Verrica Pharmaceuticals (VRCA) 10-Q 9 Nov 23 2023 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2023	Nov. 03, 2023
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
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		42,064,553
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	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 84,308	$ 34,273
Accounts receivable	3,946	0
Collaboration revenue receivable	0	388
Unbilled revenue	126	99
Inventory	279	0
Prepaid expenses and other current assets	3,066	4,355
Total current assets	91,725	39,115
Property and equipment, net	3,558	3,887
Operating lease right-of-use asset	1,339	1,443
Other non-current assets	526	276
Total assets	97,148	44,721
Current liabilities:
Accounts payable	1,925	507
Accrued expenses and other current liabilities	9,102	2,655
Operating lease liability	316	297
Financing lease liability	31	0
Total current liabilities	11,374	3,459
Operating lease liability	989	1,229
Finance lease liability	81	0
Long term debt	42,401	0
Total liabilities	54,845	4,688
Commitments and Contingencies (Note 10)
Stockholders’ equity:
Preferred stock, $0.0001 par value; 10,000,000 shares authorized; no shares issued and outstanding as of September 30, 2023 and December 31, 2022	0	0
Common stock, $0.0001 par value; 200,000,000 authorized; 42,169,697 shares issued and 42,064,553 shares outstanding as of September 30, 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 September 30, 2023 and December 31, 2022	0	0
Additional paid-in capital	248,133	203,482
Accumulated deficit	(205,834)	(163,453)
Total stockholders’ equity	42,303	40,033
Total liabilities and stockholders’ equity	$ 97,148	$ 44,721

CONDENSED BALANCE SHEETS (Paren

CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 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	42,169,697	41,199,197
Common stock, shares outstanding	42,064,553	41,094,053
Treasury Stock, Common, Shares	105,144	105,144

CONDENSED STATEMENTS OF OPERATI

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue:
Total revenue	$ 2,917	$ 8,319	$ 3,136	$ 8,964
Operating expenses:
Selling, general and administrative	20,054	3,925	30,310	14,216
Research and development	6,510	2,780	14,975	9,170
Cost of product revenue	145	0	145	0
Cost of collaboration revenue	125	166	329	663
Total operating expenses	26,834	6,871	45,759	24,049
(Loss) income from operations	(23,917)	1,448	(42,623)	(15,085)
Other income (expense):
Interest income	822	148	1,948	190
Interest expense	(1,657)	(81)	(1,657)	(2,172)
Loss on extinguishment of debt	0	(1,437)	0	(1,437)
Other (expense) income	(50)	5	(49)	(51)
Total other (expense) income, net	(885)	(1,365)	242	(3,470)
Net (loss) income	$ (24,802)	$ 83	$ (42,381)	$ (18,555)
Net (loss) income per share, basic	$ (0.54)	$ 0	$ (0.94)	$ (0.58)
Net (loss) income per share, diluted	$ (0.54)	$ 0	$ (0.94)	$ (0.58)
Weighted average common shares outstanding, basic	46,073,932	40,304,923	45,015,900	31,827,844
Weighted average common shares outstanding, diluted	46,073,932	40,321,639	45,015,900	31,827,844
Net (loss) Income	$ (24,802)	$ 83	$ (42,381)	$ (18,555)
Other comprehensive gain:
Unrealized gain on marketable securities	0	35	0	0
Comprehensive (loss) income	(24,802)	118	(42,381)	(18,555)
Product [Member]
Revenue:
Total revenue	2,792	0	2,792	0
Collaboration Revenue [Member]
Revenue:
Total revenue	$ 125	$ 8,319	$ 344	$ 8,964

CONDENSED STATEMENTS OF STOCKHO

CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Treasury Stock, Common [Member]	Accumulated Other Comprehensive Gain (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) income	(8,470)			(8,470)
Unrealized gain (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, 2021	32,605	$ 3	171,597	(138,966)		(29)
Beginning Balance (shares) at Dec. 31, 2021		27,624,197			105,144
Net (loss) income	(18,555)
Unrealized gain (loss) on marketable securities	0
Ending Balance at Sep. 30, 2022	44,765	$ 4	202,311	(157,521)		(29)
Ending Balance (shares) at Sep. 30, 2022		41,199,197			105,144
Beginning Balance at Mar. 31, 2022	25,418	$ 3	172,913	(147,436)		(62)
Beginning Balance (shares) at Mar. 31, 2022		27,624,197			105,144
Stock-based compensation	1,085		1,085
Net (loss) income	(10,168)			(10,168)
Unrealized gain (loss) on marketable securities	(2)					(2)
Ending Balance at Jun. 30, 2022	16,333	$ 3	173,998	(157,604)		(64)
Ending Balance (shares) at Jun. 30, 2022		27,624,197			105,144
Stock-based compensation	1,413		1,413
Issuance of common stock, net of issuance costs	26,901	$ 1	26,900
Issuance of common stock, net of issuance costs (shares)		13,575,000
Net (loss) income	83			83
Unrealized gain (loss) on marketable securities	35					35
Ending Balance at Sep. 30, 2022	44,765	$ 4	202,311	(157,521)		$ (29)
Ending Balance (shares) at Sep. 30, 2022		41,199,197			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, Shares		750,000
Issuance of common stock and pre-funded warrants, for the purchase of common stock, net of issuance costs	30,301		30,301
Exercise of stock options	7		7
Exercise of stock options (shares)		8,000
Net (loss) income	(6,589)			(6,589)
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
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
Exercise of stock options (shares)	8,000
Net (loss) income	$ (42,381)
Unrealized gain (loss) on marketable securities	0
Ending Balance at Sep. 30, 2023	42,303	$ 4	248,133	(205,834)
Ending Balance (shares) at Sep. 30, 2023		42,169,697			105,144
Beginning Balance at Mar. 31, 2023	64,846	$ 4	234,884	(170,042)
Beginning Balance (shares) at Mar. 31, 2023		41,957,197			105,144
Stock-based compensation	1,544		1,544
Net (loss) income	(10,990)			(10,990)
Ending Balance at Jun. 30, 2023	55,400	$ 4	236,428	(181,032)
Ending Balance (shares) at Jun. 30, 2023		41,957,197			105,144
Stock-based compensation	9,663		9,663
Common stock warrants issued with debt	2,041		2,041
Vesting of restricted stock units		212,500
Net (loss) income	(24,802)			(24,802)
Unrealized gain (loss) on marketable securities	0
Ending Balance at Sep. 30, 2023	$ 42,303	$ 4	$ 248,133	$ (205,834)
Ending Balance (shares) at Sep. 30, 2023		42,169,697			105,144

CONDENSED STATEMENTS OF CASH FL

CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Cash flows from operating activities
Net loss			$ (42,381)	$ (18,555)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	$ 9,663	$ 1,413	12,301	3,814
Amortization of premiums on marketable securities			0	97
Depreciation expense			399	323
Noncash interest expense			338	384
Loss on disposal of fixed assets			61	0
Loss on extinguishment of debt	0	1,437	0	1,437	$ (1,400)
Gain on operating lease termination			0	(6)
Amortization in operating lease right-of-use asset			220	194
Changes in operating assets and liabilities:
Prepaid expenses and other assets			1,007	264
Accounts payable			1,623	(708)
Accounts receivable			(3,946)	0
Unbilled receivable			361	(419)
Accrued expenses and other current liabilities			6,171	(327)
Operating lease liability			(224)	(194)
Net cash used in operating activities			(24,070)	(13,696)
Cash flows from investing activities
Sales and maturities of marketable securities			0	52,008
Purchases of marketable securities			0	(4,485)
Purchases of property and equipment			(135)	(236)
Net cash (used in) provided by investing activities			(135)	47,287
Cash flows from financing activities
Proceeds from exercise of stock options			7	0
Proceeds from issuance of debt, net of issuance costs			44,105	0
Payment of equity issuance costs			(173)	0
Repayment of debt			0	(43,750)
Payment of debt issuance costs			0	(17)
Repayment of financing lease			0	(4)
Proceeds from issuance of common stock, net of issuance costs			30,301	26,901
Net cash provided by (used in) financing activities			74,240	(16,870)
Net increase in cash, cash equivalents and restricted cash			50,035	16,721
Cash and cash equivalents at the beginning of the period			34,273	15,752	15,752
Cash and cash equivalents at the end of the period	$ 84,308	$ 32,473	84,308	32,473	$ 34,273
Supplemental disclosure of noncash investing and financing activities:
Property and equipment purchases in accounts payable or accrued expenses and other current liabilities at period end			93	291
Change in unrealized gain on marketable securities			0	0
Cash paid for interest			1,319	1,788
Common stock warrants issued with debt			2,041	0
Right-of-use asset obtained in exchange for lease obligation			$ 116	$ 99

