Verrica Pharmaceuticals (VRCA) 10-Q 7 May 21 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2021	May 03, 2021
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Entity Trading Symbol	VRCA
Entity Interactive Data Current	Yes
Entity Registrant Name	Verrica Pharmaceuticals Inc.
Entity Central Index Key	0001660334
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		27,409,576
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
Former Address [Member]
Document Information [Line Items]
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

CONDENSED BALANCE SHEETS

CONDENSED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 44,101	$ 10,686
Marketable securities	43,585	54,784
License receivable	11,500
Prepaid expenses and other assets	2,860	2,180
Total current assets	102,046	67,650
Property and equipment, net	3,329	3,102
Operating lease right-of-use asset	1,780	1,836
Other non-current assets	947	1,566
Total assets	108,102	74,154
Current liabilities:
Accounts payable	878	348
Accrued expenses and other current liabilities	2,881	3,114
Operating lease liability	230	198
Deferred revenue		500
Current debt, net	40,669	35,315
Total current liabilities	44,658	39,475
Operating lease liability	1,634	1,693
Total liabilities	46,292	41,168
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 March 31, 2021 and December 31, 2020
Common stock, $0.0001 par value; 200,000,000 authorized; 27,595,864 shares issued and 27,490,720 shares outstanding as of March 31, 2021 and 25,546,257 shares issued and 25,441,113 shares outstanding as of December 31, 2020	3	3
Treasury stock, at cost, 105,144 shares as of March 31, 2021 and December 31, 2020	0	0
Additional paid-in capital	166,626	136,868
Accumulated deficit	(104,822)	(103,886)
Accumulated other comprehensive gain	3	1
Total stockholders’ equity	61,810	32,986
Total liabilities and stockholders’ equity	$ 108,102	$ 74,154

CONDENSED BALANCE SHEETS (Paren

CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2021	Dec. 31, 2020
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	27,595,864	25,546,257
Common stock, shares outstanding	27,490,720	25,441,113
Treasury stock, shares	105,144	105,144

CONDENSED STATEMENTS OF OPERATI

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Statement [Abstract]
License revenue	$ 12,000
Revenue from Contract with Customer, Product and Service [Extensible List]	us-gaap:LicenseMember
Operating expenses:
Research and development	$ 5,362	$ 4,892
General and administrative	6,578	4,988
Total operating expenses	11,940	9,880
Income (loss) from operations	60	(9,880)
Other income (expense):
Interest income	32	278
Interest expense	(1,028)	(220)
Total other (expense) income	(996)	58
Net loss	$ (936)	$ (9,822)
Net loss per share, basic and diluted	$ (0.04)	$ (0.39)
Weighted average common shares outstanding, basic and diluted	25,602,404	24,964,167
Other comprehensive gain:
Unrealized gain on marketable securities	$ 2
Comprehensive loss	$ (934)	$ (9,822)

CONDENSED STATEMENTS OF STOCKHO

CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Subscription Receivable [Member]	Accumulated Deficit [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Gain (Loss) [Member]
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, 2020	32,986	$ 3	136,868		(103,886)		1
Beginning Balance (shares) at Dec. 31, 2020		25,546,257				105,144
Issuance of common stock net of issuance costs	28,115		28,115
Issuance of common stock net of issuance costs (shares)		2,033,899
Stock-based compensation	1,403		1,403
Exercise of stock options	$ 240		240
Exercise of stock options (shares)	15,708	15,708
Net loss	$ (936)				(936)
Unrealized loss on marketable securities	2						2
Ending Balance at Mar. 31, 2021	$ 61,810	$ 3	$ 166,626		$ (104,822)		$ 3
Ending Balance (shares) at Mar. 31, 2021		27,595,864				105,144

CONDENSED STATEMENTS OF CASH FL

CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash flows from operating activities
Net loss	$ (936)	$ (9,822)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	1,403	998
Accretion of discounts on marketable securities	(14)	(93)
Depreciation expense	11	14
Non cash interest expense	393	65
Reduction in operating lease right-of-use asset	56	66
Changes in operating assets and liabilities:
License receivable	(11,500)
Prepaid expenses and other assets	13	701
Accounts payable	525	(82)
Accrued expenses and other current liabilities	(209)	279
Deferred revenue	(500)
Operating lease liability	(27)	(32)
Net cash used in operating activities	(10,785)	(7,906)
Cash flows from investing activities
Sales and maturities of marketable securities	20,500	24,355
Purchases of marketable securities	(9,285)	(5,382)
Purchases of property and equipment	(311)	(699)
Deposits	(69)
Net cash provided by investing activities	10,835	18,274
Cash flows from financing activities
Proceeds from exercise of stock options	240	7
Proceeds from issuance of debt, net	4,975	34,460
Proceeds from issuance of common stock, net of issuance costs	28,150
Repayment of subscription receivable		410
Net cash provided by financing activities	33,365	34,877
Net increase in cash and cash equivalents	33,415	45,245
Cash and cash equivalents at the beginning of the period	10,686	9,241
Cash and cash equivalents at the end of the period	44,101	54,486
Supplemental disclosure of noncash investing and financing activities:
Property and equipment purchases payable or accrued at period end	253	333
Change in unrealized gain on marketable securities	2
Cash paid for interest	$ 634
Debt discount costs included in accrued expense at period end		$ 125

