606, the Company recognizes revenues when its customers obtain control of its product for an amount that reflects the consideration it expects to receive from its customers in exchange for that product. To determine revenue recognition for contracts that are determined to be in scope of ASC Topic 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies the performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once the contract is determined to be within the scope of ASC Topic 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when such performance obligation is satisfied. The Company’s customers include a limited number of national and select regional wholesalers (the “distributors”) and certain independent and specialty pharmacies (together, the “customers”). These distributors subsequently resell the product, primarily to retail pharmacies that dispense the product to patients. Net product revenue is typically recognized when customers obtain control of the Company’s products, which occurs at a point in time, typically upon delivery of product to the customers. The Company evaluates the creditworthiness of its customers to determine whether it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur. The Company does not assess whether a contract has a significant financing component if the expectation is such that the period between the transfer of the promised goods to the customer and the receipt of payment will be less than one year. Standard credit terms do not exceed 75 days. The Company expenses incremental costs of obtaining a contract as and when incurred if the expected amortization period of the asset that would have been recognized is one year or less or the amount is immaterial. Shipping and handling costs related to the Company’s product sales are included in selling, general and administrative expenses. The Company’s net product revenues through September 30, 2021 were generated through sales of AMZEEQ, which was approved by the FDA in October 2019 and was commercially launched in the United States in January 2020, and ZILXI, which was approved by the FDA in May 2020 and was commercially launched in the United States in October 2020. Product revenue is recorded net of distribution fees, trade discounts, allowances, rebates, copay program coupons, chargebacks, estimated returns and other incentives. These reserves are classified as either reductions of accounts receivable or as current liabilities. The estimates of reserves established for variable consideration reflect current contractual and statutory requirements, known market events and trends, industry data and forecasted customer mix. The transaction price, which includes variable consideration reflecting the impact of discounts and allowances, may be subject to constraint and is included in the net product revenues only to the extent that it is probable that a significant reversal of the amount of the cumulative revenues recognized will not occur in a future period. Actual amounts may ultimately differ from these estimates. If actual results vary, estimates may be adjusted in the period such change in estimate becomes known, which could have an impact on earnings in the period of adjustment. See “Note 4 – Revenue Recognition” for more information. On April 23, 2020, the Company announced that it entered into a license agreement with Cutia for our minocycline products and product candidate, if approved, on an exclusive basis in Greater China. Under the terms of the agreement, Cutia will have an exclusive license to obtain regulatory approval of and commercialize AMZEEQ, ZILXI and, if approved in the U.S., FCD105 in the Greater China territory. The Company will supply the finished licensed products to Cutia for clinical and commercial use. The Company received an upfront cash payment of $10.0 million in 2020 ($6.0 million received in the three months ended June 30, 2020 and $4.0 million received in the three months ended September 30, 2020) and will be eligible to receive an additional $1.0 million payment upon the receipt of marketing approval in China of the first licensed product. The Company will also receive royalties on net sales of any licensed products. The license is determined to be a distinct performance obligation of the arrangement, therefore the Company recognized the revenues from the upfront license fee when the license was transferred to the licensee and the licensee was able to use and benefit from the license. See "Note 4 - Revenue Recognition" for more information. f. Allowance for credit losses An allowance for doubtful accounts is maintained for potential credit losses based on the aging of trade receivables, historical bad debts experience and changes in customer payment patterns. Trade receivable balances are written off against the allowance when it is deemed probable that the receivable will not be collected. Trade receivables, net are stated net of reserves for certain sales allowances and provisions for doubtful accounts. Provisions for doubtful accounts were not material for the three and nine months ended September 30, 2021 and September 30, 2020. g. Fair value measurement Fair value is based on the price that would be received from the sale of an asset or that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, the guidance establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described as follows: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data or active market data of similar or identical assets or liabilities. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and considers counterparty credit risk in its assessment of fair value. h. Loss per share Net loss per share, basic and diluted, is computed on the basis of the net loss for the period divided by the weighted average number of common shares outstanding during the period. Diluted net loss per share is based upon the weighted average number of common stock and of common stock equivalents outstanding when dilutive. Common stock equivalents include outstanding stock options and warrants which are included under the treasury share method when dilutive. The calculation of the weighted-average number of common stock outstanding during the period in which the reverse merger occured was based on: a. The number of common stock outstanding from the beginning of that period to the merge date was computed on the basis of the weighted-average number of common stock of the legal acquiree (accounting acquirer) outstanding during the period multiplied by the exchange ratio established in the merger agreement b. The number of common stock outstanding from the merge date to the end of that period was the actual number of common stock of the legal acquirer (the accounting acquiree) outstanding during that period. The following weighted average stock options, restricted stock units (“RSUs”), warrants and incremental shares to be issued under the employee stock purchase plan (“ESPP”) were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented (share data): Three months ended September 30 Nine months ended September 30 2021 2020 2021 2020 Outstanding stock options, RSUs and shares under the ESPP 5,223,466 5,191,299 5,303,135 3,756,049 Warrants 495,165 495,165 495,165 377,542 In addition to the above, the CSR was excluded from the calculation of the 2020 diluted net loss per share because its effect would have been anti-dilutive for the periods presented. On April 6, 2020, the Company announced that each of Menlo’s Phase III PN Trials (study MTI-105 and study MTI-106) did not meet their respective primary endpoint of demonstrating statistically significant reduction in pruritus in patients treated with serlopitant compared to placebo based upon a 4-point improvement responder analysis. Each CSR was converted into 1.2082 shares of Menlo common stock, resulting in an effective exchange ratio (the "Exchange Ratio") in the Merger of 1.8006 shares of Menlo common stock for each Foamix ordinary share. The conversion of the CSR also affected the Exchange Ratio of the pre-Merger Foamix equity awards and warrants outstanding as of March 9, 2020. See "Note 3 - Business Combination" for more information. j. Newly issued and recently adopted accounting pronouncements Recent Accounting Guidance Issued: In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes," which clarifies and simplifies certain aspects of the accounting for income taxes. The standard is effective for years beginning after December 15, 2020, and interim periods beginning after December 15, 2020. This guidance became effective during the first quarter of 2021. The adoption of the new standard did not have a material impact to the Company's consolidated financial statements. In March 2020, the FASB issued Accounting Standards Update No. 2020-4, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" (ASU 2020-4), which provides guidance to alleviate the burden in accounting for reference rate reform by allowing certain expedients and exceptions in applying generally accepted accounting principles to contracts, hedging relationships, and other transactions impacted by reference rate reform. The provisions of ASU 2020-4 apply only to those transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. Adoption of the provisions of ASU 2020-4 are optional and are effective from March 12, 2020 through December 31, 2022. The Company is currently evaluating the impact of ASU 2020-4 on its consolidated financial statements. In June 2016, the FASB issued Accounting Standards Update No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (ASU 2016-13), which requires companies to measure credit losses of financial instruments, including customer accounts receivable, utilizing a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. Subsequent to the issuance of ASU 2016-13, the FASB issued several additional Accounting Standard Updates to clarify implementation guidance, provide narrow-scope improvements and provide additional disclosure guidance. As a smaller reporting company, the Company will adopt ASU 2016-13 effective January 1, 2023 or at such time where it is no longer a smaller reporting company.

