Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | May 03, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Trading Symbol | VRCA | |
Entity Interactive Data Current | Yes | |
Entity Registrant Name | Verrica Pharmaceuticals Inc. | |
Entity Central Index Key | 0001660334 | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 41,957,197 | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transaction Period | true | |
Entity File Number | 001-38529 | |
Entity Tax Identification Number | 46-3137900 | |
Title of 12(b) Security | Common Stock, $0.0001 par value | |
Security Exchange Name | NASDAQ | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 44 West Gay Street | |
Entity Address, Address Line Two | Suite 400 | |
Entity Address, City or Town | West Chester | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19380 | |
City Area Code | 484 | |
Local Phone Number | 453-3300 |
CONDENSED BALANCE SHEETS
CONDENSED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 59,952 | $ 34,273 |
Collaboration revenue receivable | 0 | 388 |
Unbilled revenue receivable | 56 | 99 |
Prepaid expenses and other assets | 3,089 | 4,355 |
Total current assets | 63,097 | 39,115 |
Property and equipment, net | 3,801 | 3,887 |
Operating lease right-of-use asset | 1,372 | 1,443 |
Other non-current assets | 369 | 276 |
Total assets | 68,639 | 44,721 |
Current liabilities: | ||
Accounts payable | 575 | 507 |
Accrued expenses and other current liabilities | 1,766 | 2,655 |
Operating lease liability | 302 | 297 |
Total current liabilities | 2,643 | 3,459 |
Operating lease liability | 1,150 | 1,229 |
Total liabilities | 3,793 | 4,688 |
Commitments and Contingencies (Note 9) | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value; 10,000,000 shares authorized; no shares issued and outstanding as of March 31, 2023 and December 31, 2022 | 0 | 0 |
Common stock, $0.0001 par value; 200,000,000 authorized; 41,957,197 shares issued and 41,852,053 shares outstanding as of March 31, 2023 and 41,199,197 shares issued and 41,094,053 shares outstanding as of December 31, 2022 | 4 | 4 |
Treasury stock, at cost, 105,144 shares as of March 31, 2023 and December 31, 2022 | 0 | 0 |
Additional paid-in capital | 234,884 | 203,482 |
Accumulated deficit | (170,042) | (163,453) |
Total stockholders’ equity | 64,846 | 40,033 |
Total liabilities and stockholders’ equity | $ 68,639 | $ 44,721 |
CONDENSED BALANCE SHEETS (Paren
CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 41,957,197 | 41,199,197 |
Common stock, shares outstanding | 41,852,053 | 41,094,053 |
Treasury stock, shares | 105,144 | 105,144 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Net revenue | $ 37 | $ 431 |
Revenue from Contract with Customer, Product and Service [Extensible List] | Net revenue | Net revenue |
Operating expenses: | ||
Research and development | $ 2,739 | $ 2,445 |
General and administrative | 4,319 | 5,118 |
Cost of Collaboration Revenue | 68 | 278 |
Total operating expenses | 7,126 | 7,841 |
Loss from operations | (7,089) | (7,410) |
Other income (expense): | ||
Interest income | 500 | 22 |
Interest expense | 0 | (1,082) |
Total other income (expense), net | 500 | (1,060) |
Net loss | $ (6,589) | $ (8,470) |
Net loss per share, basic | $ (0.15) | $ (0.31) |
Net loss per share, diluted | $ (0.15) | $ (0.31) |
Weighted-average common shares outstanding, basic | 43,023,379 | 27,519,053 |
Weighted-average common shares outstanding, diluted | 43,023,379 | 27,519,053 |
Net loss | $ (6,589) | $ (8,470) |
Other comprehensive loss: | ||
Unrealized loss on marketable securities | 0 | (33) |
Comprehensive loss | $ (6,589) | $ (8,503) |
CONDENSED STATEMENTS OF STOCKHO
CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Loss [Member] |
Beginning Balance at Dec. 31, 2021 | $ 32,605 | $ 3 | $ 171,597 | $ (138,966) | $ (29) | |
Beginning Balance (shares) at Dec. 31, 2021 | 27,624,197 | 105,144 | ||||
Stock-based compensation | 1,316 | 1,316 | ||||
Net loss | (8,470) | (8,470) | ||||
Unrealized loss on marketable securities | (33) | (33) | ||||
Ending Balance at Mar. 31, 2022 | 25,418 | $ 3 | 172,913 | (147,436) | $ (62) | |
Ending Balance (shares) at Mar. 31, 2022 | 27,624,197 | 105,144 | ||||
Beginning Balance at Dec. 31, 2022 | 40,033 | $ 4 | 203,482 | (163,453) | ||
Beginning Balance (shares) at Dec. 31, 2022 | 41,199,197 | 105,144 | ||||
Stock-based compensation | 1,094 | 1,094 | ||||
Issuance of common stock and pre-funded warrants, for the purchase of common stock, net of issuance costs | 30,301 | 30,301 | ||||
Issuance of common stock and pre-funded warrants, for the purchase of common stock, net of issuance costs, Shares | 750,000 | |||||
Exercise of stock options | $ 7 | 7 | ||||
Exercise of stock options (shares) | 0 | 8,000 | ||||
Net loss | $ (6,589) | (6,589) | ||||
Unrealized loss on marketable securities | 0 | |||||
Ending Balance at Mar. 31, 2023 | $ 64,846 | $ 4 | $ 234,884 | $ (170,042) | ||
Ending Balance (shares) at Mar. 31, 2023 | 41,957,197 | 105,144 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities | ||
Net loss | $ (6,589) | $ (8,470) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation | 1,094 | 1,316 |
Amortization of premiums on marketable securities | 0 | 49 |
Depreciation expense | 131 | 98 |
Non cash interest expense | 0 | 300 |
Reduction in operating lease right-of-use asset | 71 | 60 |
Changes in operating assets and liabilities: | ||
Collaboration revenue receivable, billed and unbilled | 431 | (431) |
Prepaid expenses and other assets | 1,266 | 537 |
Accounts payable | 14 | (314) |
Accrued expenses and other current liabilities | (934) | (1,425) |
Operating lease liability | (74) | (60) |
Net cash used in operating activities | (4,590) | (8,340) |
Cash flows from investing activities | ||
Sales and maturities of marketable securities | 0 | 47,508 |
Purchases of marketable securities | 0 | (4,485) |
Purchases of property and equipment | (11) | (5) |
Deposits | 0 | (5) |
Net cash (used in) provided by investing activities | (11) | 43,013 |
Cash flows from financing activities | ||
Proceeds from exercise of stock options | 7 | 0 |
Equity issuance costs | (28) | 0 |
Debt issuance Costs | 0 | (17) |
Repayment of financing lease | 0 | (1) |
Proceeds from issuance of common stock, net of issuance costs | 30,301 | 0 |
Net cash provided by (used in) financing activities | 30,280 | (18) |
Net increase in cash, cash equivalents and restricted cash | 25,679 | 34,655 |
Cash, cash equivalents and restricted cash at the beginning of the period | 34,273 | 15,752 |
Cash, cash equivalents and restricted cash at the end of the period | 59,952 | 50,407 |
Supplemental disclosure of noncash investing and financing activities: | ||
Property and equipment purchases payable or accrued at period end | 34 | 459 |
Change in unrealized gain on marketable securities | 0 | (33) |
Cash paid for interest | $ 0 | $ 725 |
Nature of Business
