0000950170-22-002685 | 10-K | XBRL Viewer | Verrica Pharmaceuticals INC

(1) Excludes the final payment fee due at time of maturity.

Organization and Description of Business Operations	12 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Description of Business Operations	Note 1—Organization and Description of Business Operations 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. As of December 31, 2021, the Company had an accumulated deficit of $139.0 million. On March 17, 2021, the Company entered into the Torii Agreement (Note 13), 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 (as defined in Note 11), pursuant to which the Company borrowed (i) $35.0 million in March 2020 (the “Term A Loan”) and (ii) $5.0 million on March 1, 2021 (the “Term B1 Loan” and together with the Term A Loan, the “Term Loans”) that remains outstanding as of December 31, 2021. On March 1, 2022, the Company entered into a second amendment to the Mezzanine Loan Agreement (the “Second Mezzanine Loan Amendment”). Pursuant to the Second Mezzanine Loan Amendment the Company is no longer required to maintain a minimum liquidity ratio or achieve minimum levels of trailing six-month net product revenues but will be required to maintain a minimum balance equal to the outstanding amount of the Term Loans under the Existing Mezzanine Credit Facility (as defined in Note 14) in a separate money market account with Silicon Valley Bank (“SVB”). Additionally, the Company entered into a second amendment (the “Second Senior Loan Amendment”) to the Senior Loan Agreement (as defined in Note 11). Pursuant to the Second Senior Loan Amendment, the Company is no longer required to achieve minimum levels of trailing six-month net product revenues. The Company believes its cash, cash equivalents and marketable securities of $70.4 million as of December 31, 2021 will be sufficient to support the Company’s planned operations into the third quarter of 2022. Substantial additional financing will be needed by the Company to fund its operations. The Company's financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty. The Company anticipates incurring additional losses until such time, if ever, that it can obtain marketing approval to sell, and then generate significant sales of VP-102. These factors raise substantial doubt about the Company's ability to continue as a going concern within one year after the date the financial statements are issued. The Company plans to secure additional capital in the future through equity or debt financings, partnerships, or other sources to carry out the Company’s planned development activities. If the Company is unable to raise capital when needed or on attractive terms, the Company would be forced to delay, reduce or eliminate its research and development programs or future commercialization efforts.

Organization and Description of Business Operations

12 Months Ended

Dec. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Description of Business Operations

Note 1—Organization and Description of Business Operations

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. As of December 31, 2021, the Company had an accumulated deficit of $139.0 million. On March 17, 2021, the Company entered into the Torii Agreement (Note 13), 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 (as defined in Note 11), pursuant to which the Company borrowed (i) $35.0 million in March 2020 (the “Term A Loan”) and (ii) $5.0 million on March 1, 2021 (the “Term B1 Loan” and together with the Term A Loan, the “Term Loans”) that remains outstanding as of December 31, 2021. On March 1, 2022, the Company entered into a second amendment to the Mezzanine Loan Agreement (the “Second Mezzanine Loan Amendment”). Pursuant to the Second Mezzanine Loan Amendment the Company is no longer required to maintain a minimum liquidity ratio or achieve minimum levels of trailing six-month net product revenues but will be required to maintain a minimum balance equal to the outstanding amount of the Term Loans under the Existing Mezzanine Credit Facility (as defined in Note 14) in a separate money market account with Silicon Valley Bank (“SVB”). Additionally, the Company entered into a second amendment (the “Second Senior Loan Amendment”) to the Senior Loan Agreement (as defined in Note 11). Pursuant to the Second Senior Loan Amendment, the Company is no longer required to achieve minimum levels of trailing six-month net product revenues.

The Company believes its cash, cash equivalents and marketable securities of $70.4 million as of December 31, 2021 will be sufficient to support the Company’s planned operations into the third quarter of 2022. Substantial additional financing will be needed by the Company to fund its operations. The Company's financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty. The Company anticipates incurring additional losses until such time, if ever, that it can obtain marketing approval to sell, and then generate significant sales of VP-102. These factors raise substantial doubt about the Company's ability to continue as a going concern within one year after the date the financial statements are issued. The Company plans to secure additional capital in the future through equity or debt financings, partnerships, or other sources to carry out the Company’s planned development activities. If the Company is unable to raise capital when needed or on attractive terms, the Company would be forced to delay, reduce or eliminate its research and development programs or future commercialization efforts.

STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
STATEMENTS OF CASH FLOWS - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities
Net loss	$ (35,080,000)	$ (42,694,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	6,053,000	9,821,000
Amortization of premiums / (discounts) on marketable securities	66,000	(138,000)
Depreciation expense	244,000	43,000
Noncash interest expense	1,442,000	940,000
Amortization on operating lease right-of-use asset	228,000	186,000
Changes in operating assets and liabilities:
Prepaid expenses and other assets	(543,000)	786,000
Accounts payable	497,000	(838,000)
Accrued expenses and other current liabilities	208,000	1,394,000
Deferred revenue	(500,000)	500,000
Operating lease liability	(197,000)	(207,000)
Net cash used in operating activities	(27,582,000)	(30,207,000)
Cash flows from investing activities
Purchases of marketable securities	(68,914,000)	(71,738,000)
Sales and maturities of marketable securities	69,000,000	69,849,000
Purchases of property and equipment	(883,000)	(1,470,000)
Deposits	(201,000)	(221,000)
Net cash used in investing activities	(998,000)	(3,580,000)
Cash flows from financing activities
Proceeds from exercise of stock options	558,000	453,000
Proceeds from issuance of common stock, net of issuance costs	28,118,000
Proceeds from issuance of debt, net of issuance costs	4,975,000	34,460,000
Debt issuance cost		(91,000)
Repayment of subscription receivable		410,000
Repayment of financing lease	(5,000)
Net cash provided by financing activities	33,646,000	35,232,000
Net increase in cash and cash equivalents	5,066,000	1,445,000
Cash and cash equivalents at the beginning of the year	10,686,000	9,241,000
Cash and cash equivalents at the end of the year	15,752,000	10,686,000
Supplemental disclosure of noncash investing and financing activities:
Property and equipment purchases payable or accrued at period end	255,000	318,000
Right-of-use asset obtained in exchange for lease obligation		1,910,000
Change in unrealized loss on marketable securities	(30,000)	(19,000)
Cash paid for interest	$ 2,850,000	1,875,000
Debt issuance costs included in accrued expenses at year end		$ 100,000

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Restricted Stock Awards Activities

The following table summarizes restricted stock awards:


				Weighted Average
				Grant Date Fair
	Number of Shares			Value
Non-vested as of December 31, 2019		1,148,859		$	4.35
Granted		250,000			8.17
Forfeitures		(499,429	)		2.64
Vested		(424,430	)	$	11.27
Non-vested as of December 31, 2020		475,000			11.74
Granted		—			—
Forfeitures		(50,000	)		12.29
Vested		—			—
Non-vested as of December 31, 2021		425,000		$	11.68

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 statements of operations for the years ended December 31, 2021 and 2020 as follows (in thousands):


	For the Year Ended December 31,
	2021		2020
Research and development	$	1,513	$	813
General and administrative		4,540		9,008
Total stock-based compensation	$	6,053	$	9,821

Employee and Non-Employee Stock Options [Member]

Assumptions Used to Estimate Fair Value

The grant date fair value of employee and non-employee stock option awards is determined using the Black-Scholes option-pricing model. The following assumptions were used during the years ended December 31, 2021 and 2020 to estimate the fair value of employee and non-employee stock option awards:


	For the Year Ended December 31,
	2021	2020
Exercise price	$9.26 - $15.10	$6.56 - $15.91
Risk-free rate of interest	0.76% - 1.24%	0.27% - 1.67%
Expected term (years)	6	6
Expected stock price volatility	87.14% - 89.39%	76.71% - 85.97%
Dividend yield	—	—
Weighted average grant date fair value	$9.72	$7.00

Summary of Stock Option Activity

The following table summarizes the Company’s employee and non-employee stock option activity under the 2013 Plan and 2018 Plan for the years ended December 31, 2021 and 2020:


						Weighted average
	Number of			Weighted average		remaining contractual		Aggregate intrinsic
	shares			exercise price		life (in years)		value
Outstanding as of December 31, 2019		1,914,545		$	9.14
Options granted		1,193,956			10.35
Exercised		(58,549	)		7.73
Forfeited		(125,377	)		10.78
Expired		(22,667	)		12.00
Outstanding as of December 31, 2020		2,901,908			9.57
Options granted		1,222,786			13.28
Exercised		(44,041	)		12.67
Forfeited		(462,617	)		13.87
Expired		(174,219	)		13.84
Outstanding as of December 31, 2021		3,443,817		$	10.05		7.8	$	3,952,803
Options vested and exercisable as of December 31, 2021		1,757,554		$	8.48		6.7	$	3,211,470

