Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 02, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
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 | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 27,514,720 | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transaction Period | true | |
Entity File Number | 001-38529 | |
Entity Tax Identification Number | 46-3137900 | |
Title of 12(b) Security | Common Stock, $0.0001 par value | |
Security Exchange Name | NASDAQ | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 44 West Gay Street | |
Entity Address, Address Line Two | Suite 400 | |
Entity Address, City or Town | West Chester | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19380 | |
City Area Code | 484 | |
Local Phone Number | 453-3300 |
CONDENSED BALANCE SHEETS
CONDENSED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 24,706 | $ 10,686 |
Marketable securities | 65,423 | 54,784 |
Prepaid expenses and other assets | 3,245 | 2,180 |
Total current assets | 93,374 | 67,650 |
Property and equipment, net | 3,648 | 3,102 |
Operating lease right-of-use asset | 1,723 | 1,836 |
Other non-current assets | 285 | 1,566 |
Total assets | 99,030 | 74,154 |
Current liabilities: | ||
Accounts payable | 783 | 348 |
Accrued expenses and other current liabilities | 3,252 | 3,114 |
Operating lease liability | 235 | 198 |
Financing lease liability | 7 | |
Deferred revenue | 500 | |
Short term debt | 41,005 | 35,315 |
Total current liabilities | 45,282 | 39,475 |
Operating lease liability | 1,573 | 1,693 |
Financing lease liability | 19 | |
Total liabilities | 46,874 | 41,168 |
Commitments and Contingencies (Note 10) | ||
Stockholders’ equity: | ||
Common stock, $0.0001 par value; 200,000,000 authorized; 27,619,864 shares issued and 27,514,720 shares outstanding as of June 30, 2021; 25,546,257 shares issued and 25,441,113 shares outstanding as of December 31, 2020 | 3 | 3 |
Additional paid-in capital | 168,751 | 136,868 |
Accumulated deficit | (116,597) | (103,886) |
Accumulated other comprehensive (loss) gain | (1) | 1 |
Total stockholders’ equity | 52,156 | 32,986 |
Total liabilities and stockholders’ equity | $ 99,030 | $ 74,154 |
CONDENSED BALANCE SHEETS (Paren
CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 27,619,864 | 25,546,257 |
Common stock, shares outstanding | 27,514,720 | 25,441,113 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
License revenue | $ 12,000 | |||
Revenue from Contract with Customer, Product and Service [Extensible List] | us-gaap:LicenseMember | us-gaap:LicenseMember | ||
Operating expenses: | ||||
Research and development | $ 3,447 | $ 3,521 | $ 8,809 | $ 8,413 |
General and administrative | 7,284 | 5,110 | 13,861 | 10,098 |
Total operating expenses | 10,731 | 8,631 | 22,670 | 18,511 |
Loss from operations | (10,731) | (8,631) | (10,670) | (18,511) |
Other income (expense): | ||||
Interest income | 33 | 126 | 65 | 404 |
Interest expense | (1,077) | (904) | (2,106) | (1,124) |
Total other expense | (1,044) | (778) | (2,041) | (720) |
Net loss | $ (11,775) | $ (9,409) | $ (12,711) | $ (19,231) |
Net loss per share, basic and diluted | $ (0.43) | $ (0.38) | $ (0.46) | $ (0.77) |
Weighted average common shares outstanding, basic and diluted | 27,513,665 | 24,965,634 | 27,697,985 | 24,964,900 |
Other comprehensive gain: | ||||
Unrealized (loss) gain on marketable securities | $ (4) | $ 12 | $ (2) | $ 12 |
Comprehensive loss | $ (11,779) | $ (9,397) | $ (12,713) | $ (19,219) |
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, 2019 | 65,015 | $ 3 | 126,594 | $ (410) | (61,192) | 20 | |
Beginning Balance (shares) at Dec. 31, 2019 | 25,912,137 | 105,144 | |||||
Net loss | (19,231) | ||||||
Unrealized gain (loss) 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 (loss) 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 | |||||
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 | |||||
Stock-based compensation | 1,403 | 1,403 | |||||
Issuance of common stock, net of issuance costs | 28,115 | 28,115 | |||||
Issuance of common stock, net of issuance costs (shares) | 2,033,899 | ||||||
Exercise of stock options | 240 | 240 | |||||
Exercise of stock options (shares) | 15,708 | ||||||
Net loss | (936) | (936) | |||||
Unrealized gain (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 | |||||
