Company: VRCA
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0000950170-25-037172
Chunk: 187

Company: Verrica Pharmaceuticals Inc.
Filing Date: 2025-03-11
Form: 10-K
Item: Item 1B
Chunk 187
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 Company reduced lease liability by $1.5 million and right-of-use assets by $1.6 million related to the terminated leases for the year ended December 31, 2024.

112

The components of lease expense are as follows (in thousands): 

        For the Year Ended December 31,

        2024

        2023

         Finance lease cost:

        Amortization right-of-use assets
         
        $
        619

        $
        20

        Interest on lease liabilities

        179

        7

        Operating lease:

        Operating lease costs
         
        $
        387

        $
        282

       Maturities of the Company’s operating leases, excluding short-term leases, as of December 31, 2024 are as follows (in thousands):  

        Operating

        Finance

        2025
         
        $
        360

        $
        424

        2026

        366

        361

        2027

        247

        335

        2028

        —

        142

        Total lease payments

        973

        1,262

        Less imputed interest

        (75
        )

        (142
        )

        Lease liability
         
        $
        898

        $
        1,120

       The weighted average remaining lease term and discount rates for the Company's leases as of December 31, 2024 are as follows: 

        Operating

        Finance

        Weighted average remaining lease term (years)

        2.67

        3.46

        Weighted average discount rate

        6.25
        %

        7.75
        %

Note 10–DebtOn July 26, 2023 (the “Closing Date”), the Company entered into a Credit Agreement (the “Credit Agreement”), by and between the Company, as borrower, and OrbiMed Royalty & Credit Opportunities IV, LP, a Delaware limited partnership (the “Initial Lender”), as a lender, and each other lender that may from time to time become a party thereto (each, including the Initial Lender, and together with their affiliates, successors, transferees and assignees, the “Lenders”), and OrbiMed Royalty & Credit Opportunities IV, LP, as administrative agent for the Lenders (in such capacity, the “