Debt - Additional Information (Detail) - USD ($)			12 Months Ended
Debt - Additional Information (Detail) - USD ($)	Mar. 01, 2021	Oct. 26, 2020	Dec. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Mar. 10, 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 delivery of financial statements, maintenance of inventory, payment of taxes, maintenance of insurance, protection of intellectual property rights, dispositions of property, business combinations or acquisitions, incurrence of additional indebtedness or liens, investments and transactions with affiliates among other customary covenants. As of December 31, 2021 the Company is in compliance with all covenants.
Debt instrument, covenant compliance			As of December 31, 2021 the Company is in compliance with all covenants.
Final payment fee			$ 40,000,000
Mezzanine Loan Agreement [Member]
Debt Instrument [Line Items]
Debt instrument, final payment fee payable		$ 3,750,000
Debt instrument, prepayment written notice period		5 days
Mezzanine Loan Agreement [Member] \| Term Loan Prepaid Between October 27, 2021 and October 26, 2022 [Member]
Debt Instrument [Line Items]
Debt instrument, prepayment fee		$ 1,000,000.0
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] \| Mezzanine Lenders [Member] \| Term Loans [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity						$ 50,000,000.0
Mezzanine Loan Agreement [Member] \| Silicon Valley Bank (Senior Lender) [Member] \| Revolving Loans [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity						$ 5,000,000.0
Senior Loan Agreement [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 5,000,000.0
Line of credit, maximum borrowing base percentage of eligible accounts receivable		85.00%
Loans, maturity date		Mar. 01, 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.
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			4,300,000	$ 3,000,000.0
Interest on term loan			2,900,000	2,100,000
Non-cash interest expense			1,400,000	$ 900,000
Senior Loan Agreement [Member] \| Prime Rate [Member]
Debt Instrument [Line Items]
Loans, variable rate		2.50%
Senior Loan Agreement [Member] \| Term Loans [Member]
Debt Instrument [Line Items]
Borrowed amount	$ 5,000,000.0
Line of credit					$ 35,000,000.0
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%

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Effective Income Tax Rate Reconciliation

Differences between the provision (benefit) for income taxes and income taxes at the statutory federal income tax rate are as follows (in thousands):


	For the Year Ended December 31,
	2021			2020
Tax computed at statutory federal income tax rate	$	(7,367	)	$	(8,966	)
State taxes, net of federal benefit		(2,697	)		(2,938	)
Permanent items		282			1,283
R&D credits		26			(2,405	)
Other		205			(2	)
Change in valuation allowance		9,551			13,028
Income tax provision (benefit)	$	—		$	—

Schedule of Components of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):


	As of December 31,
	2021			2020
Deferred tax assets:
Net operating loss carryovers	$	31,514		$	23,881
Share-based compensation		3,321			2,170
Tax credits		2,380			2,405
Amortization		678			—
Accrued compensation		479			388
Lease liabilities		497			549
Other		16			12
Total deferred tax assets		38,885			29,405
Less valuation allowance		(38,414	)		(28,863	)
Deferred tax asset, net of valuation allowance		471			542
Deferred tax liabilities:
Right-of-use assets		(466	)		(532	)
Fixed assets		(5	)		(10	)
Total deferred tax liabilities		(471	)		(542	)
Net deferred tax assets	$	—		$	—

Commitments and Contingencies - Additional Information (Detail) - Crude Cantharidin Material [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2019
Loss Contingencies [Line Items]
Purchase agreement term	5 years
Purchase Commitment	$ 0.8	$ 1.8
Purchase commitment prepayment	$ 0.8	$ 1.1

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment, Net

Property and equipment, net consisted of (in thousands):


	As of December 31,
	2021			2020
Machinery and equipment	$	737		$	102
Office furniture and fixtures		303			117
Office equipment		301			52
Leasehold improvements		49			101
Automobiles		27			—
Construction in process		2,731			2,857
		4,148			3,229
Accumulated depreciation		(254	)		(127	)
Total property and equipment, net	$	3,894		$	3,102

Related Party Transactions - Additional Information (Detail) - PBM Capital Group, LLC [Member] - USD ($)			12 Months Ended
	Oct. 01, 2019	Dec. 02, 2015	Dec. 31, 2021	Dec. 31, 2020
Related Party Transaction [Line Items]
Services agreement initial term		12 months
Expenses incurred under services agreement			$ 60,000	$ 60,000
Due to related party			0	0
Amended Service Agreement [Member]
Related Party Transaction [Line Items]
Monthly management fee payable	$ 5,000
General and Administrative Expense [Member]
Related Party Transaction [Line Items]
Expenses incurred under services agreement			36,000	36,000
Research and Development Expense [Member]
Related Party Transaction [Line Items]
Expenses incurred under services agreement			$ 24,000	$ 24,000

- Definition

Carrying amount as of the balance sheet date of obligations due all related parties.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(k)(1))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(C))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-03.17)
-URI http://asc.fasb.org/extlink&oid=120400017&loc=d3e572229-122910

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(B))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03.15(3),(4))
-URI http://asc.fasb.org/extlink&oid=120398452&loc=d3e534808-122878

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864

+ Details

Investments in Marketable Securities - Schedule of Fair Value by Level in Accordance with ASC 820 of Marketable Securities (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Marketable Securities [Line Items]
Marketable securities	$ 54,602	$ 54,784
Level 1 [Member]
Marketable Securities [Line Items]
Marketable securities	15,257	11,609
Level 2 [Member]
Marketable Securities [Line Items]
Marketable securities	39,345	43,175
U.S. Treasury Securities [Member]
Marketable Securities [Line Items]
Marketable securities	15,257	11,609
U.S. Treasury Securities [Member] \| Level 1 [Member]
Marketable Securities [Line Items]
Marketable securities	15,257	11,609
Commercial Paper [Member]
Marketable Securities [Line Items]
Marketable securities	28,980	41,673
Commercial Paper [Member] \| Level 2 [Member]
Marketable Securities [Line Items]
Marketable securities	28,980	41,673
Asset Backed Securities [Member]
Marketable Securities [Line Items]
Marketable securities	10,365	1,502
Asset Backed Securities [Member] \| Level 2 [Member]
Marketable Securities [Line Items]
Marketable securities	$ 10,365	$ 1,502

Property and Equipment

12 Months Ended

Dec. 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 December 31,
	2021			2020
Machinery and equipment	$	737		$	102
Office furniture and fixtures		303			117
Office equipment		301			52
Leasehold improvements		49			101
Automobiles		27			—
Construction in process		2,731			2,857
		4,148			3,229
Accumulated depreciation		(254	)		(127	)
Total property and equipment, net	$	3,894		$	3,102

Depreciation expense for the years ended December 31, 2021 and 2020 was $244,000 and $43,000, respectively.

The Company has recorded an asset classified as construction in process associated with the construction of a product assembly and packaging line that would be placed into service for commercial manufacturing upon future regulatory product approval.

Leases - Additional Information (Detail)			12 Months Ended
Leases - Additional Information (Detail)	Mar. 12, 2020 ft²	Jul. 01, 2019 ft²	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Sep. 01, 2020 USD ($)
Lessee Lease Description [Line Items]
Operating lease expiration			2021-05
First amendments date	Mar. 12, 2020
Lease expiration date			Sep. 01, 2027
Operating lease right of use asset			$ 1,608,000	$ 1,836,000	$ 1,900,000
Operating lease liability			1,694,000		$ 1,900,000
Operating lease liability, current			$ 244,600	$ 198,000
Financing leases expiration year			2025
Financing vehicle lease, net			$ 22,000
Operating lease, remaining lease term			5 years 8 months 12 days
Finance lease, remaining lease term			3 years 3 months 18 days
Operating lease, discount rate			6.25%
Finance lease, discount rate			4.35%
Pennsylvania [Member]
Lessee Lease Description [Line Items]
Lease agreement commencement date		Jul. 01, 2019
Area of office space for lease \| ft²		5,829
Original Premises [Member]
Lessee Lease Description [Line Items]
Area of office space for lease \| ft²	5,372
Total Rentable Premise [Member]
Lessee Lease Description [Line Items]
Area of office space for lease \| ft²	11,201
Landlord's Operating Expense [Member]
Lessee Lease Description [Line Items]
Operating lease, base rent			$ 2,400,000

