Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
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 | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 25,814,493 | |
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, $0.0001 par value | |
Security Exchange Name | NASDAQ | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 10 North High Street | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | West Chester | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19380 | |
City Area Code | 484 | |
Local Phone Number | 453-3300 |
CONDENSED BALANCE SHEETS
CONDENSED BALANCE SHEETS - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 48,932,000 | $ 9,241,000 |
Marketable securities | 30,690,000 | 52,776,000 |
Prepaid expenses and other assets | 3,716,000 | 2,966,000 |
Total current assets | 83,338,000 | 64,983,000 |
Property and equipment, net | 2,517,000 | 2,090,000 |
Operating lease right-of-use asset | 111,000 | |
Other non-current assets | 1,381,000 | 1,240,000 |
Total assets | 87,236,000 | 68,424,000 |
Current liabilities: | ||
Accounts payable | 1,297,000 | 1,185,000 |
Accrued expenses and other current liabilities | 2,557,000 | 2,036,000 |
Operating lease liability | 124,000 | 130,000 |
Current debt, net | 34,720,000 | |
Total current liabilities | 38,698,000 | 3,351,000 |
Operating lease liability | 58,000 | |
Other liabilities | 75,000 | |
Total liabilities | 38,773,000 | 3,409,000 |
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 June 30, 2020 and December 31, 2019 | ||
Common stock, $0.0001 par value; 200,000,000 authorized; 25,919,637 shares issued and 25,814,493 shares outstanding as of June 30, 2020 and 25,912,137 shares issued and 25,786,330 shares outstanding as of December 31, 2019 | 3,000 | 3,000 |
Treasury stock, at cost, 105,144 shares as of June 30, 2020 and December 31, 2019 | 0 | 0 |
Additional paid-in capital | 128,851,000 | 126,594,000 |
Subscription receivable | (410,000) | |
Accumulated deficit | (80,423,000) | (61,192,000) |
Accumulated other comprehensive gain | 32,000 | 20,000 |
Total stockholders’ equity | 48,463,000 | 65,015,000 |
Total liabilities and stockholders’ equity | $ 87,236,000 | $ 68,424,000 |
CONDENSED BALANCE SHEETS (Paren
CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
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 | 25,919,637 | 25,912,137 |
Common stock, shares outstanding | 25,814,493 | 25,786,330 |
Treasury stock, shares | 105,144 | 105,144 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Operating expenses: | ||||
Research and development | $ 3,521 | $ 3,928 | $ 8,413 | $ 8,415 |
General and administrative | 5,110 | 3,593 | 10,098 | 7,132 |
Total operating expenses | 8,631 | 7,521 | 18,511 | 15,547 |
Loss from operations | (8,631) | (7,521) | (18,511) | (15,547) |
Other income (expense): | ||||
Interest income | 126 | 523 | 404 | 1,070 |
Interest expense | (904) | (1,124) | ||
Other expense | (3) | (3) | ||
Total other (expense) income | (778) | 520 | (720) | 1,067 |
Net loss | $ (9,409) | $ (7,001) | $ (19,231) | $ (14,480) |
Net loss per share, basic and diluted | $ (0.38) | $ (0.28) | $ (0.77) | $ (0.58) |
Weighted average common shares outstanding, basic and diluted | 24,965,634 | 24,875,573 | 24,964,900 | 24,866,721 |
Other comprehensive gain: | ||||
Unrealized gain on marketable securities | $ 12 | $ 27 | $ 12 | $ 55 |
Comprehensive loss | $ (9,397) | $ (6,974) | $ (19,219) | $ (14,425) |
CONDENSED STATEMENTS OF STOCKHO
CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Additional Paid-In Capital [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Subscription Receivable [Member] | Accumulated Deficit [Member] | Accumulated Deficit [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Gain (Loss) [Member] |
Beginning Balance at Dec. 31, 2018 | $ 89,429 | $ 3 | $ 122,526 | $ (98) | $ (33,083) | $ 98 | $ (17) | ||
Beginning Balance (shares) at Dec. 31, 2018 | 25,809,900 | 105,144 | |||||||
Stock-based compensation | 780 | 780 | |||||||
Exercise of stock options | 3 | 3 | |||||||
Exercise of stock options (shares) | 3,729 | ||||||||
Net loss | (7,479) | (7,479) | |||||||
Unrealized gain on marketable securities | $ 28 | 28 | |||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201807Member | ||||||||
Ending Balance at Mar. 31, 2019 | $ 82,761 | $ 3 | 123,211 | (40,464) | 11 | ||||
Ending Balance (shares) at Mar. 31, 2019 | 25,813,629 | 105,144 | |||||||
Beginning Balance at Dec. 31, 2018 | 89,429 | $ 3 | 122,526 | $ (98) | (33,083) | $ 98 | (17) | ||
Beginning Balance (shares) at Dec. 31, 2018 | 25,809,900 | 105,144 | |||||||
Net loss | (14,480) | ||||||||
Unrealized gain on marketable securities | 55 | ||||||||
Ending Balance at Jun. 30, 2019 | 76,845 | $ 3 | 124,269 | (47,465) | 38 | ||||
Ending Balance (shares) at Jun. 30, 2019 | 25,845,441 | 105,144 | |||||||
Beginning Balance at Mar. 31, 2019 | 82,761 | $ 3 | 123,211 | (40,464) | 11 | ||||
Beginning Balance (shares) at Mar. 31, 2019 | 25,813,629 | 105,144 | |||||||
Stock-based compensation | 846 | 846 | |||||||
Exercise of stock options | 212 | 212 | |||||||
Exercise of stock options (shares) | 31,812 | ||||||||
Net loss | (7,001) | (7,001) | |||||||
Unrealized gain on marketable securities | 27 | 27 | |||||||
Ending Balance at Jun. 30, 2019 | 76,845 | $ 3 | 124,269 | (47,465) | 38 | ||||
Ending Balance (shares) at Jun. 30, 2019 | 25,845,441 | 105,144 | |||||||
Beginning Balance at Dec. 31, 2019 | 65,015 | $ 3 | 126,594 | $ (410) | (61,192) | 20 | |||
Beginning Balance (shares) at Dec. 31, 2019 | 25,912,137 | 105,144 | |||||||
Repayment of subscription receivable | 410 | 410 | |||||||
Stock-based compensation | 998 | 998 | |||||||
Exercise of stock options | 7 | 7 | |||||||
Exercise of stock options (shares) | 7,500 | ||||||||
Net loss | (9,822) | (9,822) | |||||||
Ending Balance at Mar. 31, 2020 | 56,608 | $ 3 | 127,599 | (71,014) | 20 | ||||
Ending Balance (shares) at Mar. 31, 2020 | 25,919,637 | 105,144 | |||||||
Beginning Balance at Dec. 31, 2019 | $ 65,015 | $ 3 | 126,594 | $ (410) | (61,192) | 20 | |||
Beginning Balance (shares) at Dec. 31, 2019 | 25,912,137 | 105,144 | |||||||
Exercise of stock options (shares) | 7,500 | ||||||||
Net loss | $ (19,231) | ||||||||
Unrealized gain on marketable securities | 12 | ||||||||
Ending Balance at Jun. 30, 2020 | 48,463 | $ 3 | 128,851 | (80,423) | 32 | ||||
Ending Balance (shares) at Jun. 30, 2020 | 25,919,637 | 105,144 | |||||||
Beginning Balance at Mar. 31, 2020 | 56,608 | $ 3 | 127,599 | (71,014) | 20 | ||||
Beginning Balance (shares) at Mar. 31, 2020 | 25,919,637 | 105,144 | |||||||
Stock-based compensation | 1,252 | 1,252 | |||||||
Net loss | (9,409) | (9,409) | |||||||
Unrealized gain on marketable securities | 12 | 12 | |||||||
Ending Balance at Jun. 30, 2020 | $ 48,463 | $ 3 | $ 128,851 | $ (80,423) | $ 32 | ||||
Ending Balance (shares) at Jun. 30, 2020 | 25,919,637 | 105,144 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities | ||
Net loss | $ (19,231) | $ (14,480) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation | 2,250 | 1,626 |
Accretion of discounts on marketable securities | (121) | (642) |
Depreciation expense | 26 | 22 |
Non cash interest expense | 328 | |
Reduction in operating lease right-of-use asset | 111 | 59 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other assets | (709) | 358 |
Accounts payable | 112 | 33 |
Accrued expenses and other current liabilities | 798 | 1,147 |
Accounts payable and accrued expenses - related party | (32) | |
Operating lease liability | (64) | (58) |