BUSINESS COMBINATION

BUSINESS COMBINATION	9 Months Ended
	Sep. 30, 2021
Business Combination and Asset Acquisition [Abstract]
BUSINESS COMBINATION	BUSINESS COMBINATION On November 10, 2019, Menlo entered into the Merger Agreement with Foamix, and Merger Sub, a direct and wholly-owned Israeli subsidiary of Menlo. On March 9, 2020, the Merger was completed and Foamix is now a wholly-owned subsidiary of the Company. On the Effective Date, each ordinary share of Foamix was exchanged for 0.5924 shares of common stock of Menlo. In addition, on the Effective Date, Foamix shareholders received one contingent stock right (a “CSR”) for each Foamix ordinary share held by them. The CSRs were issued pursuant to the Contingent Stock Rights Agreement (the “CSR Agreement”), dated as of March 9, 2020, by and between Menlo and American Stock Transfer & Trust Company, LLC, and represented the non-transferable contractual right to receive shares of common stock of Menlo depending on the results of Menlo’s phase III clinical trials evaluating the safety and efficacy of once daily oral serlopitant for the treatment of prurigo nodularis (the “Phase III PN Trials”). On April 6, 2020, the Company announced that each of Menlo’s Phase III PN Trials (study MTI-105 and study MTI-106) did not meet their respective primary endpoint of demonstrating statistically significant reduction in pruritus in patients treated with serlopitant compared to placebo based upon a 4-point improvement responder analysis. Accordingly, on April 6, 2020, pursuant to the terms of the CSR Agreement, each CSR was converted into 1.2082 additional shares of Menlo common stock, resulting in an effective Exchange Ratio in the Merger of 1.8006 shares of Menlo common stock for each Foamix ordinary share. The CSR conversion resulted in the issuance and delivery of 74,544,413 additional shares of Menlo common stock underlying the CSRs, adjusted retrospectively to 18,636,103 shares of common stock upon the reverse stock split effective February 12, 2021. Following the conversion of the CSRs, pre-Merger Foamix shareholders and pre-Merger Menlo stockholders owned approximately 82% and 18% of post-Merger Menlo, respectively, each calculated on a fully diluted basis. For accounting purposes, the Merger is treated as a “reverse acquisition” under U.S. GAAP and Foamix is considered the accounting acquirer. Accordingly, upon consummation of the Merger, the historical financial statements of Foamix became the Company’s historical financial statements, and the historical financial statements of Foamix are included in the comparative prior periods. Under reverse acquisition accounting, the U.S. dollar amount for common stock in the financial statements is based on the value and number of shares issued by Menlo (reflecting the legal structure of Menlo as the legal acquirer) on the Merger date plus subsequent shares issued by the Company. The amounts in additional paid-in capital represent that of Foamix and include the fair value of shares deemed for accounting purposes to have been issued by Foamix on the merger date and the fair value of the Menlo equity awards included in the purchase price calculation. The Foamix additional paid-in capital was also adjusted for the difference between the number of common stock and the historical number of shares of Foamix’s ordinary shares. During the nine months ended September 30, 2020, the Company incurred transaction costs of approximately $11.7 million, which are recorded in the unaudited condensed consolidated statements of operations and comprehensive income. This amount includes $8.1 million of severance benefits for employees terminated after the Effective Date. Purchase Price The following is the Merger Consideration (as defined in the Merger Agreement) was transferred to effect the Merger: (in thousands) Total Deemed (for accounting purposes only) issuance of Foamix shares to Menlo stockholders $ 123,757 Deemed (for accounting purposes only) conversion of Menlo equity awards 7,322 Total consideration* $ 131,079 * This amount reflects total consideration prior to reduction in respect of the CSRs (which had a fair value of $19.6 million as of the Merger Date) that were issued to Foamix shareholders and that reduced the Menlo stockholders’ relative ownership in the combined company. If the effect of the CSRs is included, the total consideration deemed paid by Foamix, as the accounting acquirer, to Menlo stockholders and equity award holders in the Merger would be reduced to approximately $111.4 million, as shown in the purchase price allocation table below. Based on Foamix’s closing share price of $2.99 as of March 9, 2020, the Merger Consideration under reverse acquisition accounting was approximately $131.1 million, consisting of $123.8 million for the deemed (for accounting purposes only) issuance of 41.4 million Foamix shares assuming that no upwards adjustment was made to the Exchange Ratio relating to the CSR, and $7.3 million for the fair value of Menlo equity awards deemed (for accounting purposes only) to be converted into Foamix equity awards. The converted stock options represent the fair value of such options attributable to service prior to the Merger date using the Foamix closing share price of $2.99 as of March 9, 2020 as an input to the Black Scholes valuation model to determine the fair value of the options. Purchase Price Allocation The Company completed its analysis of the allocation of the purchase price to the fair values of assets acquired and liabilities assumed as follows: (in thousands) March 9, 2020 Cash and cash equivalents $ 38,641 Investment in marketable securities 22,703 Prepaid expenses and other current assets 1,581 In-process research and development 49,800 Goodwill 4,545 Total assets 117,270 Current liabilities (5,827) Total liabilities (5,827) Purchase price* $ 111,443 * Reflects reduction in the purchase price deemed paid to Menlo stockholders in the Merger on the assumption that the CSRs, in an aggregate value of $19.6 million, convert into additional shares of the combined company for the Foamix shareholders, thereby resulting in a lower percentage of the combined company’s outstanding shares being owned by Menlo stockholders following the Merger. Goodwill Goodwill is recorded with the acquisition of a business and is calculated as the difference between the acquisition date fair value of the consideration transferred and the values assigned to the assets acquired and liabilities assumed. Goodwill is not amortized but is tested for impairment at least annually. None of the goodwill recognized is expected to be deductible for income tax purposes . The purchase price of the transaction and the excess purchase price over the fair value of the identifiable net assets acquired, are calculated as follows: (in thousands) March 9, 2020 Purchase price $ 111,443 Less: fair value of net assets acquired, including other identifiable intangibles (106,898) Goodwill $ 4,545 On April 6, 2020, the Company announced that each of Menlo’s Phase III PN Trials (study MTI-105 and study MTI-106) did not meet their respective primary endpoint of demonstrating statistically significant reduction in pruritus in patients treated with serlopitant compared to placebo based upon a 4-point improvement responder analysis. The Company does not intend to further pursue the development of serlopitant. As such, the Company recorded a full impairment charge of $4.5 million related to goodwill in its unaudited condensed consolidated statements of operations and comprehensive loss for the nine months ended September 30, 2020. There were no impairment charges in the three and nine months ended September 30, 2021. In-Process Research and Development (“IPR&D") The IPR&D recognized relates to Menlo’s once - daily oral serlopitant for the treatment of pruritus (itch) associated with PN that has not reached technological feasibility as follows: (in thousands) Intangible asset Estimated Fair Value Acquired indefinite life intangible assets* $ 49,800 Fair value of identified intangible assets $ 49,800 * Represents acquired IPR&D assets which are initially recognized at fair value and are classified as indefinite-lived assets until the successful completion or abandonment of the associated research and development efforts. Accordingly, during the research and development period, these assets will not be amortized into earnings; instead these assets will be subject to periodic impairment testing. The fair value of IPR&D has been estimated utilizing a multi-period excess earnings method under the income approach, which reflects the present value of the projected cash flows that are expected to be generated, less charges representing the contribution of other assets to those cash flows that use projected cash flows with and without the intangible asset in place. On April 6, 2020, the Company announced that each of Menlo’s Phase III PN Trials (study MTI-105 and study MTI-106) did not meet their respective primary endpoint of demonstrating statistically significant reduction in pruritus in patients treated with serlopitant compared to placebo based upon a 4-point improvement responder analysis. The Company does not intend to further pursue the development of serlopitant. As such, the Company recorded a full impairment charge of $49.8 million related to the IPR&D asset in its unaudited condensed consolidated statements of operations and comprehensive loss for the nine months ended September 30, 2020. There were no impairment charges in the three and nine months ended September 30, 2021. CSR The CSR was issued pursuant to the CSR Agreement, dated as of March 9, 2020, by and between Menlo and American Stock Transfer & Trust Company, LLC, and represented the non-transferable contractual right to receive shares of common stock of Menlo depending on the results of Menlo’s Phase III PN Trials. The Company recognized a liability of $19.6 million in the unaudited condensed consolidated balance sheet as of March 9, 2020. The liability was measured at fair value and categorized as level 3 as of the acquisition date in accordance with ASC 805-31-25-5 and subsequently at each reporting date thereafter. The fair value of the CSR was estimated as the incremental value that Foamix would be able to achieve on a probability weighted basis assuming three different potential probabilities of the following scenarios: (a) serlopitant significance was achieved in both Phase III PN Trials (b) serlopitant significance was achieved in only one Phase III PN Trial and (c) serlopitant significance was not achieved or was not determined on or before May 31, 2020. On April 6, 2020, the Company announced that each of Menlo’s Phase III PN Trials (study MTI-105 and study MTI-106) did not meet their respective primary endpoint of demonstrating statistically significant reduction in pruritus in patients treated with serlopitant compared to placebo based upon a 4-point improvement responder analysis. Accordingly, on April 6, 2020, pursuant to the terms of the CSR Agreement, each CSR was converted into 1.2082 additional shares of Menlo common stock, resulting in an effective Exchange Ratio in the Merger of 1.8006 shares of Menlo common stock for each Foamix ordinary share. The CSR conversion resulted in the issuance and delivery of 74,544,413 additional shares of Menlo common stock underlying the CSRs, adjusted retrospectively to 18,636,103 shares of common stock upon the reverse stock split effective February 12, 2021. Following the conversion of the CSRs, pre-Merger Foamix shareholders and pre-Merger Menlo stockholders own approximately 82% and 18% of post-Merger Menlo, respectively, each calculated on a fully diluted basis. The conversion of the CSR also affected the Exchange Ratio of the pre-Merger Foamix equity awards and warrants outstanding as of March 9, 2020 and increased the awards available for grant under the Company's equity plan. The contingent consideration associated with the CSR was recognized and measured at fair value as of the acquisition date in accordance with ASC 805-30-25-5. An acquirer's obligation to pay contingent consideration should be classified as a liability or equity in accordance with ASC 480, Distinguishing Liabilities from Equity, ASC 815 Derivatives and Hedging, and other applicable U.S. GAAP. The contingent consideration associated with the CSR was initially measured at fair value and will subsequently be measured at fair value at each reporting date. The CSR was classified as a liability, as it is settled by issuing a variable number of the Company's common stock. On April 6, 2020, the Company recorded $84.7 million of expense in its unaudited condensed consolidated statements of operations and comprehensive loss to remeasure the CSR liability in its consolidated balance sheet to its fair value of $104.4 million (calculated based on 74,544,413 shares issued, adjusted retrospectively to 18,636,103 shares of common stock upon the reverse stock split effective February 12, 2021, and a share price of $1.40 on April 6, 2020) and then settled in connection with the issuance of shares. Pro Forma The actual Menlo net loss included in the Company’s unaudited condensed consolidated statements of operations and comprehensive income for the three and nine months ended September 30, 2020 (for the period from the March 9, 2020, the Effective Date, through September 30, 2020, which are not indicative of the results to be expected for a full year) and the supplemental unaudited pro forma revenue and net loss of the combined entity had the acquisition been completed on January 1, 2019 are as follows: Actual Menlo results of operations included in the unaudited condensed consolidated statement of operation for the three and nine months ended September 30, 2020: (in thousands) Three months ended September 30, 2020 Nine months ended September 30, 2020 (Unaudited) Revenues $ — $ — Loss attributable to Menlo $ 4,100 $ 23,737 Three months ended Nine months ended (in thousands, except per share data) (Unaudited) (Unaudited) SUPPLEMENTAL PRO FORMA COMBINED RESULTS OF OPERATIONS: Revenues $ 3,269 $ 16,707 Net loss $ 24,912 $ 229,994 Loss per share - basic and diluted $ 0.59 $ 7.89 Adjustments to the supplemental pro forma combined results of operations, included in the above, are as follows: Transaction costs $ — $ (14,931) Acceleration of stock based compensation — (7,199) Total Adjustments $ — $ (22,130) These unaudited pro forma condensed consolidated financial results have been prepared for illustrative purposes only and do not purport to be indicative of the results of operations that actually would have resulted had the acquisition occurred on the first day of the earliest period presented, or of future results of the consolidated entities. The unaudited pro forma condensed consolidated financial information does not reflect any operating efficiencies and cost savings that may be realized from the integration of the Merger.