Nature of Business | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | Note 1—Nature of Business Verrica Pharmaceuticals Inc. (the “Company”) was formed on July 3, 2013 and is incorporated in the State of Delaware. The Company is a dermatology therapeutics company developing medications for skin diseases requiring medical intervention. Liquidity The Company has incurred substantial operating losses since inception and expects to continue to incur significant operating losses for the foreseeable future and may never become profitable. As of March 31, 2023 , the Company had an accumulated deficit of $ 170.0 million. On March 17, 2021, the Company entered into the Torii Agreement (as defined in Note 10), pursuant to which the Company received an upfront payment from Torii of $ 11.5 million in April 2021 and an $ 8.0 million milestone payment in August 2022 . In July 2022, the Company sold 13,575,000 shares of common stock at a public offering price of $ 2.10 per share, resulting in cumulative net proceeds of $ 26.9 million after deducting underwriting discounts and commissions, and offering expenses. In February 2023 the Company closed an underwritten offering of 750,000 shares of its common stock and pre-funded warrants to purchase 4,064,814 shares of common stock. The shares of common stock were sold at a price of $ 6.75 per share and the pre-funded warrants were sold at a price of $ 6.7499 per pre-funded warrant resulting in net proceeds of $ 30.3 million after deducting underwriting discounts and commissions, and offering expenses of approximately $ 2.2 million (see Note 7). In March 2020, the Company entered into a mezzanine loan and security agreement (the “Mezzanine Loan Agreement”), with Silicon Valley Bank, as administrative agent and collateral agent (the “Agent”), and Silicon Valley Bank and West River Innovation Lending Fund VIII, L.P., as lenders, (the “Mezzanine Lenders”), pursuant to which the Company borrowed (i) $ 35.0 million in March 2020 and (ii) $ 5.0 million on March 1, 2021. On July 11, 2022, the Company voluntarily repaid in full the debt outstanding under the Mezzanine Loan Agreement (see Note 6). The Company believes its cash, and cash equivalents of $ 60.0 million as of March 31, 2023 will be sufficient to support the Company’s planned operations into the first quarter of 2024. Substantial additional financing will be needed by the Company to fund its operations. The Company's condensed financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The condensed financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty. The Company anticipates incurring additional losses until such time, if ever, that it can obtain marketing approval to sell, and then generate significant sales of VP-102. These factors raise substantial doubt about the Company's ability to continue as a going concern within one year after the date the financial statements are issued. The Company plans to secure additional capital in the future through equity or debt financings, partnerships, or other sources to carry out the Company’s planned development activities. If the Company is unable to raise capital when needed or on attractive terms, the Company would be forced to delay, reduce or eliminate its research and development programs or future commercialization efforts. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 2—Significant Accounting Policies Basis of Presentation The accompanying unaudited interim condensed financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) as determined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the unaudited interim condensed financial statements reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the balances and results for the periods presented. They may not include all of the information and footnotes required by GAAP for complete financial statements. Therefore, these financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended December 31, 2022 included in its Form 10-K, filed with the Securities and Exchange Commission (the “SEC”) on March 6, 2023. The results of operations for any interim periods are not necessarily indicative of the results that may be expected for the entire fiscal year or any other interim period. The Company has been actively monitoring the coronavirus (“COVID-19”) pandemic and its impact globally. Management believes the financial results for the year ended December 31, 2022 and the three months ended March 31, 2023, were not significantly impacted by COVID-19. In addition, management believes the remote working arrangements, travel restrictions and any other regulations imposed by various governmental jurisdictions have had limited impact on the Company’s ability to maintain internal operations. The full extent to which the COVID-19 pandemic will directly or indirectly impact the Company’s business, results of operations and financial condition will depend on future developments that are highly uncertain, including as a result of new information that may emerge concerning COVID-19 and the actions taken to contain it or treat COVID-19. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. These estimates and assumptions are based on current facts, historical experience as well as other pertinent industry and regulatory authority information, including the potential future effects of COVID-19, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of expenses that are not readily apparent from other sources. Actual results may differ materially and adversely from these estimates. To the extent there are material differences between the estimates and actual results, the Company’s future results of operations will be affected. Reclassifications Certain prior period amounts have been reclassified to conform with current period presentation. S ignificant Accounting Policies Collateral Cash Cash and cash equivalents at March 31, 2023 includes a cash deposit of $ 150,000 with Bank of America as required under the Commercial Credit Card Program with a balance equal to the outstanding credit limit on commercial credit cards. Net Loss Per Share Net loss per share of common stock is computed by dividing net loss by the weighted average number of shares of common stock outstanding for the period including pre-funded warrants to purchase shares of common stock that were issued in an underwritten offering in February 2023 (Note 7). The pre-funded warrants to purchase common stock are included in the calculation of basic and diluted net loss per share as the exercise price of $ 0.0001 per share is non-substantive and is virtually assured. Diluted net loss per share excludes the potential impact of common stock options and unvested shares of restricted stock because their effect would be anti-dilutive due to the Company’s net loss. Since the Company had a net loss in each of the periods presented, basic and diluted net loss per common share are the same. The table below provides potential shares outstanding that were not included in the computation of diluted net loss per common share, as the inclusion of these securities would have been anti-dilutive: As of March 31, 2023 2022 Shares issuable upon exercise of stock options 4,722,082 3,768,955 Non-vested shares under restricted stock grants 1,123,000 425,000 Total 5,845,082 4,193,955 Recently Adopted Accounting Pronouncements In June 2022, the FASB issued Accounting Standards Update No. 2022-03, Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. This standard clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. This standard becomes effective for the Company on January 1, 2024, and is not expected to have a material impact on the Company’s financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses, Measurement of Credit Losses on