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 (Loss) Gain [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
Stock-based compensation	9,821		9,821
Repurchased and retired common stock		(424,429)
Exercise of stock options	453		453
Exercise of stock options (shares)		58,549
Repayment of subscription receivable	410			$ 410
Net loss	(42,694)				(42,694)
Unrealized gain (loss) on marketable securities	(19)						(19)
Ending Balance at Dec. 31, 2020	32,986	$ 3	136,868		(103,886)		1
Ending Balance (shares) at Dec. 31, 2020		25,546,257				105,144
Stock-based compensation	6,053		6,053
Issuance of common stock, net of issuance costs (shares)		2,033,899
Issuance of common stock, net of issuance costs	28,118		28,118
Exercise of stock options	558		558
Exercise of stock options (shares)		44,041
Net loss	(35,080)				(35,080)
Unrealized gain (loss) on marketable securities	(30)						(30)
Ending Balance at Dec. 31, 2021	$ 32,605	$ 3	$ 171,597		$ (138,966)		$ (29)
Ending Balance (shares) at Dec. 31, 2021		27,624,197				105,144

Investments in Marketable Securities - Schedule of Marketable Securities (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Marketable Securities [Line Items]
Amortized Cost	$ 54,631	$ 54,783
Gross Unrealized Gains		2
Gross Unrealized Losses	(29)	(1)
Fair Value	54,602	54,784
U.S. Treasury Securities [Member]
Marketable Securities [Line Items]
Amortized Cost	15,272	11,607
Gross Unrealized Gains		2
Gross Unrealized Losses	(15)
Fair Value	15,257	11,609
Commercial Paper [Member]
Marketable Securities [Line Items]
Amortized Cost	28,980	41,674
Gross Unrealized Losses		(1)
Fair Value	28,980	41,673
Asset Backed Securities [Member]
Marketable Securities [Line Items]
Amortized Cost	10,379	1,502
Gross Unrealized Losses	(14)
Fair Value	$ 10,365	$ 1,502

Income Taxes - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2017
Operating Loss Carryforwards [Line Items]
Federal and state research and development carryforwards	$ 2,400,000
Equity ownership period	3 years
Unrecognized tax benefits			$ 1,500,000
Unrecognized tax benefits, income tax penalties and interest accrued	$ 0	$ 0
Unrecognized tax benefits, income tax penalties and interest expense	0	0
Deferred tax benefit	$ 2,400,000	$ 2,400,000
Minimum [Member]
Operating Loss Carryforwards [Line Items]
Ownership percentage	50.00%
Federal [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	$ 109,000,000.0			$ 6,900,000
State [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	$ 110,900,000
Net Operating Loss Carryforwards Generated in 2016 and 2017 [Member]
Operating Loss Carryforwards [Line Items]
Federal and state net operating loss carryforwards, expiration date	2033

Leases (Tables)

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Summary of Components of Lease Expense

The components of lease expense are as follows (in thousands):


	For the Year Ended December 31,
	2021		2020
Finance lease cost:
Amortization ROU assets	$	5	$	—
Finance lease costs		—		—
Interest on lease liabilities		—		—
Total finance lease cost	$	5	$	—
Operating lease
Operating lease costs	$	346	$	164
Short-term lease costs		21		22
Total operating lease	$	367	$	186

Schedule of Maturities of Operating Lease

Maturities of the Company’s operating lease, excluding short-term leases as of December 31, 2021 are as follows (in thousands):


	December 31, 2021
	Operating			Finance
2022	$	344		$	7
2023		349			7
2024		355			8
2025		360			2
Thereafter		613			—
Total lease payments		2,021			24
Less imputed interest		(327	)		(2	)
Lease liability	$	1,694		$	22

Investments In Marketable Securities (Tables)

12 Months Ended

Dec. 31, 2021

Investments [Abstract]

Schedule of Marketable Securities

Investments in marketable securities consisted of the following as of December 31, 2021 and 2020 (in thousands):


	As of December 31, 2021
	Amortized		Gross Unrealized		Gross Unrealized			Fair
	Cost		Gains		Losses			Value
U.S. treasury securities	$	15,272		—	$	(15	)	$	15,257
Commercial paper		28,980		—		—			28,980
Asset-backed securities		10,379		—		(14	)		10,365
Total marketable securities	$	54,631	$	—	$	(29	)	$	54,602

	As of 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 by Level in Accordance with ASC 820 of Marketable Securities

The following tables presents fair value by level in accordance with ASC 820 (see Note 2) of the Company’s marketable securities (in thousands):


	Fair Value Measurement as of December 31, 2021
	Level 1		Level 2		Level 3		Total
U.S. treasury securities	$	15,257	$	—	$	—	$	15,257
Commercial paper		—		28,980		—		28,980
Asset-backed securities		—		10,365		—		10,365
Total	$	15,257	$	39,345	$	—	$	54,602

	Fair Value Measurement as of December 31, 2020
	Level 1		Level 2		Level 3		Total
U.S. treasury securities	$	11,609	$	—	$	—	$	11,609
Commercial paper		—		41,673		—		41,673
Asset-backed securities		—		1,502		—		1,502
Total	$	11,609	$	43,175	$	—	$	54,784

Stock-Based Compensation - Summary of Stock Option Activity (Detail) - 2013 and 2018 Equity Incentive Plan [Member] - Employee and Non-Employee Stock Options [Member] - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares, Outstanding Beginning Balance	2,901,908	1,914,545
Number of shares, Options granted	1,222,786	1,193,956
Number of shares, Exercised	(44,041)	(58,549)
Number of shares, Forfeited	(462,617)	(125,377)
Number of shares, Expired	(174,219)	(22,667)
Number of shares, Outstanding Ending Balance	3,443,817	2,901,908
Number of shares, Options vested and exercisable Ending Balance	1,757,554
Weighted average exercise price, Outstanding Beginning Balance	$ 9.57	$ 9.14
Weighted average exercise price, Options granted	13.28	10.35
Weighted average exercise price, Exercised	12.67	7.73
Weighted average exercise price, Forfeited	13.87	10.78
Weighted average exercise price, Expired	13.84	12.00
Weighted average exercise price, Outstanding Ending Balance	10.05	$ 9.57
Weighted average exercise price, Options vested and exercisable Ending Balance	$ 8.48
Weighted average remaining contractual life (in years), Outstanding	7 years 9 months 18 days
Weighted average remaining contractual life (in years), Options vested and exercisable	6 years 8 months 12 days
Aggregate intrinsic value, Outstanding	$ 3,952,803
Aggregate intrinsic value, Options vested and exercisable Ending Balance	$ 3,211,470

Property and Equipment - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 244,000	$ 43,000

License And Collaboration Agreements

12 Months Ended

Dec. 31, 2021

License And Collaboration Agreements [Abstract]

License and Collaboration Agreements

Note 13—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 $2.3 and $0.3 million payments were recognized in research and development expense in the statement of operations for the years ended December 31, 2021 and 2020, 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.

Investments In Marketable Securities

12 Months Ended

Dec. 31, 2021

Investments [Abstract]

Investments in Marketable Securities

Note 3—Investments in Marketable Securities

Investments in marketable securities consisted of the following as of December 31, 2021 and 2020 (in thousands):


	As of December 31, 2021
	Amortized		Gross Unrealized		Gross Unrealized			Fair
	Cost		Gains		Losses			Value
U.S. treasury securities	$	15,272		—	$	(15	)	$	15,257
Commercial paper		28,980		—		—			28,980
Asset-backed securities		10,379		—		(14	)		10,365
Total marketable securities	$	54,631	$	—	$	(29	)	$	54,602

	As of 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 debt securities are recorded as a separate component of accumulated other comprehensive gain (loss) 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. The Company recorded nominal realized gains and losses during the years ended December 31, 2021 and 2020. The Company has not recorded any impairment charges on marketable securities related to other-than-temporary declines in market value during the years ended December 31, 2021 or 2020.

Accretion of bond discount and premium on marketable securities and interest income on marketable securities is recorded as interest income on the statement of operations and comprehensive loss.

There were no marketable securities with a maturity of greater than one year for either period presented.