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 | |||||
Exercise of stock options (shares) | 39,708 | ||||||
Net loss | $ (12,711) | ||||||
Unrealized gain (loss) on marketable securities | (2) | ||||||
Ending Balance at Jun. 30, 2021 | 52,156 | $ 3 | 168,751 | (116,597) | (1) | ||
Ending Balance (shares) at Jun. 30, 2021 | 27,619,864 | 105,144 | |||||
Beginning Balance at Mar. 31, 2021 | 61,810 | $ 3 | 166,626 | (104,822) | 3 | ||
Beginning Balance (shares) at Mar. 31, 2021 | 27,595,864 | 105,144 | |||||
Stock-based compensation | 1,848 | 1,848 | |||||
Exercise of stock options | 277 | 277 | |||||
Exercise of stock options (shares) | 24,000 | ||||||
Net loss | (11,775) | (11,775) | |||||
Unrealized gain (loss) on marketable securities | (4) | (4) | |||||
Ending Balance at Jun. 30, 2021 | $ 52,156 | $ 3 | $ 168,751 | $ (116,597) | $ (1) | ||
Ending Balance (shares) at Jun. 30, 2021 | 27,619,864 | 105,144 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities | ||
Net loss | $ (12,711) | $ (19,231) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation | 3,251 | 2,250 |
Accretion of discounts on marketable securities | (25) | (121) |
Depreciation expense | 48 | 26 |
Non cash interest expense | 729 | 328 |
Reduction in operating lease right-of-use asset | 113 | 111 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other assets | 218 | (709) |
Accounts payable | 435 | 112 |
Accrued expenses and other current liabilities | 239 | 798 |
Deferred revenue | (500) | |
Operating lease liability | (83) | (64) |
Net cash used in operating activities | (8,286) | (16,500) |
Cash flows from investing activities | ||
Sales and maturities of marketable securities | 35,600 | 44,355 |
Purchases of marketable securities | (46,216) | (22,136) |
Purchases of property and equipment | (607) | (815) |
Deposits | (77) | |
Net cash (used in) provided by investing activities | (11,300) | 21,404 |
Cash flows from financing activities | ||
Proceeds from exercise of stock options | 513 | 7 |
Proceeds from issuance of common stock, net of issuance costs | 28,119 | |
Proceeds from issuance of debt, net | 4,975 | 34,460 |
Debt issuance costs | (90) | |
Repayment of financing lease | (1) | |
Repayment of subscription receivable | 410 | |
Net cash provided by financing activities | 33,606 | 34,787 |
Net increase in cash and cash equivalents | 14,020 | 39,691 |
Cash and cash equivalents at the beginning of the period | 10,686 | 9,241 |
Cash and cash equivalents at the end of the period | 24,706 | 48,932 |
Supplemental disclosure of noncash investing and financing activities: | ||
Property and equipment purchases payable or accrued at period end | 239 | 429 |
Debt issuance costs accrued at period end | 25 | |
Change in unrealized gain on marketable securities | (2) | 12 |
Cash paid for interest | $ 1,376 | $ 585 |
Nature of Business
Nature of Business | 6 Months Ended |
Jun. 30, 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 developing medications for skin diseases requiring medical interventions. 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 | 6 Months Ended |
Jun. 30, 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 decided to delay the initiation of its previously planned Phase 2 clinical trial to evaluate VP-103 in subjects with plantar 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 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 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 June 30, 2021 2020 Shares issuable upon exercise of stock options 3,762,336 2,608,178 Non-vested shares under restricted stock grants 475,000 1,148,859 |
Investments In Marketable Secur
Investments In Marketable Securities | 6 Months Ended |
Jun. 30, 2021 | |
Investments [Abstract] | |
Investments in Marketable Securities | Note 3—Investments in Marketable Securities Investments in marketable securities consisted of the following as of June 30, 2021 and December 31, 2020 (in thousands): June 30, 2021 Amortized Gross Unrealized Gross Unrealized Fair Cost Gains Losses Value U.S. Treasury securities $ 14,772 $ 1 $ (1 ) $ 14,772 Commercial paper 50,651 — — 50,651 Total marketable securities $ 65,423 $ 1 $ (1 ) $ 65,423 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 June 30, 2021 Level 1 Level 2 Level 3 Total Assets U.S. treasury securities $ 14,772 $ — $ — $ 14,772 Commercial paper — 50,651 — 50,651 Total assets $ 14,772 $ 50,651 $ — $ 65,423 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 | 6 Months Ended |