REVENUE RECOGNITION

REVENUE RECOGNITION	9 Months Ended
	Sep. 30, 2021
Revenue from Contract with Customer [Abstract]
REVENUE RECOGNITION	REVENUE RECOGNITION Product Sales Product revenues for the three and nine months ended September 30, 2021 were generated from sales of AMZEEQ and ZILXI. The Company’s customers include a limited number of national and select regional distributors and certain independent and specialty pharmacies, together (the "customers"). The distributors subsequently resell the product, primarily to retail pharmacies that dispense the product to patients. Net product revenue is typically recognized when customers obtain control of the Company’s products, which occurs at a point in time, typically upon delivery of product to the customers. For the three months ended September 30, 2021, there were three major customers that each accounted for more than 10% of total product revenues and, as a group, represented 52% of total product revenues. For the nine months ended September 30, 2021, there were four major customers that each accounted for more than 10% of total product revenues and, as a group, represented 66% of total product revenues. For the three months ended September 30, 2020, there were three major customers that each accounted for more than 10% of total product revenues and as a group, represented 100% of total product revenues. For the nine months ended September 30, 2020, there were three major customers that each accounted for more than 10% of total product revenues and as a group, represented 99% of total product revenues. Product Sales Provisions Product revenue is recorded net of distribution fees, trade discounts, allowances, rebates, chargebacks, estimated returns and other incentives, described below. The Company calculates its net product revenue based on the wholesale acquisition cost that the Company charges its customers less provisions for (i) trade discounts and allowances, such as distributor fees and discounts for prompt payment, (ii) estimated rebates to third-party payers, patient co-pay assistance programs, chargebacks and other discount programs and (iii) reserves for expected product returns. Provisions for distribution fees, trade discounts and chargebacks are reflected as a reduction to trade receivables, net on the unaudited condensed consolidated balance sheet. All other provisions, including rebates, other discounts and return provisions are reflected as a liability within accrued expenses on the unaudited condensed consolidated balance sheet. Provisions for revenue reserves described below reduced product revenues by $16.6 million and $11.0 million for the three months ended September 30, 2021 and September 30, 2020, respectively. Provisions for revenue reserves described below reduced product revenues by $48.4 million and $25.1 million for the nine months ended September 30, 2021 and September 30, 2020, respectively. The revenue reserve accrual at September 30, 2021 and December 31, 2020 was $7.3 million and $5.8 million, respectively, reflected in accrued expense in the consolidated balance sheet. Distribution Fees and Trade Discounts and Allowances : The Company pays fees for distribution services and for certain data that distributors provide to the Company and generally provides discounts on sales to its distributors for prompt payment. These fees and discounts are contractual in nature and the Company expects its distributors to earn these fees and discounts, and accordingly deducts the full amount of these fees and discounts from its gross product revenues at the time such revenues are recognized. Rebates, Chargebacks and Other Discounts : Product sales made under managed-care and governmental pricing programs in the U.S. are subject to rebates. Managed Care rebates relate to contractual agreements to sell products to managed care organizations and pharmacy benefit managers at contractual rebate percentages in exchange for volume and/or market share. Chargebacks relate to contractual agreements to sell products to government agencies and other indirect customers at contractual prices that are lower than the list prices the Company charges wholesalers. When these government agencies or other indirect customers purchase products through wholesalers at these reduced prices, the wholesaler charges the Company for the difference between the prices they paid the Company and the prices at which they sold the products to the indirect customers. The Company estimates the rebates and chargebacks it expects to be obligated to provide and deducts these estimated amounts from its gross product revenue at the time the revenue is recognized. The Company estimates the rebates and chargebacks that it expects to be obligated to provide based upon (i) the Company's current contracts and negotiations, (ii) estimates regarding the payer mix based on third-party data and utilization, (iii) inventory held by distributors and (iv) estimates of inventory held at the retail channel. Other discounts include the Company’s co-pay assistance coupon programs for commercially-insured patients meeting certain eligibility requirements. The calculation of the accrual for co-pay assistance is based on an estimate of claims and the cost per claim that the Company expects to pay associated with product that has been recognized as revenue. Product Returns : Consistent with industry practice, customers are generally allowed to return products within a specified period of time before and after its expiration date. The Company estimates the amount of product that will be returned and deducts these estimated amounts from its gross revenue at the time the revenue is recognized. T he information utilized to estimate the returns provision includes: (i) historical industry information regarding rates for comparable pharmaceutical products and product portfolios , (ii) external data with respect to inventory levels in the wholesale distribution channel, (iii) external data with respect to prescription demand for products and (iv) remaining shelf lives of products at the date of sale. The Company estimates that approximately 2% of product will be returned. License Revenues On April 23, 2020, the Company announced that it entered into a license agreement with Cutia for AMZEEQ as well as certain of the Company's other topical minocycline product candidates, once approved, on an exclusive basis in Greater China. Under the terms of the agreement, Cutia will have an exclusive license to obtain regulatory approval of and commercialize AMZEEQ, ZILXI and, if approved in the U.S., FCD105 in the Greater China territory. The Company will supply the finished licensed products to Cutia for clinical and commercial use. Outside of the license transferred, the Company does not have any additional performance obligations under the arrangement. In exchange for the license, the Company received an upfront cash payment of $10.0 million in 2020 ($6.0 million received in the three months ended June 30, 2020 and $4.0 million received in the three months ended September 30, 2020) and will be eligible to receive an additional $1.0 million payment upon the receipt of marketing approval in China of the first licensed product. The license is considered functional IP as the licensee is able to use and benefit from the license without the continued involvement of the Company. There was no license revenue in the three months ended September 30, 2021. The Company recorded $10.0 million of license revenue in the nine months ended September 30, 2020. The Company will also receive royalties on net sales of any licensed products, such royalties will be recognized in the period the sales or usage occurs under the royalties sales-and usage based exception. The Company has not recorded revenue related to the $1.0 million payment due upon receipt of marketing approval for the licensed product as such amount is constrained under the variable consideration guidance under ASC 606, Revenue from Contracts with Customers. Contract Assets and Contract Liabilities The Company did not have any contract assets (unbilled receivables) related to product sales as of September 30, 2021 and December 31, 2020, as customer invoicing generally occurs before or at the time of revenue recognition. The Company did not have any contract assets (unbilled receivables) related to its license revenues as of September 30, 2021 and December 31, 2020. The Company did not have any contract liabilities as of September 30, 2021 and December 31, 2020, as the Company did not receive payments in advance of fulfilling its performance obligations to its customers. Sales Commissions Sales commissions are generally attributed to periods shorter than one year and therefore are expensed when incurred. Sales commissions are included in selling, general and administrative expenses. Financing Component The Company has elected not to adjust consideration for the effects of a significant financing component when the period between the transfer of a promised good or service to the customer and when the customer pays for that good or service will be one year or less. Standard credit terms do not exceed 75 days. Royalty Revenues The Company is entitled to royalty payments with respect to sales of a product developed by a customer in collaboration with the Company. Revenues in the amount of $0.1 million and $0.7 million were recorded during the three and nine months ended September 30, 2021, respectively. Revenues in the amount of $0.4 million and $0.6 million were recorded during the three and nine months ended September 30, 2020, respectively.

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT	9 Months Ended
	Sep. 30, 2021
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENT	FAIR VALUE MEASUREMENT The Company’s assets and liabilities that are measured at fair value as of December 31, 2020, are classified in the table below in one of the three categories described in Note 2 above: December 31, 2020 Level 1 Level 2 Level 3 Total Marketable securities $ 1,027 $ — $ — $ 1,027 The Company sold its marketable securities during the nine months ended September 30, 2021.

MARKETABLE SECURITIES

MARKETABLE SECURITIES	9 Months Ended
	Sep. 30, 2021
Investments, Debt and Equity Securities [Abstract]
MARKETABLE SECURITIES	MARKETABLE SECURITIES Marketable securities as of December 31, 2020 consist mainly of mutual funds securities. The debt securities are classified as available-for-sale and are recorded at fair value. Changes in fair value, net of taxes (if applicable), are reflected in other comprehensive loss. Realized gains and losses on sales of the securities, as well as premium or discount amortization, are included in the unaudited condensed consolidated statement of operations as other expense (income), net. Equity securities with readily determinable fair value are measured at fair value. The changes in the fair value of equity investments are recognized through other expense (income), net in the unaudited condensed consolidated statements of operations. The following table sets forth the Company’s marketable securities: September 30 December 31 (in thousands) 2021 2020 Israeli mutual funds $ — $ 1,027 As of September 30, 2021 and December 31, 2020 there were no available-for-sale debt securities. The Company has considered factors regarding other than temporary impaired securities and determined that there are no securities with impairment that is other than temporary as of September 30, 2021 and December 31, 2020. During the nine months ended September 30, 2021 and September 30, 2020 the Company received aggregate proceeds of $1.0 million and $36.4 million, respectively, upon sale and maturity of marketable securities.

INVENTORY

INVENTORY	9 Months Ended
	Sep. 30, 2021
Inventory Disclosure [Abstract]
INVENTORY	INVENTORY Inventories are stated at the lower of cost and net realizable value with cost determined on a first-in, first-out basis by product. The Company capitalizes inventory costs associated with products following regulatory approval when future commercialization is considered probable and the future economic benefit is expected to be realized. The Company commenced capitalizing inventory for AMZEEQ and ZILXI upon FDA approval in October 2019 and May 2020, respectively. The Company periodically reviews its inventory levels and, if necessary, writes down inventory that is expected to expire prior to being sold, inventory in excess of expected sales requirements and inventory that fails to meet commercial sale specifications, with a corresponding charge to cost of goods sold. There were no material write-downs during the three and nine months ended September 30, 2021 and September 30, 2020. The Company evaluated the realizability of inventory giving consideration to the strategic business review discussed in Note 1 and no impairment charges resulted from this review as of September 30, 2021. The Company will continue to evaluate the realizability of its inventory during the process to explore a possible sale or license of its topical minocycline franchise. The following table sets forth the Company’s inventory: September 30 December 31 (in thousands) 2021 2020 Raw materials $ 3,247 $ 4,042 Work-in-process 339 662 Finished goods 4,484 2,700 Total $ 8,070 $ 7,404

DEBT

DEBT	9 Months Ended
	Sep. 30, 2021
Debt Disclosure [Abstract]
DEBT	DEBT On July 29, 2019, Foamix entered into a Credit Agreement (the "Credit Agreement") to secure up to $50 million from two lenders, one of which is a significant stockholder of the Company and is considered a related party, and a Securities Purchase Agreement with one of the lenders for gross proceeds of approximately $14 million, before deducting offering expenses (see “Note 9- Share Capital” for more information). On March 9, 2020, the Company entered into an Amended and Restated Credit Agreement and Guaranty (as further amended on August 5, 2020, the “Amended and Restated Credit Agreement”), whereby the Company has guaranteed the indebtedness obligations of the borrower and granted a first priority security interest in substantially all of the Company's assets for the benefit of the lenders. As December 31, 2020, $35.0 million was drawn under the Amended and Restated Credit Agreement. The Company did not incur the remaining $15.0 million under the Amended and Restated Credit Agreement. The term loans available under the Amended and Restated Credit Agreement were comprised as follows: (a) $15 million that was funded on July 29, 2019 (the “Tranche 1 Loan”), (b) $20 million that was funded on December 17, 2019 (the “Tranche 2 Loan”) and (c) up to $15 million that was available prior to September 30, 2020 (the “Tranche 3 Loan”). The Tranche 2 Loan was borrowed following the FDA’s approval of the NDA for AMZEEQ and listing of AMZEEQ in the FDA’s “Orange Book,” in addition to maintaining arrangements with a third party for the commercial supply and manufacture of AMZEEQ. The Company did not incur the Tranche 3 Loan. Interest on the loans was equal to the sum of (A) 8.25% (subject to increase in accordance with the terms of the Amended and Restated Credit Agreement) plus (B) the greater of (x) the one-month LIBOR as of the second business day immediately preceding the first day of the calendar month or the date of borrowing (if such loan is not outstanding as of the first day of the calendar month), as applicable, and (y) 2.75%. The loans were scheduled to mature on July 29, 2024. However, following discussions with the Company's lenders regarding the revenue targets included in the Amended and Restated Credit Agreement, the revenue expected to be generated for the trailing twelve month period ended June 30, 2021 and the Company's strategic transition discussed in Note 1, the Company determined to prepay its outstanding indebtedness in addition to a 4% prepayment fee and accrued but unpaid interest in the total amount of approximately $36.5 million on August 11, 2021. Following the prepayment, the Amended and Restated Credit Agreement and the security interests thereunder were terminated. As of September 30, 2021 there was no debt outstanding. Perceptive Credit Holdings II, LP (“Perceptive”) was one of the lenders and the administrative agent under the Amended and Restated Credit Agreement. As of September 30, 2021 and August 11, 2021, the date of the prepayment, affiliates of Perceptive were holders of more than 5% of the Company's outstanding common stock. In connection with the prepayment of the Company's indebtedness, Perceptive received $18.3 million, representing their portion of the principal amount, interest and prepayment premium. In addition, on July 29, 2019, the lenders under the Credit Agreement were issued warrants to purchase up to an aggregate of 1,100,000 of Foamix ordinary shares, at an exercise price of $2.09 per share (the “Warrants”), which represented the five-day volume weighted average price of the Foamix ordinary shares as of the trading day immediately prior to the issuance of the Warrants. In connection with the completion of the Merger, the exchange ratio was applied to the Warrants such that they became exercisable for 651,640 shares of the Company’s common stock, and the exercise price was adjusted to $3.53. Following the Phase 3 PN Trial results, the Warrants were further adjusted for the CSR and reverse stock split and they are currently exercisable for 495,165 shares of our common stock with an exercise price of $4.64 per share. Payment of the exercise price will be made, at the option of the holder, either in cash or as a reduction of common stock issuable upon exercise of the Warrant, with an aggregate fair value equal to the aggregate exercise price ("cashless exercise"), or any combination of the foregoing. The Warrants are exercisable pursuant to the terms, and subject to the conditions, thereof and expire on July 29, 2026. Any Warrants left outstanding will be cashless exercised on the Warrants' expiration date, if in the money. The Warrants issued were classified as equity in accordance with ASC 815-40. Proceeds received under the Tranche 1 Loan were allocated to the Warrants and the Tranche 1 Loan on a relative fair value basis. The Company incurred offering expenses of $1.1 million in connection with transactions contemplated by the Credit Agreement and the Securities Purchase Agreement, which were allocated to the Warrants, shares and debt consistently with the allocation of proceeds. The Company incurred additional expenses in the amount of $0.3 million from the borrowing of Tranche 2 Loan, allocated only to the debt. Debt issuance costs are recorded on the consolidated balance sheet as a reduction of liabilities. Amounts allocated to the debt, net of issuance cost, were subsequently recognized at amortized cost using the effective interest method.

