Company: VRCA
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001660334-25-000006
Chunk: 34

Company: Verrica Pharmaceuticals Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 34
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feited(7,000)48.00 Vested(6,426)48.00 Nonvested as of September 30, 202525,000$17.50 

Note 9—Leases

The Company leases office space located in West Chester, Pennsylvania that serves as the Company’s headquarters. The initial term expires 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 expenses.The Company leased office space in Scotch Plains, New Jersey under an agreement classified as an operating lease, which commenced on May 1, 2022 and was due to expire on April 30, 2025. In September 2024, the Company terminated the agreement effective November 30, 2024. No termination fees were incurred.The Company entered into a fleet program to provide vehicles for its sales force. The vehicles are leased for a term of 52 months and classified as finance leases. On December 31, 2024, the Company reduced the right-of-use assets by $1.6 million and right-of use liabilities by $1.5 million related to these finance leases. The Company recorded $0.1 million of additional right-of-use assets and $0.1 million of additional right-of-use liabilities during the three and nine months ended September 30, 2025.The components of lease expense are as follows (in thousands):For the Three Months Ended September 30,For the Nine Months Ended September 30,2025202420252024Finance lease cost:Amortization right-of-use assets$88 $187 $252 $482 Interest on lease liabilities$19 $52 57 143 Total finance lease costs$107 $239 $309 $625 Operating lease:Operating lease costs$85 $98 $256 $292 Maturities of the Company’s operating leases, excluding short-term leases, as of September 30, 2025 are as follows (in thousands):OperatingFinance2025 (remaining 3 months)$91 $116 2026366 409 2027246 371 2028—173 Thereafter— 33 Total lease payments703 1,102 Less imputed interest(38)(107)Lease liability$665 $995 

18

The weighted average remaining lease term and discount rates for the Company's leases as