Nature of Business

Nature of Business	9 Months Ended
	Sep. 30, 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 and selling medications for skin diseases requiring medical intervention. On July 21, 2023, the U.S. Food and Drug Administration (“FDA”) approved YCANTH (VP-102) topical solution for the treatment of molluscum contagiosum in adult and pediatric patients two years of age and older. The Company launched commercial operations in August 2023. 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 September 30, 2023 , the Company had an accumulated deficit of $ 205.8 million. 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 8). On July 26, 2023, the Company entered into a Credit Agreement which provides for up to $ 125.0 million in debt under a Loan Facility (as defined in Note 7). The Company borrowed $ 50.0 million under the Loan Facility on July 26, 2023, resulting in net proceeds of approximately $ 44.1 million after payment of certain fees and transaction related expenses. In addition, up to $ 25.0 million will be made available on or prior to June 30, 2024, up to $ 30.0 million will be made available on or prior to December 31, 2024, up to $ 10.0 million will be made available on or prior to March 31, 2025, and up to $ 10.0 million will be made available on or prior to June 30, 2025, in each case, subject to the Company's achievement of certain revenue targets. Amounts borrowed under the Loan Facility will mature on July 26, 2028 . In accordance with Accounting Standards Update, or ASU, No. 2014-15 , Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern , the Company has evaluated whether there are certain 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 the financial statements are issued. The Company believes its cash and cash equivalents of $ 84.3 million as of September 30, 2023 will be sufficient to allow the Company to operate for a period greater than twelve months from the issuance date of these condensed financial statements and extend beyond the twelve months into the first quarter of 2025.

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Sep. 30, 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. 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 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. Collateral Cash Cash and cash equivalents at September 30, 2023 includes a cash deposit of $ 360,000 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. Fair Value of Financial Instruments and Credit Risk At September 30, 2023, the Company’s financial instruments included cash equivalents, accounts payable, accrued expenses and notes payable. The carrying amount of cash equivalents, accounts payable and accrued expenses approximated fair value, given their short-term nature. The carrying value of the notes payable approximates fair value as the interest rate is reflective of current market rates on debt with similar terms and conditions. Cash equivalents subject the Company to concentrations of credit risk. However, the Company invests its cash in accordance with a policy objective that seeks to ensure both liquidity and safety of principal. The policy limits investments to instruments issued by the U.S. government, certain SEC registered money market funds that invest only in U.S. government obligations and various other low-risk liquid investment options, and places restrictions on portfolio maturity terms. Accounts receivable, trade subjects the Company to concentrations of credit risk as all of the Company's revenue is from sales of a single product, YCANTH t o one pharmaceutical wholesale/distributor. Accounts Receivable, Trade Trade receivables, net of allowance for doubtful accounts related to YCANTH sales, which are recorded in net accounts receivable on the balance sheet, were approximately $ 3.9 million as of September 30, 2023. As of September 30, 2023, the Company had no allowance for doubtful accounts. An allowance for doubtful accounts is determined based on the Company's assessment of the creditworthiness and financial condition of its customers, aging of receivables, as well as the general economic environment. Any allowance would reduce the net receivables to the amount that is expected to be collected. Current payment terms for YCANTH are approximately one-third upon 30 days, one-third upon 60 days and one-third upon 90 days from the shipment date. Inventory The Company values inventory at the lower of cost or net realizable value. Inventory cost is determined using the specific identification method. The Company regularly reviews its inventory quantities and, when appropriate, records a provision for obsolete and excess inventory to derive the new cost basis, which takes into account the Company’s sales forecast and corresponding expiry dates. The Company has not recognized a provision for obsolete and excess inventory as of September 30, 2023. On July 21, 2023, the Company received FDA approval for YCANTH for the treatment of molluscum contagiosum and began capitalizing inventory purchases of saleable product from certain suppliers. Prior to FDA approval, all product purchased from such suppliers was included as a component of research and development expense, as the Company was unable to assert that the inventory had future economic benefit until YCANTH received FDA approval. Pursuant to the supply agreement (Note 10), the Company purchased and included in research and development expenses approximately $ 4.5 million of raw cantharidin and processed active pharmaceutical ingredient ("API"). The raw cantharidin and processed API is sufficient to produce approximately 14 million finished drug product applicators to be used for commercially saleable product and other VP-102 product candidates. In addition, the Company purchased other components and services related to YCANTH for commercially saleable product and included approximately $ 1.2 million in research and development expenses prior to FDA approval. As a result, cost of product revenue related to YCANTH will initially reflect a lower average per unit cost of materials over approximately the next nine months as previously expensed inventory is utilized for commercial production and sold to customers. If the Company were to have included those costs previously expensed as a component of cost of product revenue, the Company’s cost of product revenue for the three and nine months ended September 30, 2023 would have been $ 0.3 million. Debt Issuance Costs Debt issuance costs incurred in connection with the Loan Facility (Note 7) are amortized to interest expense over the term of the financing arrangement using the effective-interest method. Debt issuance costs, net of related amortization are deducted from the carrying value of the related debt. Product Revenue, Net The Company recognizes revenue from sales of a single product, YCANTH (the “Product”) in accordance with ASC Topic 606 – Revenue from Contracts with Customers . YCANTH became available for commercial sale and shipment to patients with a prescription in the United States in the three months ended September 30, 2023. The Company sells the Product to one customer, a pharmaceutical wholesaler/distributor (the “Customer”) who in turn sells the Product directly to clinics, hospitals, and federal healthcare programs. Revenue is recognized as the Product is physically delivered to the Customer. Gross product sales are reduced by corresponding gross-to-net (“GTN”) estimates using the expected value method, resulting in the Company’s reported “Product revenue, net” in the accompanying consolidated statements of operations. Product revenue, net reflects the amount the Company ultimately expects to realize in net cash proceeds, taking into account the current period gross sales and related cash receipts and the subsequent cash disbursements on these sales that the Company estimates for the various GTN categories discussed below. The GTN estimates are based upon information received from external sources, such as written or oral information obtained from our customers with respect to their period-end inventory levels and sales to end-users during the period, in combination with management’s informed judgments. Due to the inherent uncertainty of these estimates, the actual amount of product returns, government chargebacks, prompt pay discounts, commercial rebates, Medicaid rebates, co-pay assistance and distribution, data, and group purchasing organizations ("GPO") administrative fees may be materially above or below the amount estimated. Variance between actual amounts and estimated amounts may result in prospective adjustments to reported net product revenue. Each of the GTN estimate categories are discussed below: Product Returns Allowances : The Customer is contractually permitted to return purchased Product in certain circumstances. The Company estimates expected returns based on the Company’s review of similar products in the industry. As historical data for returns of the Product becomes available over time, the Company will utilize historical return rates of the Product in making its estimates. Returned Product is typically destroyed, since substantially all returns are due to expiry and cannot be resold. Government Chargebacks : The Product is subject to pricing limits under certain federal government programs, including Medicare and the 340B drug pricing program. Qualifying entities (the “End-Users”) purchase the Product from the Customer at their applicable qualifying discounted price. The chargeback amount the Company incurs represents the difference between the Company’s contractual sales price to the Customer and the end-user’s applicable discounted purchase price under the government program. Medicaid Rebates: The Product is subject to state government-managed Medicaid programs, whereby rebates are issued to participating state governments. These rebates arise when a patient treated with the Product is covered under Medicaid, resulting in a discounted price for the Product under the applicable Medicaid program. The Medicaid rebate accrual calculations require the Company to project the magnitude of its sales, by state, that will be subject to these rebates. Patient Assistance: The Company offers a voluntary co-pay patient assistance program intended to provide financial assistance to eligible patients with a prescription drug co-payment required by payors and coupon programs for cash payors. The calculation of the current liability for this assistance is based on an estimate of claims and the cost per claim that the Company expects to receive associated with YCANTH that has been recognized as revenue but remains in the distribution channel inventories at the end of each reporting period. Distribution, Data, and GPO Administrative Fees: Distribution, data, and GPO administrative fees are paid to authorized wholesalers/distributors of the Company’s products for various commercial services including contract administration, inventory management, delivery of end-user sales data, and product returns processing. These fees are based on a contractually-determined percentage of the Company’s applicable sales. Cost of Product Revenue Cost of product revenue includes the cost of inventory sold, which includes direct manufacturing, production and packaging materials for YCANTH sales. Prior to FDA approval in July 2023, the Company expensed approximately $ 0.1 million in costs associated with the manufacturing of YCANTH as a component of research and development expense. Therefore these costs are not included in cost of product revenue. Advertising Expense Advertising expenses, comprised primarily of print and digital assets, social media and internet advertising as well as search engine marketing, are expensed as incurred and are included in selling, gener al, and administrative expenses. For the three and nine months ending September 30, 2023 advertising expenses were approximately $ 1.7 million and $ 2.4 million, respectively. Net Income (Loss) Per Share Basic net income (loss) per share of common stock is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during each period including pre-funded warrants to purchase 4,064,814 shares of common stock that were issued in an underwritten offering in February 2023 (Note 8). The pre-funded warrants to purchase common stock are included in the calculation of basic and diluted net income (loss) per share as the exercise price of $ 0.0001 per share is non-substantive and is virtually assured. Diluted net income (loss) per share of common stock includes the effect, if any, from the potential exercise or vesting of securities, such as stock options, restricted stock units and warrants, which would result in the issuance of incremental shares of common stock. However, potential common shares are excluded if their effect is anti-dilutive. For diluted net income (loss) per share in periods where the Company has a net loss, the weighted average number of shares of common stock is the same for basic net loss per share due to the fact that when a net loss exists, dilutive securities are not included in the calculation as the impact is anti-dilutive. For the three months ended September 30, 2022, the Company was in a net income position and calculated the diluted net income per share by dividing the Company’s net income by the dilutive weighted-average number of shares outstanding during the period, determined using the treasury stock method and the average stock price during the period. A reconciliation of the numerators and denominators of the basic and diluted net income (loss) per share calculations are as follows (in thousands, except share and per share data): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2022 2023 2022 Basic net (loss) income per common share calculation: Net (loss) income attributable to common stockholders $ ( 24,802 ) $ 83 $ ( 42,381 ) $ ( 18,555 ) Net (loss) income attributable to common stockholders - basic ( 24,802 ) 83 ( 42,381 ) ( 18,555 ) Weighted average common shares outstanding - basic 46,073,932 40,304,923 45,015,900 31,827,844 Net (loss) income per share - basic $ ( 0.54 ) $ 0.00 $ ( 0.94 ) $ ( 0.58 ) Net (loss) income attributable to common stockholders $ ( 24,802 ) $ 83 $ ( 42,381 ) $ ( 18,555 ) Diluted net (loss) income ( 24,802 ) 83 ( 42,381 ) ( 18,555 ) Stock options — 16,716 — — Weighted average common shares outstanding - diluted 46,073,932 40,321,639 45,015,900 31,827,844 Net (loss) income per share - diluted $ ( 0.54 ) $ 0.00 $ ( 0.94 ) $ ( 0.58 ) The table below provides potential shares outstanding that were not included in the computation of basic and diluted net loss per share of common stock, as the inclusion of these securities would have been anti-dilutive As of September 30, 2023 2022 Shares issuable upon exercise of stock options 5,497,015 3,826,366 Non-vested shares under restricted stock grants 561,500 425,000 Shares issuable upon exercise of warrants pursuant to debt financing 518,551 — Total 6,577,066 4,251,366 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 standard 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 are not measured at fair value through net income. For available-for-sale debt se curities, 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	9 Months Ended
	Sep. 30, 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 September 30, December 31, 2023 2022 Machinery and equipment $ 1,387 $ 1,392 Office equipment 326 301 Office furniture and fixtures 303 303 Leasehold improvements 54 54 Construction in process 2,532 2,536 4,602 4,586 Accumulated depreciation ( 1,044 ) ( 699 ) Total property and equipment, net $ 3,558 $ 3,887 The Company has recorded an asset classified as construction in process associated with the construction of a product assembly and packaging line which will be placed in service after commercial launch and additional testing.