SHARE CAPITAL

SHARE CAPITAL	9 Months Ended
	Sep. 30, 2021
Equity [Abstract]
SHARE CAPITAL	SHARE CAPITAL Preferred stock As of September 30, 2021, the Company's Certificate of Incorporation, as amended, authorizes the Company to issue 20,000,000 shares of preferred stock, par value $0.0001 per share. There were no shares of preferred stock issued and outstanding as of September 30, 2021 and December 31, 2020. Shares of preferred stock may be issued from time to time in one or more series. The voting powers (if any), preferences and relative, participating, optional or other special rights, and the qualifications, limitations and restrictions of any series of preferred stock will be set forth in a Certificate of Designation filed pursuant to the Delaware General Corporation Law, as determined by the Company's Board of Directors. Common stock The number of shares of common stock authorized under the Company's Amended and Restated Certificate of Incorporation was proportionately reduced in connection with the Company's one-for-four reverse stock split in February 2021. On July 19, 2021, the Company held its annual meeting of stockholders (the "Annual Meeting"). Following the approval by the holders of a majority of the outstanding shares of common stock at the Annual Meeting, the Company filed a Certificate of Amendment to its Amended and Restated Certificate of Incorporation to increase the number of authorized shares of common stock from 75,000,000 to 150,000,000 shares, effective as of July 19, 2021. Accordingly, the Company is authorized to issue 150,000,000 shares of common stock, par value $0.0001 per share. Each share of common stock is entitled to one vote. The holders of common stock are also entitled to receive dividends whenever funds are legally available and when and if declared by the board of directors, subject to the prior rights of holders of all classes of preferred stock outstanding. The Company has never declared any dividends on common stock. Issuance of stock On February 1, 2019, the Company entered into a Sales Agreement (the "2019 Sales Agreement") with Cantor Fitzgerald & Co., or Cantor Fitzgerald, to sell shares of the Company's common stock, from time to time, with aggregate gross sales proceeds of up to $50.0 million through an at-the-market equity offering program under which Cantor Fitzgerald acted as the Company's sales agent. The issuance and sale of shares of common stock by us pursuant to the 2019 Sales Agreement were deemed an "at-the-market" offering under the Securities Act. Cantor Fitzgerald was entitled to compensation for its services equal to up to 3.0% of the gross proceeds of any shares of common stock sold under the 2019 Sales Agreement. From January 1, 2021 through January 25, 2021, the Company issued and sold 2,778,012 shares of common stock at a weighted average price per share of $9.76 pursuant to the 2019 Sales Agreement for $26.3 million in net proceeds. Effective as of January 25, 2021, the Company terminated the 2019 Sales Agreement. On August 12, 2021, the Company entered into a new sales agreement with Cantor Fitzgerald to sell shares of the Company's common stock, from time to time, with aggregate gross sales proceeds of up to $50.0 million through an at-the-market equity offering program under which Cantor Fitzgerald will act as the Company's sales agent. The issuance and sale of shares of common stock by us pursuant to the Sales Agreement are deemed an "at-the-market" offering under the Securities Act. Cantor Fitzgerald is entitled to compensation for its services equal to up to 3.0% of the gross proceeds of any shares of common stock sold under the Sales Agreement. During the three months ended September 30, 2021, the Company issued and sold 1,948,000 shares of common stock at a weighted average per share price of $1.57 pursuant to the Sales Agreement for $2.9 million in net proceeds. On January 26, 2021, the Company entered into a Securities Purchase Agreement with certain institutional and accredited investors for the sale of an aggregate of 5,274,261 shares of common stock of the Company, at a purchase price of $9.48 per share in a registered direct offering. The offering was completed on January 28, 2021 and the Company received approximately $46.8 million in net proceeds, after deducting placement agent fees and other offering expenses. On June 9, 2020, the Company completed an underwritten public offering of 7,776,875 shares of common stock at a price to the public of $7.40 per share. The net proceeds of the offering were approximately $53.6 million, after deducting underwriting discounts and commissions and other offering expenses. Pursuant to the completion of the Merger, on March 9, 2020, the Company issued 36,550,335 shares to legacy Foamix shareholders. On April 6, 2020, pursuant to the terms of the CSR Agreement, the Company issued an additional 74,544,413 shares to legacy Foamix shareholders, adjusted retrospectively to 18,636,103 shares of common stock upon the reverse stock split effective February 12, 2021. Warrants In connection with entering into the Credit Agreement on July 29, 2019, Foamix issued to the lenders Warrants to purchase up to an aggregate of 1,100,000 of its ordinary shares, later exchanged to Warrants to purchase up to 1,980,660 shares of Menlo’s common stock, adjusted retrospectively to 495,165 shares of common stock upon the reverse stock split effective February 12, 2021. Upon the closing of the Merger, each Warrant received one CSR as described in Note 3- Business Combinations. The Warrants were exercisable immediately following the closing of the Credit Agreement, subject to the terms of the warrant, and are due to expire on July 29, 2026. Any Warrants left outstanding will be cashless exercised on the Warrants’ expiration date, if in the money. The exchange of Warrants from Foamix warrants to Menlo warrants and the additional CSR was accounted for as a modification, by analogy, from the modification’s guidance under ASC 260-10-S99-2. The Company assessed the significance of the modification of the Warrants by comparing the fair value of the Warrants immediately before and after the amendments. In its assessment, it also considered additional qualitative factors. The Company concluded that the change of terms was not significant. Therefore, the incremental fair value, in the amount of $41,000, of the modified Warrants over the original ones (as of modification date) was recognized in retained earnings as a deemed dividend to the Warrants holders in the nine months ended September 30, 2020. Share-based compensation Equity incentive plans: Upon closing of the Merger, the Company adopted Foamix’s 2019 Equity incentive plan (the “2019 Plan”). As of September 30, 2021, 509,158 shares remain issuable under the 2019 Plan. In addition, the Company adopted the 2018 Omnibus Incentive Plan (the "2018 Plan") in January 2018. In January 2020, the number of shares reserved under the 2018 Plan automatically increased by 750,000 shares of common stock pursuant to the terms thereof. As of September 30, 2021, 81,925 shares remain issuable under the 2018 Plan. Employee Share Purchase Plan: Upon closing of the Merger, the Company adopted Foamix’s Employee Share Purchase Plan ("ESPP") pursuant to which qualified employees (as defined in the ESPP) may elect to purchase designated shares of the Company’s common stock at a price equal to 85% of the lesser of the fair market value of the common stock at the beginning or end of each semi-annual share purchase period (“Purchase Period”). Employees are permitted to purchase the number of shares purchasable with up to 15% of the earnings paid (as such term is defined in the ESPP) to each of the participating employees during the Purchase Period, subject to certain limitations under Section 423 of the U.S. Internal Revenue Code. As of September 30, 2021, 2,261,108 shares remain available for grant under the ESPP. During the nine months ended September 30, 2021, 42,989 shares were issued to employees pursuant to the ESPP. During the nine months ended September 30, 2020, 61,031 Foamix ordinary shares were purchased by Foamix employees pursuant to the ESPP prior to the Merger. Such shares were later exchanged for 36,155 shares of the Company's common stock and one CSR in the Merger, adjusted retrospectively to 9,038 shares of common stock and one CSR upon the reverse stock split effective February 12, 2021. Options and RSUs granted to employees and directors: In the nine months ended September 30, 2021 and 2020, the Company granted options and RSUs as follows: Nine months ended September 30, 2021 Award Exercise price Vesting period Expiration Employees and Directors: Options 1,686,405 $1.68-$11.08 1 year - 4 years 10 years RSUs 970,813 — 2 years - 4 years — Nine months ended September 30, 2020 Award Exercise price Vesting period Expiration Employees and Directors: Options 1,316,637 $5.84-$12.52 1 year - 4 years 10 years RSUs 647,427 — 1 year - 4 years — * All amounts and exercise prices for pre-Merger grants are presented following the exchange to Menlo options and RSUs at the Exchange Ratio described in Note 3-Business Combination. The fair value of options and RSUs granted to employees and directors during the nine months ended September 30, 2021 and the nine months ended September 30, 2020 was $9.4 million and $11.8 million, respectively. The fair value of RSUs granted is based on the share price on the grant date. The fair value of options granted was computed using the Black-Scholes model. The underlying data used for computing the fair value of the options are as follows: Nine months ended 2021 2020 Dividend yield 0 % 0 % Expected volatility 68.38% - 69.38% 60.44% - 69.83% Risk-free interest rate 0.5% - 1.29% 0.31% - 1.26% Expected term 6 years 6 years Pursuant to the Merger, all outstanding options and RSUs granted by Foamix were exchanged for stock options and RSUs of Menlo’s common stock according to the Exchange Ratio. In addition, for each option and RSU the holder received a CSR as described in Note 3- Business Combination. This transaction was considered by the company to be a modification under ASC 718, Compensation - Stock Compensation. The modification did not affect the remaining requisite service period. As a result of the modification, for outstanding options and RSUs granted to Foamix employees and consultants, the Company recorded immaterial incremental compensation expense for the three months ended March 31, 2020. As described in Note 3 - Business Combination, on April 6, 2020, pursuant to the terms of the CSR Agreement, each CSR was converted into 1.2082 shares of Menlo common stock, resulting in an effective Exchange Ratio in the Merger of 1.8006 shares of Menlo common stock for each Foamix ordinary share. The conversion was considered by the company to be a modification under ASC 718. As a result of the modification, for outstanding options and RSUs granted to Foamix employees and consultants, the Company recorded incremental compensation of $0.5 million and $1.8 million for the three and nine months ended September 30, 2021, respectively, and $1.1 million and $10.4 million for the three and nine months ended September 30, 2020, respectively. As of September 30, 2021 there is $1.5 million of unrecognized incremental compensation expense related to the modification which will primarily be amortized using a graded vesting method over the next 2 years. Awards granted to holders who are no longer employed or providing services to the Company are accounted for in accordance with ASC 815-40, Derivatives and Hedging. Under this guidance, the awards are classified as a derivative liability because the award no longer exchanges a fixed amount of cash for a fixed number of shares. Accordingly, as of March 9, 2020 the Company reclassified $1.6 million from additional paid-in capital to derivative liability on the unaudited condensed consolidated balance sheet. Prior to the reclassification of these awards as a liability instrument, the Company recorded an incremental compensation expense of $0.6 million due to the above mentioned modification in accordance with ASC 718. Subsequent to the reclassification of these awards as a liability instrument, the Company recorded incremental compensation expense of $1.0 million for the nine months ended September 30, 2020. There was no incremental compensation expense for the three and nine months ended September 30, 2021. As described in Note 3 - Business Combination, on April 6, 2020, the Company announced that study MTI-105 and study MTI-106 did not meet their respective primary endpoint of demonstrating statistically significant reduction in pruritus in patients treated with serlopitant compared to placebo based upon a 4-point improvement responder analysis. Accordingly, on April 6, 2020, pursuant to the terms of the CSR Agreement, each CSR was converted into 1.2082 shares of Menlo common stock, resulting in an effective Exchange Ratio in the Merger of 1.8006 shares of Menlo common stock for each Foamix ordinary share. On April 6, 2020, the awards are exchangeable for a fixed amount of cash for a fixed number of shares and were remeasured to fair value and reclassified from derivative liability to additional paid-in capital. Prior to the Merger, Menlo recognized all expenses relating to awards outstanding as of the Effective Date. These awards were subject to acceleration upon the change of control per the previous Menlo stock option plan. The following table illustrates the effect of share-based compensation on the statements of operations: Three months ended September 30 Nine months ended September 30 (in thousands) 2021 2020 2021 2020 Research and development expenses $ 435 $ 361 $ 1,335 $ 3,927 Selling, general and administrative 1,970 2,259 5,413 11,220 Total $ 2,405 $ 2,620 $ 6,748 $ 15,147