Jun. 30, 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 June 30, December 31, 2021 2020 Office furniture and fixtures $ 343 $ 117 Machinery and equipment 128 102 Leasehold improvements 101 101 Office equipment 301 52 Automobiles 26 — Construction in process 2,923 2,857 3,822 3,229 Accumulated depreciation (174 ) (127 ) Total property and equipment, net $ 3,648 $ 3,102 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, 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 June 30, 2021 As of December 31, 2020 Compensation and related costs $ 1,089 $ 1,338 Commercial costs 981 — Clinical trials and drug development 385 611 Professional fees 188 447 Construction in process 175 277 Interest expense 242 219 Other accrued expenses and other current liabilities 192 222 Total accrued expenses and other current liabilities $ 3,252 $ 3,114 |
Leases
Leases | 6 Months Ended |
Jun. 30, 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. The Company leased office space in West Chester, Pennsylvania under an agreement classified as an operating lease that expired 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 Company leases vehicles under financing leases that expire through 2025. The net basis of the vehicle lease of $26 thousand is recorded as property and equipment on the condensed balance sheet. The components of lease expense are as follows (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2021 2020 2021 2020 Finance lease cost: Amortization lease assets $ 1 $ — $ 1 $ — Finance lease costs 1 — 1 — Total finance lease costs $ 2 $ — $ 2 $ — Operating lease: Operating lease costs $ 84 $ 47 $ 175 $ 105 Short-term lease costs 5 7 10 13 Total lease expense $ 89 $ 54 $ 185 $ 118 Maturities of the Company’s operating and finance leases, excluding short-term leases, as of June 30, 2021 are as follows (in thousands): June 30, 2021 Operating Finance 2021 (remaining 6 months) 170 4 2022 343 7 2023 349 7 2024 355 8 2025 360 2 Thereafter 614 — Total lease payments 2,191 28 Less imputed interest (383 ) (2 ) Lease liability $ 1,808 $ 26 The weighted average remaining term and discount rate are as follows: Other information: Operating Finance Weighted average remaining lease term 6.17 3.83 Weighted-average discount rate 6.25 % 4.35 % |
Debt
Debt | 6 Months Ended |
Jun. 30, 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 B2 Loan, the Term Loans 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 June 30, 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 under the Term A Loan. 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 June 30, 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 and six months ended June 30, 2021, the Company recognized interest expense of $1.0 million and $2.1 million, respectively, of which $0.7 million and $1.4 million, respectively, was interest on the term loan and $0.3 million and $0.7 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, 2021 (in thousands): Gross proceeds $ 40,000 Accrued final payment fee 3,750 Unamortized debt discount and issuance costs (2,745 ) Total short-term debt, net $ 41,005 In the event the Company maintains compliance with its minimum liquidity covenant to avoid an acceleration of payments, the aggregate maturities of debt as of June 30, 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 | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2021 and 2020 as follows (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2021 2020 2021 2020 Research and development $ 425 $ 213 $ 723 $ 390 General and administrative 1,423 1,039 2,528 1,860 Total stock-based compensation $ 1,848 $ 1,252 $ 3,251 $ 2,250 Stock Options The following table summarizes the Company’s stock option activity for the six months ended June 30, 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 8.04 $ 7,702,295 Granted 965,736 13.93 Exercised (39,708 ) 12.92 Forfeitures (51,392 ) 14.64 Expired (14,208 ) 12.99 Outstanding as of June 30, 2021 3,762,336 $ 10.57 8.2 $ 7,340,595 Options vested and exercisable as of June 30, 2021 1,513,193 $ 9.04 6.9 $ 4,497,719 As of June 30, 2021, the total unrecognized compensation related to unvested stock option awards granted was $16.8 million, which the Company expects to recognize over a weighted-average period of 3.09 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. As of June 30, 2021, 475,000 restricted stock units were outstanding. 