Financial Instruments (Topic 326). The st andard amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses for most financial assets and certain other instruments that aren’t measured at fair value through net income. For available-for-sale debt securities, entities will be required to recognize an allowance for credit losses rather than a reduction in carrying value of the asset. Entities will no longer be permitted to consider the length of time that fair value has been less than amortized cost when evaluating when credit losses should be recognized. The Company adopted this guidance on January 1, 2023 and its adoption did not have an impact on the Company's financial statements and related disclosures. |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 3—Property and Equipment Property and equipment, net consisted of (in thousands): As of As of March 31, December 31, 2023 2022 Machinery and equipment $ 1,403 $ 1,392 Office furniture and fixtures 303 303 Office equipment 301 301 Leasehold improvements 54 54 Construction in process 2,570 2,536 4,631 4,586 Accumulated depreciation ( 830 ) ( 699 ) Total property and equipment, net $ 3,801 $ 3,887 The Company has recorded an asset classified as construction in process associated with the construction of a product assembly and packaging line that will be placed into service for commercial manufacturing upon future regulatory product approval. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Note 4—Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): As of As of December 31, Clinical trials and drug development $ 634 $ 974 Compensation and related costs 538 1,399 Professional fees 360 58 Construction in process 167 167 Machinery and equipment 57 57 Other accrued expenses and other current liabilities 10 — Total accrued expenses and other current liabilities $ 1,766 $ 2,655 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | N ote 5—Leases The Company leases office space in West Chester, Pennsylvania that serves as the Company’s headquarters under an agreement classified as an operating lease. The initial term will expire on September 1, 2027 . Base rent over the initial term is approximately $ 2.4 million, and the Company is also responsible for its share of the landlord’s operating expense. The Company lea ses office space in Scotch Plains, New Jersey under an agreement classified as an operating lease, which commenced on May 1, 2022 and expires on April 30, 2025 . Base rent over the initial term is approximately $ 104,000 . The components of lease expense are as follows (in thousands): For the Three Months Ended March 31, 2023 2022 Finance lease cost: Amortization ROU assets $ — $ 2 Total finance lease costs — $ 2 Operating lease: Operating lease costs $ 86 $ 85 Short-term lease costs — 8 Total operating lease expense $ 86 $ 93 Maturities of the Company’s operating and finance leases, excluding short-term leases, as of March 31, 2023 are as follows (in thousands): Three months ended March 31, Operating 2023 (remaining 9 months) $ 288 2024 392 2025 372 Thereafter 613 Total lease payments 1,665 Less imputed interest ( 213 ) Lease liability $ 1,452 The remaining term of the Company’s operating leases was 4.3 years and the discount rate used to measure the present value of the Company’s operating lease liabilities at inception was 6.25 % . |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Note 6—Debt O n March 10, 2020 (the “Effective Date”), the Company entered into (i) the Mezzanine Loan Agreement with the Agent, and the Mezzanine Lenders, pursuant to which the Mezzanine Lenders have agreed to lend the Company up to $ 50.0 million in a series of term loans, and (ii) a loan and security agreement (the “Senior Loan Agreement”, and together with the Mezzanine Loan Agreement, the “Loan Agreements”) with Silicon Valley Bank, as lender (the “Senior Lender”, and together with the Mezzanine Lenders, the “Lenders”), pursuant to which the Senior Lender has agreed to provide the Company with a revolving line of credit of up to $ 5.0 million. Upon entering into the Loan Agreements, the Company borrowed $ 35.0 million in term loans from the Mezzanine Lenders (the “Term A Loan”). The Company entered into amendments to the Loan Agreements in October 2020 under which the Company borrowed an additional $ 5.0 million in term loans (the “Term B1 Loan”), on March 1, 2021. The Company incurred debt issuance costs of $ 4.3 million, including the final payment fee of $ 3.8 million related to the Term A Loan and Term B1 Loan. On July 11, 2022, the Company voluntarily repaid the entire debt balance in full of $ 43.8 million, inclusive of principal amount of debt, the final payment fee, and accrued interest, and satisfied all of the Company’s outstanding debt obligations under the Loan Agreements. The Company did not incur any prepayment penalties in connection with the repayment of the Loan Agreements, which had a scheduled maturity of March 1, 2024 . The prepayment was made in full using restricted cash of $ 40.0 million, which was set aside as cash collateral in a March 2022 amendment to the Mezzanine Loan Agreement, as well as cash on hand of $ 3.8 million for the final payment fee. For the year ended December 31, 2022, the Company recognized a $ 1.4 million loss on debt extinguishment which was made up entirely of non-cash unamortized debt issuance costs. For the three months ended March 31, 2022, the Company recognized interest expense of $ 1.0 million of which $ 0.7 million was interest on the term loan and $ 0.3 million was non-cash interest expense related to the amortization of deferred debt issuance costs and accrual of the final payment fee. |
Stockholders Equity
Stockholders Equity | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Stockholders Equity | Note 7—Stockholders Equity Common Stock The Company had authorized 200,000,000 shares of common stock, $ 0.0001 par value per share, as of March 31, 2023 and December 31, 2022. Each share of common stock is entitled to one vote. Common stock owners are entitled to dividends when funds are legally available and declared by the Board. Underwritten public offering In February 2023, the Company closed an underwritten offering of 750,000 shares of its common stock and pre-funded warrants to purchase 4,064,814 shares of common stock. The shares of common stock were sold at a price of $ 6.75 per share and the pre-funded warrants were sold at a price of $ 6.7499 per pre-funded warrant, resulting in net proceeds of $ 30.3 million after deducting underwriting discounts and commissions, and offering expense. The pre-funded warrants will not expire and are exercisable in cash or by means of a cashless exercise. Stock-Based Compensation Stock-based compensation expense, which includes expense for both employees and non-employees, has been reported in the Company’s condensed statements of operations for the three months ended March 31, 2023 and 2022 as follows (in thousands): For the Three Months Ended March 31, 2023 2022 Research and development $ 258 $ 417 General and administrative 836 899 Total stock-based compensation $ 1,094 $ 1,316 Stock Options The following table summarizes the Company’s stock option activity for the three months ended March 31, 2023: Weighted average Weighted average remaining contractual Aggregate intrinsic Number