Company Quick10K Filing
Quick10K
Verrica Pharmaceuticals
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$9.37 26 $241
10-Q 2019-06-30 Quarter: 2019-06-30
10-Q 2019-03-31 Quarter: 2019-03-31
10-K 2018-12-31 Annual: 2018-12-31
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
8-K 2019-08-07 Earnings, Exhibits
8-K 2019-07-01 Enter Agreement, Exhibits
8-K 2019-06-26 Regulation FD, Exhibits
8-K 2019-06-13 Officers
8-K 2019-06-12 Shareholder Vote
8-K 2019-05-07 Earnings, Exhibits
8-K 2019-04-12 Officers
8-K 2019-01-03 Regulation FD, Exhibits
8-K 2018-11-07 Earnings, Exhibits
8-K 2018-09-12 Regulation FD, Exhibits
8-K 2018-08-07 Earnings, Exhibits
8-K 2018-07-16 Enter Agreement
8-K 2018-06-19 Amend Bylaw, Exhibits
NHI National Health Investors 3,270
CSIQ Canadian Solar 1,120
ZUMZ Zumiez 636
CTMX Cytomx Therapeutics 455
APPS Digital Turbine 299
CCLP CSI Compressco 156
CZWI Citizens Community Bancorp 126
ZENO Zenosense 0
GCNL Griffin Capital Essential Asset REIT 0
SPIN Spine Injury Solutions 0
VRCA 2019-06-30
Part I. Financial Information
Item 1. Unaudited Condensed Financial Statements
Note 1-Nature of Business
Note 2-Significant Accounting Policies
Note 3-Investments in Marketable Securities
Note 4-Property, Plant and Equipment
Note 5-Related Party Transactions
Note 6-Accrued Expenses
Note 7-Stock-Based Compensation
Note 8-Leases
Note 9-Subsequent Event
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risks
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Recent Sales of Unregistered Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 vrca-ex311_6.htm
EX-31.2 vrca-ex312_8.htm
EX-32.1 vrca-ex321_7.htm

Verrica Pharmaceuticals Earnings 2019-06-30

VRCA 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q 1 vrca-10q_20190630.htm 10-Q vrca-10q_20190630.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

 

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2019

OR

 

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from                      to                     

Commission File Number: 001-38529

 

Verrica Pharmaceuticals Inc.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

46-3137900

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

10 North High Street, Suite 200

West Chester, PA

19380

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (484) 453-3300

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock

 

VRCA

 

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

  

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

  

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes       No   

 

As of August 5, 2019, the registrant had 25,741,297 shares of common stock, $0.0001 par value per share, outstanding.

 

 

 


 

VERRICA PHARMACEUTICALS INC.

QUARTERLY REPORT ON FORM 10-Q

TABLE OF CONTENTS

 

PART I. FINANCIAL INFORMATION

 

 

 

 

 

 

 

Item 1.

 

Financial Statements (Unaudited)

 

1

 

 

 

 

 

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

13

 

 

 

 

 

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risks

 

20

 

 

 

 

 

Item 4.

 

Controls and Procedures

 

20

 

 

 

 

 

PART II. OTHER INFORMATION

 

 

 

 

 

 

 

Item 1.

 

Legal Proceedings

 

21

 

 

 

 

 

Item 1A

 

Risk Factors

 

21

 

 

 

 

 

Item 2.

 

Recent Sales of Unregistered Securities and Use of Proceeds

 

21

 

 

 

 

 

Item 3.

 

Defaults Upon Senior Securities

 

21

 

 

 

 

 

Item 4.

 

Mine Safety Disclosures

 

21

 

 

 

 

 

Item 5.

 

Other Information

 

21

 

 

 

 

 

Item 6.

 

Exhibits

 

21

 

 

 

 

 

Signatures

 

23

 

 

 


PART I. FINANCIAL INFORMATION

 

Item 1.

Unaudited Condensed Financial Statements

VERRICA PHARMACEUTICALS INC.