Inventory

Inventory	9 Months Ended
	Sep. 30, 2023
Inventory Disclosure [Abstract]
Inventory	Note 4 - Inventory Upon FDA approval of YCANTH for the treatment of molluscum contagiosum on July 21, 2023, the Company began capitalizing the purchases of saleable inventory of YCANTH from suppliers. Invento ry consisted of the following (in thousands): September 30, December 31, 2023 2022 Raw materials $ 116 $ — Work in process — — Finished goods 163 — Total inventory $ 279 $ —

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	9 Months Ended
	Sep. 30, 2023
Payables and Accruals [Abstract]
Schedule of Accrued Expenses and Other Current Liabilities	Note 5—Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): As of As of December 31, Gross to net reserves $ 3,126 $ — Clinical trials and drug development 2,127 974 Compensation and related costs 2,038 1,399 Professional fees 1,250 58 Other current liabilities 282 — Commercial-related costs 186 — Machinery and equipment 57 57 Construction in process 36 167 Total accrued expenses and other current liabilities $ 9,102 $ 2,655

Leases

Leases	9 Months Ended
	Sep. 30, 2023
Leases [Abstract]
Leases	N ote 6—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 Company has entered into an automobile fleet lease program for its sales force. As of September 30, 2023 tthe majority of the vehicles had not yet been delivered. The term of the leases is 52 months and the ROU asset recognized for the leases of vehicles delivered as of September 30, 2023 was $ 0.1 million. The components of lease expense are as follows (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2022 2023 2022 Finance lease cost: Amortization ROU assets $ 1 $ 1 $ 1 $ 4 Total finance lease costs $ 1 $ 1 $ 1 $ 4 Operating lease: Operating lease costs $ 93 $ 95 $ 278 $ 272 Short-term lease costs — — — 7 Total operating lease expense $ 93 $ 95 $ 278 $ 279 Maturities of the Company’s operating and finance leases, excluding short-term leases are as follows (in thousands): For the Nine Months Ended September 30, 2023 Operating Finance 2023 (remaining 3 months) $ 97 $ 9 2024 390 37 2025 372 32 2026 366 27 2027 246 25 Thereafter — 2 Total lease payments 1,471 132 Less imputed interest ( 166 ) ( 20 ) Lease liability $ 1,305 $ 112 The table below presents the weighted average remaining lease term and discount rates for the Company's leases as of September 30, 2023: For the Nine Months Ended September 30, 2023 Operating Finance Weighted average remaining lease term 3.82 4.25 Weighted average discount rate 6.25 % 7.75 %

Debt

Debt	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
Debt	Note 7—Debt On July 11, 2022, the Company voluntarily repaid its previous debt facility (the “Mezzanine Loan Agreement”) 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. The Company did not incur any prepayme nt penalties in connection with the repayment of the debt. The prepayment was made in full using restricted cash of $ 40.0 million, 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 and nine months ended September 30, 2022, the Company recognized interest exp ense related to the terminated facility of $ 0.1 million and $ 2.2 million, respectively of which $ 0.1 million and $ 1.6 million, respectively was interest on the term loan and $ 0.0 million and $ 0.6 million, respectively was non-cash interest expense related to the amortization of deferred deb t issuance costs and accrual of the final payment fee. On July 26, 2023 (the “Closing Date”), the Company entered into a Credit Agreement (the “Credit Agreement”), by and between the Company, as borrower, and OrbiMed Royalty & Credit Opportunities IV, LP, a Delaware limited partnership (the “Initial Lender”), as a lender, and each other lender that may from time to time become a party thereto (each, including the Initial Lender, and together with their affiliates, successors, transferees and assignees, the “Lenders”), and OrbiMed Royalty & Credit Opportunities IV, LP, as administrative agent for the Lenders (in such capacity, the “Administrative Agent”). The Credit Agreement provides for a five-year senior secured credit facility in an aggregate principal amount of up to $ 125.0 million (the “Loan Facility”), of which $ 50.0 million was made available on the Closing Date ("Initial Commitment Amount"), up to $ 25.0 million will be made available on or prior to June 30, 2024, up to $ 30.0 million will be made available on or prior to December 31, 2024, up to $ 10.0 million will be made available on or prior to March 31, 2025, and up to $ 10.0 million will be made available on or prior to June 30, 2025, in each case, subject to the Company's achievement of certain revenue targets. Amounts borrowed under the Loan Facility will mature on July 26, 2028 . On July 26, 2023, the Company closed on the Initial Commitment Amount, resulting in net proceeds to the Company of approximately $ 44.1 million after payment of certain fees and transaction related expenses of $ 5.9 million. During the term of the Loan Facility, interest payable in cash by the Company shall accrue on any outstanding balance due under the Loan Facility at a rate per annum equal to the higher of (x) the SOFR rate (which is the forward-looking term rate for a one-month tenor based on the secured overnight financing rate administered by the CME Group Benchmark Administration Limited) and (y) 4.00 % plus, in either case, 8.00 %. During an event of default, any outstanding amount under the Loan Facility will bear interest at a rate of 4.00 % in excess of the otherwise applicable rate of interest. The Company paid or will pay certain fees with respect to the Loan Facility, including an upfront fee, an unused fee on the undrawn portion of the Loan Facility, an administration fee, a prepayment premium and an exit fee, as well as certain other fees and expenses of the Administrative Agent and the Lenders. On the Closing Date, the Company also issu ed the Initial Lender warrants to purchase up to 518,551 shares of the Company’s common stock, at an exercise price of $ 6.0264 per share, which has as a term of 10 years from the issuance date. The warrants were deemed to be classified as equity per the guidance ASC 815 Derivatives and Hedging . The proceeds from the debt transaction were allocated among the two instruments based on their relative fair values. The relative fair value of the warrants was determined to be $ 2.0 million and the fair value was determined to be $ 2.4 million based on the black-scholes valuation technique and the key assumptions used were as follows: (i) an expected term of 10 years, (ii) an expected volatility of 94.86 %, (iii) a risk free rate of 3.86 % and (iv) no estimated dividend yield. Th e Loan Facility will be classified as non-current debt at issuance as the Company does not currently intend to repay amounts borrowed under the Loan Facility prio r to the maturity date of July 26, 2028 and believes that the probability of any acceleration of the Loan Facility is not probable at September 30, 2023. The Company has incurred debt discount and issuance costs of $ 10.4 million, that are classified as a contra-liability on the condensed balance sheet. The debt discount and issuance costs consists of $ 5.9 million paid in cash during the three months ended September 30, 2023 and the final payment fee of $ 2.5 million, classified as a long-term liability and the fair value of the warrants of $ 2.0 million, classified as equity on the condensed balance sheet. For the three and nine months ended September, 2023, the Company recognized interest expense related to the Credit Agreement of $ 1.6 million, of which $ 1.3 million was interest on the term loan and $ 0.3 million was non-cash interest expense related to the amortization of deferred deb t issuance costs and accrual of the final payment fee. The following table summarizes the composition of debt as reflected on the balance sheet as of September 30, 2023 (in thousands): Gross proceeds $ 50,000 Accrued final payment fee 2,500 Unamortized debt discount and issuance costs ( 10,099 ) Total short-term debt, net $ 42,401