OPERATING LEASE

OPERATING LEASE	9 Months Ended
	Sep. 30, 2021
Leases [Abstract]
OPERATING LEASE	OPERATING LEASEOperating lease agreements The Company has operating leases for corporate offices and vehicles. The properties primarily relate to the Company’s principal executive office in Bridgewater, New Jersey and office space in Israel. On March 13, 2019, the Company signed an amendment to the original lease agreement for its principal executive office in Bridgewater, New Jersey (the “Lease Amendment”). The Lease Amendment includes an extension of the lease period of the 10,000 square feet previously leased under the original agreement (the “Original Space”) and an addition of 4,639 square feet (the “Additional Space”). The Company entered the Additional Space following a period of preparation by the lessor completed during September 2019 (the “Commencement Date”). The Lease Amendment is due to expire on August 31, 2022. Pursuant to the Lease Amendment, the Company recognized an additional right of use asset and liability in the amount of $0.7 million. The Additional Space was considered a new lease agreement and was recognized as a right of use asset and liability, in the amount of $0.3 million, on the Commencement Date. The lease agreement for the office space in Israel is a one year lease that expires in December 2021. Given the short-term nature of the lease term, the Company did not recognize a right-of-use asset and liability. Additionally, the Company entered into operating lease agreements in connection with the leasing of vehicles. The lease periods are generally for three years. Maturities of lease liabilities are as follows: (in thousands) 2021 $ 229 2022 761 2023 151 Total lease payments 1,141 Less imputed interest 89 Total lease liability $ 1,052 As of September 30, 2021, the Company had a lien in the amount of $0.6 million on the Company’s cash in respect of bank guarantees granted in order to secure the lease agreements.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES The Company may periodically become subject to legal proceedings and claims arising in connection with its business. As of September 30, 2021, no claims or actions are pending against the Company that, in the opinion of management, are likely to have a material adverse effect on the Company. As previously disclosed, on June 30, 2021, the Company received a paragraph IV certification notice (the “Notice”) from Padagis Israel Pharmaceuticals Ltd. (f/k/a Perrigo Israel Pharmaceuticals Ltd. (“Padagis”)) advising that Padagis has submitted to the U.S. Food and Drug Administration (the “FDA”) an Abbreviated New Drug Application (“ANDA”) seeking approval to manufacture and sell a generic version of the Company’s product AMZEEQ® (minocycline) topical foam, 4% in the United States prior to the expiration of the Company’s U.S. patents Nos. 8,865,139, 8,945,516, 8,992,896, 9,675,700, 10,086,080, 10,137,200, 10,213,512, 10,265,404, 10,398,641, 10,517,882, 10,821,187, and 10,849,847 (the “Listed Patents”), which are listed in the FDA’s Approved Drug Products with Therapeutic Equivalence Evaluations, otherwise known as the “Orange Book.” The Notice alleges that the Listed Patents are invalid, unenforceable, and/or will not be infringed by the commercial manufacture, use or sale of the generic product described in Padagis’s ANDA. On August 9, 2021, the Company initiated a patent infringement suit against Padagis in the United States District Court for the District of Delaware arising from Padagis’s ANDA filing with the FDA. The patent infringement suit asserts each of the Listed Patents. As a result, under applicable law, the FDA cannot grant final approval to Padagis’s ANDA before December 30, 2023, or a court decision in Padagis’s favor. VYNE is seeking, among other relief, an order that the effective date of any FDA approval of Padagis’s ANDA be no earlier than the expiration of the Listed Patents, the latest of which expires on September 8, 2037, and such further and other relief as the court may deem appropriate. Padagis filed its response and counterclaim on October 1, 2021. The Company filed its response to such counterclaim on October 22, 2021.