of shares exercise price term (in years) value Outstanding as of December 31, 2022 3,932,779 $ 8.99 Granted 848,000 7.58 Exercised ( 8,000 ) 0.90 Forfeited ( 50,697 ) 11.61 Expired — — Outstanding as of March 31, 2023 4,722,082 $ 8.72 7.5 $ 1,233,995 Options vested and exercisable as of 2,557,179 $ 9.08 6.1 $ 422,875 As of March 31, 2023 , the total unrecognized compensation related to unvested stock option awards granted was $ 12.9 million, which the Company expects to recognize over a weighted-average period of 2.91 years. Restricted Stock In November 2019 and August 2020 the Company granted 300,000 and 250,000 restricted stock units, respectively, to its executive officers. T hese restricted stock units vest 50 % upon receipt of regulatory approval of the Company’s new drug application for VP-102 for the treatment of molluscum (the “Approval Date”) and 50 % shall vest on the one year anniversary of the Approval Date subject to the holders’ continuous service through each applicable date. In March 2023, the Company granted 698,000 restricted stock units to executive officers and employees. T hese restricted stock units vest 50 % upon the first commercial sale, following approval by the FDA, of VP-102 (the "First Sale Date") and 50 % shall vest on the one year anniversary of the First Sale Date subject to the holders’ continuous service through each applicable date. As of March 31, 2023 , 1,123,000 restricted stock units were outstanding. The following is a summary of changes in the status of non-vested RSUs: Weighted Average Grant Date Fair Number of Shares Value Nonvested as of December 31, 2022 425,000 $ 11.68 Granted 698,000 7.58 Forfeited — — Nonvested as of March 31, 2023 1,123,000 $ 9.13 No compensation expense has been recognized for these nonvested restricted stock units as these shares are performance based and the triggering event was not determined to be probable as of March 31, 2023. As of March 31, 2023 , the total unrecognized compensation expense related to the restricted stock units was $ 10.3 million. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 8—Related Party Transactions Prior to the completion of the initial public offering of the Company’s common stock in June 2018, the Company was controlled by PBM VP Holdings, LLC (“PBM VP Holdings”) an affiliate of PBM Capital Group, LLC (“PBM”). Paul B. Manning, who is the Chairman and Chief Executive Officer of PBM and the current chairman of the Company’s Board of Directors, and certain entities affiliated with Mr. Manning, continue to be the Company’s largest shareholder on a collective basis. On December 2, 2015, the Company entered into a Services Agreement (the “SA”) with PBM. Pursuant to the terms of the SA, which had an initial term of twelve months (and was automatically renewable for successive monthly periods), PBM rendered advisory and consulting services to the Company. Services provided under the SA included certain business development, operations, technical, contract, accounting and back office support services. In consideration for these services, the Company was obligated to pay PBM a monthly management fee. On October 1, 2019, the SA was amended to reduce the monthly management fee to $ 5,000 as a result of a reduction in services provided by PBM. For each of the three months ended March 31, 2023 and 2022 , the Company incurred expenses under the SA of $ 15,000 of which $ 9,000 were included in general and administrative expenses, and $ 6,000 were included in research and development expenses. As of March 31, 2023 , the Company had $ 5,000 of outstanding payables due to PBM and its affiliates. O n September 8, 2022, the Company entered into a clinical service agreement with Clinical Enrollment LLC which is controlled by Bryan Manning, the son of Paul B. Manning, who is the current chairman of the Company's Board of Directors. Paul B. Manning along with certain entities affiliated with Mr. Manning, are the Company's largest shareholder on a collective basis. Pursuant to the clinical service agreement, Clinical Enrollment LLC may provide recruiting support services for the Company's VP-315 clinical trial. No fees will be due under the agreement until a minimum number of patients are enrolled in the clinical trial by the vendor. Compensation of $ 30,000 was recognized during the year ended December 31,2022 for the development and production fee of media, video, and web to support recruitment services. When the minimum enrollments are met, compensation will include a $ 15,000 fee per eligible patient enrolled in the trial. No expenses were incurred for the three months ended March 31, 2023. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9—Commitments and Contingencies Litigation On June 6, 2022, plaintiff Kranthi Gorlamari, or Gorlamari, filed a putative class action complaint captioned Gorlamari v. Verrica Pharmaceuticals Inc., et al., in the U.S. District Court for the Eastern District of Pennsylvania against the Company and certain of its current and former officers and directors (“Defendants”). Gorlamari filed an amended complaint on January 12, 2023. The amended complaint alleges that Defendants violated federal securities laws by, among other things, failing to disclose certain manufacturing deficiencies at the facility where our contract manufacturer produced bulk solution for the VP-102 drug device and that such deficiencies posed a risk to the prospects for regulatory approval of VP-102 for the treatment of molluscum. The amended complaint seeks unspecified compensatory damages and other relief on behalf of Gorlamari and all other persons and entities which purchased or otherwise acquired our securities between May 19, 2021 and May 24, 2022. On April 5, 2023, the Defendants filed a motion to dismiss the amended complaint. The litigation is still in the early stages, and the Company intends to vigorously defend itself against these allegations. The Company is involved in ordinary, routine legal proceedings that are not considered by management to be material. In the opinion of Company counsel and management, the ultimate liabilities resulting from such legal proceedings will not materially affect the financial position of the Company or its results of operations or cash flows. Supply Agreement and Purchase Order On July 16, 2018, the Company entered into a supply agreement with a supplier of crude cantharidin material. All executed purchase orders for crude cantharidin in the ordinary course of business are expected to be covered under the terms of the supply agreement. Pursuant to the supply agreement, the supplier has agreed that it will not supply cantharidin, any beetles or other raw material from which cantharidin is derived to any other customer in North America, subject to specified minimum annual purchase orders and forecasts by the Company. The supply agreement has an initial five-year term, which is subject to automatic renewal absent termination by either party in accordance with the terms of the supply agreement. Each party also has the right to terminate the supply agreement for other customary reasons such as material breach or bankruptcy. During 2022 and 2 021, the Company executed a purchase order pursuant to which the Company agreed to purchase $ 0.7 million and $ 0.8 million, respectively of crude cantharidin material and made prepayments of $ 0.7 million and $ 0.8 million in each year against the purchase orders. As of March 31, 2023, the Company has not received the shipments for the purchases during 2022 and 2021. As of March 31, 2023 and December 31, 2022 the balance sheets reflect prepaid expense of $ 1.5 million. The 2021 executed purchase order of crude cantharidin was received in April 2023. |