Net cash used in operating activities | (16,500) | (11,967) |
Cash flows from investing activities | ||
Sales and maturities of marketable securities | 44,355 | 70,565 |
Purchases of marketable securities | (22,136) | (49,232) |
Purchases of property and equipment | (815) | |
Net cash provided by investing activities | 21,404 | 21,333 |
Cash flows from financing activities | ||
Proceeds from exercise of stock options | 7 | 215 |
Proceeds from issuance of debt, net | 34,460 | |
Debt issuance costs | (90) | |
Repayment of subscription receivable | 410 | |
Net cash provided by financing activities | 34,787 | 215 |
Net increase in cash and cash equivalents | 39,691 | 9,581 |
Cash and cash equivalents at the beginning of the period | 9,241 | 10,271 |
Cash and cash equivalents at the end of the period | 48,932 | 19,852 |
Supplemental disclosure of noncash investing and financing activities: | ||
Property and equipment purchases payable or accrued at period end | 429 | 534 |
Debt issuance costs accrued at period end | 25 | |
Change in unrealized gain on marketable securities | 12 | $ 55 |
Cash paid for interest | $ 585 |
Nature of Business
Nature of Business | 6 Months Ended |
Jun. 30, 2020 | |
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 committed to the development and commercialization of novel treatments that provide meaningful benefit for people living with skin diseases. Liquidity and Capital Resources In July 2020, the Company received a Complete Response Letter, or CRL from the U.S. Food and Drug Administration, or FDA, for its new drug application, or NDA, for VP-102, the Company’s investigational, proprietary, drug-device combination for the treatment of molluscum contagiosum. The CRL indicated the need for additional information regarding certain aspects of the chemistry, manufacturing and controls, or CMC, process for the drug/device combination as well as human factors validation. 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 June 30, 2020, the Company had an accumulated deficit of $80.4 million. In March 2020, the Company entered into a Mezzanine Loan Agreement (see Note 7) and borrowed $35.0 million that remains outstanding as of June 30, 2020. The agreement includes a minimum product revenues financial covenant which becomes effective on September 30, 2020, and at any time thereafter, if the balance of the Company’s unrestricted cash, cash equivalents, and marketable securities in accounts maintained at Silicon Valley Bank is less than two times the Company’s aggregate outstanding obligations to the Mezzanine Lenders. If the minimum product revenues financial covenant is effective but not satisfied, the outstanding debt and any related final payment fees, prepayment fees and accrued interest become due on demand. As a result of the anticipated time to address the CRL, the Company believes that it is probable that it will not be in compliance with the minimum product revenues covenant if it becomes effective. Since inception, the Company has financed its operations through sales of convertible preferred stock and the sale of common stock in the Company’s initial public offering, with aggregate gross proceeds of $123.2 million and net proceeds of $114.9 million and the issuance of debt with aggregate gross proceeds of $35.0 million and net proceeds of $34.5 million. As of June 30, 2020, the Company had cash, cash equivalents and marketable securities of $79.6 million. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
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, 2019 filed with the Securities and Exchange Commission (the “SEC”) on March 13, 2020. The results of operations for any interim periods are not necessarily indicative of the results that may be expected for the entire fiscal year or any other interim period. The Company has been actively monitoring the novel coronavirus (“COVID-19”) situation and its impact globally. Management believes the financial results for the three and six month periods ended June 30, 2020 were not significantly impacted by COVID-19. In addition, management believes the remote working arrangements and travel restrictions imposed by various governmental jurisdictions have had limited impact on the Company’s ability to maintain internal operations during the quarter. The full extent to which the COVID-19 pandemic will directly or indirectly impact the Company’s business, results of operations and financial condition will depend on future developments that are highly uncertain, including as a result of new information that may emerge concerning COVID-19 and the actions taken to contain it or treat COVID-19. As a direct result of COVID-19, the Company decided to delay the initiation of its Phase 3 clinical trials to evaluate VP-102 in subjects with common warts as well as its planned Phase 2 clinical trial to evaluate VP-103 in subjects with plantar warts until conditions are appropriate. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. These estimates and assumptions are based on current facts, historical experience as well as other pertinent industry and regulatory authority information, including the potential future effects of COVID-19, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of expenses that are not readily apparent from other sources. Actual results may differ materially and adversely from these estimates. To the extent there are material differences between the estimates and actual results, the Company’s future results of operations will be affected. S ignificant Accounting Policies There have been no material changes in the Company’s significant accounting policies to those previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued Accounting Standard Update (“ASU”) 2016-02, Leases (Topic 842) Leases (Topic 842): Targeted Improvements In June 2018, the FASB issued ASU No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework–Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU 2018-15, Intangibles–Goodwill and Other–Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract Net Loss Per Share Net loss per share of common stock is computed by dividing net loss by the weighted average number of shares of common stock outstanding for the period. Diluted net loss per share excludes the potential impact of common stock options and unvested shares of restricted stock because their effect would be anti-dilutive due to the Company’s net loss. Since the Company had a net loss in each of the periods presented, basic and diluted net loss per common share are the same. The table below provides potential shares outstanding that were not included in the computation of diluted net loss per common share, as the inclusion of these securities would have been anti-dilutive: As of June 30, 2020 2019 Shares issuable upon exercise of stock options 2,608,178 1,950,701 Non-vested shares under restricted stock grants 1,148,859 848,859 |
Investments In Marketable Secur
Investments In Marketable Securities | 6 Months Ended |
Jun. 30, 2020 | |
Investments [Abstract] | |