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2023
Equity [Abstract]
Stockholders' Equity	Note 8—Stockholders' Equity Common Stock The Company had authorized 200,000,000 shares of common stock, $ 0.0001 par value per share, as of September 30, 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. Warrants The following table summarizes the Company’s outstanding warrants as of September 30, 2023: As of September 30, 2023 Number of warrants Exercise Price Expiration Date Pre-funded warrants pursuant to common stock issuance 4,064,814 $ 0.0001 No expiration Warrants issued with OrbiMed debt facility 518,551 $ 6.0264 7/25/2033 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 and nine months ended September 30, 2023 and 2022 as follows (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2022 2023 2022 Selling, general and administrative $ 8,438 $ 1,064 $ 10,223 $ 2,709 Research and development 1,225 349 2,078 1,105 Total stock-based compensation $ 9,663 $ 1,413 $ 12,301 $ 3,814 Stock Options The following table summarizes the Company’s stock option activity for the nine months ended September 30, 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 7.8 $ 3,952,803 Granted 1,578,836 6.66 Exercised ( 8,000 ) 0.90 Forfeited and Expired ( 6,600 ) 5.13 Outstanding as of September 30, 2023 5,497,015 $ 8.34 7.4 $ 455,190 Options vested and exercisable as of 2,898,680 $ 9.12 6.1 $ 245,112 As of September 30, 2023 , the total unrecognized compensation related to unvested stock option awards granted was $ 13.1 million, which the Company expects to recognize over a weighted average period of 2.7 years. Restricted Stock I n November 2019 and August 2020 the Company granted 300,000 and 250,000 restricted stock units ("RSU"), respectively, to its executive officers of which 125,000 were forfeited. 50 % of the remaining RSUs vested upon receipt of regulatory approval of YCANTH (VP-102) for the treatment of molluscum on July 21, 2023 (the “Approval Date”) and 50 % will 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 RSUs, 50 % of which vested upon the first commercial sale of YCANTH (VP-102) on August 24, 2023 (the “First Sale Date” ) and 50 % will vest on the one year anniversary of the Fi rst Sale Date subject to the holders’ continuous service through each applicable date. Shares of common stock related to the 349,000 of RSUs which vested on the First Sale Date will not be issued until the Company's trading window opens. The following is a summary of activity of the Company's RSUs for the nine months ended September 30, 2023: 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 — — Vested ( 561,500 ) 9.13 Nonvested as of September 30, 2023 561,500 $ 9.13 Compensation expense of $ 8.2 million was recognized during the three and nine months ended September 30, 2023 related to the vested RSUs based on the fair market value at the date of grant. As of September 30, 2023, the remaining unrecognized compensation expense related to the restricted stock units was $ 2.1 million, which the Company expects to recognize over a weighted average service period of 0.5 years now that vesting of these awards is probable.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2023
Related Party Transactions [Abstract]
Related Party Transactions	Note 9—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 stockholder 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 the three months ended September 30, 2023 and 2022 , the Company recognized expenses under the SA of $ 15,000 and $ 20,000 respectively, of which $ 9,000 and $ 12,000 , respectively, were included in selling, general and administrative expenses and $ 6,000 and $ 8,000 , respectively, were included in research and development expenses. For each of the nine months ended September 30, 2023 and 2022 , the Company recognized expenses under the SA of $ 45,000 , of which $ 27,000 were included in selling, general and administrative expenses and $ 18,000 were included in research and development. As of September 30, 2023 , the Company had a $ 5,000 outstanding payable due to PBM and its affiliate s. 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 stockholder 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 were due under the agreement until a minimu m 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. After meeting the minimum enrollments, compensation includes a $ 15,000 fee per eligible patient enrolled in the trial. Compensation of $ 0.1 million of expenses were incurred for the nine months ended September 30, 2023 , all of which was classified as research and development expenses with no outstanding payables.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 10—Commitments and Contingencies Litigation On June 6, 2022, plaintiff Kranthi Gorlamari (“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. Briefing on Defendants’ motion to dismiss the amended complaint was completed on May 23, 2023. The litigation is still in the early stages, and the Company intends to vigorously defend itself against these allegations. The Company is also 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, th e 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 had an initial five-year term, and now renews for successive annual periods 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. Durin g 2022 and 2021, the Company executed a purchase order pursuant to which the Company agreed to purchase $ 0.7 million and $ 0.8 million, respectively of cr ude cantharidin material and made prepayments of $ 0.7 million and $ 0.8 million in each year against the purchase orders. As of September 30, 2023 , the Company has received the shipments for the purchases during 2022 and 2021. The 2022 and 2021 executed purchase orders of crude cantharidin were received in June 2023 and April 2023, respectively. As of December 31, 2022, the balance sheet reflects prepaid expense of $ 1.5 million. The Company agreed to purchase an additional $ 0.7 million of crude cantharidin during the three months ended September 30, 2023, of which $ 0.1 million was classified in prepaid expenses on the condensed balance sheet as of September 30, 2023.

