| | |
Per Share
|
| |
Total
|
| ||||||
Initial public offering price
|
| | | $ | 10.00 | | | | | $ | 35,200,000 | | |
Underwriting discounts and commissions(1)
|
| | | $ | 0.70 | | | | | $ | 2,464,000 | | |
Proceeds, before expenses, to us
|
| | | $ | 9.30 | | | | | $ | 32,736,000 | | |
| | | | | ii | | | |
| | | | | 1 | | | |
| | | | | 3 | | | |
| | | | | 7 | | | |
| | | | | 8 | | | |
| | | | | 9 | | | |
| | | | | 11 | | | |
| | | | | 49 | | | |
| | | | | 50 | | | |
| | | | | 51 | | | |
| | | | | 53 | | | |
| | | | | 55 | | | |
| | | | | 69 | | | |
| | | | | 88 | | | |
| | | | | 96 | | | |
| | | | | 103 | | | |
| | | | | 104 | | | |
| | | | | 106 | | | |
| | | | | 111 | | | |
| | | | | 113 | | | |
| | | | | 116 | | | |
| | | | | 121 | | | |
| | | | | 121 | | | |
| | | | | 121 | | | |
| | | | | F-1 | | |
| | |
(Unaudited)
Six Months Ended June 30, |
| |
Years Ended December 31
|
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| ||||||||||||
Product revenue, net
|
| | | $ | 26,007 | | | | | $ | 21,361 | | | | | $ | 44,531 | | | | | $ | 34,921 | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of goods sold – product revenue
|
| | | | 11,392 | | | | | | 6,934 | | | | | | 14,594 | | | | | | 10,532 | | |
Research and development
|
| | | | 29 | | | | | | — | | | | | | — | | | | | | — | | |
Research and development – licenses acquired
|
| | | | 13,743 | | | | | | — | | | | | | — | | | | | | — | | |
Selling, general and administrative
|
| | | | 14,021 | | | | | | 10,441 | | | | | | 22,086 | | | | | | 19,130 | | |
Total operating expenses
|
| | | | 39,185 | | | | | | 17,375 | | | | | | 36,680 | | | | | | 29,662 | | |
Income (loss) from operations
|
| | | | (13,178) | | | | | | 3,986 | | | | | | 7,851 | | | | | | 5,259 | | |
Other expense
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | 1,563 | | | | | | 305 | | | | | | 698 | | | | | | 255 | | |
Change in fair value of derivative liability
|
| | | | 182 | | | | | | — | | | | | | — | | | | | | — | | |
Total other expense
|
| | | | 1,745 | | | | | | 305 | | | | | | 698 | | | | | | 255 | | |
Income (loss) before income taxes
|
| | | | (14,923) | | | | | | 3,681 | | | | | | 7,153 | | | | | | 5,004 | | |
Income tax (benefit) expense
|
| | | | (3,326) | | | | | | 929 | | | | | | 1,870 | | | | | | 1,379 | | |
Net (loss) income
|
| | | $ | (11,597) | | | | | $ | 2,752 | | | | | $ | 5,283 | | | | | $ | 3,625 | | |
Net (loss) income per common share – basic
|
| | | $ | (1.27) | | | | | $ | 0.30 | | | | | $ | 0.58 | | | | | $ | 0.40 | | |
Net (loss) income per common share – diluted
|
| | | $ | (1.27) | | | | | $ | 0.25 | | | | | $ | 0.49 | | | | | $ | 0.36 | | |
Weighted average common shares outstanding – basic
|
| | | | 9,159,841 | | | | | | 9,133,333 | | | | | | 9,135,985 | | | | | | 9,133,333 | | |
Weighted average common shares outstanding – diluted
|
| | | | 9,159,841 | | | | | | 10,826,279 | | | | | | 10,836,122 | | | | | | 10,075,804 | | |
| | |
(Unaudited)
As of June 30, 2021 |
| |
December 31,
2020 |
| ||||||||||||
| | |
Actual
|
| |
Pro Forma(1)
|
| ||||||||||||
Balance Sheet Data | | | | | | | | | | | | | | | | | | | |
Cash
|
| | | $ | 12,176 | | | | | $ | 58,977 | | | | | $ | 8,246 | | |
Working capital
|
| | | | 9,064 | | | | | | 56,365 | | | | | | 7,182 | | |
Total assets
|
| | | | 72,725 | | | | | | 119,526 | | | | | | 51,906 | | |
Total liabilities
|
| | | | 73,517 | | | | | | 55,393 | | | | | | 41,614 | | |
Common stock and class A common stock
|
| | | | 1 | | | | | | 2 | | | | | | 1 | | |
(Accumulated Deficit) retained earnings
|
| | | | (6,477) | | | | | | (6,477) | | | | | | 5,171 | | |
Total stockholders (deficit)equity
|
| | | | (792) | | | | | | 64,133 | | | | | | 10,292 | | |
|
Initial public offering price per share
|
| | | | | | | | | $ | 10.00 | | |
|
Historical net tangible book value (deficit) per share at June 30, 2021
|
| | | $ | (1.58) | | | | |||||
|
Increase in net tangible book value per share attributable to transaction adjustments(1)
|
| | | $ | 3.05 | | | | |||||
|
Increase in net tangible book value per share attributable to investors participating in this offering . . . . . . . . . . . . . . . . . . . . .. . . . . . .