Investments in Marketable Securities | Note 3—Investments in Marketable Securities Investments in marketable securities consisted of the following as of June 30, 2020 and December 31, 2019 (in thousands): June 30, 2020 Amortized Gross Unrealized Gross Unrealized Fair Cost Gains Losses Value U.S. Treasury securities $ 4,013 $ 18 $ — $ 4,031 Commercial paper 20,836 9 — 20,845 Asset-backed securities 5,808 6 — 5,814 Total marketable securities $ 30,657 $ 33 $ — $ 30,690 December 31, 2019 Amortized Gross Unrealized Gross Unrealized Fair Cost Gains Losses Value U.S. Treasury securities $ 7,397 $ 3 $ — $ 7,400 Commercial paper 31,913 7 (1 ) 31,919 Asset-backed securities 13,446 11 — 13,457 Total marketable securities $ 52,756 $ 21 $ (1 ) $ 52,776 Unrealized gains and losses on marketable securities are recorded as a separate component of accumulated other comprehensive gain included in stockholders’ equity. Realized gains (losses) are included in interest income (expense) in the statement of operations and comprehensive loss on a specific identification basis. There were no marketable securities with a maturity of greater than one year for either period presented. To date, the Company has not recorded any impairment charges on marketable securities related to other-than-temporary declines in market value. Accretion of bond discount on marketable securities and interest income on marketable securities is recorded as interest income on the statement of operations and comprehensive loss. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: Level 1 — Quoted market prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The following tables presents fair value of the Company’s marketable securities (in thousands): Fair Value Measurement as of June 30, 2020 Level 1 Level 2 Level 3 Total Assets U.S. treasury securities $ 4,031 $ — $ — $ 4,031 Commercial paper — 20,845 — 20,845 Asset-backed securities — 5,814 — 5,814 Total assets $ 4,031 $ 26,659 $ — $ 30,690 Fair Value Measurement as of December 31, 2019 Level 1 Level 2 Level 3 Total Assets U.S. treasury securities $ 7,400 $ — $ — $ 7,400 Commercial paper — 31,919 — 31,919 Asset-backed securities — 13,457 — 13,457 Total assets $ 7,400 $ 45,376 $ — $ 52,776 |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Note 4—Property and Equipment Property and equipment, net consisted of (in thousands): As of As of June 30, December 31, 2020 2019 Leasehold improvements $ 68 $ 68 Office furniture and fixtures 48 48 Office equipment 43 31 Construction in process 2,467 2,027 2,626 2,174 Accumulated depreciation (109 ) (84 ) Total property and equipment, net $ 2,517 $ 2,090 The Company has recorded an asset classified as construction in process |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 6 Months Ended |
Jun. 30, 2020 | |
Payables And Accruals [Abstract] | |
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 June 30, 2020 As of December 31, 2019 Compensation and related costs $ 883 $ 1,195 Clinical trials and drug development 452 — Construction in process 429 733 Professional fees 514 89 Interest expense 211 — Other accrued expenses and other current liabilities 68 19 Total accrued expenses and other current liabilities $ 2,557 $ 2,036 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases | N ote 6—Leases Effective January 1, 2019, the Company accounts for its leases under ASC 842, Leases (Topic 842) In calculating the right-of-use asset and lease liability, the Company elects to combine lease and non-lease components. The Company excludes short-term leases having initial terms of 12 months or less from the new guidance as an accounting policy election and recognizes rent expense on a straight-line basis over the lease term. The Company leases office space in West Chester, Pennsylvania under an agreement classified as an operating lease that expires in May 2021. The Company does not act as a lessor or have any leases classified as financing leases. On July 1, 2019, the Company entered into a lease for 5,829 square feet of office space located in West Chester, Pennsylvania that is expected to serve as the Company’s new headquarters. On March 12, 2020 the Company entered into an amendment to the lease agreement. The amendment expands the original premises to include 5,372 square feet of additional office space increasing the total rentable premise to 11,201 square feet of space. For the first six months following the commencement date, the base rent is based on the square footage of the original premises. The Company anticipates the commencement date will occur during the third quarter of 2020, but may be delayed due to the impacts of COVID-19 mandates on office building construction activities. The initial term will expire seven years after the commencement date. 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. revised remaining useful life . In addition, the useful life of associated leasehold improvements has been accelerated to reflect the expected abandonment of the property, such that they will be fully amortized when the property is vacated. As of June 30, 2020, the Company had an operating lease liability of $0.1 million, which was classified as current. The components of lease expense are as follows (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2020 2019 2020 2019 Operating lease: Operating lease costs $ 47 $ 47 $ 105 $ 81 Short-term lease costs 7 5 13 10 Total rent expense $ 54 $ 52 $ 118 $ 91 Maturities of the Company’s operating lease, excluding short-term leases, as of June 30, 2020 are as follows (in thousands): Remainder of 2020 $ 70 2021 58 Total lease payments 128 Less imputed interest (4 ) Operating lease liability $ 124 The weighted-average remaining term of the Company’s operating lease was 1.0 years and the weighted-average discount rate used to measure the present value of the Company’s operating lease liability was 6.75% as of June 30, 2020. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Note 7—Debt On March 10, 2020 (the “Effective Date”), the Company entered into (i) a mezzanine loan and security agreement (the “Mezzanine Loan Agreement”) with Silicon Valley Bank, as administrative agent and collateral agent (the “Agent”), and Silicon Valley Bank and West River Innovation Lending Fund VIII, L.P., as lenders (the “Mezzanine Lenders”), pursuant to which the Mezzanine Lenders have agreed to lend the Company up to $50.0 million in a series of term loans, and (ii) a loan and security agreement (the “Senior Loan Agreement”, and together with the Mezzanine Loan Agreement, the “Loan Agreements”) with Silicon Valley Bank, as lender (the “Senior Lender”, and together with the Mezzanine Lenders, the “Lenders”), pursuant to which the Senior Lender has agreed to provide the Company a revolving line of credit of up to $5.0 million. Upon entering into the Loan Agreements, the Company borrowed $35.0 million in term loans from the Mezzanine Lenders (the “Term A Loan”). Under the terms of the Mezzanine Loan Agreement, the Company may, at its sole discretion, borrow from the Mezzanine Lenders up to an additional $ 15.0 million in term loans (the “Term B Loan”, and together with the Term A Loan, the “Term Loans”) upon the Company’s achievement of (i) a specified amount in trailing six-month net revenue and (ii) an equity raise of at least $ 40.0 million (the foregoing clauses (i) and (ii), collectively, the “Term B Milestone”). The Company may draw the Term B Loan during the period commencing on the date of the occurrence of the Term B Milestone and ending on the earliest of (i) December 31, 2021 and (ii) the occurrence of an event of default. Under the terms of the Senior Loan Agreement, the Company may, at its sole discretion, borrow from the Senior Lender one or more advances on the revolving credit line (the “Revolving Loans”, and together with the Term Loans, the “Loans”) in an aggregate amount not to exceed the lesser of (i) 85% of the aggregate amount then-contained in the Company’s eligible accounts receivable and (ii) $5.0 million. The Senior Loan Agreement provides for the Company