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 by level in accordance with ASC 820 (see Note 2) of the Company’s marketable securities (in thousands):


	Fair Value Measurement as of December 31, 2021
	Level 1		Level 2		Level 3		Total
U.S. treasury securities	$	15,257	$	—	$	—	$	15,257
Commercial paper		—		28,980		—		28,980
Asset-backed securities		—		10,365		—		10,365
Total	$	15,257	$	39,345	$	—	$	54,602

	Fair Value Measurement as of December 31, 2020
	Level 1		Level 2		Level 3		Total
U.S. treasury securities	$	11,609	$	—	$	—	$	11,609
Commercial paper		—		41,673		—		41,673
Asset-backed securities		—		1,502		—		1,502
Total	$	11,609	$	43,175	$	—	$	54,784

Accrued Expenses (Tables)

12 Months Ended

Dec. 31, 2021

Payables and Accruals [Abstract]

Schedule of Accrued Expenses

Accrued expenses consisted of the following (in thousands):


	As of December 31,
	2021		2020
Compensation and related costs	$	1,667	$	1,338
Clinical trials and drug development		613		611
Professional fees		406		447
Interest expense		250		219
Construction in process		131		277
Machinery and equipment		124		—
Other accrued expenses and other current liabilities		75		222
Total accrued expenses and other current liabilities	$	3,266	$	3,114

Income Taxes - Reconciliation of Income Taxes at U.S. Federal Statutory Rate to Provision for Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Tax computed at statutory federal income tax rate	$ (7,367)	$ (8,966)
State taxes, net of federal benefit	(2,697)	(2,938)
Permanent items	282	1,283
R&D credits	26	(2,405)
Other	205	(2)
Change in valuation allowance	$ 9,551	$ 13,028

Significant Accounting Policies - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2021 USD ($) Segment	Dec. 31, 2020 USD ($)
Significant Accounting Policies [Line Items]
Number of operating segments \| Segment	1
Marketable securities with maturity of greater than one year	$ 0
Financial instruments with off-balance sheet risk of loss	0
Impairment losses	$ 0	$ 0
Expected dividend yield	0.00%
Expected dividend payments	$ 0
Accounting Standards Update 2018-13 [Member]
Significant Accounting Policies [Line Items]
Change in accounting principle, accounting standards update, adopted [true false]	true
Change in accounting principle, accounting standards update, adoption date	Jan. 01, 2020
Change in accounting principle, accounting Standards Update, immaterial effect [true false]	true
Accounting Standards Update 2018-15 [Member]
Significant Accounting Policies [Line Items]
Change in accounting principle, accounting standards update, adopted [true false]	true
Change in accounting principle, accounting standards update, adoption date	Jan. 01, 2020
Change in accounting principle, accounting Standards Update, immaterial effect [true false]	true
Accounting Standards Update 2014-09 [Member]
Significant Accounting Policies [Line Items]
Change in accounting principle, accounting standards update, adopted [true false]	true
Change in accounting principle, accounting standards update, adoption date	Jan. 01, 2020
Change in accounting principle, accounting Standards Update, immaterial effect [true false]	true

Leases - Schedule of Maturities of Operating Lease (Detail) - USD ($)	Dec. 31, 2021	Sep. 01, 2020
Leases [Abstract]
Finance Lease, Year one	$ 7,000
Finance Lease, Year Two	7,000
Finance Lease, Year Three	8,000
Finance Lease, Year Four	2,000
Finance Lease, Total lease payments	24,000
Less Finance Lease imputed interest	(2,000)
Finance Lease, Lease liability	22,000
Operating Lease, Year one	344,000
Operating Lease, Year Two	349,000
Operating Lease, Year Three	355,000
Operating Lease, Year Four	360,000
Operating Lease, After Year Four	613,000
Operating Lease, Total lease payments	2,021,000
Less Operating Lease, imputed interest	(327,000)
Operating Lease, Lease liability	$ 1,694,000	$ 1,900,000

Stockholders' Equity

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Stockholders' Equity

Note 8—Stockholders’ Equity

Common Stock

The Company had authorized 200,000,000 shares of common stock, $0.0001 par value per share, as of each of December 31, 2021 and 2020. Each share of common stock is entitled to one vote. Common stock owners are entitled to dividends when funds are legally available and declared by the Board.

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.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (g)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-URI http://asc.fasb.org/topic&trid=2208762

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (h)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 16
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496180-112644

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Debt

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Debt

Note 11–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, or SVB, 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 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 the “Term B1 Loan”.

On March 1, 2022, the Company entered into the Second Mezzanine Loan Amendment . Pursuant to the Second Mezzanine Loan Amendment, the Company is no longer required to maintain a minimum liquidity ratio or achieve minimum levels of trailing six-month net product revenues. Under the terms of the Second Mezzanine Loan Amendment, the Company will be required to maintain a minimum cash balance equal to the outstanding amount of the term loans under the Existing Mezzanine Credit Facility (as defined in Note 14) at all times in a separate money market account with SVB. The Company also entered into the Second Senior Loan Amendment pursuant to which, the Company is no longer required to achieve minimum levels of trailing six-month net product revenues. See Note 14 for additional discussion of the Second Mezzanine Loan Amendment and the Second Senior Loan Amendment.

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. 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 using the effective interest rate method over the term of the Term Loan with an increase in debt. The Company may prepay all, or any portion of the Term Loans upon 5 business days advance written notice to the Agent, provided that the Company will be obligated to pay a prepayment fee equal to (i) $1.0 million if prepaid

between October 27, 2021 and October 26, 2022, and (ii) $0.5 million if prepaid between October 27, 2022 and October 26, 2023 and (iii) no prepayment fee if prepaid after October 26, 2023 (each, a “Prepayment Fee”).

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 delivery of financial statements, maintenance of inventory, payment of taxes, maintenance of insurance, protection of intellectual property rights, dispositions of property, business combinations or acquisitions, incurrence of additional indebtedness or liens, investments and transactions with affiliates among other customary covenants. As of December 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 Company believes that, without additional financing, it is probable that it will not be in compliance with its minimum liquidity ratio covenant at some point in the next twelve months. In addition, under the Second Mezzanine Loan Amendment dated March 1, 2022, without additional financing, it is probable that the Company will not be in compliance with its minimum cash requirement 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 December 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 years ended December 31, 2021 and 2020, the Company recognized interest expense of $4.3 and $3.0 million, respectively, of which $2.9 and $2.1 million, respectively, was interest on the term loan and $1.4 and $0.9 million, respectively, was noncash interest expense related to the amortization of deferred debt issuance costs and accrual of the final payment fee.

The following table summarizes the composition of debt as reflected on the balance sheet as of December 31, 2021 (in thousands):


Gross proceeds	$	40,000
Accrued final payment fee		3,750
Unamortized debt discount and issuance costs		(2,057	)
Total short-term debt, net	$	41,693

The aggregate maturities of debt as of December 31, 2021 are as follows (in thousands):

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI http://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1E
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Debt (Tables)

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Summary of Composition of Debt

The following table summarizes the composition of debt as reflected on the balance sheet as of December 31, 2021 (in thousands):


Gross proceeds	$	40,000
Accrued final payment fee		3,750
Unamortized debt discount and issuance costs		(2,057	)
Total short-term debt, net	$	41,693

Schedule of Aggregate Maturities of Debt

The aggregate maturities of debt as of December 31, 2021 are as follows (in thousands):

Accrued Expenses

12 Months Ended

Dec. 31, 2021

Payables and Accruals [Abstract]

Accrued Expenses

Note 6—Accrued Expenses

Accrued expenses consisted of the following (in thousands):


	As of December 31,
	2021		2020
Compensation and related costs	$	1,667	$	1,338
Clinical trials and drug development		613		611
Professional fees		406		447
Interest expense		250		219
Construction in process		131		277
Machinery and equipment		124		—
Other accrued expenses and other current liabilities		75		222
Total accrued expenses and other current liabilities	$	3,266	$	3,114

Commitments and Contingencies

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 7—Commitments and Contingencies

Litigation

The Company is involved in ordinary, routine legal proceedings that are not considered by management to be material. In the opinion of Company counsel and management, the ultimate liabilities resulting from such legal proceedings will not materially affect the financial position of the Company or its results of operations or cash flows.

Supply Agreement and Purchase Order

On July 16, 2018, the Company entered into a supply agreement with a supplier of crude cantharidin material. All executed purchase orders for crude cantharidin in the ordinary course of business are expected to be covered under the terms of the supply agreement. Pursuant to the supply agreement, the supplier has agreed that it will not supply cantharidin, any beetles or other raw material from which cantharidin is derived to any other customer in North America, subject to specified minimum annual purchase orders and forecasts by the Company. The supply agreement has an initial five-year term, which is subject to automatic renewal absent termination by either party in accordance with the terms of the supply agreement. Each party also has the right to terminate the supply agreement for other customary reasons such as material breach or bankruptcy.

During 2019, the Company executed a single purchase order pursuant to which the Company agreed to purchase $1.8 million of crude cantharidin material and made a prepayment of $1.1 million against this purchase order. The Company received the shipments of material in 2020 and as of December 31, 2020, this purchase order was fulfilled. During 2021, the Company executed a single purchase order pursuant to which the Company agreed to purchase $0.8 million of crude cantharidin material and made a prepayment of $0.8 million against this purchase order, recorded as prepaid expense in the balance sheet as of December 31, 2021. The Company received the shipments of material in 2022.