|
| | | $ | 1.60 | | | | |||||
|
As adjusted net tangible book value per share after this offering
|
| | | | | | | | | $ | 3.07 | | |
|
Dilution per share to new investors participating in this offering
|
| | | | | | | | | $ | 6.93 | | |
| | |
Number
|
| |
%
|
| |
(thousands)
|
| |
Weighted
Avg Per Share |
| ||||||||||||||||||
|
Amount
|
| |
Percent
|
| ||||||||||||||||||||||||||
Existing shareholders
|
| | | | 9,161,333 | | | | | | 56% | | | | | $ | 0.92 | | | | | | 0% | | | | | $ | 0.00 | | |
Investors in offering(1)
|
| | | | 7,279,911 | | | | | | 44% | | | | | | 69,452 | | | | | | 100% | | | | | $ | 9.54 | | |
| | | | | 16,441,244 | | | | | | 100% | | | | | $ | 69,453 | | | | | | 100% | | | | | $ | 4.22 | | |
| | |
As of June 30, 2021
|
| |||||||||||||||
| | |
Actual
|
| |
Adjusted
|
| |
Proforma
|
| |||||||||
Cash | | | | $ | 12,176 | | | | | $ | 27,591 | | | | | $ | 58,977 | | |
Accrued expenses, related party
|
| | | | 500 | | | | | | — | | | | | | — | | |
Installment payments – licenses, short-term (net of debt discount of $639 as
of June 30, 2021) |
| | | | 3,861 | | | | | | 3,861 | | | | | | 3,861 | | |
Note payable, related party
|
| | | | 5,245 | | | | | | — | | | | | | — | | |
Installment payments – licenses, long-term (net of debt discount of $565 as
of June 30, 2021) |
| | | | 6,435 | | | | | | 6,435 | | | | | | 6,435 | | |
Convertible preferred shares settled note (net of debt discount of $1,824 as
of June 30, 2021) |
| | | | 13,092 | | | | | | — | | | | | | — | | |
Derivative warrant liability
|
| | | | 4,287 | | | | | | 5,000 | | | | | | 5,000 | | |
Stockholders’ (deficit)/equity | | | | | | | | | | | | | | | | | | | |
Common stock, $.0001 par value, 50,000,000 shares authorized, 3,161,333, 6,921,244 and 10,441,244 issued and outstanding as of June 30, 2021, actual, adjusted and pro forma, respectively
|
| | | | — | | | | | | 1 | | | | | | 1 | | |
Common stock – Class A, $.0001 par value, 50,000,000 shares authorized, 6,000,000 shares issued and outstanding as of June 30, 2021
|
| | | | 1 | | | | | | — | | | | | | 1 | | |
Additional paid-in capital
|
| | | | 5,684 | | | | | | 39,223 | | | | | | 70,608 | | |
Retained earnings (accumulated deficit)
|
| | | | (6,477) | | | | | | (6,477) | | | | | | (6,477) | | |
Total stockholders’ equity
|
| | | | (793) | | | | | | 32,747 | | | | | | 64,133 | | |
Total Capitalization
|
| | | $ | 32,627 | | | | | $ | 48,043 | | | | | $ | 79,429 | | |
($ in thousands)
|
| |
Year Ended December 31,
|
| |
Change
|
| ||||||||||||||||||
|
2020
|
| |
2019
|
| |
$
|
| |
%
|
| ||||||||||||||
Product revenue, net . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . .
