Company: VRCA
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0000950170-25-037172
Chunk: 186

Company: Verrica Pharmaceuticals Inc.
Filing Date: 2025-03-11
Form: 10-K
Item: Item 1B
Chunk 186
---
561,500

        $
        9.13

        Granted

        576,767

        2.54

        Forfeited

        (192,500
        )

        4.80

        Vested

        (561,500
        )

        9.13

        Nonvested as of December 31, 2024

        384,267

        $
        1.90

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

        For the Year Ended December 31,

        2024

        2023

        Selling, general and administrative
         
        $
        5,219

        $
        11,796

        Research and development

        1,945

        2,580

        Total stock-based compensation
         
        $
        7,164

        $
        14,376

Note 9—LeasesThe 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. During the year ended December 31, 2024, the Company recognized a right-of-use asset of $2.0 million and a lease liability of $2.0 million related to these finance leases. A total of 57 vehicle leases were terminated and the lessor has sold those vehicles at auction during the year ended December 31, 2024.  The Company recognized an impairment of the right-of-use asset based on estimated fair value of the vehicles of $0.3 million and a loss on termination of leases of $19,000 for the year ended December 31, 2024. The