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 Fair Number of Shares Value Nonvested as of December 31, 2020 475,000 $ 11.74 Granted — — Forfeitures — — Nonvested as of June 30, 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 June 30, 2021. As of June 30, 2021, the total unrecognized compensation expense related to the restricted stock units was $5.6 million. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 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 June 30, 2021 and 2020 As of June 30, 2021, the Company had no payables due to PBM and its affiliates. |
Commitment and Contingencies
Commitment and Contingencies | 6 Months Ended |
Jun. 30, 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 | 6 Months Ended |
Jun. 30, 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 payments from Torii of $0.5 million in December 2020 and $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 and $2.3 million payments were recognized in research and development expense in the statement of operations for the year ended December 31, 2020 and the six months ended June 30, 2021, respectively. The Company is also obligated to pay up to $111.0 million contingent on achievement of specified development, regulatory, and sales milestones, as well as tiered royalties based on worldwide annual net sales ranging in the low double digits to the mid-teens, subject to certain customary reductions. The Company’s obligation to pay royalties expires on a country-by-country and product-by-product basis on the later of the expiration or abandonment of the last to expire licensed patent covering LTX-315 anywhere in the world and expiration of regulatory exclusivity for LTX-315 in such country. Additionally, all upfront fees and milestone based payments received by the Company from a sublicensee will be treated as net sales and will be subject to the royalty payment obligations under the Lytix Agreement, and all royalties received by the Company from a sublicensee shall be shared with Lytix at a rate that is initially 50% but decreases based on the stage of development of LTX-315 at the time such sublicense is granted. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 12 – Subsequent Event None. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 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 decided to delay the initiation of its previously planned Phase 2 clinical trial to evaluate VP-103 in subjects with plantar 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 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 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 June 30, 2021 2020 Shares issuable upon exercise of stock options 3,762,336 2,608,178 Non-vested shares under restricted stock grants 475,000 1,148,859 |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2021 2020 Shares issuable upon exercise of stock options 3,762,336 2,608,178 Non-vested shares under restricted stock grants 475,000 1,148,859 |
Investments In Marketable Sec_2
Investments In Marketable Securities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investments [Abstract] | |
Schedule of Marketable Securities | Investments in marketable securities consisted of the following as of June 30, 2021 and December 31, 2020 (in thousands): June 30, 2021 Amortized Gross Unrealized Gross Unrealized Fair Cost Gains Losses Value U.S. Treasury securities $ 14,772 $ 1 $ (1 ) $ 14,772 Commercial paper 50,651 — — 50,651 Total marketable securities $ 65,423 $ 1 $ (1 ) $ 65,423 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 June 30, 2021 Level 1 Level 2 Level 3 Total Assets U.S. treasury securities $ 14,772 $ — $ — $ 14,772 Commercial paper — 50,651 — 50,651 Total assets $ 14,772 $ 50,651 $ — $ 65,423 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) | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 2020 Office furniture and fixtures $ 343 $ 117 Machinery and equipment 128 102 Leasehold improvements 101 101 Office equipment 301 52 Automobiles 26 — Construction in process 2,923 2,857 3,822 3,229 Accumulated depreciation (174 ) (127 ) Total property and equipment, net $ 3,648 $ 3,102 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2021 