Nature of Business

Nature of Business	3 Months Ended
	Mar. 31, 2021
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 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. On March 17, 2021, the Company entered into the Torii Agreement (Note 11), pursuant to which the Company received an upfront payment from Torii of $11.5 million in April 2021. On March 25, 2021, the Company closed a follow-on public offering in which it sold 2,033,899 shares of common stock at a public offering price of $14.75 per share, resulting in net proceeds of $28.1 million after deducting underwriting discounts and commissions and offering expenses. In March 2020, the Company entered into a Mezzanine Loan Agreement (see Note 7) pursuant to which the Company borrowed (i) $35.0 million in March 2020 and (ii) $5.0 million on March 1, 2021. As discussed in Note 7, the Mezzanine Loan Agreement was amended on October 26, 2020 and now includes a minimum liquidity covenant. If the Company is not in compliance with the minimum liquidity ratio covenant, the outstanding debt and any related final payment fees, prepayment fees, and accrued interest become due upon demand. The Company believes that, without additional financing, it is probable that it will not be in compliance with the minimum liquidity ratio covenant at some point in the next twelve months. Even if the Company is not in compliance with the minimum liquidity covenant and the debt becomes due, management believes the Company currently has sufficient funds to meet its operational requirements for at least the next twelve months from the issuance of these financial statements.

Significant Accounting Policies

Significant Accounting Policies	3 Months Ended
	Mar. 31, 2021
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, 2020 filed with the Securities and Exchange Commission (the “SEC”) on March 17, 2021. 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”) pandemic and its impact globally. Management believes the financial results for the year ended December 31, 2020 were not significantly impacted by COVID-19. In addition, management believes the remote working arrangements, travel restrictions and any other regulations imposed by various governmental jurisdictions have had limited impact on the Company’s ability to maintain internal operations during the year. 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 initially decided to delay the initiation of its previously planned Phase 3 clinical trials to evaluate VP-102 in subjects with common warts as well as its previously planned Phase 2 clinical trial to evaluate VP-103 in subjects with plantar warts. Based on feedback from the FDA regarding a potential Phase 3 trial protocol, we are currently evaluating conducting an additional Phase 2 clinical trial of VP-102 for the treatment of common warts. 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 and various other factors believed to be reasonable under the circumstances, 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 Revenue In accordance with FASB’s ASC 606, Revenue from Contracts with Customers (“ASC 606”), the Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, it performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company applies the five-step model to contracts when it determines that it is probable it will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. License Revenues The Company’s revenues have been solely generated through licensing arrangements. The terms of the agreement typically include payments to the Company of one or more of the following: nonrefundable, up-front license fees: regulatory and commercial milestone payments; payments for manufacturing supply services; materials shipped to support development; and royalties on net sales of licensed products. In determining the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements, the Company performs the following steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company also assesses whether there is an option in a contract to acquire additional goods or services. An option gives rise to a performance obligation only if the option provides a material right to the customer that it would not receive without entering into that contract. Factors that the Company considers in evaluating whether an option represents a material right include, but are not limited to: (i) the overall objective of the arrangement, (ii) the benefit the collaborator might obtain from the arrangement without exercising the option, (iii) the cost to exercise the option (e.g. priced at a significant and incremental discount) and (iv) the likelihood that the option will be exercised. With respect to options determined to be performance obligations, the Company recognizes revenue when those future goods or services are transferred or when the options expire. The Company’s revenue arrangements may include the following: Up-front License Fees : If a license is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenues from nonrefundable, up-front fees allocated to the license when the license is transferred to the licensee and the licensee is able to use and benefit from the license. For licenses that are bundled with other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, up-front fees. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. Milestone Payments : At the inception of an agreement that includes regulatory or commercial milestone payments, the Company evaluates whether each milestone is considered probable of being achieved and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the control of the Company or the licensee, such as regulatory approvals, are not considered probable of being achieved until those approvals are received. At each reporting period, the Company assesses the probability of achievement of each milestone under its current agreements. Royalties : If the Company is entitled to receive sales-based royalties from its collaborator, including milestone payments based on the level of sales, and the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (i) when the related sales occur, provided the reported sales are reliably measurable, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). Manufacturing Supply and Research Services : Arrangements that include a promise for future supply of drug substance or drug product for either clinical development or commercial supply at the licensee’s discretion are generally considered as options. The Company assesses if these options provide a material right to the licensee and if so, they are accounted for as separate performance obligations. The Company receives payments from its licensees based on schedules established in each contract. Upfront payments are recorded as deferred revenue upon receipt, and may require deferral of revenue recognition to a future period until the Company performs its obligations under these arrangements. Amounts are recorded as accounts receivable when the Company’s right to consideration is unconditional. The Company does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the licensees and the transfer of the promised goods or services to the licensees will be one year or less. See Note 11 for a full discussion of the Company’s license revenue. There have been no material changes in the Company’s other significant accounting policies to those previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020. 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 March 31, 2021 2020 Shares issuable upon exercise of stock options 3,571,708 2,563,674 Non-vested shares under restricted stock grants 475,000 1,148,859