License And Collaboration Agree

License And Collaboration Agreements	9 Months Ended
	Sep. 30, 2023
License And Collaboration Agreements [Abstract]
License and Collaboration Agreements	Note 11—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. Pursu ant 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 $ 0.1 and $ 0.3 million, respectively for the three months ended September 30, 2023 and 2022 and $ 0.3 and $ 1.0 million, respectively for the nine months ended September 30, 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 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 $ 1.0 and $ 2.3 million payments were recognized in research and development expense in the statement of operations for the nine months ended September 30, 2022 and for the year ended December 31, 2021, respectively. 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 LTX-315 anywhere in the world and expiration of regulatory exclusivity for LTX-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 the 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 LTX-315 at the time such sublicense is granted.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 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.
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 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.
Significant Accounting Policies	Collateral Cash Cash and cash equivalents at September 30, 2023 includes a cash deposit of $ 360,000 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.
Fair Value of Financial Instruments and Credit Risk	Fair Value of Financial Instruments and Credit Risk At September 30, 2023, the Company’s financial instruments included cash equivalents, accounts payable, accrued expenses and notes payable. The carrying amount of cash equivalents, accounts payable and accrued expenses approximated fair value, given their short-term nature. The carrying value of the notes payable approximates fair value as the interest rate is reflective of current market rates on debt with similar terms and conditions. Cash equivalents subject the Company to concentrations of credit risk. However, the Company invests its cash in accordance with a policy objective that seeks to ensure both liquidity and safety of principal. The policy limits investments to instruments issued by the U.S. government, certain SEC registered money market funds that invest only in U.S. government obligations and various other low-risk liquid investment options, and places restrictions on portfolio maturity terms. Accounts receivable, trade subjects the Company to concentrations of credit risk as all of the Company's revenue is from sales of a single product, YCANTH t o one pharmaceutical wholesale/distributor.
Accounts Receivable, Trade	Accounts Receivable, Trade Trade receivables, net of allowance for doubtful accounts related to YCANTH sales, which are recorded in net accounts receivable on the balance sheet, were approximately $ 3.9 million as of September 30, 2023. As of September 30, 2023, the Company had no allowance for doubtful accounts. An allowance for doubtful accounts is determined based on the Company's assessment of the creditworthiness and financial condition of its customers, aging of receivables, as well as the general economic environment. Any allowance would reduce the net receivables to the amount that is expected to be collected. Current payment terms for YCANTH are approximately one-third upon 30 days, one-third upon 60 days and one-third upon 90 days from the shipment date.
Inventory	Inventory The Company values inventory at the lower of cost or net realizable value. Inventory cost is determined using the specific identification method. The Company regularly reviews its inventory quantities and, when appropriate, records a provision for obsolete and excess inventory to derive the new cost basis, which takes into account the Company’s sales forecast and corresponding expiry dates. The Company has not recognized a provision for obsolete and excess inventory as of September 30, 2023. On July 21, 2023, the Company received FDA approval for YCANTH for the treatment of molluscum contagiosum and began capitalizing inventory purchases of saleable product from certain suppliers. Prior to FDA approval, all product purchased from such suppliers was included as a component of research and development expense, as the Company was unable to assert that the inventory had future economic benefit until YCANTH received FDA approval. Pursuant to the supply agreement (Note 10), the Company purchased and included in research and development expenses approximately $ 4.5 million of raw cantharidin and processed active pharmaceutical ingredient ("API"). The raw cantharidin and processed API is sufficient to produce approximately 14 million finished drug product applicators to be used for commercially saleable product and other VP-102 product candidates. In addition, the Company purchased other components and services related to YCANTH for commercially saleable product and included approximately $ 1.2 million in research and development expenses prior to FDA approval. As a result, cost of product revenue related to YCANTH will initially reflect a lower average per unit cost of materials over approximately the next nine months as previously expensed inventory is utilized for commercial production and sold to customers. If the Company were to have included those costs previously expensed as a component of cost of product revenue, the Company’s cost of product revenue for the three and nine months ended September 30, 2023 would have been $ 0.3 million.
Debt Issuance Costs	Debt Issuance Costs Debt issuance costs incurred in connection with the Loan Facility (Note 7) are amortized to interest expense over the term of the financing arrangement using the effective-interest method. Debt issuance costs, net of related amortization are deducted from the carrying value of the related debt.
Product Revenue, Net	Product Revenue, Net The Company recognizes revenue from sales of a single product, YCANTH (the “Product”) in accordance with ASC Topic 606 – Revenue from Contracts with Customers . YCANTH became available for commercial sale and shipment to patients with a prescription in the United States in the three months ended September 30, 2023. The Company sells the Product to one customer, a pharmaceutical wholesaler/distributor (the “Customer”) who in turn sells the Product directly to clinics, hospitals, and federal healthcare programs. Revenue is recognized as the Product is physically delivered to the Customer. Gross product sales are reduced by corresponding gross-to-net (“GTN”) estimates using the expected value method, resulting in the Company’s reported “Product revenue, net” in the accompanying consolidated statements of operations. Product revenue, net reflects the amount the Company ultimately expects to realize in net cash proceeds, taking into account the current period gross sales and related cash receipts and the subsequent cash disbursements on these sales that the Company estimates for the various GTN categories discussed below. The GTN estimates are based upon information received from external sources, such as written or oral information obtained from our customers with respect to their period-end inventory levels and sales to end-users during the period, in combination with management’s informed judgments. Due to the inherent uncertainty of these estimates, the actual amount of product returns, government chargebacks, prompt pay discounts, commercial rebates, Medicaid rebates, co-pay assistance and distribution, data, and group purchasing organizations ("GPO") administrative fees may be materially above or below the amount estimated. Variance between actual amounts and estimated amounts may result in prospective adjustments to reported net product revenue. Each of the GTN estimate categories are discussed below: Product Returns Allowances : The Customer is contractually permitted to return purchased Product in certain circumstances. The Company estimates expected returns based on the Company’s review of similar products in the industry. As historical data for returns of the Product becomes available over time, the Company will utilize historical return rates of the Product in making its estimates. Returned Product is typically destroyed, since substantially all returns are due to expiry and cannot be resold. Government Chargebacks : The Product is subject to pricing limits under certain federal government programs, including Medicare and the 340B drug pricing program. Qualifying entities (the “End-Users”) purchase the Product from the Customer at their applicable qualifying discounted price. The chargeback amount the Company incurs represents the difference between the Company’s contractual sales price to the Customer and the end-user’s applicable discounted purchase price under the government program. Medicaid Rebates: The Product is subject to state government-managed Medicaid programs, whereby rebates are issued to participating state governments. These rebates arise when a patient treated with the Product is covered under Medicaid, resulting in a discounted price for the Product under the applicable Medicaid program. The Medicaid rebate accrual calculations require the Company to project the magnitude of its sales, by state, that will be subject to these rebates. Patient Assistance: The Company offers a voluntary co-pay patient assistance program intended to provide financial assistance to eligible patients with a prescription drug co-payment required by payors and coupon programs for cash payors. The calculation of the current liability for this assistance is based on an estimate of claims and the cost per claim that the Company expects to receive associated with YCANTH that has been recognized as revenue but remains in the distribution channel inventories at the end of each reporting period. Distribution, Data, and GPO Administrative Fees: Distribution, data, and GPO administrative fees are paid to authorized wholesalers/distributors of the Company’s products for various commercial services including contract administration, inventory management, delivery of end-user sales data, and product returns processing. These fees are based on a contractually-determined percentage of the Company’s applicable sales.
Cost of Product Revenue	Cost of Product Revenue Cost of product revenue includes the cost of inventory sold, which includes direct manufacturing, production and packaging materials for YCANTH sales. Prior to FDA approval in July 2023, the Company expensed approximately $ 0.1 million in costs associated with the manufacturing of YCANTH as a component of research and development expense. Therefore these costs are not included in cost of product revenue.
Advertising Expense	Advertising Expense Advertising expenses, comprised primarily of print and digital assets, social media and internet advertising as well as search engine marketing, are expensed as incurred and are included in selling, gener al, and administrative expenses. For the three and nine months ending September 30, 2023 advertising expenses were approximately $ 1.7 million and $ 2.4 million, respectively.
Net Income (Loss) Per Share	Net Income (Loss) Per Share Basic net income (loss) per share of common stock is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during each period including pre-funded warrants to purchase 4,064,814 shares of common stock that were issued in an underwritten offering in February 2023 (Note 8). The pre-funded warrants to purchase common stock are included in the calculation of basic and diluted net income (loss) per share as the exercise price of $ 0.0001 per share is non-substantive and is virtually assured. Diluted net income (loss) per share of common stock includes the effect, if any, from the potential exercise or vesting of securities, such as stock options, restricted stock units and warrants, which would result in the issuance of incremental shares of common stock. However, potential common shares are excluded if their effect is anti-dilutive. For diluted net income (loss) per share in periods where the Company has a net loss, the weighted average number of shares of common stock is the same for basic net loss per share due to the fact that when a net loss exists, dilutive securities are not included in the calculation as the impact is anti-dilutive. For the three months ended September 30, 2022, the Company was in a net income position and calculated the diluted net income per share by dividing the Company’s net income by the dilutive weighted-average number of shares outstanding during the period, determined using the treasury stock method and the average stock price during the period. A reconciliation of the numerators and denominators of the basic and diluted net income (loss) per share calculations are as follows (in thousands, except share and per share data): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2022 2023 2022 Basic net (loss) income per common share calculation: Net (loss) income attributable to common stockholders $ ( 24,802 ) $ 83 $ ( 42,381 ) $ ( 18,555 ) Net (loss) income attributable to common stockholders - basic ( 24,802 ) 83 ( 42,381 ) ( 18,555 ) Weighted average common shares outstanding - basic 46,073,932 40,304,923 45,015,900 31,827,844 Net (loss) income per share - basic $ ( 0.54 ) $ 0.00 $ ( 0.94 ) $ ( 0.58 ) Net (loss) income attributable to common stockholders $ ( 24,802 ) $ 83 $ ( 42,381 ) $ ( 18,555 ) Diluted net (loss) income ( 24,802 ) 83 ( 42,381 ) ( 18,555 ) Stock options — 16,716 — — Weighted average common shares outstanding - diluted 46,073,932 40,321,639 45,015,900 31,827,844 Net (loss) income per share - diluted $ ( 0.54 ) $ 0.00 $ ( 0.94 ) $ ( 0.58 ) The table below provides potential shares outstanding that were not included in the computation of basic and diluted net loss per share of common stock, as the inclusion of these securities would have been anti-dilutive As of September 30, 2023 2022 Shares issuable upon exercise of stock options 5,497,015 3,826,366 Non-vested shares under restricted stock grants 561,500 425,000 Shares issuable upon exercise of warrants pursuant to debt financing 518,551 — Total 6,577,066 4,251,366
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 standard 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 are not measured at fair value through net income. For available-for-sale debt se curities, 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)	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
Summary of Reconciliation of Numerators and Denominators of Basic and Diluted Net Income Per Share	A reconciliation of the numerators and denominators of the basic and diluted net income (loss) per share calculations are as follows (in thousands, except share and per share data): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2022 2023 2022 Basic net (loss) income per common share calculation: Net (loss) income attributable to common stockholders $ ( 24,802 ) $ 83 $ ( 42,381 ) $ ( 18,555 ) Net (loss) income attributable to common stockholders - basic ( 24,802 ) 83 ( 42,381 ) ( 18,555 ) Weighted average common shares outstanding - basic 46,073,932 40,304,923 45,015,900 31,827,844 Net (loss) income per share - basic $ ( 0.54 ) $ 0.00 $ ( 0.94 ) $ ( 0.58 ) Net (loss) income attributable to common stockholders $ ( 24,802 ) $ 83 $ ( 42,381 ) $ ( 18,555 ) Diluted net (loss) income ( 24,802 ) 83 ( 42,381 ) ( 18,555 ) Stock options — 16,716 — — Weighted average common shares outstanding - diluted 46,073,932 40,321,639 45,015,900 31,827,844 Net (loss) income per share - diluted $ ( 0.54 ) $ 0.00 $ ( 0.94 ) $ ( 0.58 )
Schedule of Potential Shares Outstanding not Included in Computation of Diluted Net Loss Per Share of Common Stock	The table below provides potential shares outstanding that were not included in the computation of basic and diluted net loss per share of common stock, as the inclusion of these securities would have been anti-dilutive As of September 30, 2023 2022 Shares issuable upon exercise of stock options 5,497,015 3,826,366 Non-vested shares under restricted stock grants 561,500 425,000 Shares issuable upon exercise of warrants pursuant to debt financing 518,551 — Total 6,577,066 4,251,366