BALANCE SHEETS - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 15,752,000	$ 10,686,000
Marketable securities	54,602,000	54,784,000
Prepaid expenses and other assets	3,974,000	2,180,000
Total current assets	74,328,000	67,650,000
Property and equipment, net	3,894,000	3,102,000
Operating lease right-of-use asset	1,608,000	1,836,000
Other non-current assets	295,000	1,566,000
Total assets	80,125,000	74,154,000
Current liabilities:
Accounts payable	845,000	348,000
Accrued expenses and other current liabilities	3,266,000	3,114,000
Operating lease liability	244,600	198,000
Financing lease liability	6,000
Deferred revenue		500,000
Debt, net	41,693,000	35,315,000
Total current liabilities	46,055,000	39,475,000
Operating lease liability	1,449,000	1,693,000
Financing lease liability	16,000
Total liabilities	47,520,000	41,168,000
Stockholders’ equity:
Common stock, $0.0001 par value; 200,000,000 authorized as of December 31, 2020 and 2019; 25,546,257 shares issued and 25,441,113 shares outstanding as of December 31, 2020 and 25,912,137 shares issued and 25,786,330 shares outstanding as of December 31, 2019	3,000	3,000
Additional paid-in capital	171,597,000	136,868,000
Accumulated deficit	(138,966,000)	(103,886,000)
Accumulated other comprehensive (loss) gain	(29,000)	1,000
Total stockholders’ equity	32,605,000	32,986,000
Total liabilities and stockholders’ equity	$ 80,125,000	$ 74,154,000

Debt - Schedule of Aggregate Maturities of Debt (Detail) $ in Thousands	Dec. 31, 2021 USD ($)
Debt Disclosure [Abstract]
2022	$ 15,000
2023	20,000
2024	5,000
Long-term debt	$ 40,000

Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Deferred tax assets:
Net operating loss carryovers	$ 31,514	$ 23,881
Share-based compensation	3,321	2,170
Tax credits	2,380	2,405
Amortization	678
Accrued compensation	479	388
Lease liabilities	497	549
Other	16	12
Total deferred tax assets	38,885	29,405
Less valuation allowance	(38,414)	(28,863)
Deferred tax asset, net of valuation allowance	471	542
Deferred tax liabilities:
Right-of-use assets	(466)	(532)
Fixed assets	(5)	(10)
Total deferred tax liabilities	$ (471)	$ (542)

BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 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	27,624,197	25,546,257
Common stock, shares outstanding	27,519,053	25,441,113
Treasury stock, shares	105,144	105,144

STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 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	$ 15,929	$ 15,673
General and administrative	26,979	24,508
Total operating expenses	42,908	40,181
Loss from operations	(30,908)	(40,181)
Other income (expense):
Interest income	123	521
Interest expense	(4,295)	(3,034)
Total other expense	(4,172)	(2,513)
Net loss	$ (35,080)	$ (42,694)
Net loss per share, basic and diluted	$ (1.30)	$ (1.71)
Weighted-average common shares outstanding, basic and diluted	27,044,462	24,995,556
Other comprehensive loss:
Unrealized loss on marketable securities	$ (30)	$ (19)
Comprehensive loss	$ (35,110)	$ (42,713)

Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Note 12–Income Taxes

There is no provision for income taxes as the Company has incurred operating losses since inception and maintains a full valuation allowance against its deferred tax assets.

Differences between the provision (benefit) for income taxes and income taxes at the statutory federal income tax rate are as follows (in thousands):


	For the Year Ended December 31,
	2021			2020
Tax computed at statutory federal income tax rate	$	(7,367	)	$	(8,966	)
State taxes, net of federal benefit		(2,697	)		(2,938	)
Permanent items		282			1,283
R&D credits		26			(2,405	)
Other		205			(2	)
Change in valuation allowance		9,551			13,028
Income tax provision (benefit)	$	—		$	—

Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):


	As of December 31,
	2021			2020
Deferred tax assets:
Net operating loss carryovers	$	31,514		$	23,881
Share-based compensation		3,321			2,170
Tax credits		2,380			2,405
Amortization		678			—
Accrued compensation		479			388
Lease liabilities		497			549
Other		16			12
Total deferred tax assets		38,885			29,405
Less valuation allowance		(38,414	)		(28,863	)
Deferred tax asset, net of valuation allowance		471			542
Deferred tax liabilities:
Right-of-use assets		(466	)		(532	)
Fixed assets		(5	)		(10	)
Total deferred tax liabilities		(471	)		(542	)
Net deferred tax assets	$	—		$	—

The Company has determined, based upon all available evidence, that it is more likely than not that the net deferred tax asset will not be realized and, accordingly, has provided a full valuation allowance against its net deferred tax asset.

As of December 31, 2021, the Company had federal and state net operating loss carryforwards of approximately $109.0 million and $110.9 million, respectively. The federal net operating loss carryforwards

included in the foregoing totals that were generated prior to 2018 (federal of approximately $6.9 million) will begin to expire, if not utilized, by 2033. Under the 2017 federal income tax law changes, federal net operating losses incurred in 2018 and in future years may be carried forward indefinitely, but the deductibility of such federal net operating losses is limited. As of December 31, 2021, the Company had federal and state research and development carryforwards of $2.4 million. In addition, under Section 382 of the Internal Revenue Code of 1986, as amended, and corresponding provisions of state law, if a corporation undergoes an “ownership change,” which is generally defined as a greater than 50% change, by value, in its equity ownership over a three-year period, the corporation’s ability to use its pre-change net operating loss and tax credit carryforwards may be limited. The Company has not done an analysis to determine whether or not ownership changes have occurred since inception.

As of December 31, 2019, the Company had uncertain tax positions related to federal income tax credits for its research and development activities. The total amount of unrecognized tax benefits was $1.5 million. The Company released the uncertain tax position in 2020 and as of December 31, 2021 and 2020 has recognized a deferred tax benefit of $2.4 million of federal income tax credits for its research and development activities. The Company will recognize interest and penalties, if any, related to uncertain tax positions in income tax expense. As of December 31, 2021 and 2020, the Company had no accrued interest or penalties related to uncertain tax positions and no amounts have been recognized in the Company’s statement of operations. The Company does not anticipate a material change to unrecognized tax benefits in the next twelve months.

The 2017 and subsequent federal and state tax years for the Company remain open for the assessment of income taxes.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI http://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended				12 Months Ended
	Dec. 31, 2020	Aug. 31, 2020	Dec. 31, 2019	Nov. 30, 2019	Dec. 31, 2021	Dec. 31, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Treasury stock, shares	105,144				105,144	105,144
Amended and Restated Agreement [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Treasury stock, shares					848,859
Repurchase price					$ 0.0001714
Non-vested, Number of shares, Vested	424,430
Repurchased and retired common stock	424,429
Shares issued, value, share-based payment arrangement	$ 4.8
Stock repurchased and retired per share	$ 0.0001714
Employee and Non-Employee Stock Options [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options granted contractual term					10 years
Stock option vesting term, description					through 2025
Stock options expiration term, description					through 2031
Weighted average grant date fair value per share					$ 9.72	$ 7.00
Total unrecognized compensation					$ 11.7
Weighted-average stock option recognize period					2 years 10 months 24 days
Employee and Non-Employee Stock Options [Member] \| Share-based Compensation Award, Tranche One [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of stock subject to vesting (as a percent)					25.00%
Stock vesting period					12 months
Employee and Non-Employee Stock Options [Member] \| Share-based Compensation Award, Tranche Two [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of stock subject to vesting (as a percent)					75.00%
Stock vesting period					12 months
Employee Stock Options [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of exercise shares vested stock options			27,329
Restricted Stock Units (RSUs) [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock vesting period				1 year
Restricted Stock Units (RSUs) [Member] \| Executive Officers [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Shares, Granted		250,000		300,000
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%
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 [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total unrecognized compensation related to nonvested restricted stock					$ 5.0
Restricted Stock [Member] \| Amended and Restated Agreement [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-vested, Number of shares, Vested						424,430
Stock repurchased and retired per share						$ 11.27
Number of Shares, Granted						250,000
2018 Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock shares reserved for issuance					3,738,199
Shares issued					2,198,198
Number of years reserved share increase					10 years
Annual Increase in number of common shares from January 1, 2019 through January 1, 2028					4.00%
Shares available for grant					2,496,593

Subsequent Event

12 Months Ended

Dec. 31, 2021

Subsequent Events [Abstract]

Subsequent Event

Note 14–Subsequent Event

On March 1, 2022, the Company entered into the Second Mezzanine Loan Amendment to its existing mezzanine loan and security agreement (as amended prior to the Amendment, the “Existing Mezzanine Credit Facility”) with SVB, as administrative agent and a lender and SVB Innovation Credit Fund VIII, L.P. as a lender. Pursuant to the Second Mezzanine Loan Amendment, the Company is no longer required to maintain a minimum liquidity ratio or achieve minimum levels of trailing six-month net product revenues. Under the terms of the Second Mezzanine Loan Amendment, the Company will be required to maintain a minimum cash balance equal to the outstanding amount of the term loans under the Existing Mezzanine Credit Facility at all times in a separate money market account with SVB. The Company also entered into the Second Senior Loan Amendment (together with the Second Mezzanine Loan Amendment, the “Second Amendments”) to its existing loan and security agreement (as amended prior to the Amendment, the “Existing Senior Credit Facility” and together with the Existing Mezzanine Credit Facility, the “Existing Credit Facilities”) with SVB, pursuant to which, the Company is no longer required to achieve minimum levels of trailing six-month net product revenues. Pursuant to the Second Amendments, The Term Loans will be interest-only through February 28, 2023, followed by 12 equal monthly payments of principal and interest.