|
| | | $ | 44,531 | | | | | $ | 34,921 | | | | | $ | 9,610 | | | | | | 28% | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of goods sold – product revenue . . . . . . . . . . . . . . . . . . .
|
| | | | 14,594 | | | | | | 10,532 | | | | | | 4,062 | | | | | | 39% | | |
Selling, general and administrative . . . . . . . . . . . . . . . . . . . . . .
|
| | | | 22,086 | | | | | | 19,130 | | | | | | 2,956 | | | | | | 15% | | |
Total operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
|
| | | | 36,680 | | | | | | 29,662 | | | | | | 7,018 | | | | | | 24% | | |
Income from operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
|
| | | | 7,851 | | | | | | 5,259 | | | | | | 2,592 | | | | | | 49% | | |
Other expense | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
|
| | | | 698 | | | | | | 255 | | | | | | 443 | | | | | | 174% | | |
Total other expense
|
| | | | 698 | | | | | | 255 | | | | | | 443 | | | | | | 174% | | |
Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
|
| | | | 7,153 | | | | | | 5,004 | | | | | | 2,149 | | | | | | 43% | | |
Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
|
| | | | 1,870 | | | | | | 1,379 | | | | | | 491 | | | | | | 36% | | |
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
|
| | | $ | 5,283 | | | | | $ | 3,625 | | | | | $ | 1,659 | | | | | | 46% | | |
Net income per common share – basic . . . . . . . . . . . . . . . . . . . . .
|
| | | $ | 0.58 | | | | | $ | 0.40 | | | | | $ | 0.18 | | | | | | 46% | | |
Net income per common share – diluted . . . . . . . . . . . . . . . . . . . .
|
| | | $ | 0.49 | | | | | $ | 0.36 | | | | | $ | 0.13 | | | | | | 36% | | |
($ in thousands)
|
| |
Year Ended December 31
|
| |
Change
|
| ||||||||||||||||||
|
2020
|
| |
2019
|
| |
$
|
| |
%
|
| ||||||||||||||
Targadox® . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
|
| | | $ | 30,708 | | | | | $ | 28,068 | | | | | $ | 2,640 | | | | | | 9% | | |
Ximino® . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
|
| | | | 9,518 | | | | | | 3,642 | | | | | | 5,876 | | | | | | 161% | | |
Exelderm® . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
|
| | | | 4,453 | | | | | | 2,867 | | | | | | 1,586 | | | | | | 55% | | |
Other product revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
|
| | | | (148) | | | | | | 344 | | | | | | (492) | | | | | | NM | | |
Total product revenue, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
|
| | | $ | 44,531 | | | | | $ | 34,921 | | | | | $ | 9,610 | | | | | | 28% | | |
| | |
Returns
|
| |
Coupons
|
| |
Managed
Care/Gov’t Rebates |
| |
Total
|
| ||||||||||||
Balance at December 31, 2018
|
| | | $ | 3,065 | | | | | $ | 1,599 | | | | | $ | — | | | | | $ | 4,664 | | |
Current Provision Related to Sales Made in the Current Period
|
| | | | 2,925 | | | | | | 42,374 | | | | | | 1,985 | | | | | | 47,284 | | |
Checks/Credits Issued to Third Parties
|
| | | | (574) | | | | | | (37,567) | | | | | | — | | | | | | (38,141) | | |
Reclassed Between Liability Accounts
|
| | | | (900) | | | | | | 900 | | | | | | — | | | | | | — | | |
Balance at December 31, 2019
|
| | | $ | 4,516 | | | | | $ | 7,306 | | | | | $ | 1,985 | | | | | $ | 13,807 | | |
Current Provision (Adjustment) Related to Sales Made in the Current Period
|
| | | | 1,294 | | | | | | 100,168 | | | | | | (537) | | | | | | 100,925 | | |