As of December 31, 2020 Compensation and related costs $ 1,089 $ 1,338 Commercial costs 981 — Clinical trials and drug development 385 611 Professional fees 188 447 Construction in process 175 277 Interest expense 242 219 Other accrued expenses and other current liabilities 192 222 Total accrued expenses and other current liabilities $ 3,252 $ 3,114 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 2020 2021 2020 Finance lease cost: Amortization lease assets $ 1 $ — $ 1 $ — Finance lease costs 1 — 1 — Total finance lease costs $ 2 $ — $ 2 $ — Operating lease: Operating lease costs $ 84 $ 47 $ 175 $ 105 Short-term lease costs 5 7 10 13 Total lease expense $ 89 $ 54 $ 185 $ 118 |
Schedule of Maturities of Operating and Finance Leases | Maturities of the Company’s operating and finance leases, excluding short-term leases, as of June 30, 2021 are as follows (in thousands): June 30, 2021 Operating Finance 2021 (remaining 6 months) 170 4 2022 343 7 2023 349 7 2024 355 8 2025 360 2 Thereafter 614 — Total lease payments 2,191 28 Less imputed interest (383 ) (2 ) Lease liability $ 1,808 $ 26 |
Schedule of Weighted Average Remaining Term and Discount Rate | The weighted average remaining term and discount rate are as follows: Other information: Operating Finance Weighted average remaining lease term 6.17 3.83 Weighted-average discount rate 6.25 % 4.35 % |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2021 (in thousands): Gross proceeds $ 40,000 Accrued final payment fee 3,750 Unamortized debt discount and issuance costs (2,745 ) Total short-term debt, net $ 41,005 |
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 aggregate maturities of debt as of June 30, 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) | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2021 and 2020 as follows (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2021 2020 2021 2020 Research and development $ 425 $ 213 $ 723 $ 390 General and administrative 1,423 1,039 2,528 1,860 Total stock-based compensation $ 1,848 $ 1,252 $ 3,251 $ 2,250 |
Summary of Stock Option Activity | The following table summarizes the Company’s stock option activity for the six months ended June 30, 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 8.04 $ 7,702,295 Granted 965,736 13.93 Exercised (39,708 ) 12.92 Forfeitures (51,392 ) 14.64 Expired (14,208 ) 12.99 Outstanding as of June 30, 2021 3,762,336 $ 10.57 8.2 $ 7,340,595 Options vested and exercisable as of June 30, 2021 1,513,193 $ 9.04 6.9 $ 4,497,719 |
Summary of Non-vested RSUs Activities | The following is a summary of changes in the status of non-vested RSUs: Weighted Average Grant Date Fair Number of Shares Value Nonvested as of December 31, 2020 475,000 $ 11.74 Granted — — Forfeitures — — Nonvested as of June 30, 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 | Jun. 30, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Description Of Business [Line Items] | |||||||
Net proceeds from issuance | $ 28,119,000 | ||||||
Accumulated deficit | $ (116,597,000) | $ (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 | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 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 | 3,762,336 | 2,608,178 |
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 | Jun. 30, 2021 | Dec. 31, 2020 |
Marketable Securities [Line Items] | ||
Amortized Cost | $ 65,423 | $ 54,783 |
Gross Unrealized Gains | 1 | 2 |
Gross Unrealized Losses | (1) | (1) |
Fair Value | 65,423 | 54,784 |
U.S. Treasury Securities [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 14,772 | 11,607 |
Gross Unrealized Gains | 1 | 2 |
Gross Unrealized Losses | (1) | |
Fair Value | 14,772 | 11,609 |
Commercial Paper [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 50,651 | 41,674 |
Gross Unrealized Losses | (1) | |
Fair Value | $ 50,651 | 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 | Jun. 30, 2021 | Dec. 31, 2020 |
Marketable Securities [Line Items] | ||
Marketable securities | $ 65,423 | $ 54,784 |
Level 1 [Member] | ||
Marketable Securities [Line Items] | ||
Marketable securities | 14,772 | 11,609 |
Level 2 [Member] | ||
Marketable Securities [Line Items] | ||
Marketable securities | 50,651 | 43,175 |
U.S. Treasury Securities [Member] | ||
Marketable Securities [Line Items] | ||
Marketable securities | 14,772 | 11,609 |