to make three anniversary payments of $25,000 each in addition to the $25,000 due upon the Effective Date for an aggregate of $100,000 in total anniversary payments. In the event the Senior Loan Agreement is terminated prior to maturity, any unpaid portion of the total anniversary payments are due immediately. The Company recorded the total anniversary fee payment obligation at inception. As of June 30, 2020, $25,000 and $75,000 of anniversary payments were recorded within other current liabilities and other liabilities, respectively, within the Company’s accompanying balance sheet. The Company’s obligations under the Senior Loan Agreement and the Mezzanine Loan Agreement are secured by, respectively, a first priority perfected security interest and second priority perfected security interest in substantially all of the Company’s current and future assets, other than its intellectual property (except rights to payment from the sale, licensing or disposition of such intellectual property). The Company has also agreed not to encumber its intellectual property assets, except as permitted by the Loan Agreements. All of the Loans mature on March 1, 2024 (the “Maturity Date”). The Term Loans will be interest-only through March 31, 2022, followed by 24 equal monthly payments of principal and interest; provided that if the Company draws the Term B Loan, the Term Loans will be interest-only through September 30, 2022, followed by 18 equal monthly payments of principal and interest. The Term Loans will bear interest at a floating per annum rate equal to the greater of (i) 7.25% and (ii) the sum of (a) the prime rate reported in The Wall Street Journal on the last business day of the month that immediately precedes the month in which the interest will accrue, plus (b) 2.50%. The Revolving Loans will bear interest at a floating per annum rate equal to the greater of (i) 6.00% and (ii) the sum of (a) the prime rate reported in The Wall Street Journal on the last business day of the month that immediately precedes the month in which the interest will accrue, plus (b) 1.25%. The Company will be required to make a final payment fee of 7.50% of the original principal amount of the Term Loans drawn payable on the earlier of (i) the Maturity Date, (ii) the acceleration of any Term Loans, or (iii) the prepayment of the Term Loans (the “Final Payment”). The Company is recording the final payment fee using the effective interest rate method over the term of the Term Loan with an increase in long-term debt. The Company may prepay all, or any portion (in increments of at least $1.0 million), of the Term Loans upon 5 business days’ advance written notice to the Agent, provided that the Company will be obligated to pay a prepayment fee equal to (i) 3.00% of the principal amount of the applicable Term Loan prepaid on or before the first anniversary of the Effective Date, (ii) 2.00% of the principal amount of the applicable Term Loan prepaid between the first and second anniversary of the Effective Date, and (iii) 1.00% of the principal amount of the applicable Term Loan prepaid thereafter, and prior to the third anniversary of the Effective Date (each, a “Prepayment Fee”). The Company may terminate the revolving credit line under the Senior Loan Agreement at any time upon 3 business days’ advance written notice to the Senior Lender. If the Company terminates the revolving credit line prior to the Maturity Date, it must pay to the Senior Lender an early termination fee of $50,000 (the “Termination Fee”). The Company is subject to a number of affirmative and restrictive covenants pursuant to the Loan Agreements, including covenants regarding achieving minimum product revenues, delivery of financial statements, maintenance of inventory, payment of taxes, maintenance of insurance, protection of intellectual property rights, dispositions of property, business combinations or acquisitions, incurrence of additional indebtedness or liens, investments and transactions with affiliates, among other customary covenants. As of June 30, 2020 the Company is in compliance with all covenants. Upon the occurrence of certain events, including but not limited to the Company’s failure to satisfy its payment obligations under the Loan Agreements, the breach of certain of its other covenants under the Loan Agreements, or the occurrence of a material adverse change, cross defaults to other indebtedness or material agreements, judgment defaults and defaults related to failure to maintain governmental approvals failure of which to maintain could result in a material adverse effect, the Agent and the Lenders will have the right, among other remedies, to declare all principal and interest immediately due and payable, to exercise secured party remedies, to receive the Final Payment and Termination Fee and, if the payment of principal and interest is due prior to the Maturity Date, to receive the applicable Prepayment Fee. The Loan Agreements also include subjective acceleration clauses that permit the Lenders to accelerate the maturity date under certain circumstances, including a material adverse change in the Company’s business, operations, or financial condition or a material impairment of the prospect of repayment of the Company’s obligations to the Mezzanine Lenders. In July 2020, the Company received a Complete Response Letter, or CRL, from the U.S. Food and Drug Administration for its new drug application for VP-102, the Company’s investigational, proprietary, drug-device combination for the treatment of molluscum contagiosum. The CRL indicated the need for additional information regarding certain aspects of the chemistry, manufacturing and controls, or CMC, process for the drug/device combination as well as human factors validation. As a result of the anticipated time to address the CRL, the Company believes it is probable that it will not be compliance with its minimum product revenue financial covenant if it becomes effective, which could occur as early as September 30, 2020. In accordance with FASB ASC 470, since the Mezzanine Loan Agreement contains subjective acceleration clauses and the assessment that it is probable that the minimum product revenue covenant will not be met, the Company has classified all outstanding principal and final payment fees as a current liability in the accompanying balance sheet as of June 30, 2020. The Company has discussed with the lenders a potential amendment to the credit facility to avoid noncompliance if the minimum revenue covenant becomes effective and anticipates the discussions will continue during the third quarter of 2020. Upon entering into the Loan Agreement, the Company received proceeds of $35.0 million in term loans and incurred debt discount and issuance costs of $3.3 million, including the final payment fee of $2.7 million, classified as a contra-liability on the condensed balance sheet. The Company incurred additional debt issuance costs related to the revolving credit line of $0.1 million, classified as other non-current assets in the condensed balance sheet. These costs related to the revolving credit line are being amortized to interest expense over the life of the loans using the straight-line method. For the three and six months ended June 30, 2020, the Company recognized interest expense of $0.9 million and $1.1 million, respectively, of which $0.6 million and $0.8 million was interest on the term loan and $0.3 million and $0.3 million, respectively, was non-cash interest expense related to the amortization of deferred debt issuance costs and accrual of the final payment fee. T he following table summarizes the composition of debt as reflected on the balance sheet as of June 30, 2020 (in thousands): Gross proceeds $ 35,000 Accrued final payment fee 2,625 Unamortized debt discount and issuance costs (2,905 ) Total long-term debt, net $ 34,720 In the event the Company and Lenders amend the credit facility prior to December 31, 2020 to avoid an acceleration of payments without altering the existing repayment schedule by the Company to the lenders, the a ggregate maturities of long-term debt as of June 30, 2020 are as follows (in thousands): Remainder of 2020 $ — 2021 — 2022 13,125 2023 17,500 2024 (1) 4,375 $ 35,000 (1) Excludes the final payment fee due at time of maturity. