Company: VRCA
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0000950170-25-037172
Chunk: 221

Company: Verrica Pharmaceuticals Inc.
Filing Date: 2025-03-11
Form: 10-K
Item: Item 7
Chunk 221
---
822

    47,305

    11,517

    Research and development

    11,840

    20,295

    (8,455
    )

    Loss on disposal of assets

    83

    2,537

    (2,454
    )

    Total operating expenses

    73,485

    70,883

    2,602

    Loss from operations

    (65,919
    )

    (65,759
    )

    (160
    )

    Other income (expense):

    Interest income

    1,417

    2,740

    (1,323
    )

    Interest expense

    (9,412
    )

    (3,962
    )

    (5,450
    )

    Change in fair value of derivative liability

    (2,648
    )

    —

    (2,648
    )

    Other expense

    (17
    )

    (14
    )

    (3
    )

    Total other expense, net

    (10,660
    )

    (1,236
    )

    (9,424
    )

    Net loss
     
    $
    (76,579
    )
     
    $
    (66,995
    )
     
    $
    (9,584
    )

Product Revenue, Net

Product revenue, net was $6.6 million for the year ended December 31, 2024, compared to $4.7 million for the year ended December 31, 2023. As YCANTH (VP-102), our first FDA approved product, became available for commercial sale and shipment to patients in August 2023, we did not recognize any product revenue prior to that point. 

We expanded the number of distributors during 2024, however, our product revenue for year ended December 31, 2024 was partially offset by a returns reserve of $3.2 million for estimated returns from certain distributors. We determined it was more than probable that product held by certain distributors will be returned based on lower than forecasted sell-through and expiration of product. This increase in reserve was partially offset by a decrease of other gross to net reserves of $1.2 million mostly related to a decrease in co-pay reserve. We will continue to work with all of our distributors to sell through existing inventory and expand target channels of sales and distribution