Checks/Credits Issued to Third Parties
|
| | | | (2,130) | | | | | | (95,805) | | | | | | (1,348) | | | | | | (99,283) | | |
Reclassed Between Liability Accounts
|
| | | | (1,100) | | | | | | 1,100 | | | | | | — | | | | | | — | | |
Balance at December 31, 2020
|
| | | $ | 2,580 | | | | | $ | 12,769 | | | | | $ | 100 | | | | | $ | 15,449 | | |
($ in thousands, except per share data)
|
| |
(Unaudited)
Six Months Ended June 30, |
| |
Change
|
| ||||||||||||||||||
|
2021
|
| |
2020
|
| |
$
|
| |
%
|
| ||||||||||||||
Product revenue, net
|
| | | $ | 26,007 | | | | | $ | 21,361 | | | | | $ | 4,646 | | | | | | 22% | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of goods sold – product revenue
|
| | | | 11,392 | | | | | | 6,934 | | | | | | 4,458 | | | | | | 64% | | |
Research and development
|
| | | | 29 | | | | | | — | | | | | | 29 | | | | | | 100% | | |
Research and development – licenses acquired
|
| | | | 13,743 | | | | | | — | | | | | | 13,743 | | | | | | 100% | | |
Selling, general and administrative
|
| | | | 14,021 | | | | | | 10,441 | | | | | | 3,580 | | | | | | 34% | | |
Total operating expenses
|
| | | | 39,185 | | | | | | 17,375 | | | | | | 21,810 | | | | | | 126% | | |
Income (loss) from operations
|
| | | | (13,178) | | | | | | 3,986 | | | | | | (17,164) | | | | | | -431% | | |
Other expense | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | 1,563 | | | | | | 305 | | | | | | 1,258 | | | | | | 412% | | |
Change in fair value of derivative liability
|
| | | | 182 | | | | | | — | | | | | | 182 | | | | | | 100% | | |
Total other expense
|
| | | | 1,745 | | | | | | 305 | | | | | | 1,440 | | | | | | 472% | | |
Income (loss) before income taxes
|
| | | | (14,923) | | | | | | 3,681 | | | | | | (18,604) | | | | | | -505% | | |
Income tax (benefit) expense
|
| | | | (3,326) | | | | | | 929 | | | | | | (4,255) | | | | | | -458% | | |
Net (loss) income
|
| | | $ | (11,597) | | | | | $ | 2,752 | | | | | $ | (14,349) | | | | | | -521% | | |
Net (loss) income per common share – basic
|
| | | $ | (1.27) | | | | | $ | 0.30 | | | | | $ | (1.57) | | | | | | -520% | | |
Net (loss) income per common share – diluted
|
| | | $ | (1.27) | | | | | $ | 0.25 | | | | | $ | (1.52) | | | | | | -598% | | |
($ in thousands)
|
| |
(Unaudited)
Six Months Ended June 30, |
| |
Change
|
| ||||||||||||||||||
|
2021
|
| |
2020
|
| |
$
|
| |
%
|
| ||||||||||||||
Targadox® | | | | $ | 12,926 | | | | | $ | 14,981 | | | | | $ | (2,055) | | | | | | -14% | | |
Ximino® | | | | | 3,413 | | | | | | 4,823 | | | | | | (1,410) | | | | | | -29% | | |
Exelderm® | | | | | 2,953 | | | | | | 1,687 | | | | | | 1,266 | | | | | | 75% | | |
Accutane® | | | | | 2,141 | | | | | | — | | | | | | 2,141 | | | | | | 100% | | |
Qbrexza® | | | | | 4,568 | | | | | | — | | | | | | 4,568 | | | | | | 100% | | |
Other branded revenue
|
| | | | 6 | | | | | | (130) | | | | | | 136 | | | | | | -105% | | |
Total product revenues
|
| | | $ | 26,007 | | | | | $ | 21,361 | | | | | $ | 4,646 | | | | | | 22% | | |
| | |
Returns
|
| |
Coupons
|
| |
Managed
Care/Gov’t Rebates |
| |
Total
|
| ||||||||||||
Balance at December 31, 2020
|
| | | $ | 2,580 | | | | | $ | 12,769 | | | | | $ | 100 | | | | | $ | 15,449 | | |
Current Provision Related to Sales Made in the Current Period
|