Investments In Marketable Secur

Investments In Marketable Securities	3 Months Ended
	Mar. 31, 2021
Investments [Abstract]
Investments in Marketable Securities	Note 3—Investments in Marketable Securities Investments in marketable securities consisted of the following as of March 31, 2021 and December 31, 2020 (in thousands): March 31, 2021 Amortized Gross Unrealized Gross Unrealized Fair Cost Gains Losses Value U.S. Treasury securities $ 9,305 $ 3 $ — $ 9,308 Commercial paper 34,277 — — 34,277 Total marketable securities $ 43,582 $ 3 $ — $ 43,585 December 31, 2020 Amortized Gross Unrealized Gross Unrealized Fair Cost Gains Losses Value U.S. Treasury securities $ 11,607 $ 2 $ — $ 11,609 Commercial paper 41,674 — (1 ) 41,673 Asset-backed securities 1,502 — — 1,502 Total marketable securities $ 54,783 $ 2 $ (1 ) $ 54,784 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 March 31, 2021 Level 1 Level 2 Level 3 Total Assets U.S. treasury securities $ 9,308 $ — $ — $ 9,308 Commercial paper — 34,277 — 34,277 Total assets $ 9,308 $ 34,277 $ — $ 43,585 Fair Value Measurement as of December 31, 2020 Level 1 Level 2 Level 3 Total Assets U.S. treasury securities $ 11,609 $ — $ — $ 11,609 Commercial paper — 41,673 — 41,673 Asset-backed securities — 1,502 — 1,502 Total assets $ 11,609 $ 43,175 $ — $ 54,784

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2021
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 March 31, December 31, 2021 2020 Office furniture and fixtures $ 299 $ 117 Machinery and equipment 128 102 Leasehold improvements 101 101 Office equipment 52 52 Construction in process 2,887 2,857 3,467 3,229 Accumulated depreciation (138 ) (127 ) Total property and equipment, net $ 3,329 $ 3,102 The Company has recorded an asset classified as construction in process

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	3 Months Ended
	Mar. 31, 2021
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 March 31, 2021 As of December 31, 2020 Compensation and related costs $ 893 $ 1,338 Clinical trials and drug development 836 611 Professional fees 465 447 Construction in process 175 277 Interest expense 250 219 Other accrued expenses and other current liabilities 262 222 Total accrued expenses and other current liabilities $ 2,881 $ 3,114

Leases

Leases	3 Months Ended
	Mar. 31, 2021
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 guidance as an accounting policy election and recognizes rent expense on a straight-line basis over the lease term. The Company does not act as a lessor or have any leases classified as financing leases. The Company leases office space in West Chester, Pennsylvania under an agreement classified as an operating lease that expires in May 2021. On July 1, 2019, the Company entered into a new lease for office space located in West Chester which was further amended on March 12, 2020 to include additional office space. 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. At the commencement date of the new lease, the Company recorded a right-of-use asset of $1.9 million and a lease liability of $1.9 million on the condensed balance sheet. The components of lease expense are as follows (in thousands): For the Three Months Ended March 31, 2021 2020 Operating lease: Operating lease costs $ 89 $ 58 Short-term lease costs 5 6 Total rent expense $ 94 $ 64 Maturities of the Company’s operating lease, excluding short-term leases, as of March 31, 2021 are as follows (in thousands): Remainder of 2021 $ 283 2022 343 2023 349 2024 355 2025 360 Thereafter 613 Total undiscounted lease liability 2,303 Less: Imputed interest (439 ) Operating lease liability $ 1,864 The weighted-average remaining term of the Company’s operating lease was 6.42 years and the weighted-average discount rate used to measure the present value of the Company’s operating lease liability was 6.25% as of March 31, 2021.