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 8—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 six months ended June 30, 2020 and 2019 as follows (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2020 2019 2020 2019 Research and development $ 213 $ 144 $ 390 $ 284 General and administrative 1,039 702 1,860 1,342 Total stock-based compensation $ 1,252 $ 846 $ 2,250 $ 1,626 Stock Options The following table summarizes the Company’s stock option activity for the six months ended June 30, 2020: Weighted average Weighted average remaining contractual Aggregate intrinsic Number of shares exercise price life (in years) value Outstanding as of December 31, 2019 1,914,545 $ 9.14 8.5 $ 12,953,956 Granted 705,204 12.70 Exercised (7,500 ) 0.90 Forfeitures (4,071 ) 15.13 Outstanding as of June 30, 2020 2,608,178 $ 10.12 8.5 $ 5,059,917 Options vested and exercisable as of June 30, 2020 912,587 $ 7.93 7.7 $ 3,240,963 As of June 30, 2020, the total unrecognized compensation related to unvested stock option awards granted was $12.2 million, which the Company expects to recognize over a weighted-average period of 2.87 years. Restricted Stock Pursuant to an Amended and Restated Stock Purchase Agreement (the “Amended and Restated Agreement”) between the Company and its former Chief Scientific Officer (“CSO”), 848,859 shares held by the former CSO are subject to repurchase at $0.0001 per share in the event the CSO ceases to be a consultant. These shares will be released from the repurchase option on the earliest to occur of (i) a change in control, (ii) regulatory approval of the Company’s new drug application for cantharidin, (iii) commercial sale of products and (iv) a covered termination, as defined in the Amended and Restated Agreement. On November 27, 2019, the Company granted 300,000 restricted stock units to its executive officers. The restricted stock units vest 50% upon receipt of regulatory approval of the Company’s new drug application for VP-102 for the treatment of molluscum (the “Approval Date”) and 50% shall vest on the one year anniversary of the Approval Date subject to the holders’ continuous service through each applicable date. No compensation expenses have been recognized for these nonvested restricted stock units and the shares subject to the Amended and Restated Agreement as these shares are performance based and the triggering event was not determined to be probable as of June 30, 2020. As of June 30, 2020, the total unrecognized compensation expense related to the restricted stock units and shares subject to the Amended and Restated Agreement was $5.0 million. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 9—Related Party Transactions The Company has entered into a services agreement (“SA”) with PBM Capital Group, LLC (“PBM”) an affiliate of PBM Capital Investments, LLC, to engage PBM for certain business development, operations, technical, contract, accounting and back office support services. 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 January 1, 2019 and October 1, 2019, the SA was amended to reduce the monthly management fee to $26,333 and $5,000, respectively, as a result of a reduction in services provided by PBM. For the three months ended June 30, 2020 and 2019, the Company incurred expenses under the SA of $15,000 and $79,000, respectively. For the six months ended June 30, 2020 and 2019, the Company incurred expenses under the SA of $30,000 and $158,000, respectively. |
Commitment and Contingencies
Commitment and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10—Commitments and Contingencies The Company is involved in ordinary, routine legal proceedings that are not considered by management to be material. In the opinion of Company counsel and management, the ultimate liabilities resulting from such legal proceedings will not materially affect the financial position of the Company or its results of operations or cash flows. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 11—Subsequent Event On August 4, 2020, the Company entered into an Option Agreement with Torii Pharmaceutical Co., Ltd. (“Torii”) for the development and commercialization of the Company’s product candidates for the treatment of molluscum contagiosum and common warts in Japan , including VP-102 . Torii has agreed to pay the Company $ 0.5 million to secure the exclusive option. Torii may exercise the option to obtain exclusive license rights until the later of six months after the effective date of the Option Agreement, or ten businesss days after the Company provides Torii with minutes of any Type A meeting with the FDA regarding VP-102. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
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, 2019 filed with the Securities and Exchange Commission (the “SEC”) on March 13, 2020. The results of operations for any interim periods are not necessarily indicative of the results that may be expected for the entire fiscal year or any other interim period. The Company has been actively monitoring the novel coronavirus (“COVID-19”) situation and its impact globally. Management believes the financial results for the three and six month periods ended June 30, 2020 were not significantly impacted by COVID-19. In addition, management believes the remote working arrangements and travel restrictions imposed by various governmental jurisdictions have had limited impact on the Company’s ability to maintain internal operations during the quarter. The full extent to which the COVID-19 pandemic will directly or indirectly impact the Company’s business, results of operations and financial condition will depend on future developments that are highly uncertain, including as a result of new information that may emerge concerning COVID-19 and the actions taken to contain it or treat COVID-19. As a direct result of COVID-19, the Company decided to delay the initiation of its Phase 3 clinical trials to evaluate VP-102 in subjects with common warts as well as its planned Phase 2 clinical trial to evaluate VP-103 in subjects with plantar warts until conditions are appropriate. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. These estimates and assumptions are based on current facts, historical experience as well as other pertinent industry and regulatory authority information, including the potential future effects of COVID-19, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of expenses that are not readily apparent from other sources. Actual results may differ materially and adversely from these estimates. To the extent there are material differences between the estimates and actual results, the Company’s future results of operations will be affected. |