| | | | 1,428 | | | | | | 68,591 | | | | | | 2,275 | | | | | | 72,294 | | |
Checks/Credits Issued to Third Parties
|
| | | | (1,594) | | | | | | (64,148) | | | | | | (1,293) | | | | | | (67,035) | | |
Reclassed Between Liability Accounts
|
| | | | (315) | | | | | | 315 | | | | | | — | | | | | | — | | |
Balance at June 30, 2021
|
| | | $ | 2,099 | | | | | $ | 17,527 | | | | | $ | 1,082 | | | | | $ | 20,708 | | |
($ in thousands)
|
| |
Year Ended December 31,
|
| |||||||||
|
2020
|
| |
2019
|
| ||||||||
Total cash (used in)/provided by: | | | | | | | | | | | | | |
Operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
|
| | | $ | 5,132 | | | | | $ | 9,018 | | |
Investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
|
| | | | (1,200) | | | | | | (2,400) | | |
Financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
|
| | | | (487) | | | | | | (3,551) | | |
Net increase in cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
|
| | | $ | 3,445 | | | | | $ | 3,067 | | |
($ in thousands)
|
| |
(Unaudited)
Six Months Ended June 30, |
| | ||||||||||||||
|
2021
|
| |
2020
|
| |
Change
|
| |||||||||||
Net cash (used in) provided by operating activities
|
| | | $ | (6,077) | | | | | $ | 1,149 | | | | | $ | (7,226) | | |
Net cash provided by financing activities
|
| | | | 10,007 | | | | | | — | | | | | | 10,007 | | |
Net increase in cash
|
| | | $ | 3,930 | | | | | $ | 1,149 | | | | | $ | 2,781 | | |
| | |
6 Months Ended
|
| |
Years Ended December 31,
|
| ||||||||||||||||||
($ in thousands)
|
| |
June 30, 2021
|
| |
June 30, 2020
|
| |
2020
|
| |
2019
|
| ||||||||||||
Net (loss) income
|
| | | $ | (11,597) | | | | | $ | 2,752 | | | | | $ | 5,283 | | | | | $ | 3,625 | | |
Income tax (benefit) expense
|
| | | | (3,326) | | | | | | 929 | | | | | | 1,870 | | | | | | 1,379 | | |
Non-cash interest
|
| | | | 1,025 | | | | | | 305 | | | | | | 698 | | | | | | 255 | | |
Amortization of licenses
|
| | | | 1,325 | | | | | | 710 | | | | | | 1,420 | | | | | | 1,174 | | |
Debt discount amortization
|
| | | | 270 | | | | | | — | | | | | | — | | | | | | — | | |
Depreciation
|
| | | | — | | | | | | 3 | | | | | | 5 | | | | | | 5 | | |
Non-GAAP EBITDA
|
| | | $ | (12,303) | | | | | $ | 4,699 | | | | | $ | 9,276 | | | | | $ | 6,438 | | |
Stock-based compensation
|
| | | | 33 | | | | | | 99 | | | | | | 153 | | | | | | 240 | | |
Change in fair value of placement agent warrant
|
| | | | 182 | | | | | | — | | | | | | — | | | | | | — | | |
R&D license non-cash contingent payment
|
| | | | 3,743 | | | | | | — | | | | | | — | | | | | | — | | |
Qbrexza inventory step-up
|
| | | | 1,238 | | | | | | — | | | | | | — | | | | | | — | | |
Severance
|
| | | | 260 | | | | | | — | | | | | | — | | | | | | — | | |
Non-GAAP Adjusted EBITDA
|
| | | $ | (6,837)(1) | | | | | $ | 4,798(2) | | | | | $ | 9,492(2) | | | | | $ | 6,678 | | |
|
Net sales milestones for product acquisition
|
| | | $ | 303,000 | | |
|
Development milestones
|
| | | | 38,500 | | |
|
Contingent payments
|
| | | | 5,000 | | |
|
Accrued research and development license acquired
|
| | | | 8,000 | | |
| | |
Future Lease
Liability |
| |||
Six Months Ended December 31, 2021
|
| | | $ | 48 | | |
Year Ended December 31, 2022
|
| | | | 100 | | |
Total
|
| | | | 148 | | |
Less: present value discount
|
| | | | (5) | | |
Operating lease liabilities
|
| | | $ | 143 | | |