Other than as amended by the Second Amendments, the remaining terms of the Existing Credit Facilities remain in full force and effect.

Significant Accounting Policies - Schedule of Potential Shares Outstanding not Included in Computation of Diluted Net Loss Per Common Share (Detail) - shares	12 Months Ended
	Dec. 31, 2021	Dec. 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	3,443,817	2,901,908
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	425,000	475,000

Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Accrued Liabilities, Current [Abstract]
Compensation and related costs	$ 1,667	$ 1,338
Clinical trials and drug development	613	611
Professional fees	406	447
Interest expense	250	219
Construction in process	131	277
Machinery and equipment	124
Other accrued expenses and other current liabilities	75	222
Total accrued expenses and other current liabilities	$ 3,266	$ 3,114

Stock-Based Compensation - Assumptions Used to Estimate Fair Value Employee Stock Options (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Share Based Payment Award Stock Options Valuation Assumptions [Line Items]
Dividend yield	0.00%
Employee and Non-Employee Stock Options [Member]
Share Based Payment Award Stock Options Valuation Assumptions [Line Items]
Risk-free rate of interest, minimum	0.76%	0.27%
Risk-free rate of interest, maximum	1.24%	1.67%
Expected term (years)	6 years	6 years
Expected stock price volatility, minimum	87.14%	76.71%
Expected stock price volatility, maximum	89.39%	85.97%
Weighted average grant date fair value	$ 9.72	$ 7.00
Employee and Non-Employee Stock Options [Member] \| Minimum [Member]
Share Based Payment Award Stock Options Valuation Assumptions [Line Items]
Exercise price	9.26	6.56
Employee and Non-Employee Stock Options [Member] \| Maximum [Member]
Share Based Payment Award Stock Options Valuation Assumptions [Line Items]
Exercise price	$ 15.10	$ 15.91

Leases - Summary of Components of Lease Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Amortization ROU assets	$ 5
Total finance lease cost	5
Operating lease costs	346	$ 164
Short-term lease costs	21	22
Total operating lease	$ 367	$ 186

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Basis of Presentation

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative United States generally accepted accounting principles as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”). The Company’s functional currency is the U.S. dollar.

The Company has been actively monitoring the novel coronavirus (“COVID-19”) pandemic and its impact globally. Management believes the financial results for the years ended December 31, 2021 and 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.

Segments

Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker in making decisions regarding resource allocation and assessing performance. The Company views its operations and manages its business in one operating segment.

Cash Cash Equivalents and Marketable Securities

Cash, Cash Equivalents and Marketable Securities

The Company considers all highly liquid investments purchased with original maturities of 90 days or less at acquisition to be cash equivalents. Cash and cash equivalents include cash held in banks and money market mutual funds.

The Company classifies its marketable securities as “available-for-sale”, pursuant to ASC 320, Investments—Debt and Equity Securities, carries them at fair market value and classifies them as current assets on its balance sheets. There were no marketable securities with a maturity of greater than one year as of December 31, 2021. Unrealized gains and losses on marketable debt securities are recorded as a separate component of accumulated other comprehensive gain or loss included in stockholders’ equity.

Concentrations of Credit Risk and Off-Balance Sheet Risk

Cash, cash equivalents and marketable securities are financial instruments that are potentially subject to concentrations of credit risk. The Company’s deposits are in accounts at large financial institutions, and amounts may exceed federally insured limits. The Company believes it is not exposed to significant credit risk due to the financial strength of the depository institutions in which the funds are held. The Company has no financial instruments with off-balance sheet risk of loss.

Property and Equipment

Property and equipment is recorded at cost less accumulated depreciation. Depreciation and amortization is calculated using the straight line method over the expected useful life of the asset, after the asset is placed in service. The Company generally uses the following depreciable lives for its major classifications of property and equipment:

Expenditures associated with upgrades and enhancements that improve, add functionality, or otherwise extend the life of property and equipment are capitalized, while expenditures that do not, such as repairs and maintenance, are expensed as incurred.

The Company reviews long-lived assets, including property and equipment, for impairment whenever events or changes in business circumstances indicate that the carrying amount of an asset may not be fully recoverable. If the estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition is less than its carrying amount, an impairment loss would be recognized if the carrying value of the asset exceeds its fair value. Fair value is generally determined using discounted cash flows. No impairment losses have been recorded during the years ended December 31, 2021 or 2020.


Description		Useful lives
Machinery and equipment		3 - 5 years
Office furniture and fixtures and equipment		3 years
Leasehold improvements		Lease Term
Automobiles		3 years

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 13 for a full discussion of the Company’s license revenue.

Research and Development Costs

The Company’s research and development expenses consist primarily of costs associated with the Company’s clinical trials, salaries, payroll taxes, employee benefits, and equity-based compensation charges for those individuals involved in ongoing research and development efforts. Research and development costs are expensed as incurred. Advance payments for goods and services that will be used in future research and development activities

are expensed when the activity has been performed or when the goods have been received rather than when the payment is made.

Fair Value Measurement

ASC 820, Fair Value Measurements, provides guidance on the development and disclosure of fair value measurements. Under this accounting guidance, fair value is defined as an exit price, representing the amount 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. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability.

The accounting guidance classifies fair value measurements in one of the following three categories for disclosure purposes:

Level 1: Quoted prices in active markets for identical assets or liabilities.

Level 2: Inputs other than Level 1 prices for similar assets or liabilities that are directly or indirectly observable in the marketplace.

Level 3: Unobservable inputs which are supported by little or no market activity and values determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment or estimation.

Comprehensive Loss

Comprehensive loss is defined as the change in equity of a business enterprise during a period from transactions, and other events and circumstances from non-owner sources. For the years ended December 31, 2021 and 2020, comprehensive loss includes net loss and unrealized loss on marketable securities.

Share Based Compensation

Stock-Based Compensation

The Company accounts for stock-based compensation awards in accordance with ASC 718, Compensation –Stock Compensation. The Company uses the Black-Scholes option-pricing model to value its stock option awards. For stock-based awards granted to employees, non-employees and to members of the board of directors for their services, the Company estimates the grant date fair value of each option award and recognizes compensation expense on a straight-line basis over the vesting period of the award.

The use of the Black‑Scholes option-pricing model requires management to make assumptions with respect to the expected term of the option, the expected volatility of the common stock consistent with the expected life of the option, risk‑free interest rates, and, for grants prior to the Company’s IPO, the value of the common stock. The expected life of stock options was estimated using the “simplified method,” as the Company has limited historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior for its stock options grants. The simplified method is based on the average of the vesting tranches and the contractual life of each grant. The Company historically has been a private company and lacks company-specific historical and implied volatility information. Therefore, it estimates its expected stock volatility based on the historical volatility of a publicly traded set of peer companies in addition to the volatility of the Company's stock. The risk-free interest rate is based on U.S. Treasury notes with a term approximating the expected life of the option. Expected dividend yield is zero based on the fact that the Company has never paid cash dividends and does not expect to pay any cash dividends in the foreseeable future.

The fair value of restricted stock awards are based on the closing price of the Company’s common stock on the grant date.

Income Taxes

Income taxes are recorded in accordance with ASC 740, Income Taxes, which provides for deferred taxes using an asset and liability approach. The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are provided, if based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

The Company accounts for uncertain tax positions in accordance with the provisions of ASC 740. When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit would more likely than not be realized assuming examination by the taxing authority. The determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position as well as consideration of the available facts and circumstances.