License And Collaboration Agree
License And Collaboration Agreements | 3 Months Ended |
Mar. 31, 2023 | |
License And Collaboration Agreements [Abstract] | |
License and Collaboration Agreements | Note 10—License and Collaboration Agreements On March 17, 2021, the Company entered into a collaboration and license agreement (the “Torii Agreement”) with Torii, pursuant to which the Company granted Torii an exclusive license to develop and commercialize the Company’s product candidates that contain a topical formulation of cantharidin for the treatment of molluscum contagiosum and common warts in Japan, including VP-102. Additionally, the Company granted Torii a right of first negotiation with respect to additional indications for the licensed products and certain additional products for use in the licensed field, in each case in Japan. Pursuant to the Torii Agreement, the Company received payments from Torii of $ 0.5 million in December 2020 and $ 11.5 million in April 2021. On July 25, 2022 Torii dosed the first patient in its Phase 3 trial of VP-102 (referred to as TO-208 in Japan) for molluscum contagiosum in Japan, triggering an $ 8.0 million milestone payment. Additionally, the Company is entitled to receive from Torii an additional $ 50 million in aggregate payments from Torii contingent on achievement of specified development, regulatory, and sales milestones, in addition to tiered transfer price payments for supply of product in the percentage range of the mid- 30 ’s to the mid- 40 ’s of net sales. The transfer payments shall be payable, on a product-by-product basis, beginning on the first commercial sale of such product and ending on the latest of (a) expiration of the last-to-expire valid claim contained in certain licensed patents in Japan that cover such product, (b) expiration of regulatory exclusivity for the first indication for such product in Japan, and, (c) (i) with respect to the first product, ten years after first commercial sale of such product, and, (ii) with respect to any other product, the later of (x) ten years after first commercial sale of the first product and (y) five years after first commercial sale of such product. The Torii Agreement expires on a product-by-product basis upon expiration of Torii’s obligation under the agreement to make transfer price payments for such product. Torii has the right to terminate the agreement upon specified prior written notice to us. Additionally, either party may terminate the agreement in the event of an uncured material breach of the agreement by, or insolvency of, the other party. The Company may terminate the agreement in the event that Torii commences a legal action challenging the validity, enforceability or scope of any licensed patents. On March 7, 2022, the Company executed a Clinical Supply Agreement with Torii, whereby the Company will supply product to Torii for use in clinical trials and other development activities. The Company recognized billed and unbilled collaboration revenue of $ 37,000 and $ 0.4 million for the three months ended March 31, 2023 and 2022 respectively related to supplies and development activity pursuant to this agreement. The costs of collaboration revenue consists of expenses incurred by the Company for manufacturing supply to support development and testing services pursuant to the Torii Clinical Supply Agreement. In August 2020, the Company entered into an exclusive license agreement with Lytix Biopharma AS (“Lytix”) for the use of licensed technology, referred to as VP-315, to research, develop, manufacture, have manufactured, use, sell, have sold, offer for sale, import, and otherwise commercialize products for use in all malignant and pre-malignant dermatological indications, other than metastatic melanoma and metastatic Merkel cell carcinoma (the” Lytix Agreement”). As part of the Lytix Agreement, the Company paid Lytix a one-time up-front fee of $ 0.3 million in 2020. In addition, in May 2022 and February 2021, the Company paid Lytix a one-time $ 1.0 million and $ 2.3 million payment, respectively upon the achievement by Lytix of a regulatory milestone. The Company is also obligated to pay up to $ 111.0 million contingent on achievement of specified development, regulatory, and sales milestones, as well as tiered royalties based on worldwide annual net sales ranging in the low double digits to the mid-teens, subject to certain customary reductions. The Company’s obligation to pay royalties expires on a country-by-country and product-by-product basis on the later of the expiration or abandonment of the last to expire licensed patent covering VP-315 anywhere in the world and expiration of regulatory exclusivity for VP-315 in such country. Additionally, all upfront fees and milestone based payments received by the Company from a sublicensee will be treated as net sales and will be subject to the royalty payment obligations under the Lytix Agreement, and all royalties received by t he Company from a sublicensee shall be shared with Lytix at a rate that is initially 50 % but decreases based on the stage of development of VP-315 at the time such sublicense is granted. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 11 – Subsequent Event None. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim condensed financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) as determined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the unaudited interim condensed financial statements reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the balances and results for the periods presented. They may not include all of the information and footnotes required by GAAP for complete financial statements. Therefore, these financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended December 31, 2022 included in its Form 10-K, filed with the Securities and Exchange Commission (the “SEC”) on March 6, 2023. The results of operations for any interim periods are not necessarily indicative of the results that may be expected for the entire fiscal year or any other interim period. The Company has been actively monitoring the coronavirus (“COVID-19”) pandemic and its impact globally. Management believes the financial results for the year ended December 31, 2022 and the three months ended March 31, 2023, were not significantly impacted by COVID-19. In addition, management believes the remote working arrangements, travel restrictions and any other regulations imposed by various governmental jurisdictions have had limited impact on the Company’s ability to maintain internal operations. The full extent to which the COVID-19 pandemic will directly or indirectly impact the Company’s business, results of operations and financial condition will depend on future developments that are highly uncertain, including as a result of new information that may emerge concerning COVID-19 and the actions taken to contain it or treat COVID-19. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. These estimates and assumptions are based on current facts, historical experience as well as other pertinent industry and regulatory authority information, including the potential future effects of COVID-19, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of expenses that are not readily apparent from other sources. Actual results may differ materially and adversely from these estimates. To the extent there are material differences between the estimates and actual results, the Company’s future results of operations will be affected. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform with current period presentation. |