Debt

Debt	3 Months Ended
	Mar. 31, 2021
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 with a revolving line of credit of up to $5.0 million. Upon entering into the Loan Agreements, the Company borrowed $35.0 million in term loans from the Mezzanine Lenders (the “Term A Loan”). On October 26, 2020, the Company entered into (i) the first amendment to the Mezzanine Loan Agreement (the “Mezzanine Loan Amendment”) and (ii) the first amendment to the Senior Loan Agreement (the “Senior Loan Amendment” and together with the Mezzanine Loan Amendment the “Loan Agreement Amendments”) with the Lenders, under which the Company borrowed an additional $5.0 million in term loans on March 1, 2021 (the “Term B1 Loan”). Under the terms of the Mezzanine Loan Agreement, as amended, the Company may, at its sole discretion, borrow from the Mezzanine Lenders up to an additional $10.0 million in term loans (the “Term B2 Loan”). The Term B1 Loan and Term B2 Loan, together with the Term A Loan, are referred to herein as the “Term Loans.” The Term B2 Loan will be available for draw if the Company receives approval from the FDA for VP-102 prior to September 30, 2021 and the Company maintains compliance with the minimum liquidity covenant until the earlier of September 30, 2021 or the occurrence of an event of default. Under the terms of the Senior Loan Agreement, as amended, 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 Company’s obligations under the Senior Loan Agreement and the Mezzanine Loan Agreement, as amended, 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 %. Under the terms of the Mezzanine Loan Agreement, as amended, the Company will be required to make a final payment fee of $3,750,000 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 to interest expense 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 The Company may terminate the revolving credit line under the Senior Loan Agreement at any time upon three 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”). Under the Loan Agreements, as amended, the Company is subject to a number of affirmative and restrictive covenants, including covenants regarding maintaining a specified minimum liquidity ratio, 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, and, beginning as of March 31, 2022, achieving minimum levels of trailing six-month net product revenues, among other customary covenants. As of March 31, 2021 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. the balance of the of the Company’s unrestricted cash, cash equivalents, and marketable securities in accounts maintained at Silicon Valley Bank being greater than one and one half times the Company’s aggregate outstanding obligations to the Mezzanine Lenders. The Company believes that, without additional financing, it is probable that it will not be compliant with its minimum liquidity ratio covenant at some point in the next twelve months. 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 liquidity ratio 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 March 31, 2021. The Company borrowed $35.0 million upon entering into the Loan Agreement in March 2020, and an additional $5.0 million on March 1, 2021. The Company has incurred debt discount and issuance costs of $4.3 million, including the final payment fee of $3.8 million, that are 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 months ended March 31, 2021, the Company recognized interest expense of $1.0 million, of which $0.7 million was interest on the term loan and $0.3 million, was non-cash interest expense related to the amortization of deferred debt issuance costs and accrual of the final payment fee. T he following table summarizes the composition of debt as reflected on the balance sheet as of March 31, 2021 (in thousands): Gross proceeds $ 40,000 Accrued final payment fee 3,750 Unamortized debt discount and issuance costs (3,081 ) Total short-term debt, net $ 40,669 In the event the Company maintains compliance with its minimum liquidity covenant to avoid an acceleration of payments, the a ggregate maturities of debt as of March 31, 2021 are as follows (in thousands): Remainder of 2021 $ — 2022 6,667 2023 26,667 2024 (1) 6,666 $ 40,000 (1) Excludes the final payment fee due at time of maturity.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2021
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 months ended March 31, 2021 and 2020 as follows (in thousands): For the Three Months Ended March 31, 2021 2020 Research and development $ 298 $ 177 General and administrative 1,105 821 Total stock-based compensation $ 1,403 $ 998 Stock Options The following table summarizes the Company’s stock option activity for the three months ended March 31, 2021: Weighted average Weighted average remaining contractual Aggregate intrinsic Number of shares exercise price life (in years) value Outstanding as of December 31, 2020 2,901,908 $ 9.57 8.0 $ 7,702,295 Granted 736,900 14.50 Exercised (15,708 ) 15.27 Forfeitures (51,392 ) 14.64 Expired — Outstanding as of March 31, 2021 3,571,708 $ 10.49 8.2 $ 16,724,827 Options vested and exercisable as of March 31, 2021 1,403,303 $ 8.99 6.9 $ 8,684,447 As of March 31, 2021, the total unrecognized compensation related to unvested stock option awards granted was $16.6 million, which the Company expects to recognize over a weighted-average period of 3.2 years. Restricted Stock In November 2019 and August 2020, the Company granted 300,000 and 250,000 restricted stock units, respectively to its executive officers. 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. The following is a summary of changes in the status of non-vested RSUs: Weighted average grant date Number of shares fair value Non-vested as of December 31, 2020 475,000 $ 11.74 Granted — Forfeitures — Non-vested as of March 31, 2021 475,000 $ 11.74 No compensation expenses have been recognized for these nonvested restricted stock units as these shares are performance based and the triggering event was not determined to be probable as of March 31, 2021. As of March 31, 2021, the total unrecognized compensation expense related to the restricted stock units was $5.6 million.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2021
Related Party Transactions [Abstract]
Related Party Transactions	Note 9—Related Party Transactions Prior to the completion of the initial public offering (“IPO”) of the Company’s common stock in June 2018, the Company was controlled by PBM VP Holdings, LLC (“PBM VP Holdings”) an affiliate of PBM Capital Group, LLC (“PBM”). Paul B. Manning, who is the Chairman and Chief Executive Officer of PBM and the current chairman of the Company’s Board of Directors, and certain entities affiliated with Mr. Manning, continue to be the Company’s largest shareholder on a collective basis. On December 2, 2015, the Company entered into a Services Agreement (the “SA”) with PBM. Pursuant to the terms of the SA, which had an initial term of twelve months (and was automatically renewable for successive monthly periods), PBM rendered advisory and consulting services to the Company. Services provided under the SA included certain business development, operations, technical, contract, accounting and back office support services. In consideration for these services, the Company was obligated to pay PBM a monthly management fee. On January 1, 2019, the Company amended the SA with PBM, decreasing the monthly fee to $26,333. 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 March 31, 2021 and 2020, the Company incurred expenses under the SA of $15,000 As of March 31, 2021, the Company had no payables due to PBM and its affiliates.

Commitment and Contingencies

Commitment and Contingencies	3 Months Ended
	Mar. 31, 2021
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.

License And Collaboration Agree

License And Collaboration Agreements	3 Months Ended
	Mar. 31, 2021
License And Collaboration Agreements [Abstract]
License and Collaboration Agreements	Note 11—License and Collaboration Agreements In August 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 (the “Option Agreement”). Torii paid the Company $0.5 million to secure the exclusive option. The $0.5 million is included in deferred revenue as of December 31, 2020 in the balance sheet. On March 2, 2021, Torii exercised the exclusive option in the Option Agreement. On March 17, 2021, the Company entered into a collaboration and license agreement (the “Torii Agreement”) with Torii, pursuant to which the Company granted Torii an exclusive license to develop and commercialize the Company’s product candidates that contain a topical formulation of cantharidin for the treatment of molluscum contagiosum and common warts in Japan, including VP-102. Additionally, the Company granted Torii a right of first negotiation with respect to additional indications for the licensed products and certain additional products for use in the licensed field, in each case in Japan. Pursuant to the Torii Agreement, the Company received an up-front payment from Torii of $11.5 million in April 2021. Additionally, the Company is entitled to receive from Torii an additional $58 million in aggregate payments 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. 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 February 2021, the Company paid Lytix a one-time $2.3 million payment upon the achievement by Lytix of a regulatory milestone. The $0.3 million was recognized in research and development expense in the statement of operations for the year ended December 31, 2020. 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.