CONDENSED BALANCE SHEETS

(in thousands, except share and per share amounts)

(Unaudited)

 

 

 

June 30,

 

 

December 31,

 

 

 

2019

 

 

2018

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

19,852

 

 

$

10,271

 

Marketable securities

 

 

58,902

 

 

 

79,538

 

Prepaid expenses and other assets

 

 

985

 

 

 

1,343

 

Total current assets

 

 

79,739

 

 

 

91,152

 

Property, plant and equipment, net

 

 

1,252

 

 

 

255

 

Operating lease right-of-use asset

 

 

245

 

 

 

 

Deposits

 

 

14

 

 

 

499

 

Total assets

 

$

81,250

 

 

$

91,906

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,467

 

 

$

922

 

Accrued expenses

 

 

2,684

 

 

 

1,517

 

Accounts payable and accrued expenses - related party

 

 

6

 

 

 

38

 

Operating lease liability

 

 

124

 

 

 

 

Total current liabilities

 

 

4,281

 

 

 

2,477

 

Operating lease liability

 

 

124

 

 

 

 

Total liabilities

 

 

4,405

 

 

 

2,477

 

Commitments and Contingencies

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Preferred stock, $0.0001 par value; 10,000,000 shares authorized; no shares

   issued and outstanding as of June 30, 2019 and December 31, 2018

 

 

 

 

 

 

Common stock, $0.0001 par value; 200,000,000 authorized

   as of June 30, 2019 and December 31, 2018; 25,845,441 shares

   issued and 25,740,297 shares outstanding as of June 30, 2019 and 25,809,900

   shares issued and 25,704,756 shares outstanding as of December 31, 2018

 

 

3

 

 

 

3

 

Treasury stock, at cost, 105,144 shares as of June 30, 2019 and

   December 31, 2018

 

 

 

 

 

 

Additional paid-in capital

 

 

124,269

 

 

 

122,526

 

Accumulated deficit

 

 

(47,465

)

 

 

(33,083

)

Accumulated other comprehensive gain (loss)

 

 

38

 

 

 

(17

)

Total stockholders’ equity

 

 

76,845

 

 

 

89,429

 

Total liabilities and stockholders’ equity

 

$

81,250

 

 

$

91,906

 

 

The accompanying notes are an integral part of these condensed financial statements.

 

1


VERRICA PHARMACEUTICALS INC.

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(in thousands, except share and per share amounts)

(Unaudited)

 

 

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended

June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

$

3,928

 

 

$

3,515

 

 

$

8,415

 

 

$

4,442

 

General and administrative

 

 

3,593

 

 

 

1,955

 

 

 

7,132

 

 

 

2,916

 

Total operating expenses

 

 

7,521

 

 

 

5,470

 

 

 

15,547

 

 

 

7,358

 

Loss from operations

 

 

(7,521

)

 

 

(5,470

)

 

 

(15,547

)

 

 

(7,358

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

523

 

 

 

153

 

 

 

1,070

 

 

 

194

 

Other expense

 

 

(3

)

 

 

 

 

 

(3

)

 

 

 

Total other income (expense)

 

 

520

 

 

 

153

 

 

 

1,067

 

 

 

194

 

Net loss

 

$

(7,001

)

 

$

(5,317

)

 

$

(14,480

)

 

$

(7,164

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share, basic and diluted

 

$

(0.28

)

 

$

(0.92

)

 

$

(0.58

)

 

$

(1.66

)

Weighted average common shares outstanding, basic and diluted

 

 

24,875,573

 

 

 

5,751,326

 

 

 

24,866,721

 

 

 

4,308,996

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(7,001

)

 

$

(5,317

)

 

$

(14,480

)

 

$

(7,164

)

Other comprehensive gain:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain on marketable securities

 

 

27

 

 

 

 

 

 

55

 

 

 

 

Comprehensive loss

 

$

(6,974

)

 

$

(5,317

)

 

$

(14,425

)

 

$

(7,164

)

 

The accompanying notes are an integral part of these condensed financial statements.

 

 

2


VERRICA PHARMACEUTICALS INC.