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2023
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment, Net	Property and equipment, net consisted of (in thousands): As of As of September 30, December 31, 2023 2022 Machinery and equipment $ 1,387 $ 1,392 Office equipment 326 301 Office furniture and fixtures 303 303 Leasehold improvements 54 54 Construction in process 2,532 2,536 4,602 4,586 Accumulated depreciation ( 1,044 ) ( 699 ) Total property and equipment, net $ 3,558 $ 3,887

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Sep. 30, 2023
Inventory Disclosure [Abstract]
Schedule Of Inventory	Invento ry consisted of the following (in thousands): September 30, December 31, 2023 2022 Raw materials $ 116 $ — Work in process — — Finished goods 163 — Total inventory $ 279 $ —

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	9 Months Ended
	Sep. 30, 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, Gross to net reserves $ 3,126 $ — Clinical trials and drug development 2,127 974 Compensation and related costs 2,038 1,399 Professional fees 1,250 58 Other current liabilities 282 — Commercial-related costs 186 — Machinery and equipment 57 57 Construction in process 36 167 Total accrued expenses and other current liabilities $ 9,102 $ 2,655

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2023
Leases [Abstract]
Summary of Components of Lease Expense	The components of lease expense are as follows (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2022 2023 2022 Finance lease cost: Amortization ROU assets $ 1 $ 1 $ 1 $ 4 Total finance lease costs $ 1 $ 1 $ 1 $ 4 Operating lease: Operating lease costs $ 93 $ 95 $ 278 $ 272 Short-term lease costs — — — 7 Total operating lease expense $ 93 $ 95 $ 278 $ 279
Schedule of Maturities of Operating and Finance Leases	Maturities of the Company’s operating and finance leases, excluding short-term leases are as follows (in thousands): For the Nine Months Ended September 30, 2023 Operating Finance 2023 (remaining 3 months) $ 97 $ 9 2024 390 37 2025 372 32 2026 366 27 2027 246 25 Thereafter — 2 Total lease payments 1,471 132 Less imputed interest ( 166 ) ( 20 ) Lease liability $ 1,305 $ 112
Schedule of Weighted Average Remaining Term and Discount Rate	The table below presents the weighted average remaining lease term and discount rates for the Company's leases as of September 30, 2023: For the Nine Months Ended September 30, 2023 Operating Finance Weighted average remaining lease term 3.82 4.25 Weighted average discount rate 6.25 % 7.75 %

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
Summary of Composition of Debt	The following table summarizes the composition of debt as reflected on the balance sheet as of September 30, 2023 (in thousands): Gross proceeds $ 50,000 Accrued final payment fee 2,500 Unamortized debt discount and issuance costs ( 10,099 ) Total short-term debt, net $ 42,401

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Summary of Company's Outstanding Warrants	The following table summarizes the Company’s outstanding warrants as of September 30, 2023: As of September 30, 2023 Number of warrants Exercise Price Expiration Date Pre-funded warrants pursuant to common stock issuance 4,064,814 $ 0.0001 No expiration Warrants issued with OrbiMed debt facility 518,551 $ 6.0264 7/25/2033
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 and nine months ended September 30, 2023 and 2022 as follows (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2022 2023 2022 Selling, general and administrative $ 8,438 $ 1,064 $ 10,223 $ 2,709 Research and development 1,225 349 2,078 1,105 Total stock-based compensation $ 9,663 $ 1,413 $ 12,301 $ 3,814
Summary of Stock Option Activity	The following table summarizes the Company’s stock option activity for the nine months ended September 30, 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 7.8 $ 3,952,803 Granted 1,578,836 6.66 Exercised ( 8,000 ) 0.90 Forfeited and Expired ( 6,600 ) 5.13 Outstanding as of September 30, 2023 5,497,015 $ 8.34 7.4 $ 455,190 Options vested and exercisable as of 2,898,680 $ 9.12 6.1 $ 245,112
Summary of Non-vested RSUs Activities	The following is a summary of activity of the Company's RSUs for the nine months ended September 30, 2023: 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 — — Vested ( 561,500 ) 9.13 Nonvested as of September 30, 2023 561,500 $ 9.13

Nature of Business - Additional

Nature of Business - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended	9 Months Ended
	Jul. 26, 2023	Feb. 28, 2023	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Description Of Business [Line Items]
Number of common shares sold		750,000
Shares Issued, Price Per Share		$ 6.75
Underwriting discounts,commissions and offering expenses		$ 2,200
Cash and cash equivalents			$ 84,308		$ 34,273
Net proceeds from issuance			30,301	$ 26,901
Accumulated deficit			$ (205,834)		$ (163,453)
Loan Facility [Member]
Description Of Business [Line Items]
Credit facility, maximum borrowing capacity	$ 125,000
Loans, maturity date	Jul. 26, 2028
Term A Loan [Member]
Description Of Business [Line Items]
Net proceeds from issuance	$ 44,100
Line of credit	50,000
Credit facility, maximum borrowing capacity	$ 125,000
Loans, maturity date	Jul. 26, 2028
Available on or prior to June 30, 2024
Description Of Business [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity	$ 25,000
Available on or prior to June 30, 2024 | Loan Facility [Member]
Description Of Business [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity	25,000
Available on or prior to December 31, 2024
Description Of Business [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity	30,000
Available on or prior to December 31, 2024 | Loan Facility [Member]
Description Of Business [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity	30,000
Available on or prior to March 31, 2025
Description Of Business [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity	10,000
Available on or prior to March 31, 2025 | Loan Facility [Member]
Description Of Business [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity	10,000
Available on or prior to June 30, 2025
Description Of Business [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity	10,000
Available on or prior to June 30, 2025 | Loan Facility [Member]
Description Of Business [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity	$ 10,000
Pre Funded Warrant [Member]
Description Of Business [Line Items]
Warrant issued to purchase company's common stock		4,064,814	4,064,814
Warrant price (per share)		$ 6.7499	$ 0.0001
Net proceeds from issuance		$ 30,300

Significant Accounting Polici_4

Significant Accounting Policies - Additional information (Detail) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		9 Months Ended
	Jul. 21, 2023	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Feb. 28, 2023	Dec. 31, 2022
Bank cash deposits		$ 360,000		$ 360,000
Accounts receivable		3,946		3,946			$ 0
Allowance for doubtful accounts		0		$ 0
Basic exercise price				$ 0.0001
Diluted exercise price				$ 0.0001
Advertising expense		1,700		$ 2,400
Research and development expense	$ 4,500	6,510	$ 2,780	14,975	$ 9,170
Finished goods		163		163			$ 0
Cost of product revenue		$ 300		$ 300
YCANTH [Member]
Research and development expense	1,200
Finished goods	14,000
FDA
Research and development expense	$ 100
Pre Funded Warrant [Member]
Warrant issued to purchase company's common stock		4,064,814		4,064,814		4,064,814