U.S. Treasury Securities [Member] | Level 1 [Member] | ||
Marketable Securities [Line Items] | ||
Marketable securities | 14,772 | 11,609 |
Commercial Paper [Member] | ||
Marketable Securities [Line Items] | ||
Marketable securities | 50,651 | 41,673 |
Commercial Paper [Member] | Level 2 [Member] | ||
Marketable Securities [Line Items] | ||
Marketable securities | $ 50,651 | 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 | Jun. 30, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 3,822 | $ 3,229 |
Accumulated depreciation | (174) | (127) |
Total property and equipment, net | 3,648 | 3,102 |
Office Furniture and Fixtures [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 343 | 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 | 301 | 52 |
Automobiles [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 26 | |
Construction in Progress [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 2,923 | $ 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 | Jun. 30, 2021 | Dec. 31, 2020 |
Accrued Liabilities Current [Abstract] | ||
Compensation and related costs | $ 1,089 | $ 1,338 |
Commercial costs | 981 | |
Clinical trials and drug development | 385 | 611 |
Professional fees | 188 | 447 |
Construction in process | 175 | 277 |
Interest expense | 242 | 219 |
Other accrued expenses and other current liabilities | 192 | 222 |
Total accrued expenses and other current liabilities | $ 3,252 | $ 3,114 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 12, 2020 | Jul. 01, 2019 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 01, 2020 |
Lessee Lease Description [Line Items] | |||||
Operating lease expired | 2021-05 | ||||
First amendments date | Mar. 12, 2020 | ||||
Lease expiration date | Sep. 1, 2027 | ||||
Operating lease right of use asset | $ 1,723 | $ 1,836 | $ 1,900 | ||
Lease liability | $ 1,808 | $ 1,900 | |||
Financing leases expiration year | 2025 | ||||
Financing vehicle lease, net | $ 26 | ||||
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 | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||||
Amortization lease assets | $ 1 | $ 1 | ||
Finance lease costs | 1 | 1 | ||
Total finance lease costs | 2 | 2 | ||
Operating lease costs | 84 | $ 47 | 175 | $ 105 |
Short-term lease costs | 5 | 7 | 10 | 13 |
Total lease expense | $ 89 | $ 54 | $ 185 | $ 118 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating and Finance Leases (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Sep. 01, 2020 |
Leases [Abstract] | ||
Finance Lease, Remainder of Fiscal Year | $ 4 | |
Finance Lease, Year one | 7 | |
Finance Lease, Year Two | 7 | |
Finance Lease, Year Three | 8 | |
Finance Lease, Year Four | 2 | |
Finance Lease, Total lease payments | 28 | |
Less Finance Lease imputed interest | (2) | |
Finance Lease, Lease liability | 26 | |
Operating Lease, Remainder of Fiscal Year | 170 | |
Operating Lease, Year one | 343 | |
Operating Lease, Year Two | 349 | |
Operating Lease, Year Three | 355 | |
Operating Lease, Year Four | 360 | |
Operating Lease, After Year Four | 614 | |
Operating Lease, Total lease payments | 2,191 | |
Less Operating Lease, imputed interest | (383) | |
Operating Lease, Lease liability | $ 1,808 | $ 1,900 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Remaining Term and Discount Rate (Detail) | Jun. 30, 2021 |
Leases [Abstract] | |
Operating Lease, Weighted average remaining lease term | 6 years 2 months 1 day |
Operating Lease, Weighted-average discount rate | 6.25% |
Finance Lease, Weighted average remaining lease term | 3 years 9 months 29 days |
Finance Lease, Weighted-average discount rate | 4.35% |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Mar. 01, 2021 | Oct. 26, 2020 | Mar. 10, 2020 | Jun. 30, 2021 | Jun. 30, 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 June 30, 2021 the Company is in compliance with all covenants. | |||||
Final payment fee | $ 40,000,000 | $ 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 B2 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 | $ 4,300,000 | ||||
Interest expense | 1,000,000 | 2,100,000 | ||||
Interest on term loan | 700,000 | 1,400,000 | ||||
Non-cash interest expense | 300,000 | 700,000 | ||||
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 | $ 5,000,000 | |||||