Subsequent Event

Subsequent Event	3 Months Ended
	Mar. 31, 2021
Subsequent Events [Abstract]
Subsequent Event	Note 12—Subsequent Event None.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2021
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, 2020 filed with the Securities and Exchange Commission (the “SEC”) on March 17, 2021. 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”) pandemic and its impact globally. Management believes the financial results for the year ended December 31, 2020 were not significantly impacted by COVID-19. In addition, management believes the remote working arrangements, travel restrictions and any other regulations imposed by various governmental jurisdictions have had limited impact on the Company’s ability to maintain internal operations during the year. 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 initially decided to delay the initiation of its previously planned Phase 3 clinical trials to evaluate VP-102 in subjects with common warts as well as its previously planned Phase 2 clinical trial to evaluate VP-103 in subjects with plantar warts. Based on feedback from the FDA regarding a potential Phase 3 trial protocol, we are currently evaluating conducting an additional Phase 2 clinical trial of VP-102 for the treatment of common warts.
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 and various other factors believed to be reasonable under the circumstances, 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 Revenue In accordance with FASB’s ASC 606, Revenue from Contracts with Customers (“ASC 606”), the Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, it performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company applies the five-step model to contracts when it determines that it is probable it will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. License Revenues The Company’s revenues have been solely generated through licensing arrangements. The terms of the agreement typically include payments to the Company of one or more of the following: nonrefundable, up-front license fees: regulatory and commercial milestone payments; payments for manufacturing supply services; materials shipped to support development; and royalties on net sales of licensed products. In determining the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements, the Company performs the following steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company also assesses whether there is an option in a contract to acquire additional goods or services. An option gives rise to a performance obligation only if the option provides a material right to the customer that it would not receive without entering into that contract. Factors that the Company considers in evaluating whether an option represents a material right include, but are not limited to: (i) the overall objective of the arrangement, (ii) the benefit the collaborator might obtain from the arrangement without exercising the option, (iii) the cost to exercise the option (e.g. priced at a significant and incremental discount) and (iv) the likelihood that the option will be exercised. With respect to options determined to be performance obligations, the Company recognizes revenue when those future goods or services are transferred or when the options expire. The Company’s revenue arrangements may include the following: Up-front License Fees : If a license is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenues from nonrefundable, up-front fees allocated to the license when the license is transferred to the licensee and the licensee is able to use and benefit from the license. For licenses that are bundled with other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, up-front fees. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. Milestone Payments : At the inception of an agreement that includes regulatory or commercial milestone payments, the Company evaluates whether each milestone is considered probable of being achieved and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the control of the Company or the licensee, such as regulatory approvals, are not considered probable of being achieved until those approvals are received. At each reporting period, the Company assesses the probability of achievement of each milestone under its current agreements. Royalties : If the Company is entitled to receive sales-based royalties from its collaborator, including milestone payments based on the level of sales, and the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (i) when the related sales occur, provided the reported sales are reliably measurable, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). Manufacturing Supply and Research Services : Arrangements that include a promise for future supply of drug substance or drug product for either clinical development or commercial supply at the licensee’s discretion are generally considered as options. The Company assesses if these options provide a material right to the licensee and if so, they are accounted for as separate performance obligations. The Company receives payments from its licensees based on schedules established in each contract. Upfront payments are recorded as deferred revenue upon receipt, and may require deferral of revenue recognition to a future period until the Company performs its obligations under these arrangements. Amounts are recorded as accounts receivable when the Company’s right to consideration is unconditional. The Company does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the licensees and the transfer of the promised goods or services to the licensees will be one year or less. See Note 11 for a full discussion of the Company’s license revenue. There have been no material changes in the Company’s other significant accounting policies to those previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020.
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 March 31, 2021 2020 Shares issuable upon exercise of stock options 3,571,708 2,563,674 Non-vested shares under restricted stock grants 475,000 1,148,859

Significant Accounting Polici_3

Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Schedule of Potential Shares Outstanding not Included in Computation of Diluted Net Loss Per Common Share	The table below provides potential shares outstanding that were not included in the computation of diluted net loss per common share, as the inclusion of these securities would have been anti-dilutive: As of March 31, 2021 2020 Shares issuable upon exercise of stock options 3,571,708 2,563,674 Non-vested shares under restricted stock grants 475,000 1,148,859

Investments In Marketable Sec_2

Investments In Marketable Securities (Tables)	3 Months Ended
	Mar. 31, 2021
Investments [Abstract]
Schedule of Marketable Securities	Investments in marketable securities consisted of the following as of March 31, 2021 and December 31, 2020 (in thousands): March 31, 2021 Amortized Gross Unrealized Gross Unrealized Fair Cost Gains Losses Value U.S. Treasury securities $ 9,305 $ 3 $ — $ 9,308 Commercial paper 34,277 — — 34,277 Total marketable securities $ 43,582 $ 3 $ — $ 43,585 December 31, 2020 Amortized Gross Unrealized Gross Unrealized Fair Cost Gains Losses Value U.S. Treasury securities $ 11,607 $ 2 $ — $ 11,609 Commercial paper 41,674 — (1 ) 41,673 Asset-backed securities 1,502 — — 1,502 Total marketable securities $ 54,783 $ 2 $ (1 ) $ 54,784
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 March 31, 2021 Level 1 Level 2 Level 3 Total Assets U.S. treasury securities $ 9,308 $ — $ — $ 9,308 Commercial paper — 34,277 — 34,277 Total assets $ 9,308 $ 34,277 $ — $ 43,585 Fair Value Measurement as of December 31, 2020 Level 1 Level 2 Level 3 Total Assets U.S. treasury securities $ 11,609 $ — $ — $ 11,609 Commercial paper — 41,673 — 41,673 Asset-backed securities — 1,502 — 1,502 Total assets $ 11,609 $ 43,175 $ — $ 54,784