Net Loss Per Share

Net loss per share of common stock is computed by dividing net loss attributable to common stockholders 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 December 31,
	2021		2020
Shares issuable upon exercise of stock options		3,443,817		2,901,908
Non-vested shares under restricted stock grants		425,000		475,000

Recently Adopted Accounting Pronouncements

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework–Changes to the Disclosure Requirements for Fair Value Measurement, which makes a number of changes meant to add, modify or remove certain disclosure requirements associated with the movement amongst or hierarchy associated with Level 1, Level 2 and Level 3 fair value measurements. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The adoption of this guidance as of January 1, 2020 did not have an impact on the financial statements.

In August 2018, the FASB issued ASU 2018-15, Intangibles–Goodwill and Other–Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The guidance also requires the entity to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement, which includes reasonably certain renewals. The adoption of this guidance as of January 1, 2020 did not have an impact on the financial statements.

As of January 1, 2020 the Company has adopted Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers.” 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. The adoption of this guidance as of January 1, 2020 did not have an impact on the prior year financial statements.

License and Collaboration Agreements - Additional Information (Detail) - USD ($) $ in Thousands		1 Months Ended				12 Months Ended
	Mar. 17, 2021	Apr. 30, 2021	Feb. 28, 2021	Dec. 31, 2020	Aug. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
License And Collaboration Agreements [Line Items]
Research and development expense						$ 15,929	$ 15,673
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%

Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Schedule of Depreciable Lives of Property and Equipment

The Company generally uses the following depreciable lives for its major classifications of property and equipment:


Description		Useful lives
Machinery and equipment		3 - 5 years
Office furniture and fixtures and equipment		3 years
Leasehold improvements		Lease Term
Automobiles		3 years

Schedule of Potential Shares Outstanding not Included in Computation of Diluted Net Loss Per Common Share


	As of December 31,
	2021		2020
Shares issuable upon exercise of stock options		3,443,817		2,901,908
Non-vested shares under restricted stock grants		425,000		475,000

Stock-Based Compensation - Schedule of Restricted Stock Awards Activities (Detail) - Amended and Restated Agreement [Member] - $ / shares	1 Months Ended	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-vested, Number of shares, Vested	(424,430)
Non-vested, Weighted average grant date fair value, Vested	$ 0.0001714
Restricted Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-vested, Number of Shares, Beginning Balance		475,000	1,148,859
Non-vested, Number of Shares, Granted			250,000
Non-vested, Number of shares, Forfeitures		(50,000)	(499,429)
Non-vested, Number of shares, Vested			(424,430)
Non-vested, Number of Shares, Ending Balance	475,000	425,000	475,000
Non-vested, Weighted Average Grant Date Fair Value, Beginning Balance		$ 11.74	$ 4.35
Non-vested, Weighted Average Grant Date Fair Value, Granted			8.17
Non-vested, Weighted average grant date fair value, Forfeitures		12.29	2.64
Non-vested, Weighted average grant date fair value, Vested			11.27
Non-vested, Weighted Average Grant Date Fair Value, Ending Balance	$ 11.74	$ 11.68	$ 11.74

Stock-Based Compensation

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

Note 9—Stock-Based Compensation

In June 2018, the Board adopted and approved the 2018 Equity Incentive Plan (the “2018 Plan”), which amended and restated the Company’s prior 2013 Equity Incentive Plan (the “2013 Plan”) and became effective in connection with the IPO. Prior to the effectiveness of the 2018 Plan, the 2013 Plan provided for the grant of share-based awards to employees, directors and consultants of the Company. As a result of the effectiveness of the 2018 Plan, no further grants may be made under the 2013 Plan.

The 2018 Plan provides for the grant of incentive stock options to employees, and for the grant of nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance-based stock awards and other forms of stock awards to employees, including officers, consultants and directors. The 2018 Plan also provides for the grant of performance-based cash awards to employees, including officers, consultants and directors. The Company initially reserved 3,738,199 shares of common stock for issuance under the 2018 Plan, which is the sum of (1) 2,198,198 new shares, plus (2) the number of shares reserved for issuance under the 2013 Plan at the time the 2018 Plan became effective, plus (3) any shares subject to outstanding stock options or other stock awards that would have otherwise returned to the 2013 Plan (such as upon the expiration or termination of a stock award prior to exercise). The number of shares of common stock reserved for issuance under the 2018 Plan will automatically increase on January 1 each year, for a period of ten years, from January 1, 2019 through January 1, 2028, by 4% of the total number of shares of the Company’s common stock outstanding on December 31 of the preceding calendar year, or a lesser number of shares as may be determined by the Board. As of December 31, 2021, 2,496,593 shares were available for grant under the 2018 Plan.

Stock Options

The Company’s employee and non-employee stock options generally vest as follows: 25% after 12 months of continuous services and the remaining 75% on a ratable basis over a 36-month period from 12 months after the grant date. Stock options granted during the year ended December 31, 2021 have a maximum contractual term of 10 years. The stock options are subject to time vesting requirements through 2025, are nontransferable, and have term expiration dates set to expire through 2031.


	For the Year Ended December 31,
	2021	2020
Exercise price	$9.26 - $15.10	$6.56 - $15.91
Risk-free rate of interest	0.76% - 1.24%	0.27% - 1.67%
Expected term (years)	6	6
Expected stock price volatility	87.14% - 89.39%	76.71% - 85.97%
Dividend yield	—	—
Weighted average grant date fair value	$9.72	$7.00

The following table summarizes the Company’s employee and non-employee stock option activity under the 2013 Plan and 2018 Plan for the years ended December 31, 2021 and 2020:


						Weighted average
	Number of			Weighted average		remaining contractual		Aggregate intrinsic
	shares			exercise price		life (in years)		value
Outstanding as of December 31, 2019		1,914,545		$	9.14
Options granted		1,193,956			10.35
Exercised		(58,549	)		7.73
Forfeited		(125,377	)		10.78
Expired		(22,667	)		12.00
Outstanding as of December 31, 2020		2,901,908			9.57
Options granted		1,222,786			13.28
Exercised		(44,041	)		12.67
Forfeited		(462,617	)		13.87
Expired		(174,219	)		13.84
Outstanding as of December 31, 2021		3,443,817		$	10.05		7.8	$	3,952,803
Options vested and exercisable as of December 31, 2021		1,757,554		$	8.48		6.7	$	3,211,470

The aggregate intrinsic value in the above table is calculated as the difference between fair value of the Company’s common stock price and the exercise price of the stock options. The weighted average grant date fair value per share for the employee and non-employee stock options granted during the years ended December 31, 2021 and 2020 was $9.72 and $7.00, respectively. As of December 31, 2021, the total unrecognized compensation related to unvested employee and non-employee stock option awards granted was $11.7 million, which the Company expects to recognize over a weighted-average period of 2.9 years.

The Company utilizes a designated broker to process exercises of stock options. In late December 2019, there was an exercise of 27,329 vested stock options for which the Company did not receive the net proceeds from the designated broker until early January 2020. The net proceeds were reflected as a stock subscription receivable as of December 31, 2019 in the balance sheet.

Restricted Stock

Pursuant to the Amended and Restated Stock Purchase Agreement (the “Amended and Restated Agreement”) between the Company and the former CSO, 848,859 shares held by the former CSO were subject to repurchase by the Company at $0.0001714 per share in the event the former CSO ceased to be a consultant to the Company. These shares were to be released from the repurchase option on the earliest to occur of (i) a change in

control, (ii) regulatory approval of the Company’s new drug application for VP-102 for the treatment of molluscum, (iii) commercial sale of products and (iv) a covered termination, as defined in the Amended and Restated Agreement.

In December 2020, the Company and the former CSO amended the agreement whereby 424,430 shares were no longer subject to repurchase and the remaining 424,429 shares were repurchased and retired by the Company at $0.0001714 per share. The Company accounted for the December 2020 amendment as a modification to a share-based payment arrangement whereby the shares no longer subject to repurchase represent a new grant. The value of the new grant was $4.8 million and was recognized immediately. Prior to the December 2020 modification, no compensation expense had been recognized for these nonvested shares as these shares were performance-based and the triggering event was not determined to be probable.

In November 2019 and August 2020, the Company granted 300,000 and 250,000 restricted stock units to its executive officers. The restricted stock units vest 50% upon receipt of regulatory approval of the Company’s new drug application for VP-102 for the treatment of molluscum (the “Approval Date”) and 50% shall vest on the one year anniversary of the Approval Date subject to the holders’ continuous service through each applicable date. No compensation expenses has been recognized for these nonvested restricted stock units as these shares are performance based and the triggering event was not determined to be probable as of December 31, 2021. As of December 31, 2021 the total unrecognized compensation expense related to the restricted stock was $5.0 million.