Significant Accounting Policies | S ignificant Accounting Policies There have been no material changes in the Company’s significant accounting policies to those previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the FASB issued Accounting Standard Update (“ASU”) 2016-02, Leases (Topic 842) Leases (Topic 842): Targeted Improvements In June 2018, the FASB issued ASU No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework–Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU 2018-15, Intangibles–Goodwill and Other–Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract |
Net Loss Per Share | Net Loss Per Share Net loss per share of common stock is computed by dividing net loss by the weighted average number of shares of common stock outstanding for the period. Diluted net loss per share excludes the potential impact of common stock options and unvested shares of restricted stock because their effect would be anti-dilutive due to the Company’s net loss. Since the Company had a net loss in each of the periods presented, basic and diluted net loss per common share are the same. The table below provides potential shares outstanding that were not included in the computation of diluted net loss per common share, as the inclusion of these securities would have been anti-dilutive: As of June 30, 2020 2019 Shares issuable upon exercise of stock options 2,608,178 1,950,701 Non-vested shares under restricted stock grants 1,148,859 848,859 |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Potential Shares Outstanding not Included in Computation of Diluted Net Loss Per Common Share | The table below provides potential shares outstanding that were not included in the computation of diluted net loss per common share, as the inclusion of these securities would have been anti-dilutive: As of June 30, 2020 2019 Shares issuable upon exercise of stock options 2,608,178 1,950,701 Non-vested shares under restricted stock grants 1,148,859 848,859 |
Investments In Marketable Sec_2
Investments In Marketable Securities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investments [Abstract] | |
Schedule of Marketable Securities | Investments in marketable securities consisted of the following as of June 30, 2020 and December 31, 2019 (in thousands): June 30, 2020 Amortized Gross Unrealized Gross Unrealized Fair Cost Gains Losses Value U.S. Treasury securities $ 4,013 $ 18 $ — $ 4,031 Commercial paper 20,836 9 — 20,845 Asset-backed securities 5,808 6 — 5,814 Total marketable securities $ 30,657 $ 33 $ — $ 30,690 December 31, 2019 Amortized Gross Unrealized Gross Unrealized Fair Cost Gains Losses Value U.S. Treasury securities $ 7,397 $ 3 $ — $ 7,400 Commercial paper 31,913 7 (1 ) 31,919 Asset-backed securities 13,446 11 — 13,457 Total marketable securities $ 52,756 $ 21 $ (1 ) $ 52,776 |
Schedule of Fair Value of Marketable Securities | The following tables presents fair value of the Company’s marketable securities (in thousands): Fair Value Measurement as of June 30, 2020 Level 1 Level 2 Level 3 Total Assets U.S. treasury securities $ 4,031 $ — $ — $ 4,031 Commercial paper — 20,845 — 20,845 Asset-backed securities — 5,814 — 5,814 Total assets $ 4,031 $ 26,659 $ — $ 30,690 Fair Value Measurement as of December 31, 2019 Level 1 Level 2 Level 3 Total Assets U.S. treasury securities $ 7,400 $ — $ — $ 7,400 Commercial paper — 31,919 — 31,919 Asset-backed securities — 13,457 — 13,457 Total assets $ 7,400 $ 45,376 $ — $ 52,776 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of (in thousands): As of As of June 30, December 31, 2020 2019 Leasehold improvements $ 68 $ 68 Office furniture and fixtures 48 48 Office equipment 43 31 Construction in process 2,467 2,027 2,626 2,174 Accumulated depreciation (109 ) (84 ) Total property and equipment, net $ 2,517 $ 2,090 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30, 2020 As of December 31, 2019 Compensation and related costs $ 883 $ 1,195 Clinical trials and drug development 452 — Construction in process 429 733 Professional fees 514 89 Interest expense 211 — Other accrued expenses and other current liabilities 68 19 Total accrued expenses and other current liabilities $ 2,557 $ 2,036 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Summary of Components of Lease Expense | The components of lease expense are as follows (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2020 2019 2020 2019 Operating lease: Operating lease costs $ 47 $ 47 $ 105 $ 81 Short-term lease costs 7 5 13 10 Total rent expense $ 54 $ 52 $ 118 $ 91 |
Schedule of Maturities of Operating Lease | Maturities of the Company’s operating lease, excluding short-term leases, as of June 30, 2020 are as follows (in thousands): Remainder of 2020 $ 70 2021 58 Total lease payments 128 Less imputed interest (4 ) Operating lease liability $ 124 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Composition of Debt | T he following table summarizes the composition of debt as reflected on the balance sheet as of June 30, 2020 (in thousands): Gross proceeds $ 35,000 Accrued final payment fee 2,625 Unamortized debt discount and issuance costs (2,905 ) Total long-term debt, net $ 34,720 |
Schedule of Aggregate Maturities of Long-term Debt | In the event the Company and Lenders amend the credit facility prior to December 31, 2020 to avoid an acceleration of payments without altering the existing repayment schedule by the Company to the lenders, the a ggregate maturities of long-term debt as of June 30, 2020 are as follows (in thousands): Remainder of 2020 $ — 2021 — 2022 13,125 2023 17,500 2024 (1) 4,375 $ 35,000 (1) Excludes the final payment fee due at time of maturity. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Stock Based Compensation Expense | Stock-based compensation expense, which includes expense for both employees and non-employees, has been reported in the Company’s condensed statements of operations for the three and six months ended June 30, 2020 and 2019 as follows (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2020 2019 2020 2019 Research and development $ 213 $ 144 $ 390 $ 284 General and administrative 1,039 702 1,860 1,342 Total stock-based compensation $ 1,252 $ 846 $ 2,250 $ 1,626 |
Summary of Stock Option Activity | The following table summarizes the Company’s stock option activity for the six months ended June 30, 2020: Weighted average Weighted average remaining contractual Aggregate intrinsic Number of shares exercise price life (in years) value Outstanding as of December 31, 2019 1,914,545 $ 9.14 8.5 $ 12,953,956 Granted 705,204 12.70 Exercised (7,500 ) 0.90 Forfeitures (4,071 ) 15.13 Outstanding as of June 30, 2020 2,608,178 $ 10.12 8.5 $ 5,059,917 Options vested and exercisable as of June 30, 2020 912,587 $ 7.93 7.7 $ 3,240,963 |
Nature of Business - Additional
Nature of Business - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Description Of Business [Line Items] | ||
Accumulated deficit | $ (80,423) | $ (61,192) |
Gross proceeds from issuance of debt | 35,000 | |
Net proceeds from issuance of debt | 34,460 | |
IPO [Member] | ||
Description Of Business [Line Items] | ||
Gross proceeds from issuance of common stock | 123,200 | |
Net proceeds from issuance of common stock | 114,900 | |
Cash, cash equivalents and marketable securities | 79,600 | |
Mezzanine Loan Agreement [Member] | Mezzanine Lenders [Member] | Term A Loan [Member] | ||
Description Of Business [Line Items] | ||
Line of credit facility | $ 35,000 |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) - USD ($) | Jan. 01, 2019 | Jun. 30, 2020 | Dec. 31, 2019 |
Significant Accounting Policies [Line Items] | |||