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2021
Property Plant And Equipment [Abstract]
Schedule of Property and Equipment, Net	Property and equipment, net consisted of (in thousands): As of As of March 31, December 31, 2021 2020 Office furniture and fixtures $ 299 $ 117 Machinery and equipment 128 102 Leasehold improvements 101 101 Office equipment 52 52 Construction in process 2,887 2,857 3,467 3,229 Accumulated depreciation (138 ) (127 ) Total property and equipment, net $ 3,329 $ 3,102

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	3 Months Ended
	Mar. 31, 2021
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 March 31, 2021 As of December 31, 2020 Compensation and related costs $ 893 $ 1,338 Clinical trials and drug development 836 611 Professional fees 465 447 Construction in process 175 277 Interest expense 250 219 Other accrued expenses and other current liabilities 262 222 Total accrued expenses and other current liabilities $ 2,881 $ 3,114

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2021
Leases [Abstract]
Summary of Components of Lease Expense	The components of lease expense are as follows (in thousands): For the Three Months Ended March 31, 2021 2020 Operating lease: Operating lease costs $ 89 $ 58 Short-term lease costs 5 6 Total rent expense $ 94 $ 64
Schedule of Maturities of Operating Lease	Maturities of the Company’s operating lease, excluding short-term leases, as of March 31, 2021 are as follows (in thousands): Remainder of 2021 $ 283 2022 343 2023 349 2024 355 2025 360 Thereafter 613 Total undiscounted lease liability 2,303 Less: Imputed interest (439 ) Operating lease liability $ 1,864

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2021
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 March 31, 2021 (in thousands): Gross proceeds $ 40,000 Accrued final payment fee 3,750 Unamortized debt discount and issuance costs (3,081 ) Total short-term debt, net $ 40,669
Schedule of Aggregate Maturities of Debt	In the event the Company maintains compliance with its minimum liquidity covenant to avoid an acceleration of payments, the a ggregate maturities of debt as of March 31, 2021 are as follows (in thousands): Remainder of 2021 $ — 2022 6,667 2023 26,667 2024 (1) 6,666 $ 40,000 (1) Excludes the final payment fee due at time of maturity.

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2021
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 months ended March 31, 2021 and 2020 as follows (in thousands): For the Three Months Ended March 31, 2021 2020 Research and development $ 298 $ 177 General and administrative 1,105 821 Total stock-based compensation $ 1,403 $ 998
Summary of Stock Option Activity	The following table summarizes the Company’s stock option activity for the three months ended March 31, 2021: Weighted average Weighted average remaining contractual Aggregate intrinsic Number of shares exercise price life (in years) value Outstanding as of December 31, 2020 2,901,908 $ 9.57 8.0 $ 7,702,295 Granted 736,900 14.50 Exercised (15,708 ) 15.27 Forfeitures (51,392 ) 14.64 Expired — Outstanding as of March 31, 2021 3,571,708 $ 10.49 8.2 $ 16,724,827 Options vested and exercisable as of March 31, 2021 1,403,303 $ 8.99 6.9 $ 8,684,447
Summary of Non-vested RSUs Activities	The following is a summary of changes in the status of non-vested RSUs: Weighted average grant date Number of shares fair value Non-vested as of December 31, 2020 475,000 $ 11.74 Granted — Forfeitures — Non-vested as of March 31, 2021 475,000 $ 11.74

Nature of Business - Additional

Nature of Business - Additional Information (Detail) - USD ($)	Mar. 25, 2021	Mar. 17, 2021	Mar. 01, 2021	Mar. 10, 2020	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020
Description Of Business [Line Items]
Net proceeds from issuance					$ 28,150,000
Accumulated deficit					$ (104,822,000)	$ (103,886,000)
Follow-on Public Offering [Member]
Description Of Business [Line Items]
Number of common shares sold	2,033,899
Share price	$ 14.75
Net proceeds from issuance	$ 28,100,000
Torii Agreement [Member] | Torii [Member]
Description Of Business [Line Items]
Obligated to make upfront payment		$ 11,500,000
Mezzanine Loan Agreement [Member] | Mezzanine Lenders [Member] | Term A Loan [Member]
Description Of Business [Line Items]
Line of credit							$ 35,000,000
Borrowed amount				$ 35,000,000
Mezzanine Loan Agreement [Member] | Mezzanine Lenders [Member] | Term B1 Loan [Member]
Description Of Business [Line Items]
Borrowed amount			$ 5,000,000

Significant Accounting Polici_4

Significant Accounting Policies - Schedule of Potential Shares Outstanding not Included in Computation of Diluted Net Loss Per Common Share (Detail) - shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
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	3,571,708	2,563,674
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	475,000	1,148,859

Investments in Marketable Sec_3

Investments in Marketable Securities - Schedule of Marketable Securities (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Marketable Securities [Line Items]
Amortized Cost	$ 43,582	$ 54,783
Gross Unrealized Gains	3	2
Gross Unrealized Losses		(1)
Fair Value	43,585	54,784
U.S. Treasury Securities [Member]
Marketable Securities [Line Items]
Amortized Cost	9,305	11,607
Gross Unrealized Gains	3	2
Fair Value	9,308	11,609
Commercial Paper [Member]
Marketable Securities [Line Items]
Amortized Cost	34,277	41,674
Gross Unrealized Losses		(1)
Fair Value	$ 34,277	41,673
Asset Backed Securities [Member]
Marketable Securities [Line Items]
Amortized Cost		1,502
Fair Value		$ 1,502