Significant Accounting Policies | S ignificant Accounting Policies Collateral Cash Cash and cash equivalents at March 31, 2023 includes a cash deposit of $ 150,000 with Bank of America as required under the Commercial Credit Card Program with a balance equal to the outstanding credit limit on commercial credit cards. |
Net Loss Per Share | Net Loss Per Share Net loss per share of common stock is computed by dividing net loss by the weighted average number of shares of common stock outstanding for the period including pre-funded warrants to purchase shares of common stock that were issued in an underwritten offering in February 2023 (Note 7). The pre-funded warrants to purchase common stock are included in the calculation of basic and diluted net loss per share as the exercise price of $ 0.0001 per share is non-substantive and is virtually assured. Diluted net loss per share excludes the potential impact of common stock options and unvested shares of restricted stock because their effect would be anti-dilutive due to the Company’s net loss. Since the Company had a net loss in each of the periods presented, basic and diluted net loss per common share are the same. The table below provides potential shares outstanding that were not included in the computation of diluted net loss per common share, as the inclusion of these securities would have been anti-dilutive: As of March 31, 2023 2022 Shares issuable upon exercise of stock options 4,722,082 3,768,955 Non-vested shares under restricted stock grants 1,123,000 425,000 Total 5,845,082 4,193,955 |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In June 2022, the FASB issued Accounting Standards Update No. 2022-03, Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. This standard clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. This standard becomes effective for the Company on January 1, 2024, and is not expected to have a material impact on the Company’s financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses, Measurement of Credit Losses on Financial Instruments (Topic 326). The st andard amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses for most financial assets and certain other instruments that aren’t measured at fair value through net income. For available-for-sale debt securities, entities will be required to recognize an allowance for credit losses rather than a reduction in carrying value of the asset. Entities will no longer be permitted to consider the length of time that fair value has been less than amortized cost when evaluating when credit losses should be recognized. The Company adopted this guidance on January 1, 2023 and its adoption did not have an impact on the Company's financial statements and related disclosures. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Potential Shares Outstanding not Included in Computation of Diluted Net Loss Per Common Share | The table below provides potential shares outstanding that were not included in the computation of diluted net loss per common share, as the inclusion of these securities would have been anti-dilutive: As of March 31, 2023 2022 Shares issuable upon exercise of stock options 4,722,082 3,768,955 Non-vested shares under restricted stock grants 1,123,000 425,000 Total 5,845,082 4,193,955 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of (in thousands): As of As of March 31, December 31, 2023 2022 Machinery and equipment $ 1,403 $ 1,392 Office furniture and fixtures 303 303 Office equipment 301 301 Leasehold improvements 54 54 Construction in process 2,570 2,536 4,631 4,586 Accumulated depreciation ( 830 ) ( 699 ) Total property and equipment, net $ 3,801 $ 3,887 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): As of As of December 31, Clinical trials and drug development $ 634 $ 974 Compensation and related costs 538 1,399 Professional fees 360 58 Construction in process 167 167 Machinery and equipment 57 57 Other accrued expenses and other current liabilities 10 — Total accrued expenses and other current liabilities $ 1,766 $ 2,655 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Summary of Components of Lease Expense | The components of lease expense are as follows (in thousands): For the Three Months Ended March 31, 2023 2022 Finance lease cost: Amortization ROU assets $ — $ 2 Total finance lease costs — $ 2 Operating lease: Operating lease costs $ 86 $ 85 Short-term lease costs — 8 Total operating lease expense $ 86 $ 93 |
Schedule of Maturities of Operating and Finance Leases | Maturities of the Company’s operating and finance leases, excluding short-term leases, as of March 31, 2023 are as follows (in thousands): Three months ended March 31, Operating 2023 (remaining 9 months) $ 288 2024 392 2025 372 Thereafter 613 Total lease payments 1,665 Less imputed interest ( 213 ) Lease liability $ 1,452 |
Stockholders Equity (Tables)
Stockholders Equity (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Based Compensation Expense | Stock-based compensation expense, which includes expense for both employees and non-employees, has been reported in the Company’s condensed statements of operations for the three months ended March 31, 2023 and 2022 as follows (in thousands): For the Three Months Ended March 31, 2023 2022 Research and development $ 258 $ 417 General and administrative 836 899 Total stock-based compensation $ 1,094 $ 1,316 |
Summary of Stock Option Activity | The following table summarizes the Company’s stock option activity for the three months ended March 31, 2023: Weighted average Weighted average remaining contractual Aggregate intrinsic Number of shares exercise price term (in years) value Outstanding as of December 31, 2022 3,932,779 $ 8.99 Granted 848,000 7.58 Exercised ( 8,000 ) 0.90 Forfeited ( 50,697 ) 11.61 Expired — — Outstanding as of March 31, 2023 4,722,082 $ 8.72 7.5 $ 1,233,995 Options vested and exercisable as of 2,557,179 $ 9.08 6.1 $ 422,875 |
Summary of Non-vested RSUs Activities | The following is a summary of changes in the status of non-vested RSUs: Weighted Average Grant Date Fair Number of Shares Value Nonvested as of December 31, 2022 425,000 $ 11.68 Granted 698,000 7.58 Forfeited — — Nonvested as of March 31, 2023 1,123,000 $ 9.13 |
Nature of Business - Additional
Nature of Business - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | |||||||||
Jul. 08, 2022 | Jul. 05, 2022 | Mar. 01, 2022 | Mar. 17, 2021 | Mar. 01, 2021 | Mar. 10, 2020 | Feb. 28, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Mar. 31, 2020 | |
Description Of Business [Line Items] | |||||||||||
Number of common shares sold | 750,000 | ||||||||||
Shares Issued, Price Per Share | $ 6.75 | ||||||||||