The following table summarizes restricted stock awards:


				Weighted Average
				Grant Date Fair
	Number of Shares			Value
Non-vested as of December 31, 2019		1,148,859		$	4.35
Granted		250,000			8.17
Forfeitures		(499,429	)		2.64
Vested		(424,430	)	$	11.27
Non-vested as of December 31, 2020		475,000			11.74
Granted		—			—
Forfeitures		(50,000	)		12.29
Vested		—			—
Non-vested as of December 31, 2021		425,000		$	11.68


	For the Year Ended December 31,
	2021		2020
Research and development	$	1,513	$	813
General and administrative		4,540		9,008
Total stock-based compensation	$	6,053	$	9,821

Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Mar. 25, 2021	Dec. 31, 2021	Dec. 31, 2020
Class of Stock [Line Items]
Common stock, authorized		200,000,000	200,000,000
Common stock, par value		$ 0.0001	$ 0.0001
Common stock, voting right		one
Net proceeds from issuance		$ 28,118
Follow-on Public Offering [Member]
Class of Stock [Line Items]
Number of common shares sold	2,033,899
Share price	$ 14.75
Net proceeds from issuance	$ 28,100

Organization and Description of Business Operations - Additional Information (Detail) - USD ($)					12 Months Ended
	Mar. 25, 2021	Mar. 17, 2021	Mar. 01, 2021	Mar. 10, 2020	Dec. 31, 2021	Dec. 31, 2020
Description Of Business [Line Items]
Accumulated deficit					$ (138,966,000)	$ (103,886,000)
Net proceeds from issuance					28,118,000
Cash, cash equivalents and marketable securities					70,400,000
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
Mezzanine Loan Agreement [Member] \| Mezzanine Lenders [Member] \| Term A Loan [Member]
Description Of Business [Line Items]
Borrowed amount				$ 35,000,000.0
Mezzanine Loan Agreement [Member] \| Mezzanine Lenders [Member] \| Term B1 Loan [Member]
Description Of Business [Line Items]
Line of credit					$ 5,000,000.0
Borrowed amount			$ 5,000,000.0
Torii Agreement [Member] \| Torii [Member]
Description Of Business [Line Items]
Obligated to make upfront payment		$ 11,500,000

Property and Equipment - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 4,148	$ 3,229
Accumulated depreciation	(254)	(127)
Total property and equipment, net	3,894	3,102
Machinery and Equipment [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	737	102
Office Furniture and Fixtures and Equipment [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	303	117
Office Equipment [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	301	52
Leasehold Improvements [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	49	101
Automobiles [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	27
Construction in Progress [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 2,731	$ 2,857

Related Party Transactions

12 Months Ended

Dec. 31, 2021

Related Party Transactions

Note 5—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 October 1, 2019, the SA was amended to reduce the monthly management fee to $5,000 as a result of a reduction in services provided by PBM.

For each of the years ended December 31, 2021 and 2020, the Company incurred expenses under the SA of $60,000, of which $36,000 were included in general and administrative expenses, and $24,000 were included in research and development expenses.

As of December 31, 2021 and 2020, the Company had no payables due to PBM and its affiliates.

Significant Accounting Policies - Schedule of Depreciable Lives of Property and Equipment (Detail)	12 Months Ended
	Dec. 31, 2021
Machinery and Equipment [Member] \| Minimum [Member]
Property Plant And Equipment [Line Items]
Estimated Useful Lives	3 years
Machinery and Equipment [Member] \| Maximum [Member]
Property Plant And Equipment [Line Items]
Estimated Useful Lives	5 years
Office Furniture and Fixtures and Equipment [Member]
Property Plant And Equipment [Line Items]
Estimated Useful Lives	3 years
Leasehold Improvements [Member]
Property Plant And Equipment [Line Items]
Estimated Useful Lives	Lease Term
Automobiles [Member]
Property Plant And Equipment [Line Items]
Estimated Useful Lives	3 years

Stock-Based Compensation - Schedule of Stock Based Compensation Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 6,053	$ 9,821
Research and Development [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	1,513	813
General and Administrative [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 4,540	$ 9,008

Debt - Summary of Composition of Debt (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Gross proceeds	$ 41,693	$ 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	(2,057)
Total short-term debt, net	$ 41,693

Subsequent Event - Additional Information - (Detail)	Mar. 01, 2022	Oct. 26, 2020
Subsequent Event [Line Items]
Term loans, frequency of periodic payments		24 equal monthly
Second Mezzanine Loan Amendment [Member] \| Subsequent Event [Member]
Subsequent Event [Line Items]
Term loans, payment terms	Term Loans will be interest-only through February 28, 2023, followed by 12 equal monthly payments of principal and interest.
Term loans, frequency of periodic payments	12 equal monthly

Significant Accounting Policies

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Significant Accounting Policies

Note 2—Significant Accounting Policies

Basis of Presentation

Use of Estimates

Segments

Cash, Cash Equivalents and Marketable Securities

Concentrations of Credit Risk and Off-Balance Sheet Risk

Property and Equipment


Description		Useful lives
Machinery and equipment		3 - 5 years
Office furniture and fixtures and equipment		3 years
Leasehold improvements		Lease Term
Automobiles		3 years

Revenue

(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.

License Revenues

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’s revenue arrangements may include the following:

Research and Development Costs

are expensed when the activity has been performed or when the goods have been received rather than when the payment is made.

Fair Value Measurement

The accounting guidance classifies fair value measurements in one of the following three categories for disclosure purposes:

Level 1: Quoted prices in active markets for identical assets or liabilities.

Level 2: Inputs other than Level 1 prices for similar assets or liabilities that are directly or indirectly observable in the marketplace.

Comprehensive Loss

Stock-Based Compensation

The fair value of restricted stock awards are based on the closing price of the Company’s common stock on the grant date.

Income Taxes

Net Loss Per Share


	As of December 31,
	2021		2020
Shares issuable upon exercise of stock options		3,443,817		2,901,908
Non-vested shares under restricted stock grants		425,000		475,000

Recently Adopted Accounting Pronouncements

Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

Note 10—Leases

Effective January 1, 2019, the Company accounts for its leases under ASC 842, Leases (Topic 842). Under this guidance, arrangements meeting the definition of a lease are classified as operating or financing leases and are recorded on the balance sheet as both a right-of-use asset and lease liability, calculated by discounting fixed lease payments over the lease term at the rate implicit in the lease, if available, otherwise at the Company’s incremental borrowing rate. Lease liabilities are increased by interest and reduced by payments each period, and the right-of-use asset is amortized over the lease term. For operating leases, interest on the lease liability and the amortization of the right-of-use asset result in straight-line rent expense over the lease term. Variable lease expenses, if any, are recorded when incurred.

In calculating the right-of-use asset and lease liability, the Company elected 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 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 lease for 5,829 square feet of office space located in West Chester, Pennsylvania that serves as the Company’s headquarters. On March 12, 2020 the Company entered into an amendment to the lease agreement. The amendment expands the original premises to include 5,372 square feet of additional office space increasing the total rentable premise to 11,201 square feet of space. For the first six months following the commencement date of September 1, 2020, the base rent was based on the square footage of the original premises. 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 balance sheet.

As of December 31, 2021, the Company had an operating lease liability of $1,694,000, of which $244,600 was classified as current, and an operating right-of-use asset of $1,608,000.

The Company leases a vehicle for the sales force under a financing lease that expires through 2025. The net basis of the vehicle lease of $22,000 is recorded as property and equipment on the condensed balance sheet.

The components of lease expense are as follows (in thousands):


	For the Year Ended December 31,
	2021		2020
Finance lease cost:
Amortization ROU assets	$	5	$	—
Finance lease costs		—		—
Interest on lease liabilities		—		—
Total finance lease cost	$	5	$	—
Operating lease
Operating lease costs	$	346	$	164
Short-term lease costs		21		22
Total operating lease	$	367	$	186

Maturities of the Company’s operating lease, excluding short-term leases as of December 31, 2021 are as follows (in thousands):


	December 31, 2021
	Operating			Finance
2022	$	344		$	7
2023		349			7
2024		355			8
2025		360			2
Thereafter		613			—
Total lease payments		2,021			24
Less imputed interest		(327	)		(2	)
Lease liability	$	1,694		$	22

The remaining term of the Company’s operating and finance leases were 5.7 and 3.3 years, respectively and the discount rate used to measure the present value of the Company’s operating and finance lease liability were 6.25% and 4.35%, respectively as of December 31, 2021.