Investments in Marketable Sec_4

Investments in Marketable Securities - Schedule of Fair Value of Marketable Securities (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Marketable Securities [Line Items]
Marketable securities	$ 43,585	$ 54,784
Level 1 [Member]
Marketable Securities [Line Items]
Marketable securities	9,308	11,609
Level 2 [Member]
Marketable Securities [Line Items]
Marketable securities	34,277	43,175
U.S. Treasury Securities [Member]
Marketable Securities [Line Items]
Marketable securities	9,308	11,609
U.S. Treasury Securities [Member] | Level 1 [Member]
Marketable Securities [Line Items]
Marketable securities	9,308	11,609
Commercial Paper [Member]
Marketable Securities [Line Items]
Marketable securities	34,277	41,673
Commercial Paper [Member] | Level 2 [Member]
Marketable Securities [Line Items]
Marketable securities	$ 34,277	41,673
Asset Backed Securities [Member]
Marketable Securities [Line Items]
Marketable securities		1,502
Asset Backed Securities [Member] | Level 2 [Member]
Marketable Securities [Line Items]
Marketable securities		$ 1,502

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 3,467	$ 3,229
Accumulated depreciation	(138)	(127)
Total property and equipment, net	3,329	3,102
Office Furniture and Fixtures [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	299	117
Machinery and Equipment [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	128	102
Leasehold Improvements [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	101	101
Office Equipment [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	52	52
Construction in Progress [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 2,887	$ 2,857

Accrued Expenses and Other Cu_3

Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Accrued Liabilities Current [Abstract]
Compensation and related costs	$ 893	$ 1,338
Clinical trials and drug development	836	611
Professional fees	465	447
Construction in process	175	277
Interest expense	250	219
Other accrued expenses and other current liabilities	262	222
Total accrued expenses and other current liabilities	$ 2,881	$ 3,114

Leases - Additional Information

Leases - Additional Information (Detail) - USD ($) $ in Thousands	Mar. 12, 2020	Jul. 01, 2019	Mar. 31, 2021	Dec. 31, 2020	Sep. 01, 2020
Lessee Lease Description [Line Items]
Operating lease expiration			2021-05
First amendments date	Mar. 12, 2020
Lease expiration date			Sep. 1, 2027
Operating lease right of use asset			$ 1,780	$ 1,836	$ 1,900
Lease liability			$ 1,864		$ 1,900
Weighted-average remaining lease term			6 years 5 months 1 day
Weighted-average discount rate			6.25%
Pennsylvania [Member]
Lessee Lease Description [Line Items]
Lease agreement commencement date		Jul. 1, 2019
Landlord's Operating Expense [Member]
Lessee Lease Description [Line Items]
Operating lease, base rent			$ 2,400

Leases - Summary of Components

Leases - Summary of Components of Lease Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Leases [Abstract]
Operating lease costs	$ 89	$ 58
Short-term lease costs	5	6
Total rent expense	$ 94	$ 64

Leases - Schedule of Maturities

Leases - Schedule of Maturities of Operating Lease (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Sep. 01, 2020
Leases [Abstract]
Remainder of 2021	$ 283
2022	343
2023	349
2024	355
2025	360
Thereafter	613
Total undiscounted lease liability	2,303
Less: Imputed interest	(439)
Operating lease liability	$ 1,864	$ 1,900

Debt - Additional Information (

Debt - Additional Information (Detail) - USD ($)	Mar. 01, 2021	Oct. 26, 2020	Mar. 10, 2020	Mar. 31, 2021	Mar. 31, 2020
Debt Instrument [Line Items]
Term loans, frequency of periodic payments		24 equal monthly
Debt instrument, covenant description				Under the Loan Agreements, as amended, the Company is subject to a number of affirmative and restrictive covenants, including covenants regarding maintaining a specified minimum liquidity ratio, 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, and, beginning as of March 31, 2022, achieving minimum levels of trailing six-month net product revenues, among other customary covenants.
Debt instrument, covenant compliance				As of March 31, 2021 the Company is in compliance with all covenants.
Final payment fee				$ 40,000,000
Mezzanine Loan Agreement [Member]
Debt Instrument [Line Items]
Term loan, description				The Term B2 Loan will be available for draw if the Company receives approval from the FDA for VP-102 prior to September 30, 2021 and the Company maintains compliance with the minimum liquidity covenant until the earlier of September 30, 2021 or the occurrence of an event of default.
Debt instrument, final payment fee payable		$ 3,750,000
Debt instrument, prepayment written notice period		5 days
Mezzanine Loan Agreement [Member] | Term Loan Prepaid on or Before October 26, 2021 [Member]
Debt Instrument [Line Items]
Debt instrument, prepayment fee		$ 1,500,000
Mezzanine Loan Agreement [Member] | Term Loan Prepaid Between October 27, 2021 and October 26, 2022 [Member]
Debt Instrument [Line Items]
Debt instrument, prepayment fee		1,000,000
Mezzanine Loan Agreement [Member] | Term Loan Prepaid Between October 27, 2022 and October 26, 2023 [Member]
Debt Instrument [Line Items]
Debt instrument, prepayment fee		500,000
Mezzanine Loan Agreement [Member] | Term Loan Prepaid After October 26, 2023 [Member]
Debt Instrument [Line Items]
Debt instrument, prepayment fee		0
Mezzanine Loan Agreement [Member] | Term B2 Loan [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity		10,000,000
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
Line of credit					$ 35,000,000
Mezzanine Loan Agreement [Member] | Mezzanine Lenders [Member] | Term B1 Loan [Member]
Debt Instrument [Line Items]
Borrowed amount	$ 5,000,000
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%
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%
Credit line, early termination notice period		3 days
Debt discount and issuance costs				$ 4,300,000
Interest expense				1,000,000
Interest on term loan				700,000
Non-cash interest expense				300,000
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] | Term Loans [Member]
Debt Instrument [Line Items]
Borrowed amount	$ 5,000
Line of credit					$ 35,000,000
Senior Loan Agreement [Member] | Term Loans [Member] | Contra-Liability [Member]
Debt Instrument [Line Items]
Final payment fee				$ 3,800,000
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] | Other Non-Current Assets [Member]
Debt Instrument [Line Items]
Debt discount and issuance costs				$ 100,000
Senior Loan Agreement [Member] | Revolving Loans [Member] | Prime Rate [Member]
Debt Instrument [Line Items]
Loans, variable rate		1.25%