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 | $ 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 | $ 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 | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Gross proceeds | $ 41,005 | $ 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 | (2,745) | |
Total short-term debt, net | $ 41,005 |
Debt - Schedule of Aggregate Ma
Debt - Schedule of Aggregate Maturities of Debt (Detail) $ in Thousands | Jun. 30, 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 | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | $ 1,848 | $ 1,252 | $ 3,251 | $ 2,250 |
Research and Development [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | 425 | 213 | 723 | 390 |
General and Administrative [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | $ 1,423 | $ 1,039 | $ 2,528 | $ 1,860 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Detail) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | |
Employee Service Share Based Compensation Aggregate Disclosures [Abstract] | ||
Number of shares, Outstanding Beginning Balance | shares | 2,901,908 | |
Number of shares, Granted | shares | 965,736 | |
Number of shares, Exercised | shares | (39,708) | |
Number of shares, Forfeitures | shares | (51,392) | |
Number of shares, Expired | shares | (14,208) | |
Number of shares, Outstanding Ending Balance | shares | 3,762,336 | 2,901,908 |
Number of shares, Options vested and exercisable Ending Balance | shares | 1,513,193 | |
Weighted average exercise price, Outstanding Beginning Balance | $ / shares | $ 9.57 | |
Weighted average exercise price, Granted | $ / shares | 13.93 | |
Weighted average exercise price, Exercised | $ / shares | 12.92 | |
Weighted average exercise price, Forfeitures | $ / shares | 14.64 | |
Weighted average exercise price, Expired | $ / shares | 12.99 | |
Weighted average exercise price, Outstanding Ending Balance | $ / shares | 10.57 | $ 9.57 |
Weighted average exercise price, Options vested and exercisable Ending Balance | $ / shares | $ 9.04 | |
Weighted average remaining contractual life (in years), Outstanding | 8 years 2 months 12 days | 8 years 14 days |
Weighted average remaining contractual life (in years), Options vested and exercisable | 6 years 10 months 24 days | |
Aggregate intrinsic value, Outstanding | $ | $ 7,340,595 | $ 7,702,295 |
Aggregate intrinsic value, Options vested and exercisable Ending Balance | $ | $ 4,497,719 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | ||
Aug. 31, 2020 | Nov. 30, 2019 | Jun. 30, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total unrecognized compensation related to unvested stock options | $ 16.8 | |||
Weighted-average stock option recognize period | 3 years 1 month 2 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 | |||
Restricted stock units outstanding | 475,000 | 475,000 | ||
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] | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |
Nonvested, Number of Shares, Beginning Balance | shares | 475,000 |
Nonvested, Number of Shares, Granted | shares | 0 |
Nonvested, Number of Shares, Forfeitures | shares | 0 |
Nonvested, Number of Shares, Ending Balance | shares | 475,000 |
Nonvested, Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 11.74 |
Nonvested, Weighted Average Grant Date Fair Value, Granted | $ / shares | 0 |
Nonvested, Weighted Average Grant Date Fair Value, Forfeitures | $ / shares | 0 |
Nonvested, 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 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Related Party Transaction [Line Items] | |||||||
Services agreement initial term | 12 months | ||||||
Expenses incurred under services agreement | $ 15,000 | $ 15,000 | $ 30,000 | $ 30,000 | |||
Due to related party | $ 0 | $ 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 | Dec. 31, 2020 | Aug. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 |
License And Collaboration Agreements [Line Items] | ||||||||||
Research and development expense | $ 3,447 | $ 3,521 | $ 8,809 | $ 8,413 | ||||||
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 | $ 2,300 | 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 | $ 500 | ||||||||
Torii Agreement [Member] | Torii [Member] | ||||||||||
License And Collaboration Agreements [Line Items] | ||||||||||
Received payment | $ 11,500 | $ 500 | ||||||||
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% |