CONDENSED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY

(in thousands, except share amounts)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

Series A Convertible

 

 

Series B Convertible

 

 

Series C Convertible

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

Total

 

 

 

Preferred Stock

 

 

Preferred Stock

 

 

Preferred Stock

 

 

 

Common Stock

 

 

Additional

 

 

Accumulated

 

 

Treasury Stock

 

 

Comprehensive

 

 

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

 

Shares Issued

 

 

Amount

 

 

Paid-in Capital

 

 

Deficit

 

 

Shares

 

 

Cost

 

 

Gain (Loss)

 

 

Equity

 

January 1, 2019

 

 

 

 

$

 

 

 

 

 

$

 

 

 

 

 

$

 

 

 

 

25,809,900

 

 

$

3

 

 

$

122,526

 

 

$

(33,083

)

 

 

105,144

 

 

$

 

 

$

(17

)

 

$

89,429

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

780

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

780

 

Exercise of stock options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,729

 

 

 

 

 

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 

Unrealized gain on marketable securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

28

 

 

 

28

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,479

)

 

 

 

 

 

 

 

 

 

 

 

(7,479

)

Adoption of ASU 2018-07 (See Note 2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(98

)

 

 

98

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

25,813,629

 

 

 

3

 

 

 

123,211

 

 

 

(40,464

)

 

 

105,144

 

 

 

 

 

 

11

 

 

 

82,761

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

846

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

846

 

Exercise of stock options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31,812

 

 

 

 

 

 

212

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

212

 

Unrealized gain on marketable securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27

 

 

 

27

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,001

)

 

 

 

 

 

 

 

 

 

 

 

(7,001

)

June 30, 2019

 

 

 

 

$

 

 

 

 

 

$

 

 

 

 

 

$

 

 

 

 

25,845,441

 

 

$

3

 

 

$

124,269

 

 

$

(47,465

)

 

 

105,144

 

 

$

 

 

$

38

 

 

$

76,845

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

Series A Convertible

 

 

Series B Convertible

 

 

Series C Convertible

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

Total

 

 

 

Preferred Stock

 

 

Preferred Stock

 

 

Preferred Stock

 

 

 

Common Stock

 

 

Additional

 

 

Accumulated

 

 

Treasury Stock

 

 

Comprehensive

 

 

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

 

Shares Issued

 

 

Amount

 

 

Paid-in Capital

 

 

Deficit

 

 

Shares

 

 

Cost

 

 

Gain (Loss)

 

 

Equity

 

January 1, 2018

 

 

21,302,972

 

 

$

10,508

 

 

 

1,937,984

 

 

$

5,000

 

 

 

 

 

$

 

 

 

 

3,804,643

 

 

$

 

 

$

5,394

 

 

$

(12,435

)

 

 

105,144

 

 

$

 

 

$

 

 

$

(7,041

)

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

135

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

135

 

Series C convertible preferred stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,606,267

 

 

 

21,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance costs for Series C preferred stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,847

)

 

 

 

 

 

 

 

 

 

 

 

(1,847

)

March 31, 2018

 

 

21,302,972

 

 

 

10,508

 

 

 

1,937,984

 

 

 

5,000

 

 

 

4,606,267

 

 

 

20,993

 

 

 

 

3,804,643

 

 

 

 

 

 

5,529

 

 

 

(14,282

)

 

 

105,144

 

 

 

 

 

 

 

 

 

(8,753

)

Stock-based compensation

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

779

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

779

 

Conversion of preferred stock into common stock

 

 

(21,302,972

)

 

 

(10,508

)

 

 

(1,937,984

)

 

 

(5,000

)

 

 

(4,606,267

)

 

 

(20,993

)

 

 

 

16,246,872

 

 

 

2

 

 

 

36,499

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

36,501

 

Issuance of common stock in connection with IPO, net of offering costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,750,000

 

 

 

1

 

 

 

78,380

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

78,381

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,317

)

 

 

 

 

 

 

 

 

 

 

 

(5,317

)

June 30, 2018

 

 

 

 

$

 

 

 

 

 

$

 

 

 

 

 

$

 

 

 

 

25,801,515

 

 

$

3

 

 

$

121,187

 

 

$

(19,599

)

 

 

105,144

 

 

$

 

 

$

 

 

$

101,591

 

 

The accompanying notes are an integral part of these condensed financial statements.

 

 

3


VERRICA PHARMACEUTICALS INC.

CONDENSED STATEMENTS OF CASH FLOWS

(in thousands)

(Unaudited)

 

 

 

For the Six Months Ended June 30,