Verrica Pharmaceuticals(VRCA) - 2024 Q4 - Annual Results

Financial Performance - The company reported product revenue of $0.3 million for Q4 2024, a decrease from $1.9 million in Q4 2023, attributed to existing inventory meeting demand[10] - For the full year 2024, Verrica recognized product revenue of $6.6 million, an increase of $1.9 million from $4.7 million in 2023, despite a returns reserve of $3.2 million[12] - Total revenue for Q4 2024 was $344,000, a decrease of 82.7% compared to $1,988,000 in Q4 2023[22] - Product revenue for the year ended December 31, 2024, increased to $6,574,000, up 41% from $4,658,000 in 2023[24] Net Loss and Expenses - The net loss for Q4 2024 was $16.2 million, or $0.24 per share, compared to a net loss of $24.6 million, or $0.53 per share, in Q4 2023[12] - Research and development expenses for Q4 2024 were $1.2 million, down from $5.3 million in Q4 2023, primarily due to reduced clinical trial costs[12] - Selling, general and administrative expenses decreased to $10.0 million in Q4 2024 from $17.0 million in Q4 2023, reflecting a $7.0 million reduction[10] - Net loss for Q4 2024 was $16,202,000, a reduction of 34.2% from $24,614,000 in Q4 2023[22] - Total operating expenses for Q4 2024 were $11,754,000, down 53.3% from $25,124,000 in Q4 2023[22] - The company reported a net loss per share of $0.24 for Q4 2024, compared to $0.53 for Q4 2023[22] Cash Position and Liabilities - As of December 31, 2024, Verrica had cash and cash equivalents of $46.3 million, which may not be sufficient for one-year operations unless milestone payments are received[14] - Cash and cash equivalents decreased to $46,329,000 as of December 31, 2024, from $69,547,000 in 2023[27] - Total liabilities increased to $63,994,000 in 2024, compared to $61,834,000 in 2023[27] Future Outlook - The company expects to achieve cash positive monthly operating results by the end of 2025, focusing on establishing YCANTH as the standard of care for molluscum contagiosum[3] - The company aims to achieve cash positive monthly operating results by the end of 2025[18] Product Development - In Q4 2024, Verrica Pharmaceuticals achieved a 12.3% sequential growth in dispensed applicator units of YCANTH®, totaling 8,654 units compared to 7,706 units in Q3 2024[8] - VP-315 demonstrated a 97% objective response rate in a Phase 2 study for basal cell carcinoma, with plans to advance to Phase 3 trials[10] - YCANTH® is the first FDA-approved treatment for molluscum contagiosum, affecting approximately 6 million people in the U.S.[16] - Verrica has entered a worldwide license agreement with Lytix Biopharma AS to develop VP-315 for non-melanoma skin cancers[17] Non-GAAP Measures - The company emphasizes the usefulness of non-GAAP measures for investors to facilitate comparisons with peer companies[31] - For the year ended December 31, 2023, the GAAP net loss from operations was $(65,759) million, with a net loss per share of $(1.48)[31] - Non-GAAP adjusted loss was $(51,383) million, reflecting an adjusted net loss per share of $(1.14)[31] - Stock-based compensation for selling, general, and administrative expenses amounted to $11,796 million, while research and development stock-based compensation was $2,580 million[31] - Non-cash interest expense was recorded at $810 million, which was excluded from the adjusted figures to provide clarity on liquidity impacts[31]