Company: VRCA
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001660334-25-000006
Chunk: 78

Company: Verrica Pharmaceuticals Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 78
---
 the Nine Months Ended September 30,20252024Net cash used in operating activities$(13,036)$(44,863)Net cash used in investing activities— (27)Net cash used in financing activities(12,196)(1,698)Net decrease in cash and cash equivalents$(25,232)$(46,588)

Operating Activities

During the nine months ended September 30, 2025, operating activities used $13.0 million of cash, primarily resulting from a net loss of $9.8 million partially offset by non-cash stock-based compensation of $2.6 million and noncash interest of $2.1 million. Net cash used by changes in operating assets and liabilities consisted primarily of an increase in accounts receivable of $7.0 million and an increase in prepaid expenses and other assets of $1.3 million partially offset by an increase in deferred revenue of $1.6 million.

 During the nine months ended September 30, 2024, operating activities used $44.9 million of cash, primarily resulting from a net loss of $60.4 million partially offset by non-cash stock-based compensation of $6.4 million, non-cash amortization and impairment of right-of-use assets of $0.9 million and non-cash interest expense of $1.6 million. Net cash used by changes in operating assets and liabilities consisted primarily of an increase in prepaid expenses and other assets of $1.5 million and a decrease in accounts payable of $1.5 million partially offset by decreases in accounts receivable of $4.4 million and a net increase in accrued expenses of $4.9 million.

Investing Activities

We did not use any cash in investing activities during the nine months ended September 30, 2025. During the nine months ended September 30, 2024 net cash used in investing activities of $27,000 was for the purchase of property and equipment.

32

Financing Activities

During the nine months ended September 30, 2025, net cash used by financing activities of $12.2 million was primarily due to the repayment of debt related to the Credit Agreement.

During the nine months ended September 30, 2024, net cash used by financing activities of $1.7 million was primarily due to $1.1 million of debt amendment costs paid related to the Credit Agreement and finance lease payments of $0.6 million.

Funding Requirements

While we expect to continue to generate revenue from the