Company: VRCA
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001660334-25-000006
Chunk: 32

Company: Verrica Pharmaceuticals Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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 Series A warrants to purchase 2,387,703 shares of its common stock at an exercise price of $10.68 per share of common stock and Series B warrants to purchase 2,387,703 shares of its common stock at an exercise price of $13.35 per share of common stock (the "November 2024 Offering"). The offering price was $8.90 per share of common stock and accompanying Series A and Series B warrants, or $8.899 per pre-funded warrant and accompanying Series A and Series B warrants. The Series A warrants expire in November 2025 and the Series B warrants expire in November 2029. The November 2024 Offering resulted in net proceeds of approximately $39.6 million after deducting underwriting discounts and commissions, and offering expenses of $2.9 million. Pre-funded Warrant ExercisesPre-funded warrants for 66,095, 70,100, 191,248, and 44,300 shares of common stock were exercised in December 2024, April 2025, July 2025 and August 2025, respectively.WarrantsThe following table summarizes the Company’s outstanding warrants, all of which are exercisable for shares of common stock:September 30, 2025Number of warrantsExercise PriceExpiration DateEquity classified warrantsWarrants issued in connection with OrbiMed debt facility51,855$34.5040 7/26/2033Warrants issued in connection with Torii amendment50,000$95.6000 5/14/2034Series A warrants issued pursuant to 2024 underwritten public offering2,387,703$10.6800 11/21/2025Series B warrants issued pursuant to 2024 underwritten public offering2,387,703$13.3500 11/20/2029

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The OrbiMed warrants are eligible for a price adjustment if the Company consummates any share distribution at a price per common shares less than the exercise price. As a result of the November 2024 Offering, the OrbiMed warrant exercise price was adjusted down to $34.50 per share. The Torii warrants become exercisable at different clinical milestones related to the global Phase 3 Program for common warts (See Note 11 for more details).

Note 8—Stock-Based Compensation

Stock-based compensation expense, which includes expense for both options and restricted stock units, has been reported in the Company’s statements of operations as follows (in thousands):