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The unaudited interim condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial statements. In the opinion of management, the Company has made all necessary adjustments, which include normal recurring adjustments necessary for a fair statement of the Company’s unaudited condensed consolidated financial position, results of operations, cash flow and statement of stockholders' equity for the interim periods presented. Certain information and disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. Certain prior period amounts have been reclassified to conform to current year presentation. These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements contained in the Company's Current Report on Form 8-K dated August 12, 2021. The results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results expected for the year ending December 31, 2021.
Principles of Consolidation	Principles of ConsolidationThe consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany balances and transactions have been eliminated upon consolidation.
Use of Estimates	Use of Estimates The preparation of unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and reported amounts of income and expenses during the reporting periods. Significant items subject to such estimates and assumptions include accounting for business combinations, impairments of goodwill and intangible assets and revenue recognition. Actual results could differ from the Company’s estimates. The COVID-19 pandemic and government measures taken in response to the pandemic have had a negative impact on the Company's operations. Access to healthcare providers has been limited, which has negatively impacted sales and the Company's ability to execute its commercial strategy with respect to AMZEEQ and ZILXI. The length of time and extent to which the COVID-19 pandemic will directly or indirectly impact the Company's business, results of operations and financial condition and liquidity will depend on future developments that are highly uncertain, subject to change and will continue to evolve with geographical re-openings, surges in cases, the emergence of new strains and the vaccination effort. In addition, the Company further assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company and the unknown future impacts of COVID-19 as of September 30, 2021 and through the date of this report. The accounting matters assessed included, but were not limited to, the Company’s allowance for doubtful accounts and credit losses, inventory and related reserves, impairments of long-lived assets and revenue recognition. In 2020, the Company recorded impairments of goodwill and certain indefinite-lived intangible assets; however, these were unrelated to the impact of COVID-19 (See "Note 3 - Business Combination" for more information). The Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in material impacts to the Company’s consolidated financial statements in future reporting periods
Business Acquisition	Business Acquisition The Company’s unaudited interim condensed consolidated financial statements include the operations of an acquired business after the completion of the acquisition. The Company accounts for acquired businesses using the acquisition method of accounting, which requires, among other things, that most assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date and that the fair value of In-Process Research and Development and Goodwill be recorded on the balance sheet. Transaction costs are expensed as incurred. Amounts recorded in connection with an acquisition can result from a complex series of judgments about future events and uncertainties and can rely heavily on estimates and assumptions. The Company is required to measure certain assets and liabilities at fair value, either upon initial recognition or for subsequent accounting or reporting. For example, the Company uses fair value in the initial recognition of net assets acquired in a business combination and when measuring impairment losses. The Company estimates fair value using an exit price approach, which requires, among other things, that Company determine the price that would be received to sell an asset or paid to transfer a liability in an orderly market. The determination of an exit price is considered from the perspective of market participants, considering the highest and best use of non-financial assets and, for liabilities, assuming that the risk of non-performance will be the same before and after the transfer. When estimating fair value, depending on the nature and complexity of the asset or liability, the Company may use one or all of the following techniques: • Income approach, which is based on the present value of a future stream of net cash flows. • Market approach, which is based on market prices and other information from market transactions involving identical or comparable assets or liabilities. • Cost approach, which is based on the cost to acquire or construct comparable assets, less an allowance for functional and/or economic obsolescence. Our fair value methodologies depend on the following types of inputs: • Quoted prices for identical assets or liabilities in active markets (Level 1 inputs). • Quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are directly or indirectly observable, or inputs that are derived principally from, or corroborated by, observable market data by correlation or other means (Level 2 inputs). • Unobservable inputs that reflect estimates and assumptions (Level 3 inputs). A single estimate of fair value can result from a complex series of judgments about future events and uncertainties and can rely heavily on estimates and assumptions. Asset Impairment The Company reviews all of its long-lived assets for impairment indicators throughout the year. Impairment testing is performed for indefinite-lived intangible assets annually (or sooner if warranted) and for all other long-lived assets whenever impairment indicators are present. When necessary, the Company records charges for impairments of long-lived assets for the amount by which the fair value is less than the carrying value of these assets.
Revenue Recognition	Revenue RecognitionThe Company accounts for its revenue transactions under FASB ASC Topic 606, Revenue from Contracts with Customers. In accordance with ASC Topic 606, the Company recognizes revenues when its customers obtain control of its product for an amount that reflects the consideration it expects to receive from its customers in exchange for that product. To determine revenue recognition for contracts that are determined to be in scope of ASC Topic 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies the performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once the contract is determined to be within the scope of ASC Topic 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when such performance obligation is satisfied. The Company’s customers include a limited number of national and select regional wholesalers (the “distributors”) and certain independent and specialty pharmacies (together, the “customers”). These distributors subsequently resell the product, primarily to retail pharmacies that dispense the product to patients. Net product revenue is typically recognized when customers obtain control of the Company’s products, which occurs at a point in time, typically upon delivery of product to the customers. The Company evaluates the creditworthiness of its customers to determine whether it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur. The Company does not assess whether a contract has a significant financing component if the expectation is such that the period between the transfer of the promised goods to the customer and the receipt of payment will be less than one year. Standard credit terms do not exceed 75 days. The Company expenses incremental costs of obtaining a contract as and when incurred if the expected amortization period of the asset that would have been recognized is one year or less or the amount is immaterial. Shipping and handling costs related to the Company’s product sales are included in selling, general and administrative expenses. The Company’s net product revenues through September 30, 2021 were generated through sales of AMZEEQ, which was approved by the FDA in October 2019 and was commercially launched in the United States in January 2020, and ZILXI, which was approved by the FDA in May 2020 and was commercially launched in the United States in October 2020. Product revenue is recorded net of distribution fees, trade discounts, allowances, rebates, copay program coupons, chargebacks, estimated returns and other incentives. These reserves are classified as either reductions of accounts receivable or as current liabilities. The estimates of reserves established for variable consideration reflect current contractual and statutory requirements, known market events and trends, industry data and forecasted customer mix. The transaction price, which includes variable consideration reflecting the impact of discounts and allowances, may be subject to constraint and is included in the net product revenues only to the extent that it is probable that a significant reversal of the amount of the cumulative revenues recognized will not occur in a future period. Actual amounts may ultimately differ from these estimates. If actual results vary, estimates may be adjusted in the period such change in estimate becomes known, which could have an impact on earnings in the period of adjustment. See “Note 4 – Revenue Recognition” for more information. On April 23, 2020, the Company announced that it entered into a license agreement with Cutia for our minocycline products and product candidate, if approved, on an exclusive basis in Greater China. Under the terms of the agreement, Cutia will have an exclusive license to obtain regulatory approval of and commercialize AMZEEQ, ZILXI and, if approved in the U.S., FCD105 in the Greater China territory. The Company will supply the finished licensed products to Cutia for clinical and commercial use. The Company received an upfront cash payment of $10.0 million in 2020 ($6.0 million received in the three months ended June 30, 2020 and $4.0 million received in the three months ended September 30, 2020) and will be eligible to receive an additional $1.0 million payment upon the receipt of marketing approval in China of the first licensed product. The Company will also receive royalties on net sales of any licensed products. The license is determined to be a distinct performance obligation of the arrangement, therefore the Company recognized the revenues from the upfront license fee when the license was transferred to the licensee and the licensee was able to use and benefit from the license. See "Note 4 - Revenue Recognition" for more information.
Allowance for credit losses	Allowance for credit lossesAn allowance for doubtful accounts is maintained for potential credit losses based on the aging of trade receivables, historical bad debts experience and changes in customer payment patterns. Trade receivable balances are written off against the allowance when it is deemed probable that the receivable will not be collected. Trade receivables, net are stated net of reserves for certain sales allowances and provisions for doubtful accounts. Provisions for doubtful accounts were not material for the three and nine months ended September 30, 2021 and September 30, 2020.
Fair value measurement	Fair value measurement Fair value is based on the price that would be received from the sale of an asset or that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, the guidance establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described as follows: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data or active market data of similar or identical assets or liabilities. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and considers counterparty credit risk in its assessment of fair value.
Loss per share	Loss per share Net loss per share, basic and diluted, is computed on the basis of the net loss for the period divided by the weighted average number of common shares outstanding during the period. Diluted net loss per share is based upon the weighted average number of common stock and of common stock equivalents outstanding when dilutive. Common stock equivalents include outstanding stock options and warrants which are included under the treasury share method when dilutive. The calculation of the weighted-average number of common stock outstanding during the period in which the reverse merger occured was based on: a. The number of common stock outstanding from the beginning of that period to the merge date was computed on the basis of the weighted-average number of common stock of the legal acquiree (accounting acquirer) outstanding during the period multiplied by the exchange ratio established in the merger agreement b. The number of common stock outstanding from the merge date to the end of that period was the actual number of common stock of the legal acquirer (the accounting acquiree) outstanding during that period. The following weighted average stock options, restricted stock units (“RSUs”), warrants and incremental shares to be issued under the employee stock purchase plan (“ESPP”) were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented (share data): Three months ended September 30 Nine months ended September 30 2021 2020 2021 2020 Outstanding stock options, RSUs and shares under the ESPP 5,223,466 5,191,299 5,303,135 3,756,049 Warrants 495,165 495,165 495,165 377,542 In addition to the above, the CSR was excluded from the calculation of the 2020 diluted net loss per share because its effect would have been anti-dilutive for the periods presented. On April 6, 2020, the Company announced that each of Menlo’s Phase III PN Trials (study MTI-105 and study MTI-106) did not meet their respective primary endpoint of demonstrating statistically significant reduction in pruritus in patients treated with serlopitant compared to placebo based upon a 4-point improvement responder analysis. Each CSR was converted into 1.2082 shares of Menlo common stock, resulting in an effective exchange ratio (the "Exchange Ratio") in the Merger of 1.8006 shares of Menlo common stock for each Foamix ordinary share. The conversion of the CSR also affected the Exchange Ratio of the pre-Merger Foamix equity awards and warrants outstanding as of March 9, 2020. See "Note 3 - Business Combination" for more information.
Newly issued and recently adopted accounting pronouncements	Newly issued and recently adopted accounting pronouncements Recent Accounting Guidance Issued: In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes," which clarifies and simplifies certain aspects of the accounting for income taxes. The standard is effective for years beginning after December 15, 2020, and interim periods beginning after December 15, 2020. This guidance became effective during the first quarter of 2021. The adoption of the new standard did not have a material impact to the Company's consolidated financial statements. In March 2020, the FASB issued Accounting Standards Update No. 2020-4, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" (ASU 2020-4), which provides guidance to alleviate the burden in accounting for reference rate reform by allowing certain expedients and exceptions in applying generally accepted accounting principles to contracts, hedging relationships, and other transactions impacted by reference rate reform. The provisions of ASU 2020-4 apply only to those transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. Adoption of the provisions of ASU 2020-4 are optional and are effective from March 12, 2020 through December 31, 2022. The Company is currently evaluating the impact of ASU 2020-4 on its consolidated financial statements. In June 2016, the FASB issued Accounting Standards Update No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (ASU 2016-13), which requires companies to measure credit losses of financial instruments, including customer accounts receivable, utilizing a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. Subsequent to the issuance of ASU 2016-13, the FASB issued several additional Accounting Standard Updates to clarify implementation guidance, provide narrow-scope improvements and provide additional disclosure guidance. As a smaller reporting company, the Company will adopt ASU 2016-13 effective January 1, 2023 or at such time where it is no longer a smaller reporting company.

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following weighted average stock options, restricted stock units (“RSUs”), warrants and incremental shares to be issued under the employee stock purchase plan (“ESPP”) were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented (share data): Three months ended September 30 Nine months ended September 30 2021 2020 2021 2020 Outstanding stock options, RSUs and shares under the ESPP 5,223,466 5,191,299 5,303,135 3,756,049 Warrants 495,165 495,165 495,165 377,542

BUSINESS COMBINATION (Tables)

BUSINESS COMBINATION (Tables)	9 Months Ended
	Sep. 30, 2021
Business Combination and Asset Acquisition [Abstract]
Schedule of Merger Consideration to be Transferred	The following is the Merger Consideration (as defined in the Merger Agreement) was transferred to effect the Merger: (in thousands) Total Deemed (for accounting purposes only) issuance of Foamix shares to Menlo stockholders $ 123,757 Deemed (for accounting purposes only) conversion of Menlo equity awards 7,322 Total consideration* $ 131,079 * This amount reflects total consideration prior to reduction in respect of the CSRs (which had a fair value of $19.6 million as of the Merger Date) that were issued to Foamix shareholders and that reduced the Menlo stockholders’ relative ownership in the combined company. If the effect of the CSRs is included, the total consideration deemed paid by Foamix, as the accounting acquirer, to Menlo stockholders and equity award holders in the Merger would be reduced to approximately $111.4 million, as shown in the purchase price allocation table below.
Schedule of Allocation of the Purchase Price to the Fair Values of Assets Acquired and Liabilities Assumed	The Company completed its analysis of the allocation of the purchase price to the fair values of assets acquired and liabilities assumed as follows: (in thousands) March 9, 2020 Cash and cash equivalents $ 38,641 Investment in marketable securities 22,703 Prepaid expenses and other current assets 1,581 In-process research and development 49,800 Goodwill 4,545 Total assets 117,270 Current liabilities (5,827) Total liabilities (5,827) Purchase price* $ 111,443 * Reflects reduction in the purchase price deemed paid to Menlo stockholders in the Merger on the assumption that the CSRs, in an aggregate value of $19.6 million, convert into additional shares of the combined company for the Foamix shareholders, thereby resulting in a lower percentage of the combined company’s outstanding shares being owned by Menlo stockholders following the Merger.
Schedule of the Calculation for Goodwill of Merger	The purchase price of the transaction and the excess purchase price over the fair value of the identifiable net assets acquired, are calculated as follows: (in thousands) March 9, 2020 Purchase price $ 111,443 Less: fair value of net assets acquired, including other identifiable intangibles (106,898) Goodwill $ 4,545
Schedule of In Process Research and Development Assets Acquired Through Business Combination	The IPR&D recognized relates to Menlo’s once - daily oral serlopitant for the treatment of pruritus (itch) associated with PN that has not reached technological feasibility as follows: (in thousands) Intangible asset Estimated Fair Value Acquired indefinite life intangible assets* $ 49,800 Fair value of identified intangible assets $ 49,800
Schedule of Pro Forma Information	Actual Menlo results of operations included in the unaudited condensed consolidated statement of operation for the three and nine months ended September 30, 2020: (in thousands) Three months ended September 30, 2020 Nine months ended September 30, 2020 (Unaudited) Revenues $ — $ — Loss attributable to Menlo $ 4,100 $ 23,737 Three months ended Nine months ended (in thousands, except per share data) (Unaudited) (Unaudited) SUPPLEMENTAL PRO FORMA COMBINED RESULTS OF OPERATIONS: Revenues $ 3,269 $ 16,707 Net loss $ 24,912 $ 229,994 Loss per share - basic and diluted $ 0.59 $ 7.89 Adjustments to the supplemental pro forma combined results of operations, included in the above, are as follows: Transaction costs $ — $ (14,931) Acceleration of stock based compensation — (7,199) Total Adjustments $ — $ (22,130)

FAIR VALUE MEASUREMENT (Tables)

FAIR VALUE MEASUREMENT (Tables)	9 Months Ended
	Sep. 30, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurements, Recurring and Nonrecurring	The Company’s assets and liabilities that are measured at fair value as of December 31, 2020, are classified in the table below in one of the three categories described in Note 2 above: December 31, 2020 Level 1 Level 2 Level 3 Total Marketable securities $ 1,027 $ — $ — $ 1,027

MARKETABLE SECURITIES (Tables)

MARKETABLE SECURITIES (Tables)	9 Months Ended
	Sep. 30, 2021
Investments, Debt and Equity Securities [Abstract]
Marketable Securities	The following table sets forth the Company’s marketable securities: September 30 December 31 (in thousands) 2021 2020 Israeli mutual funds $ — $ 1,027

INVENTORY (Tables)

INVENTORY (Tables)	9 Months Ended
	Sep. 30, 2021
Inventory Disclosure [Abstract]
Schedule of Inventories	The following table sets forth the Company’s inventory: September 30 December 31 (in thousands) 2021 2020 Raw materials $ 3,247 $ 4,042 Work-in-process 339 662 Finished goods 4,484 2,700 Total $ 8,070 $ 7,404

SHARE CAPITAL (Tables)