Proceeds from issuance of common stock, net of issuance costs | $ 30,301 | $ 0 | |||||||||
Offering expenses | $ 2,200 | ||||||||||
Accumulated deficit | (170,042) | $ (163,453) | |||||||||
Cash and cash equivalents | $ 59,952 | $ 34,273 | |||||||||
Follow-on Public Offering [Member] | |||||||||||
Description Of Business [Line Items] | |||||||||||
Number of common shares sold | 13,575,000 | ||||||||||
Share price | $ 2.10 | ||||||||||
Proceeds from issuance of common stock, net of issuance costs | $ 26,900 | ||||||||||
Torii Agreement [Member] | Torii [Member] | |||||||||||
Description Of Business [Line Items] | |||||||||||
Obligated to make upfront payment | $ 11,500 | ||||||||||
Milestone Payment | $ 8,000 | ||||||||||
Mezzanine Loan Agreement [Member] | Mezzanine Lenders [Member] | Term A Loan [Member] | |||||||||||
Description Of Business [Line Items] | |||||||||||
Line of credit | $ 35,000 | ||||||||||
Borrowed amount | $ 5,000 | $ 35,000 | |||||||||
Mezzanine Loan Agreement [Member] | Mezzanine Lenders [Member] | Term B1 Loan [Member] | |||||||||||
Description Of Business [Line Items] | |||||||||||
Borrowed amount | $ 5,000 | ||||||||||
Pre Funded Warrant [Member] | |||||||||||
Description Of Business [Line Items] | |||||||||||
Pre-funded warrants to purchase shares of common stock | 4,064,814 | ||||||||||
Warrant price (per share) | $ 6.7499 | ||||||||||
Proceeds from issuance of common stock, net of issuance costs | $ 30,300 |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) $ / shares | |
Accounting Policies [Abstract] | |
Banking cash deposits | $ | $ 150,000 |
Exercise price of basic and diluted per share | $ / shares | $ 0.0001 |
Significant Accounting Polici_5
Significant Accounting Policies - Schedule of Potential Shares Outstanding not Included in Computation of Diluted Net Loss Per Common Share (Detail) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Securities that could potentially dilute basic earnings per share | 5,845,082 | 4,193,955 |
Shares issuable upon exercise of stock options [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Securities that could potentially dilute basic earnings per share | 4,722,082 | 3,768,955 |
Non-vested shares under restricted stock grants [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Securities that could potentially dilute basic earnings per share | 1,123,000 | 425,000 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 4,631 | $ 4,586 |
Accumulated depreciation | (830) | (699) |
Total property and equipment, net | 3,801 | 3,887 |
Machinery and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 1,403 | 1,392 |
Office Furniture and Fixtures [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 303 | 303 |
Office Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 301 | 301 |
Leasehold Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 54 | 54 |
Construction in Progress [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 2,570 | $ 2,536 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Accrued Liabilities, Current [Abstract] | ||
Clinical trials and drug development | $ 634 | $ 974 |
Compensation and related costs | 538 | 1,399 |
Professional fees | 360 | 58 |
Construction in process | 167 | 167 |
Machinery and equipment | 57 | 57 |
Other accrued expenses and other current liabilities | 10 | 0 |
Total accrued expenses and other current liabilities | $ 1,766 | $ 2,655 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Lessee Lease Description [Line Items] | |
Lease expiration date | Sep. 01, 2027 |
Operating lease, remaining lease term | 4 years 3 months 18 days |
Operating lease, discount rate | 6.25% |
NEW JERSEY | |
Lessee Lease Description [Line Items] | |
Lease agreement commencement date | May 01, 2022 |
Lease expiration date | Apr. 30, 2025 |
Operating lease, base rent | $ 104,000 |
Landlord's Operating Expense [Member] | |
Lessee Lease Description [Line Items] | |
Operating lease, base rent | $ 2,400 |
Leases - Summary of Components
Leases - Summary of Components of Lease Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Amortization ROU assets | $ 0 | $ 2 |
Total finance lease costs | 0 | 2 |
Operating lease costs | 86 | 85 |
Short-term lease costs | 0 | 8 |
Total operating lease expense | $ 86 | $ 93 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating and Finance Leases (Detail) $ in Thousands | Mar. 31, 2022 USD ($) |
Leases [Abstract] | |
Operating Lease, Remainder of Fiscal Year | $ 288 |
Operating Lease, Year one | 392 |
Operating Lease, Year Two | 372 |
Operating Lease, After Year Two | 613 |
Operating Lease, Total lease payments | 1,665 |
Less Operating Lease, imputed interest | (213) |
Operating Lease, Lease liability | $ 1,452 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Jul. 11, 2022 | Mar. 01, 2022 | Mar. 01, 2021 | Mar. 10, 2020 | Mar. 31, 2022 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2020 | |
Debt Instrument [Line Items] | ||||||||
Loans, maturity date | Mar. 01, 2024 | |||||||
Repayment of debt | $ 43.8 | |||||||
Loss on extinguishment of debt | $ (1.4) | |||||||
Mezzanine Lenders [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Cash, cash equivalents and marketable securities and restricted cash | $ 40 | |||||||
Mezzanine Loan Agreement [Member] | Mezzanine Lenders [Member] | Term Loans [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 50 | |||||||
Mezzanine Loan Agreement [Member] | Mezzanine Lenders [Member] | Term A Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowed amount | $ 5 | 35 | ||||||
Line of credit | $ 35 | |||||||
Mezzanine Loan Agreement [Member] | Mezzanine Lenders [Member] | Term B1 Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowed amount | $ 5 | |||||||
Mezzanine Loan Agreement [Member] | Silicon Valley Bank (Senior Lender) [Member] | Revolving Loans [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 5 | |||||||
Senior Loan Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest expense | $ 1 | |||||||
Interest on term loan | 0.7 | |||||||
Non-cash interest expense | $ 0.3 | |||||||
Senior Loan Agreement [Member] | Term Loans [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt discount and issuance costs | $ 4.3 | |||||||
Final payment fee | 3.8 | |||||||
Senior Loan Agreement [Member] | Mezzanine Lenders [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Final payment fee | $ 3.8 |
Stockholders Equity - Schedule
Stockholders Equity - Schedule of Stock Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | $ 1,094 | $ 1,316 |
Research and Development [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | 258 | 417 |
General and Administrative [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | $ 836 | $ 899 |
Stockholders Equity - Summary o
Stockholders Equity - Summary of Stock Option Activity (Detail) | 3 Months Ended |
Mar. 31, 2023 USD ($) $ / shares shares | |
Share-Based Payment Arrangement, Additional Disclosure [Abstract] | |
Number of shares, Outstanding Beginning Balance | shares | 3,932,779 |
Number of shares, Granted | shares | 848,000 |
Number of shares, Exercised | shares | 0 |
Number of shares, Forfeitures | shares | (50,697) |
Number of shares, Expired | shares | (8,000) |
Number of shares, Outstanding Ending Balance | shares | 4,722,082 |
Number of shares, Options vested and exercisable Ending Balance | shares | 2,557,179 |