Significant Accounting Polici_5

Significant Accounting Policies - Summary of Reconciliation of Numerators and Denominators of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Basic net (loss) income per common share calculation:
Net (loss) income	$ (24,802)	$ (10,990)	$ (6,589)	$ 83	$ (10,168)	$ (8,470)	$ (42,381)	$ (18,555)
Net (loss) income attributable to common stockholders - basic	$ (24,802)			$ 83			$ (42,381)	$ (18,555)
Weighted average common shares outstanding - basic	46,073,932			40,304,923			45,015,900	31,827,844
Net (loss) income per share - basic	$ (0.54)			$ 0			$ (0.94)	$ (0.58)
Net (loss) income	$ (24,802)	$ (10,990)	$ (6,589)	$ 83	$ (10,168)	$ (8,470)	$ (42,381)	$ (18,555)
Diluted net (loss) income	$ (24,802)			$ 83			$ (42,381)	$ (18,555)
Stock options	0			16,716			0	0
Weighted average common shares outstanding - diluted	46,073,932			40,321,639			45,015,900	31,827,844
Net (loss) income per share - diluted	$ (0.54)			$ 0			$ (0.94)	$ (0.58)

Significant Accounting Polici_6

Significant Accounting Policies - Schedule of Potential Shares Outstanding not Included in Computation of Diluted Net Loss Per Share of Common Stock (Detail) - shares	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Securities that could potentially dilute basic earnings per share	6,577,066	4,251,366
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	5,497,015	3,826,366
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	561,500	425,000
Shares issuable upon exercise of warrants pursuant to debt financing [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Securities that could potentially dilute basic earnings per share	518,551	0

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 4,602	$ 4,586
Accumulated depreciation	(1,044)	(699)
Total property and equipment, net	3,558	3,887
Machinery and Equipment [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	1,387	1,392
Office Equipment [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	326	301
Office Furniture and Fixtures [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	303	303
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	$ 2,532	$ 2,536

Inventory - Schedule Of Invento

Inventory - Schedule Of Inventory (Detail) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 116	$ 0
Work in process	0	0
Finished goods	163	0
Total inventory	$ 279	$ 0

Accrued Expenses and Other Cu_3

Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Accrued Liabilities, Current [Abstract]
Gross to net reserves	$ 3,126	$ 0
Clinical trials and drug development	2,127	974
Compensation and related costs	2,038	1,399
Professional fees	1,250	58
Other current liabilities	282	0
Commercial-related costs	186	0
Machinery and equipment	57	57
Construction in process	36	167
Total accrued expenses and other current liabilities	$ 9,102	$ 2,655

Leases - Additional Information

Leases - Additional Information (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Lessee Lease Description [Line Items]
Lease expiration date	Sep. 01, 2027
ROU asset recognized for the leases	$ 1,339	$ 1,443
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
Automobile Fleet Lease Program
Lessee Lease Description [Line Items]
Term of lease	52 months
ROU asset recognized for the leases	$ 100
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		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Leases [Abstract]
Amortization ROU assets	$ 1	$ 1	$ 1	$ 4
Total finance lease costs	1	1	1	4
Operating lease costs	93	95	278	272
Short-term lease costs	0	0	0	7
Total operating lease expense	$ 93	$ 95	$ 278	$ 279

Leases - Schedule of Maturities

Leases - Schedule of Maturities of Operating and Finance Leases (Detail) $ in Thousands	Sep. 30, 2023 USD ($)
Leases [Abstract]
Operating Lease, Remainder of Fiscal Year	$ 97
Operating Lease, Year one	390
Operating Lease, Year Two	372
Operating Lease, Year Three	366
Operating Lease, Year Four	246
Operating Lease, After Year Four	0
Operating Lease, Total lease payments	1,471
Less Operating Lease, imputed interest	(166)
Operating Lease, Lease liability	1,305
Finance Lease, Remainder of Fiscal Year	9
Finance Lease, Year one	37
Finance Lease, Year Two	32
Finance Lease, Year Three	27
Finance Lease, Year Four	25
Finance Lease, After Year Four	2
Finance Lease, Total lease payments	132
Less Finance Lease imputed interest	(20)
Finance Lease, Lease liability	$ 112

Leases - Schedule of Weighted A

Leases - Schedule of Weighted Average Remaining Term and Discount Rate (Detail)	Sep. 30, 2023
Leases [Abstract]
Operating Lease, Weighted average remaining lease term	3 years 9 months 25 days
Operating Lease, Weighted-average discount rate	6.25%
Finance Lease, Weighted average remaining lease term	4 years 3 months
Finance Lease, Weighted-average discount rate	7.75%

Debt - Additional Information (

Debt - Additional Information (Detail) - USD ($)			3 Months Ended		9 Months Ended		12 Months Ended
	Jul. 26, 2023	Jul. 11, 2022	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Debt Instrument [Line Items]
Debt instrument, prepayment fee		$ 43,800,000
Cash, cash equivalents and marketable securities and restricted cash		40,000,000
Final payment fee		$ 3,800,000
Loss on extinguishment of debt			$ 0	$ (1,437,000)	$ 0	$ (1,437,000)	$ 1,400,000
Fair value of the warrants	$ 2,400,000
Common Stock [Member]
Debt Instrument [Line Items]
Warrant issued to purchase company's common stock	518,551
Warrant price (per share)	$ 6.0264
Warrant term	10 years
Warrant [Member]
Debt Instrument [Line Items]
Fair value of the warrants	$ 2,000,000
Expected Term	10 years
Expected volatility	94.86%
Risk free rate	3.86%
Estimated dividend yield	0%
Loan Facility [Member]
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity	$ 125,000,000
Initial Commitment Amount	$ 50,000,000
Loans, maturity date	Jul. 26, 2028
Net proceeds after payment of certain fees and transaction related expenses	$ 44,100,000
Transaction related expenses	$ 5,900,000
SOFR
Debt Instrument [Line Items]
Interest rate (as a percent)	4%
Interest rate (as a percent)	4%
Loans, interest rate	8%
Available on or prior to June 30, 2024
Debt Instrument [Line Items]
Remaining Commitment Amount	$ 25,000,000
Available on or prior to June 30, 2024 | Loan Facility [Member]
Debt Instrument [Line Items]
Remaining Commitment Amount	25,000,000
Available on or prior to December 31, 2024
Debt Instrument [Line Items]
Remaining Commitment Amount	30,000,000
Available on or prior to December 31, 2024 | Loan Facility [Member]
Debt Instrument [Line Items]
Remaining Commitment Amount	30,000,000
Available on or prior to March 31, 2025
Debt Instrument [Line Items]
Remaining Commitment Amount	10,000,000
Available on or prior to March 31, 2025 | Loan Facility [Member]
Debt Instrument [Line Items]
Remaining Commitment Amount	10,000,000
Available on or prior to June 30, 2025
Debt Instrument [Line Items]
Remaining Commitment Amount	10,000,000
Available on or prior to June 30, 2025 | Loan Facility [Member]
Debt Instrument [Line Items]
Remaining Commitment Amount	10,000,000
Term A Loan [Member]
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity	$ 125,000,000
Loans, maturity date	Jul. 26, 2028
Senior Loan Agreement [Member]
Debt Instrument [Line Items]
Final payment fee	$ 2,000,000
Debt discount and issuance costs	$ 10,400,000		5,900		5,900
Interest expense			1,600,000	100,000	1,600,000	2,200,000
Interest on term loan			1,300,000	100,000	1,300,000	1,600,000
Non-cash interest expense			300,000	$ 0	300,000	$ 600,000
Senior Loan Agreement [Member] | Contra-Liability [Member]
Debt Instrument [Line Items]
Final payment fee			$ 2,500,000		$ 2,500,000

Debt - Summary of Composition o

Debt - Summary of Composition of Debt (Detail) - Senior Loan Agreement [Member] $ in Thousands	Sep. 30, 2023 USD ($)
Debt Instrument [Line Items]
Gross proceeds	$ 50,000
Accrued final payment fee	2,500
Unamortized debt discount and issuance costs	(10,099)
Total short-term debt, net	$ 42,401