Operating lease right-of-use asset | $ 304,000 | $ 111,000 | |
Operating lease liability | 306,000 | $ 124,000 | |
Deferred rent | 2,000 | ||
Accounting Standards Update 2018-13 [Member] | |||
Significant Accounting Policies [Line Items] | |||
Change in accounting principle, accounting standards update, adopted [true false] | true | ||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2020 | ||
Change in accounting principle, accounting Standards Update, immaterial effect [true false] | true | ||
Accounting Standards Update 2018-15 [Member] | |||
Significant Accounting Policies [Line Items] | |||
Change in accounting principle, accounting standards update, adopted [true false] | true | ||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2020 | ||
Change in accounting principle, accounting Standards Update, immaterial effect [true false] | true | ||
Accumulated Deficit and Additional Paid-in Capital [Member] | |||
Significant Accounting Policies [Line Items] | |||
Adjustment to accumulated deficit and additional paid -in capital | $ 98,000 |
Significant Accounting Polici_5
Significant Accounting Policies - Schedule of Potential Shares Outstanding not Included in Computation of Diluted Net Loss Per Common Share (Detail) - shares | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
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 | 2,608,178 | 1,950,701 |
Non-vested shares under restricted stock grants [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Securities that could potentially dilute basic earnings per share | 1,148,859 | 848,859 |
Investments in Marketable Sec_3
Investments in Marketable Securities - Schedule of Marketable Securities (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Marketable Securities [Line Items] | ||
Amortized Cost | $ 30,657 | $ 52,756 |
Gross Unrealized Gains | 33 | 21 |
Gross Unrealized Losses | (1) | |
Fair Value | 30,690 | 52,776 |
U.S. Treasury Securities [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 4,013 | 7,397 |
Gross Unrealized Gains | 18 | 3 |
Fair Value | 4,031 | 7,400 |
Commercial Paper [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 20,836 | 31,913 |
Gross Unrealized Gains | 9 | 7 |
Gross Unrealized Losses | (1) | |
Fair Value | 20,845 | 31,919 |
Asset Backed Securities [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 5,808 | 13,446 |
Gross Unrealized Gains | 6 | 11 |
Fair Value | $ 5,814 | $ 13,457 |
Investments in Marketable Sec_4
Investments in Marketable Securities - Schedule of Fair Value of Marketable Securities (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Marketable Securities [Line Items] | ||
Marketable securities | $ 30,690 | $ 52,776 |
Level 1 [Member] | ||
Marketable Securities [Line Items] | ||
Marketable securities | 4,031 | 7,400 |
Level 2 [Member] | ||
Marketable Securities [Line Items] | ||
Marketable securities | 26,659 | 45,376 |
U.S. Treasury Securities [Member] | ||
Marketable Securities [Line Items] | ||
Marketable securities | 4,031 | 7,400 |
U.S. Treasury Securities [Member] | Level 1 [Member] | ||
Marketable Securities [Line Items] | ||
Marketable securities | 4,031 | 7,400 |
Commercial Paper [Member] | ||
Marketable Securities [Line Items] | ||
Marketable securities | 20,845 | 31,919 |
Commercial Paper [Member] | Level 2 [Member] | ||
Marketable Securities [Line Items] | ||
Marketable securities | 20,845 | 31,919 |
Asset Backed Securities [Member] | ||
Marketable Securities [Line Items] | ||
Marketable securities | 5,814 | 13,457 |
Asset Backed Securities [Member] | Level 2 [Member] | ||
Marketable Securities [Line Items] | ||
Marketable securities | $ 5,814 | $ 13,457 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 2,626 | $ 2,174 |
Accumulated depreciation | (109) | (84) |
Total property and equipment, net | 2,517 | 2,090 |
Leasehold Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 68 | 68 |
Office Furniture and Fixtures [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 48 | 48 |
Office Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 43 | 31 |
Construction in Progress [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 2,467 | $ 2,027 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Accrued Liabilities Current [Abstract] | ||
Compensation and related costs | $ 883 | $ 1,195 |
Clinical trials and drug development | 452 | |
Construction in process | 429 | 733 |
Professional fees | 514 | 89 |
Interest expense | 211 | |
Other accrued expenses and other current liabilities | 68 | 19 |
Total accrued expenses and other current liabilities | $ 2,557 | $ 2,036 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Thousands | Mar. 12, 2020ft² | Jul. 01, 2019ft² | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Lessee Lease Description [Line Items] | ||||
Operating lease expiration | 2021-05 | |||
First amendments date | Mar. 12, 2020 | |||
Operating lease, initial term of contract | 7 years | |||
Operating lease liability, current | $ | $ 124 | $ 130 | ||
Weighted-average remaining lease term | 1 year | |||
Weighted-average discount rate | 6.75% | |||
Pennsylvania [Member] | ||||
Lessee Lease Description [Line Items] | ||||
Lease agreement commencement date | Jul. 1, 2019 | |||
Area of office space for lease | 5,829 | |||
Original Premises [Member] | ||||
Lessee Lease Description [Line Items] | ||||
Area of office space for lease | 5,372 | |||
Total Rentable Premise [Member] | ||||
Lessee Lease Description [Line Items] | ||||
Area of office space for lease | 11,201 | |||
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 | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Leases [Abstract] | ||||
Operating lease costs | $ 47 | $ 47 | $ 105 | $ 81 |
Short-term lease costs | 7 | 5 | 13 | 10 |
Total rent expense | $ 54 | $ 52 | $ 118 | $ 91 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating Lease (Detail) - USD ($) | Jun. 30, 2020 | Jan. 01, 2019 |
Leases [Abstract] | ||
Remainder of 2020 | $ 70,000 | |
2021 | 58,000 | |
Total lease payments | 128,000 | |
Less imputed interest | (4,000) | |
Operating lease liability | $ 124,000 | $ 306,000 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Mar. 10, 2020 | Jun. 30, 2020 | Jun. 30, 2020 |
Debt Instrument [Line Items] | |||
Term loans, frequency of periodic payments | 24 equal monthly | ||
Proceeds from issuance of debt | $ 35,000,000 | ||
Final payment fee | $ 35,000,000 | $ 35,000,000 | |
Mezzanine Loan Agreement [Member] | Term B Loan [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 15,000,000 | ||
Mezzanine Loan Agreement [Member] | Term B Loan [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Proceeds from equity financing | 40,000,000 | ||
Mezzanine Loan Agreement [Member] | Mezzanine Lenders [Member] | Term Loans [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | 50,000,000 | ||
Mezzanine Loan Agreement [Member] | Mezzanine Lenders [Member] | Term A Loan [Member] | |||
Debt Instrument [Line Items] | |||
Borrowed amount | 35,000,000 | ||
Mezzanine Loan Agreement [Member] | Silicon Valley Bank (Senior Lender) [Member] | Revolving Loans [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | 5,000,000 | ||
Senior Loan Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 5,000,000 | ||
Line of credit, maximum borrowing base percentage of eligible accounts receivable | 85.00% | ||
Line of credit facility, periodic payment | $ 25,000 | ||
Line of credit facility due upon effective date. | 25,000 | ||
Line of credit facility, anniversary payment | $ 100,000 | ||
Loans, maturity date | Mar. 1, 2024 | ||