SHARE CAPITAL (Tables)	9 Months Ended
	Sep. 30, 2021
Equity [Abstract]
Schedule of Share Based Compensation by Share Based Payment Award Grants in Period	In the nine months ended September 30, 2021 and 2020, the Company granted options and RSUs as follows: Nine months ended September 30, 2021 Award Exercise price Vesting period Expiration Employees and Directors: Options 1,686,405 $1.68-$11.08 1 year - 4 years 10 years RSUs 970,813 — 2 years - 4 years — Nine months ended September 30, 2020 Award Exercise price Vesting period Expiration Employees and Directors: Options 1,316,637 $5.84-$12.52 1 year - 4 years 10 years RSUs 647,427 — 1 year - 4 years — * All amounts and exercise prices for pre-Merger grants are presented following the exchange to Menlo options and RSUs at the Exchange Ratio described in Note 3-Business Combination.
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	The fair value of options granted was computed using the Black-Scholes model. The underlying data used for computing the fair value of the options are as follows: Nine months ended 2021 2020 Dividend yield 0 % 0 % Expected volatility 68.38% - 69.38% 60.44% - 69.83% Risk-free interest rate 0.5% - 1.29% 0.31% - 1.26% Expected term 6 years 6 years
Share-based Payment Arrangement, Expensed and Capitalized, Amount	The following table illustrates the effect of share-based compensation on the statements of operations: Three months ended September 30 Nine months ended September 30 (in thousands) 2021 2020 2021 2020 Research and development expenses $ 435 $ 361 $ 1,335 $ 3,927 Selling, general and administrative 1,970 2,259 5,413 11,220 Total $ 2,405 $ 2,620 $ 6,748 $ 15,147

OPERATING LEASE (Tables)

OPERATING LEASE (Tables)	9 Months Ended
	Sep. 30, 2021
Leases [Abstract]
Lessee, Operating Lease, Liability, Maturity	Maturities of lease liabilities are as follows: (in thousands) 2021 $ 229 2022 761 2023 151 Total lease payments 1,141 Less imputed interest 89 Total lease liability $ 1,052

NATURE OF OPERATIONS (Details)

NATURE OF OPERATIONS (Details)	Aug. 11, 2021USD ($)	Aug. 06, 2021USD ($)	Feb. 12, 2021shares	Sep. 30, 2021USD ($)shares	Sep. 30, 2020USD ($)	Sep. 30, 2021USD ($)employeesegmentshares	Sep. 30, 2020USD ($)	Jul. 19, 2021shares	Feb. 11, 2021shares	Dec. 31, 2020USD ($)shares
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Number of segments | segment						1
Number of employees expected to be terminated | employee						70
Restructuring charges				$ 1,000,000
Reverse stock split, conversion ratio (share/share)			0.25
Common stock shares authorized (in shares) | shares			75,000,000	150,000,000		150,000,000		150,000,000		75,000,000
Net Loss				$ 21,285,000	$ 24,714,000	$ 61,759,000	$ 232,387,000
Cash used in operations						(46,349,000)	(111,707,000)
Cash and investments				52,900,000		52,900,000
Accumulated deficit				(627,955,000)		(627,955,000)				$ (566,196,000)
Debt repayment	$ 36,500,000					36,432,000	$ 0
Outstanding debt				0		0
Prepayment fee, percentage	4.00%
Menlo - Premerger
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Common stock shares authorized (in shares) | shares									300,000,000
Employee Severance
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Restructuring charges				900,000
Additional charges				300,000		300,000
Retention Payments
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Restructuring charges				100,000
Expected cost remaining				$ 400,000		$ 400,000
Licensing Agreements
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Payments for licensing agreements		$ 1,000,000
Royalty percent, maximum		10.00%
Topical BETi Option Agreement
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Payments for licensing agreements		$ 500,000
Milestone payments upon achieving certain criteria, maximum		15,750,000
Oral BETi Option Agreement
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Payments for licensing agreements		4,000,000
Milestone payments upon achieving certain criteria, maximum		$ 43,750,000

SIGNIFICANT ACCOUNTING POLICI_4

SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2020USD ($)	Jun. 30, 2020USD ($)	Sep. 30, 2020USD ($)	Sep. 30, 2021USD ($)	Apr. 06, 2020
Loss per share
Number of common stock shares issued per CSR (in shares)					1.2082
Effective exchange ratio of Foamix ordinary shares into Menlo common stock (share/share)					1.8006
Foamix
Loss per share
Proceeds from royalties	$ 4	$ 6	$ 10
Additional royalty upon receipt of marketing approval in China				$ 1

SIGNIFICANT ACCOUNTING POLICI_5

SIGNIFICANT ACCOUNTING POLICIES - Schedule of AntiDilutive Equity Awards Not Included in the Calculation of EPS (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Outstanding stock options, RSUs and shares under the ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	5,223,466	5,191,299	5,303,135	3,756,049
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	495,165	495,165	495,165	377,542

BUSINESS COMBINATION - Narrativ

BUSINESS COMBINATION - Narrative (Details)	Feb. 12, 2021shares	Apr. 07, 2020	Apr. 06, 2020USD ($)$ / sharesshares	Mar. 09, 2020USD ($)contingentStockRight$ / sharesshares	Sep. 30, 2021USD ($)	Sep. 30, 2020USD ($)	Sep. 30, 2021USD ($)	Sep. 30, 2020USD ($)
Business Acquisition [Line Items]
Number of common stock shares issued per CSR (in shares)			1.2082
Effective exchange ratio (CSR per share)			1.8006
Share issued and delivered upon CSR conversion (in shares) | shares	18,636,103		74,544,413
Ownership percentage of parent by subsidiary stockholders		82.00%
Ownership percentage of parent by parent stockholders		18.00%
Closing share price (in usd per share) | $ / shares			$ 1.40
Goodwill impairment loss					$ 0	$ 4,500,000	$ 0	$ 4,500,000
Value of CSR converted into additional shares of the combined company				$ 19,600,000
Contingent Stock Right Remeasurement			$ 84,700,000		0	$ 0	0	84,726,000
Contingent consideration, fair value of liability			$ 104,400,000
In Process Research and Development
Business Acquisition [Line Items]
In process research and development impairment					$ 0		$ 0	49,800,000
Foamix
Business Acquisition [Line Items]
Number of contingent stock rights issued (in CSR) | contingentStockRight				1
Closing share price (in usd per share) | $ / shares				$ 2.99
Consideration transferred				$ 131,079,000
Deemed (for accounting purposes only) issuance of Foamix shares to Menlo stockholders				$ 123,757,000
Number of shares deemed (for accounting purposes only) issued (in shares) | shares				41,400,000
Deemed (for accounting purposes only) conversion of Menlo equity awards				$ 7,322,000
Goodwill deductible for income tax purposes				0
Value of CSR converted into additional shares of the combined company				19,600,000
Contingent consideration, fair value of liability				$ 19,600,000
Foamix | Employee benefits
Business Acquisition [Line Items]
Acquisition related costs								8,100,000
Foamix | Selling, general and administrative
Business Acquisition [Line Items]
Acquisition related costs								$ 11,700,000
Common stock | Foamix
Business Acquisition [Line Items]
Exchange ratio per ordinary share for common stock (share per share)				0.5924

BUSINESS COMBINATION - Consider

BUSINESS COMBINATION - Consideration Transferred in Merger (Details) - USD ($) $ in Thousands	Mar. 09, 2020	Apr. 06, 2020
Business Acquisition [Line Items]
Contingent consideration, fair value of liability		$ 104,400
Foamix
Business Acquisition [Line Items]
Deemed (for accounting purposes only) issuance of Foamix shares to Menlo stockholders	$ 123,757
Deemed (for accounting purposes only) conversion of Menlo equity awards	7,322
Total consideration	131,079
Contingent consideration, fair value of liability	19,600
Consideration net of the effect of CSRs	$ 111,400

BUSINESS COMBINATION - Purchase

BUSINESS COMBINATION - Purchase Price Allocation (Details) $ in Thousands	Mar. 09, 2020USD ($)
Allocations of purchase price
Value of CSR converted into additional shares of the combined company	$ 19,600
Foamix
Allocations of purchase price
Cash and cash equivalents	38,641
Investment in marketable securities	22,703
Prepaid expenses and other current assets	1,581
In-process research and development	49,800
Goodwill	4,545
Total assets	117,270
Current liabilities	(5,827)
Total liabilities	(5,827)
Purchase price	111,443
Value of CSR converted into additional shares of the combined company	$ 19,600

BUSINESS COMBINATION - Goodwill

BUSINESS COMBINATION - Goodwill (Details) - Foamix $ in Thousands	Mar. 09, 2020USD ($)
Business Combination, Goodwill [Abstract]
Purchase price	$ 111,443
Less: fair value of net assets acquired, including other identifiable intangibles	(106,898)
Goodwill	$ 4,545

BUSINESS COMBINATION - IPRD and

BUSINESS COMBINATION - IPRD and CSR (Details) - Foamix $ in Thousands	Mar. 09, 2020USD ($)
Intangible asset
Acquired indefinite life intangible assets	$ 49,800
Fair value of identified intangible assets	$ 49,800

BUSINESS COMBINATION - Pro Form

BUSINESS COMBINATION - Pro Forma (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020
Business Combination and Asset Acquisition [Abstract]
Revenues	$ 0	$ 0
Loss attributable to Menlo	4,100	23,737
SUPPLEMENTAL PRO FORMA COMBINED RESULTS OF OPERATIONS:
Revenues	3,269	16,707
Net loss	$ 24,912	$ 229,994
Loss per share - basic (in USD per share)	$ 0.59	$ 7.89
Loss per share - diluted (in dollars per share)	$ 0.59	$ 7.89
Adjustments to the supplemental pro forma combined results of operations, included in the above, are as follows:
Transaction costs	$ 0	$ (14,931)
Acceleration of stock based compensation	0	(7,199)
Total Adjustments	$ 0	$ (22,130)

REVENUE RECOGNITION (Details)

REVENUE RECOGNITION (Details) - USD ($)	3 Months Ended			6 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2020	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Concentration Risk [Line Items]
Product sales provisions	$ 16,600,000	$ 11,000,000			$ 48,400,000	$ 25,100,000
Estimate of product return rate	2.00%				2.00%
Revenues	$ 4,086,000	3,269,000			$ 12,463,000	16,707,000
Foamix
Concentration Risk [Line Items]
Proceeds from royalties		4,000,000	$ 6,000,000	$ 10,000,000
Additional royalty upon receipt of marketing approval in China	1,000,000				1,000,000
Upfront royalty receipt	0					10,000,000
Allowance For Sales Returns
Concentration Risk [Line Items]
Revenue reserve accrual	7,300,000				7,300,000		$ 5,800,000
Royalty revenues
Concentration Risk [Line Items]
Revenues	$ 133,000	$ 406,000			$ 658,000	$ 611,000
Customers | Revenue from Contract with Customer, Product and Service Benchmark | Three Customers
Concentration Risk [Line Items]
Concentration risk, percentage	52.00%	100.00%				99.00%
Customers | Revenue from Contract with Customer, Product and Service Benchmark | Four Customers
Concentration Risk [Line Items]
Concentration risk, percentage					66.00%