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions			1 Months Ended			3 Months Ended		9 Months Ended
	Aug. 24, 2023	Jul. 21, 2023	Feb. 28, 2023	Aug. 31, 2020	Nov. 30, 2019	Sep. 30, 2023	Mar. 31, 2023	Sep. 30, 2023	Dec. 31, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total unrecognized compensation related to unvested stock options						$ 13.1		$ 13.1
Weighted-average stock option recognize period								2 years 8 months 12 days
Common stock, shares authorized						200,000,000		200,000,000	200,000,000
Common stock, par value						$ 0.0001		$ 0.0001	$ 0.0001
Number of common shares sold			750,000
Shares Issued, Price Per Share			$ 6.75
Restricted shares not issued							349,000
Pre Funded Warrant [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Warrant issued to purchase company's common stock			4,064,814			4,064,814		4,064,814
Warrant price (per share)			$ 6.7499			$ 0.0001		$ 0.0001
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			$ 30.3
Underwritten Offering [Member] | Pre Funded Warrant [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Warrant issued to purchase company's common stock			4,064,814
Restricted Stock Units (RSUs) [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted-average stock option recognize period								6 months
Number of Shares, Granted								698,000
Stock vesting period		1 year
Compensation expense						$ 8.2		$ 8.2
Remaining unrecognized compensation related to nonvested restricted stock units						$ 2.1		$ 2.1
Nonvested, Number of Shares, Forfeited				125,000	125,000			0
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%
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%
Restricted Stock Units (RSUs) [Member] | YCANTH [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of stock subject to vesting (as a percent)	50%

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Company's Outstanding Warrants (Detail) - $ / shares	Sep. 30, 2023	Feb. 28, 2023
Pre-funded warrants pursuant to common stock issuance [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of warrants	4,064,814	4,064,814
Exercise Price	$ 0.0001	$ 6.7499
Warrants issued with OrbiMed debt facility [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of warrants	518,551
Exercise Price	$ 6.0264
Expiration Date	Jul. 25, 2033

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Stock Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 9,663	$ 1,413	$ 12,301	$ 3,814
Selling, General and Administrative Expenses [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	8,438	1,064	10,223	2,709
Research and Development [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 1,225	$ 349	$ 2,078	$ 1,105

Stockholders' Equity - Summar_2

Stockholders' Equity - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Share-Based Payment Arrangement, Additional Disclosure [Abstract]
Number of shares, Outstanding Beginning Balance	3,932,779
Number of shares, Granted	1,578,836
Number of shares, Exercised	(8,000)
Number of shares, Forfeited and Expired	(6,600)
Number of shares, Outstanding Ending Balance	5,497,015	3,932,779
Number of shares, Options vested and exercisable Ending Balance	2,898,680
Weighted average exercise price, Outstanding Beginning Balance	$ 8.99
Weighted average exercise price, Granted	6.66
Weighted average exercise price, Exercised	0.9
Weighted average exercise price, Forfeited and Expired	5.13
Weighted average exercise price, Outstanding Ending Balance	8.34	$ 8.99
Weighted average exercise price, Options vested and exercisable Ending Balance	$ 9.12
Weighted average remaining contractual life (in years), Outstanding	7 years 4 months 24 days	7 years 9 months 18 days
Weighted average remaining contractual life (in years), Options vested and exercisable	6 years 1 month 6 days
Aggregate intrinsic value, Outstanding	$ 455,190	$ 3,952,803
Aggregate intrinsic value, Options vested and exercisable Ending Balance	$ 245,112

Stockholders' Equity - Summar_3

Stockholders' Equity - Summary of Non-vested RSUs Activities (Detail) - Restricted Stock Units (RSUs) [Member] - $ / shares	1 Months Ended		9 Months Ended
	Aug. 31, 2020	Nov. 30, 2019	Sep. 30, 2023
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Nonvested, Number of Shares, Beginning Balance			425,000
Nonvested, Number of Shares, Granted			698,000
Nonvested, Number of Shares, Vested			(561,500)
Nonvested, Number of Shares, Forfeitures	(125,000)	(125,000)	0
Nonvested, Number of Shares, Ending Balance			561,500
Nonvested, Weighted Average Grant Date Fair Value, Beginning Balance			$ 11.68
Nonvested, Weighted Average Grant Date Fair Value, Granted			7.58
Nonvested, Weighted Average Grant Date Fair Value, Forfeitures			0
Non-vested, Weighted average grant date fair value, Vested			9.13
Nonvested, Weighted Average Grant Date Fair Value, Ending Balance			$ 9.13

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - USD ($)				3 Months Ended		9 Months Ended
	Jul. 21, 2023	Oct. 01, 2019	Dec. 02, 2015	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Related Party Transaction [Line Items]
Fee Per Eligible Patient						$ 15,000,000
Research and Development Expense	$ 4,500,000			$ 6,510,000	$ 2,780,000	14,975,000	$ 9,170,000
Pbm Capital Group Llc [Member]
Related Party Transaction [Line Items]
Services agreement initial term			12 months
Expenses incurred under services agreement				15,000	20,000	45,000
Due to related party				5,000		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	12,000	27,000
Pbm Capital Group Llc [Member] | Research and Development [Member]
Related Party Transaction [Line Items]
Expenses incurred under services agreement				$ 6,000	$ 8,000	18,000
Clinical Enrollment LLC [Member]
Related Party Transaction [Line Items]
Development Fee Compensation						30,000,000
Research and Development Expense						$ 100,000

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Product Liability Contingency [Line Items]
Prepaid expense		$ 1.5
Crude Cantharidin Material [Member]
Product Liability Contingency [Line Items]
Purchase agreement term	5 years
Purchase Commitment	$ 0.7	0.7	$ 0.8
Purchase commitment prepayment	$ 0.1	$ 0.7	$ 0.8

License and Collaboration Agr_2

License and Collaboration Agreements - Additional Information (Detail) - USD ($) $ in Thousands

1 Months Ended

3 Months Ended

9 Months Ended

12 Months Ended

Jul. 21, 2023

Jul. 25, 2022

Mar. 17, 2021

May 31, 2022

Apr. 30, 2021

Feb. 28, 2021

Dec. 31, 2020

Aug. 31, 2020

Sep. 30, 2023

Sep. 30, 2022

Sep. 30, 2023

Sep. 30, 2022

Dec. 31, 2021

Dec. 31, 2020

License And Collaboration Agreements [Line Items]

Research and development expense

$ 4,500

$ 6,510

$ 2,780

$ 14,975

$ 9,170

Ltyix [Member]

License And Collaboration Agreements [Line Items]

Payments upon achievements of milestone

$ 111,000

One time up front license fee

$ 1,000

$ 2,300

$ 300

Research and development expense

1,000

$ 2,300

Percentage of royalty income shared

50%

Torii Agreement [Member] | Torii [Member]

License And Collaboration Agreements [Line Items]

Received payment

$ 11,500

$ 500

Payments upon achievements of milestone

50,000

50,000

Billed collaboration revenue

$ 100

$ 300

$ 300

$ 1,000

Torii Agreement [Member] | Torii [Member] | License Revenue [Member]

License And Collaboration Agreements [Line Items]

Milestone payment recognized

$ 8,000

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%

Subsequent Events - Additional

Subsequent Events - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	Jul. 26, 2023	Jul. 11, 2022
Subsequent Event [Line Items]
Cash, cash equivalents and marketable securities and restricted cash		$ 40
Prepayment of debt and fee		$ 43.8
Available on or prior to June 30, 2024
Subsequent Event [Line Items]
Remaining Commitment Amount	$ 25
Available on or prior to December 31, 2024
Subsequent Event [Line Items]
Remaining Commitment Amount	30
Available on or prior to March 31, 2025
Subsequent Event [Line Items]
Remaining Commitment Amount	10
Available on or prior to June 30, 2025
Subsequent Event [Line Items]
Remaining Commitment Amount	10
Loan Facility [Member]
Subsequent Event [Line Items]
Credit facility, maximum borrowing capacity	125
Initial Commitment Amount	$ 50
Loans, maturity date	Jul. 26, 2028
Net proceeds after payment of certain fees and transaction related expenses	$ 44.1
Loan Facility [Member] | Available on or prior to June 30, 2024
Subsequent Event [Line Items]
Remaining Commitment Amount	25
Loan Facility [Member] | Available on or prior to December 31, 2024
Subsequent Event [Line Items]
Remaining Commitment Amount	30
Loan Facility [Member] | Available on or prior to March 31, 2025
Subsequent Event [Line Items]
Remaining Commitment Amount	10
Loan Facility [Member] | Available on or prior to June 30, 2025
Subsequent Event [Line Items]
Remaining Commitment Amount	$ 10
SOFR
Subsequent Event [Line Items]
Interest rate (as a percent)	4%
Loans, interest rate	8%
Interest rate (as a percent)	4%
Common Stock [Member]
Subsequent Event [Line Items]
Number of warrants	518,551
Warrant term	10 years
Warrant price (per share)	$ 6.0264