Company: VRCA
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001660334-25-000006
Chunk: 29

Company: Verrica Pharmaceuticals Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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 statement as well as disclosures about selling expenses. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted. The requirements will be applied prospectively with the option for retrospective application. The Company is currently evaluating the impact that the adoption of ASU 2024-03 will have on its financial statements and disclosures. Legislative Changes

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law. This legislation includes changes to U.S. federal tax law, which may be subject to further clarification and the issuance of interpretive guidance. The Company is assessing the legislation and its effect on its financial statements. The Company expects to finalize its assessment in the fourth quarter of 2025, however, due to the existence of a full valuation allowance against the Company's U.S. federal deferred tax assets, the Company does not expect the OBBBA to have a material impact on its financial statements. 

Note 3 —Inventory

Upon FDA approval of YCANTH (VP-102) for the treatment of molluscum contagiosum on July 21, 2023, the Company began capitalizing the purchases of saleable inventory of YCANTH (VP-102) from suppliers. Inventory consisted of the following (in thousands):September 30,2025December 31,2024Raw materials$973 $1,082 Work in process405 664 Finished goods926 717 Total inventory$2,304 $2,463 

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Note 4—Property and Equipment

Property and equipment, net consisted of (in thousands):September 30,2025December 31,2024Machinery and equipment$576 $1,164 Office equipment326 326 Office furniture and fixtures303 303 Leasehold improvements54 54 1,259 1,847 Accumulated depreciation(1,034)(1,258)Total property and equipment, net$225 $589 Depreciation expense for the three months ended September 30, 2025 and 2024 was $21,807 and $0.1 million, respectively. Depreciation expense for the nine months ended September 30, 2025 and 2024 was $0.1 million and $0.3 million, respectively.

Note 5—Accru