Weighted average exercise price, Outstanding Beginning Balance | $ / shares | $ 8.99 |
Weighted average exercise price, Granted | $ / shares | 7.58 |
Weighted average exercise price, Exercised | $ / shares | 0 |
Weighted average exercise price, Forfeitures | $ / shares | 11.61 |
Weighted average exercise price, Expired | $ / shares | 0.90 |
Weighted average exercise price, Outstanding Ending Balance | $ / shares | 8.72 |
Weighted average exercise price, Options vested and exercisable Ending Balance | $ / shares | $ 9.08 |
Weighted average remaining contractual life (in years), Outstanding | 7 years 6 months |
Weighted average remaining contractual life (in years), Options vested and exercisable | 6 years 1 month 6 days |
Aggregate intrinsic value, Outstanding | $ | $ 1,233,995 |
Aggregate intrinsic value, Options vested and exercisable Ending Balance | $ | $ 422,875 |
Stockholders Equity - Additiona
Stockholders Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | ||||||
Jul. 08, 2022 | Jul. 05, 2022 | Feb. 28, 2023 | Aug. 31, 2020 | Nov. 30, 2019 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Common stock, shares authorized | 200,000,000 | 200,000,000 | ||||||
Common stock, par value | $ 0.0001 | $ 0.0001 | ||||||
Common stock, voting right | one | |||||||
Net proceeds from issuance | $ 30,301 | $ 0 | ||||||
Number of common shares sold | 750,000 | |||||||
Shares Issued, Price Per Share | $ 6.75 | |||||||
Offering expenses | $ 2,200 | |||||||
Total unrecognized compensation related to unvested stock options | $ 12,900 | |||||||
Weighted-average stock option recognize period | 2 years 10 months 28 days | |||||||
Pre Funded Warrant [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Net proceeds from issuance | $ 30,300 | |||||||
Pre-funded warrants to purchase shares of common stock | 4,064,814 | |||||||
Warrant price (per share) | $ 6.7499 | |||||||
Follow On Public Offering [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Net proceeds from issuance | $ 26,900 | |||||||
Number of common shares sold | 13,575,000 | |||||||
Share price | $ 2.10 | |||||||
Underwritten Offering [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of common shares sold | 750,000 | |||||||
Shares Issued, Price Per Share | $ 6.75 | |||||||
Sale of stock consideration | $ 30,300 | |||||||
Underwritten Offering [Member] | Pre Funded Warrant [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Pre-funded warrants to purchase shares of common stock | 4,064,814 | |||||||
Restricted Stock Units (RSUs) [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of Shares, Granted | 698,000 | |||||||
Stock vesting period | 1 year | 1 year | ||||||
Restricted stock units outstanding | 1,123,000 | 425,000 | ||||||
Total unrecognized compensation related to nonvested restricted stock units | $ 10,300 | |||||||
Restricted Stock Units (RSUs) [Member] | Executive Officers [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of Shares, Granted | 250,000 | 300,000 | 698,000 | |||||
Restricted Stock Units (RSUs) [Member] | One Year Anniversary [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Percentage of stock subject to vesting (as a percent) | 50% | 50% | ||||||
Restricted Stock Units (RSUs) [Member] | New Drug Application [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Percentage of stock subject to vesting (as a percent) | 50% | 50% |
Stockholders Equity - Summary_2
Stockholders Equity - Summary of Non-vested RSUs Activities (Detail) - Restricted Stock Units (RSUs) [Member] | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |
Nonvested, Number of Shares, Beginning Balance | shares | 425,000 |
Nonvested, Number of Shares, Granted | shares | 698,000 |
Nonvested, Number of Shares, Forfeitures | shares | 0 |
Nonvested, Number of Shares, Ending Balance | shares | 1,123,000 |
Nonvested, Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 11.68 |
Nonvested, Weighted Average Grant Date Fair Value, Granted | $ / shares | 7.58 |
Nonvested, Weighted Average Grant Date Fair Value, Forfeitures | $ / shares | 0 |
Nonvested, Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 9.13 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 3 Months Ended | |||
Oct. 01, 2019 | Dec. 02, 2015 | Mar. 31, 2023 | Mar. 31, 2022 | |
Related Party Transaction [Line Items] | ||||
Fee Per Eligible Patient | $ 15,000,000 | |||
PBM Capital Group, LLC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Services agreement initial term | 12 months | |||
Expenses incurred under services agreement | 15,000 | $ 15,000 | ||
Due to related party | 5,000 | |||
PBM Capital Group, LLC [Member] | Amended Service Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Monthly management fee payable | $ 5,000 | |||
PBM Capital Group, LLC [Member] | General and Administrative [Member] | ||||
Related Party Transaction [Line Items] | ||||
Expenses incurred under services agreement | 9,000 | 9,000 | ||
PBM Capital Group, LLC [Member] | Research and Development [Member] | ||||
Related Party Transaction [Line Items] | ||||
Expenses incurred under services agreement | 6,000 | $ 6,000 | ||
Clinical Enrollment LLC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Expenses incurred under services agreement | 0 | |||
Development Fee Compensation | $ 30,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Product Liability Contingency [Line Items] | |||
Prepaid expense | $ 1.5 | $ 1.5 | |
Crude Cantharidin Material [Member] | |||
Product Liability Contingency [Line Items] | |||
Purchase agreement term | 5 years | ||
Purchase Commitment | 0.7 | $ 0.8 | |
Purchase commitment prepayment | $ 0.7 | $ 0.8 |
License and Collaboration Agr_2
License and Collaboration Agreements - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Jul. 25, 2022 | Mar. 17, 2021 | May 31, 2022 | Apr. 30, 2021 | Feb. 28, 2021 | Dec. 31, 2020 | Aug. 31, 2020 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2020 | |
License And Collaboration Agreements [Line Items] | ||||||||||
Research and development expense | $ 2,739,000 | $ 2,445,000 | ||||||||
Ltyix [Member] | ||||||||||
License And Collaboration Agreements [Line Items] | ||||||||||
Payments upon achievements of milestone | $ 111,000,000 | |||||||||
One time up front license fee | $ 1,000,000 | $ 2,300,000 | $ 300,000 | |||||||
Percentage of royalty income shared | 50% | |||||||||
Torii Agreement [Member] | Torii [Member] | ||||||||||
License And Collaboration Agreements [Line Items] | ||||||||||
Received payment | $ 11,500,000 | $ 500,000 | ||||||||
Payments upon achievements of milestone | 50,000,000 | |||||||||
Billed collaboration revenue | 37,000 | 37,000 | ||||||||
Unbilled collaboration revenue | $ 400,000 | $ 400,000 | ||||||||
Torii Agreement [Member] | Torii [Member] | Minimum [Member] | ||||||||||
License And Collaboration Agreements [Line Items] | ||||||||||
Mid Percentage of transfer price payments for supply of product net sales | 30% | |||||||||
Torii Agreement [Member] | Torii [Member] | Maximum [Member] | ||||||||||
License And Collaboration Agreements [Line Items] | ||||||||||
Mid Percentage of transfer price payments for supply of product net sales | 40% | |||||||||
License Revenue [Member] | Torii Agreement [Member] | Torii [Member] | ||||||||||
License And Collaboration Agreements [Line Items] | ||||||||||
Milestone payment recognized | $ 8,000,000 |