Company: VRCA
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0000950170-25-037172
Chunk: 179

Company: Verrica Pharmaceuticals Inc.
Filing Date: 2025-03-11
Form: 10-K
Item: Item 1B
Chunk 179
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,226

        Accumulated depreciation

        (1,258
        )

        (1,174
        )

        Total property and equipment, net
         
        $
        589

        $
        1,052

       Depreciation expense for both the years ended December 31, 2024 and 2023 was $0.3 million and $0.5 million, respectively. The Company recognized a $0.1 million impairment loss on disposal of equipment during the year ended December 31, 2024.The Company had recorded an asset classified as construction in process associated with the construction of a product assembly and packaging line that was expected to be placed into service for commercial manufacturing upon regulatory product approval. However, it was determined that the asset was impaired in 2023 due to the high cost required to upgrade the line as a result of changes in product assembly. As a result, the Company recognized a 

107

$2.5 million loss on the disposal of the asset included on the statement of operations during the year ended December 31, 2023.

Note 5—Accrued Expenses and Other Current LiabilitiesAccrued expenses and other current liabilities consisted of the following (in thousands): 

        As of December 31,

        2024

        2023

        Gross to net reserves
         
        $
        10,316

        $
        5,357

        Compensation and related costs

        1,173

        3,438

        Clinical trials and drug development

        892

        2,767

        Professional fees

        618

        1,423

        Commercial-related costs

        407

        538

        Other current liabilities

        105

        244

        Machinery and equipment

        —

        93

        Total accrued expenses and other current liabilities
         
        $
        13,511

        $
        13,860

Note 6—Commitments and ContingenciesLitigationOn June 6, 2022, plaintiff Kranthi Gorlamari (“Plaintiff”) filed a putative class action complaint captioned Gorlamari v. Verrica Pharmaceuticals Inc., et al., in the U.S. District Court for the Eastern District of Pennsylvania against us and certain of our current and former officers and directors (“Defendants”). On January 12, 2023, the Plaintiff filed an amended complaint alleging that Defendants