Term loans, payment terms | The Term Loans will be interest-only through March 31, 2022, followed by 24 equal monthly payments of principal and interest; provided that if the Company draws the Term B Loan, the Term Loans will be interest-only through September 30, 2022, followed by 18 equal monthly payments of principal and interest. | ||
Loans, interest rate terms | The Term Loans will bear interest at a floating per annum rate equal to the greater of (i) 7.25% and (ii) the sum of (a) the prime rate reported in The Wall Street Journal on the last business day of the month that immediately precedes the month in which the interest will accrue, plus (b) 2.50%. | ||
Loans, interest rate | 7.25% | ||
Term loans, final payment fee percentage of original principal amount | 7.50% | ||
Debt discount and issuance costs | $ 3,300,000 | ||
Final payment fee | 35,000,000 | $ 35,000,000 | |
Interest expense | 900,000 | 1,100,000 | |
Interest on term loan | 600,000 | 800,000 | |
Non-cash interest expense | $ 300,000 | 300,000 | |
Senior Loan Agreement [Member] | Term Loan Prepaid on or Before First Anniversary of Effective Date [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, prepayment fee percentage | 3.00% | ||
Senior Loan Agreement [Member] | Term Loan Prepaid Between First and Second Anniversary of Effective Date [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, prepayment fee percentage | 2.00% | ||
Senior Loan Agreement [Member] | Term Loan Prepaid Thereafter, and Prior to Third Anniversary of Effective Date [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, prepayment fee percentage | 1.00% | ||
Senior Loan Agreement [Member] | Prime Rate [Member] | |||
Debt Instrument [Line Items] | |||
Loans, variable rate | 2.50% | ||
Senior Loan Agreement [Member] | Term A and B Loan [Member] | |||
Debt Instrument [Line Items] | |||
Term loans, frequency of periodic payments | 18 equal monthly | ||
Senior Loan Agreement [Member] | Other Current Liabilities [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, anniversary payment | 25,000 | ||
Senior Loan Agreement [Member] | Other Liabilities [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, anniversary payment | $ 75,000 | ||
Senior Loan Agreement [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Repayments of term loans increments amount | $ 1,000,000 | ||
Senior Loan Agreement [Member] | Term Loans [Member] | |||
Debt Instrument [Line Items] | |||
Proceeds from issuance of debt | 35,000,000 | ||
Senior Loan Agreement [Member] | Term Loans [Member] | Contra-Liability [Member] | |||
Debt Instrument [Line Items] | |||
Final payment fee | $ 2,700,000 | ||
Senior Loan Agreement [Member] | Revolving Loans [Member] | |||
Debt Instrument [Line Items] | |||
Loans, interest rate terms | The Revolving Loans will bear interest at a floating per annum rate equal to the greater of (i) 6.00% and (ii) the sum of (a) the prime rate reported in The Wall Street Journal on the last business day of the month that immediately precedes the month in which the interest will accrue, plus (b) 1.25%. | ||
Loans, interest rate | 6.00% | ||
Credit line, early termination fee amount | $ 50,000 | ||
Senior Loan Agreement [Member] | Revolving Loans [Member] | Prime Rate [Member] | |||
Debt Instrument [Line Items] | |||
Loans, variable rate | 1.25% | ||
Senior Loan Agreement [Member] | Revolving Loans [Member] | Other Non-Current Assets [Member] | |||
Debt Instrument [Line Items] | |||
Debt discount and issuance costs | $ 100,000 |
Debt - Summary of Composition o
Debt - Summary of Composition of Debt (Detail) $ in Thousands | Jun. 30, 2020USD ($) |
Debt Instrument [Line Items] | |
Gross proceeds | $ 35,000 |
Senior Loan Agreement [Member] | |
Debt Instrument [Line Items] | |
Gross proceeds | 35,000 |
Accrued final payment fee | 2,625 |
Unamortized debt discount and issuance costs | (2,905) |
Total long-term debt, net | $ 34,720 |
Debt - Schedule of Aggregate Ma
Debt - Schedule of Aggregate Maturities of Long-term Debt (Detail) $ in Thousands | Jun. 30, 2020USD ($) |
Debt Disclosure [Abstract] | |
2022 | $ 13,125 |
2023 | 17,500 |
2024 | 4,375 |
Long-term debt | $ 35,000 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | $ 1,252 | $ 846 | $ 2,250 | $ 1,626 |
Research and Development [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | 213 | 144 | 390 | 284 |
General and Administrative [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | $ 1,039 | $ 702 | $ 1,860 | $ 1,342 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Detail) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Employee Service Share Based Compensation Aggregate Disclosures [Abstract] | ||
Number of shares, Outstanding Beginning Balance | 1,914,545 | |
Number of shares, Granted | 705,204 | |
Number of shares, Exercised | (7,500) | |
Number of shares, Forfeitures | (4,071) | |
Number of shares, Outstanding Ending Balance | 2,608,178 | 1,914,545 |
Number of shares, Options vested and exercisable Ending Balance | 912,587 | |
Weighted average exercise price, Outstanding Beginning Balance | $ 9.14 | |
Weighted average exercise price, Granted | 12.70 | |
Weighted average exercise price, Exercised | 0.90 | |
Weighted average exercise price, Forfeitures | 15.13 | |
Weighted average exercise price, Outstanding Ending Balance | 10.12 | $ 9.14 |
Weighted average exercise price, Options vested and exercisable Ending Balance | $ 7.93 | |
Weighted average remaining contractual life (in years), Outstanding | 8 years 6 months | 8 years 6 months |
Weighted average remaining contractual life (in years), Options vested and exercisable | 7 years 8 months 12 days | |
Aggregate intrinsic value, Outstanding | $ 5,059,917 | $ 12,953,956 |
Aggregate intrinsic value, Options vested and exercisable Ending Balance | $ 3,240,963 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Nov. 27, 2019 | Jun. 30, 2020 | Dec. 31, 2019 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total unrecognized compensation related to unvested stock options | $ 12.2 | ||
Weighted-average stock option recognize period | 2 years 10 months 13 days | ||
Treasury stock, shares | 105,144 | 105,144 | |
Restricted Stock Units (RSUs) [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock vesting period | 1 year | ||
Restricted Stock Units (RSUs) [Member] | Executive Officers [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Shares, Granted | 300,000 | ||
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) | 50.00% | ||
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) | 50.00% | ||
Amended and Restated Agreement [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Treasury stock, shares | 848,859 | ||
Repurchase price | $ 0.0001 | ||
Amended and Restated Agreement [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total unrecognized compensation related to nonvested restricted stock units | $ 5 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - PBM Capital Group, LLC [Member] - USD ($) | Oct. 01, 2019 | Jan. 01, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 |
Related Party Transaction [Line Items] | ||||||
Expenses incurred under services agreement | $ 15,000 | $ 79,000 | $ 30,000 | $ 158,000 | ||
Amended Service Agreement [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Monthly management fee payable | $ 5,000 | $ 26,333 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) $ in Millions | Aug. 04, 2020USD ($) |
Option Agreement [Member] | Torii [Member] | Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Consideration receivable to secure exclusive option | $ 0.5 |