FAIR VALUE MEASUREMENT - Assets

FAIR VALUE MEASUREMENT - Assets and Liabilities Measured at Fair Value (Details) $ in Thousands	Dec. 31, 2020USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	$ 1,027
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	1,027
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	$ 0

MARKETABLE SECURITIES - Marketa

MARKETABLE SECURITIES - Marketable Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Israeli mutual funds
Debt Securities, Available-for-sale [Line Items]
Marketable securities	$ 0	$ 1,027

MARKETABLE SECURITIES - Narrati

MARKETABLE SECURITIES - Narrative (Details) - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Debt securities, available-for-sale	$ 0		$ 0
Permanent impairment loss, debt securities, available for sale	0		0
Proceeds from sale and maturity of marketable securities	1,000,000	$ 36,400,000
Restricted Investments	$ 0		$ 0

INVENTORY - Schedule of Invento

INVENTORY - Schedule of Inventory Components (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Raw materials	$ 3,247	$ 4,042
Work-in-process	339	662
Finished goods	4,484	2,700
Total	$ 8,070	$ 7,404

DEBT - Narrative (Details)

DEBT - Narrative (Details)	Aug. 11, 2021USD ($)	Jul. 29, 2019USD ($)lender$ / sharesshares	Sep. 30, 2021USD ($)$ / sharesshares	Sep. 30, 2020USD ($)	Sep. 30, 2021USD ($)$ / sharesshares	Sep. 30, 2020USD ($)	Dec. 31, 2020USD ($)	Mar. 09, 2020$ / sharesshares	Dec. 17, 2019USD ($)
Debt instrument information
Prepayment fee, percentage	4.00%
Debt repayment	$ 36,500,000				$ 36,432,000	$ 0
Principal amount, interest and prepayment premium					18,300,000
Debt offering expenses
Incurred expenses related to Credit Agreement and Securities Purchase Agreement		$ 1,100,000
Interest expense (Note 8)			$ 3,474,000	$ 1,092,000	5,610,000	3,229,000
Interest expense debt			1,900,000	1,000,000	3,800,000	2,900,000
Discount cost			1,600,000	100,000	1,800,000	300,000
Loss on debt extinguishment			1,400,000		1,432,000	0
Write off of deferred financing cost			1,600,000		1,600,000
Loss on extinguishment of debt			$ 3,000,000		$ 3,000,000
Amended And Restated Credit Agreement
Debt instrument information
Long-term debt, gross							$ 35,000,000
Remaining borrowing capacity							$ 15,000,000
Base interest rate			8.25%		8.25%
Amended And Restated Credit Agreement | One-month LIBOR
Debt instrument information
Basis spread on variable rate					2.75%
Amended and Restated Credit Agreement, Trench 1 Loan
Debt instrument information
Debt instrument, face amount		15,000,000
Amended and Restated Credit Agreement, Trench 2 Loan
Debt instrument information
Debt instrument, face amount									$ 20,000,000
Debt offering expenses
Incurred expenses related to Credit Agreement and Securities Purchase Agreement		$ 300,000
Amended and Restated Credit Agreement, Trench 3 Loan
Debt instrument information
Borrowing capacity				$ 15,000,000		$ 15,000,000
Shareholder Lender | Foamix
Warrants issued
Number of ordinary shares that may be purchased by exercise of warrants (in shares) | shares		1,100,000	495,165		495,165			651,640
Warrant exercise price (in dollars per share) | $ / shares		$ 2.09	$ 4.64		$ 4.64			$ 3.53
Shareholder Lender | Credit Agreement
Debt instrument information
Borrowing capacity		$ 50,000,000
Shareholder Lender | Registered offering per securities purchase agreement
Debt instrument information
Number of lenders involved | lender		1
Gross proceeds from issuance of common stock		$ 14,000,000

SHARE CAPITAL - Common Stock, P

SHARE CAPITAL - Common Stock, Preferred Stock, and Warrants Narrative (Details) $ / shares in Units, $ in Thousands	Aug. 12, 2021USD ($)	Feb. 12, 2021shares	Jan. 26, 2021USD ($)$ / sharesshares	Jun. 09, 2020USD ($)$ / sharesshares	Apr. 06, 2020shares	Mar. 09, 2020USD ($)contingentStockRightshares	Jul. 29, 2019USD ($)shares	Feb. 01, 2019USD ($)	Jan. 25, 2021USD ($)$ / sharesshares	Sep. 30, 2021USD ($)vote$ / sharesshares	Sep. 30, 2020USD ($)	Jul. 19, 2021$ / sharesshares	Dec. 31, 2020$ / sharesshares
Class of Stock [Line Items]
Preferred stock, shares authorized (in shares)										20,000,000			20,000,000
Preferred stock, par value (in dollars per share) | $ / shares										$ 0.0001			$ 0.0001
Preferred stock, shares issued (in shares)										0			0
Preferred stock, shares outstanding (in shares)										0			0
Reverse stock split, conversion ratio (share/share)		0.25
Common stock shares authorized (in shares)		75,000,000								150,000,000		150,000,000	75,000,000
Common stock par value (in dollars per share) | $ / shares										$ 0.0001		$ 0.0001	$ 0.0001
Payments of financing and stock issuance costs | $							$ 1,100
Share issued and delivered upon CSR conversion (in shares)		18,636,103			74,544,413
Deemed dividend to warrants holders due to warrant modifications | $											$ 0
Foamix
Class of Stock [Line Items]
Number of shares issued pursuant to the merger (in shares)					74,544,413	36,550,335
Number of contingent stock rights issued (in CSR) | contingentStockRight						1
Deemed dividend to warrants holders due to warrant modifications | $						$ 41
Cantor Sales Agreement
Class of Stock [Line Items]
Payments of financing and stock issuance costs | $	$ 50,000							$ 50,000
Commission from gross proceeds from issuance of common stock	3000.00%							3000.00%
Number of shares issued in transaction (in shares)									2,778,012	1,948,000
Sale of stock (USD/share) | $ / shares									$ 9.76	$ 1.57
Consideration received in a transaction | $									$ 26,300	$ 2,900
Registered Direct Offering
Class of Stock [Line Items]
Number of shares issued in transaction (in shares)			5,274,261
Sale of stock (USD/share) | $ / shares			$ 9.48
Consideration received in a transaction | $			$ 46,800
Initial Public Offering
Class of Stock [Line Items]
Number of shares issued in transaction (in shares)				7,776,875
Sale of stock (USD/share) | $ / shares				$ 7.40
Consideration received in a transaction | $				$ 53,600
Common stock
Class of Stock [Line Items]
Number of votes entitled to each ordinary share | vote										1
Warrants | Foamix | Maximum
Class of Stock [Line Items]
Number of ordinary shares that may be purchased by exercise of warrants (in shares)							1,100,000
Number of shares issued for warrants exercised		495,165					1,980,660

SHARE CAPITAL - Share-based Com

SHARE CAPITAL - Share-based Compensation Narrative (Details)	Feb. 12, 2021contingentStockRightshares	Apr. 06, 2020	Mar. 09, 2020USD ($)contingentStockRight	Sep. 30, 2021USD ($)shares	Sep. 30, 2020USD ($)contingentStockRight	Sep. 30, 2021USD ($)shares	Sep. 30, 2020USD ($)contingentStockRightshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of options and RSUs granted						$ 9,400,000	$ 11,800,000
Number of common stock shares issued per CSR (in shares)		1.2082
Effective exchange ratio (CSR per share)		1.8006
Additional paid in capital reclassified to derivate liabilities							975,000
Foamix
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of contingent stock rights issued (in CSR) | contingentStockRight			1
Foamix | Employees and consultants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Incremental compensation costs incurred				$ 500,000	$ 1,100,000	1,800,000	10,400,000
Incremental compensation costs incurred						$ 1,500,000
Incremental compensation costs, recognition period						2 years
Foamix | No longer employed or providing services
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Incremental compensation costs incurred				$ 0		$ 0	$ 1,000,000
Additional paid in capital reclassified to derivate liabilities			$ 1,600,000
Incremental compensation cost			$ 600,000
Common stock | Foamix
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued during the period (in shares) | shares						42,989	61,031
2019 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for future issuance (in shares) | shares				509,158		509,158
2018 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for future issuance (in shares) | shares				81,925		81,925
Increase in shares reserved for future issuance (in shares) | shares				750,000		750,000
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for future issuance (in shares) | shares				2,261,108		2,261,108
Percentage of fair market value used as purchase price						85.00%
Percent of annual earnings that may be used to purchase shares				15.00%		15.00%
ESPP | Common stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock issued during period, conversion of units (in shares) | shares	9,038						36,155
ESPP | Common stock | Foamix
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of contingent stock rights issued (in CSR) | contingentStockRight	1				1		1

SHARE CAPITAL - Options and RSU

SHARE CAPITAL - Options and RSU Grants (Details) - $ / shares	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option, award amount (in shares)	1,686,405	1,316,637
Exercise price range, minimum (in usd per share)	$ 1.68	$ 5.84
Exercise price range, maximum (in usd per share)	$ 11.08	$ 12.52
Expiration	10 years	10 years
Options | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year	1 year
Options | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years	4 years
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSU, award amount (in shares)	970,813	647,427
RSUs | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	2 years	1 year
RSUs | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years	4 years

SHARE CAPITAL - Fair value assu

SHARE CAPITAL - Fair value assumptions (Details) - Options	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Share-based payment assumptions for computing fair value
Dividend yield	0.00%	0.00%
Expected volatility, minimum	68.38%	60.44%
Expected volatility, maximum	69.38%	69.83%
Risk-free interest rate, minimum	0.50%	0.31%
Risk-free interest rate, maximum	1.29%	1.26%
Expected term	6 years	6 years

SHARE CAPITAL - Schedule of Sha

SHARE CAPITAL - Schedule of Share-based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Expense
Share-based compensation	$ 2,405	$ 2,620	$ 6,748	$ 15,147
Research and development expenses
Expense
Share-based compensation	435	361	1,335	3,927
Selling, general and administrative
Expense
Share-based compensation	$ 1,970	$ 2,259	$ 5,413	$ 11,220

OPERATING LEASE - Narrative (De

OPERATING LEASE - Narrative (Details) $ in Thousands	Mar. 13, 2019USD ($)ft²	Sep. 30, 2021USD ($)	Dec. 31, 2020USD ($)
Operating Lease
Operating lease right-of-use assets		$ 1,036	$ 1,583
Operating lease terms		3 years
Lien on marketable securities to secure lease agreements		$ 600
ISRAEL
Operating Lease
Operating lease terms		1 year
Original Space | Bridgewater, New Jersey
Operating Lease
Facility space leased | ft²	10,000
Operating lease right-of-use assets	$ 700
Additional Space | Bridgewater, New Jersey
Operating Lease
Facility space leased | ft²	4,639
Operating lease right-of-use assets	$ 300

OPERATING LEASE - Maturities of

OPERATING LEASE - Maturities of Lease Liabilities (Details) $ in Thousands	Sep. 30, 2021USD ($)
Leases [Abstract]
2021	$ 229
2022	761
2023	151
Total lease payments	1,141
Less imputed interest	89
Total lease liability	$ 1,052