Debt - Summary of Composition o

Debt - Summary of Composition of Debt (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Total short-term debt, net	$ 40,669	$ 35,315
Senior Loan Agreement [Member]
Debt Instrument [Line Items]
Gross proceeds	40,000
Accrued final payment fee	3,750
Unamortized debt discount and issuance costs	(3,081)
Total short-term debt, net	$ 40,669

Debt - Schedule of Aggregate Ma

Debt - Schedule of Aggregate Maturities of Debt (Detail) $ in Thousands	Mar. 31, 2021USD ($)
Debt Disclosure [Abstract]
2022	$ 6,667
2023	26,667
2024	6,666
Long-term debt	$ 40,000

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Stock Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 1,403	$ 998
Research and Development [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	298	177
General and Administrative [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 1,105	$ 821

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock Option Activity (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Employee Service Share Based Compensation Aggregate Disclosures [Abstract]
Number of shares, Outstanding Beginning Balance	2,901,908
Number of shares, Granted	736,900
Number of shares, Exercised	(15,708)
Number of shares, Forfeitures	(51,392)
Number of shares, Outstanding Ending Balance	3,571,708	2,901,908
Number of shares, Options vested and exercisable Ending Balance	1,403,303
Weighted average exercise price, Outstanding Beginning Balance	$ 9.57
Weighted average exercise price, Granted	14.50
Weighted average exercise price, Exercised	15.27
Weighted average exercise price, Forfeitures	14.64
Weighted average exercise price, Outstanding Ending Balance	10.49	$ 9.57
Weighted average exercise price, Options vested and exercisable Ending Balance	$ 8.99
Weighted average remaining contractual life (in years), Outstanding	8 years 2 months 12 days	8 years
Weighted average remaining contractual life (in years), Options vested and exercisable	6 years 10 months 24 days
Aggregate intrinsic value, Outstanding	$ 16,724,827	$ 7,702,295
Aggregate intrinsic value, Options vested and exercisable Ending Balance	$ 8,684,447

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions	1 Months Ended		3 Months Ended
	Aug. 31, 2020	Nov. 30, 2019	Mar. 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total unrecognized compensation related to unvested stock options			$ 16.6
Weighted-average stock option recognize period			3 years 2 months 12 days
Restricted Stock Units (RSUs) [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Shares, Granted			0
Stock vesting period		1 year
Total unrecognized compensation related to nonvested restricted stock units			$ 5.6
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
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%	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%	50.00%

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of Non-vested RSUs Activities (Detail) - Restricted Stock Units (RSUs) [Member]	3 Months Ended
	Mar. 31, 2021$ / sharesshares
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Non-vested, Number of shares, Beginning Balance	475,000
Non-vested, Number of shares, Granted	0
Non-vested, Number of shares, Forfeitures	0
Non-vested, Number of shares, Ending Balance	475,000
Non-vested, Weighted average grant date fair value, Beginning Balance | $ / shares	$ 11.74
Non-vested, Weighted average grant date fair value, Ending Balance | $ / shares	$ 11.74

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - PBM Capital Group, LLC [Member] - USD ($)	Oct. 01, 2019	Jan. 01, 2019	Dec. 02, 2015	Mar. 31, 2021	Mar. 31, 2020
Related Party Transaction [Line Items]
Services agreement initial term			12 months
Expenses incurred under services agreement				$ 15,000	$ 15,000
Due to related party				$ 0
Amended Service Agreement [Member]
Related Party Transaction [Line Items]
Monthly management fee payable	$ 5,000	$ 26,333

License and Collaboration Agr_2

License and Collaboration Agreements - Additional Information (Detail) - USD ($) $ in Thousands	Mar. 17, 2021	Apr. 30, 2021	Feb. 28, 2021	Aug. 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
License And Collaboration Agreements [Line Items]
Research and development expense					$ 5,362	$ 4,892
Ltyix [Member]
License And Collaboration Agreements [Line Items]
Payments upon achievements of milestone				$ 111,000
One time up front license fee			$ 2,300				$ 300
Research and development expense							300
Percentage of royalty income shared				50.00%
Option Agreement [Member] | Torii [Member]
License And Collaboration Agreements [Line Items]
Consideration receivable to secure exclusive option				$ 500
Deferred revenue							$ 500
Torii Agreement [Member] | Torii [Member]
License And Collaboration Agreements [Line Items]
Payments upon achievements of milestone	$ 58,000
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	30.00%
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	40.00%
Torii Agreement [Member] | Torii [Member] | Subsequent Event [Member]
License And Collaboration Agreements [Line Items]
Receive an up-front payment		$ 11,500