0001558370-22-016628 | 10-Q | XBRL Viewer

Stockholders' Equity - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Stock-Based Compensation Expense
Total stock-based compensation expense	$ 536	$ 887	$ 1,969	$ 2,472
Cost of goods sold
Stock-Based Compensation Expense
Total stock-based compensation expense	29	84	104	219
Research and development
Stock-Based Compensation Expense
Total stock-based compensation expense	90	134	284	362
Selling and marketing
Stock-Based Compensation Expense
Total stock-based compensation expense	40	31	120	109
General and administrative
Stock-Based Compensation Expense
Total stock-based compensation expense	$ 377	$ 638	$ 1,461	$ 1,782

Commitments and Contingencies (Details) - USD ($) $ in Millions	1 Months Ended	9 Months Ended
Apr. 30, 2020	Sep. 30, 2022
Commitments and Contingencies
Future purchase commitments		$ 239.1
Corium Agreement [Member]
Commitments and Contingencies
Quarterly minimum volume amount of product to be ordered	$ 5.6
Additional fee payable as a percentage of transfer price for units ordered	25.00%
Percentage of additional fee as penalty percent		25.00%
Reminder 2022		$ 5.3
2023		7.0
2024 and Each Year Thereafter		$ 22.5

Stockholders' Equity - Common Stock (Details) $ / shares in Units, $ in Millions									1 Months Ended					2 Months Ended	3 Months Ended						9 Months Ended	12 Months Ended
	Aug. 22, 2022 USD ($)	Apr. 27, 2022 shares	Apr. 25, 2022 $ / shares shares	Apr. 04, 2022 shares	Mar. 15, 2022 shares	Mar. 14, 2022 USD ($) $ / shares shares	Jan. 10, 2022 USD ($)	Mar. 15, 2021 shares	Oct. 31, 2022 shares	Jul. 31, 2022 USD ($) $ / shares shares	Apr. 30, 2022 shares	Oct. 31, 2021 USD ($) $ / shares shares	Mar. 31, 2021 USD ($) shares	Jun. 30, 2022 USD ($) $ / shares shares	Sep. 30, 2022 $ / shares shares	Jun. 30, 2022 $ / shares shares	Mar. 31, 2022 $ / shares shares	Sep. 30, 2021 $ / shares shares	Jun. 30, 2021 shares	Mar. 31, 2021 USD ($) shares	Sep. 30, 2022 USD ($) $ / shares shares	Dec. 31, 2021 USD ($) $ / shares	Feb. 28, 2022 $ / shares	Feb. 26, 2021 $ / shares shares	Oct. 02, 2020 USD ($)	Feb. 10, 2020 $ / shares
Sale of stock
Fractional Shares Issued Upon Reverse Stock Split											0
Common stock that can be purchased with warrants (in shares)												333,333			1,242,813						1,242,813
Stock stated value \| $ / shares															$ 0.0001						$ 0.0001	$ 0.0001
Maximum
Sale of stock
Proceeds from issuance of common stock in public offering, net of offering costs \| $	$ 75.0
Common stock
Sale of stock
Conversion of convertible preferred stock (in shares)				303,125
Perceptive Warrants \| Perceptive Credit Agreement
Sale of stock
Common stock that can be purchased with warrants (in shares)															35,000						35,000			11,250
Exercise price of warrants (in dollars per share) \| $ / shares																								$ 114.80
First Seven Lakhs Shares \| Perceptive Credit Agreement
Sale of stock
Common stock that can be purchased with warrants (in shares)										17,500		17,500			17,500		17,500				17,500
Exercise price of warrants (in dollars per share) \| $ / shares										$ 14.90		$ 141.60		$ 105.52		$ 105.52	$ 105.52	$ 186.80					$ 141.60			$ 149.60
Remaining Seven Lakhs Shares \| Perceptive Credit Agreement
Sale of stock
Common stock that can be purchased with warrants (in shares)										17,500		17,500			17,500		17,500				17,500
Exercise price of warrants (in dollars per share) \| $ / shares										$ 12.37		$ 115.20		86.61		86.61	$ 86.61	149.60					115.20			$ 186.80
Warrants \| Perceptive Credit Agreement
Sale of stock
Common stock that can be purchased with warrants (in shares)										11,250		11,250					11,250
Exercise price of warrants (in dollars per share) \| $ / shares										$ 10.03		$ 90.80		$ 69.13		$ 69.13	$ 69.13	$ 114.80					$ 90.80
2020 Shelf Registration Statement
Sale of stock
Aggregate amount of securities issuable \| $																									$ 200.0
2022 Preferred Stock Offering
Sale of stock
Common stock that can be purchased with warrants (in shares)						30,313
Proceeds from issuance of common stock in public offering, net of offering costs \| $						$ 4.1
Fair Value Of Warrants \| $						$ 2.1
Exercise price of warrants (in dollars per share) \| $ / shares						$ 10.00
Conversion price \| $ / shares						$ 8.00
Preferred Stock, convertible, shares issuable						606,250
Exercisable term						6 months
Stock stated value \| $ / shares						$ 1,000
Warrants and rights outstanding, term						5 years
Duration From Offering To Anniversary Of Closing			180 days
2022 Preferred Stock Offering \| Strike price
Sale of stock
Warrants, Measurement Input						10.40
2022 Preferred Stock Offering \| Fair value
Sale of stock
Warrants, Measurement Input						9.48
2022 Preferred Stock Offering \| Series A Warrants
Sale of stock
Common stock that can be purchased with warrants (in shares)			212,188			606,250
Exercise price of warrants (in dollars per share) \| $ / shares			$ 10.40			$ 10.40
Exercisable term						6 months
Warrants and rights outstanding, term						5 years
Warrant Exercisable Term			5 years
2022 Preferred Stock Offering \| Series A Warrants \| Volatility
Sale of stock
Warrants, Measurement Input						1.119
2022 Preferred Stock Offering \| Series A Warrants \| Risk free interest rate
Sale of stock
Warrants, Measurement Input						0.021
2022 Preferred Stock Offering \| Series A Warrants \| Expected life
Sale of stock
Warrants, Measurement Input						5.5
2022 Preferred Stock Offering \| Series B Warrants
Sale of stock
Common stock that can be purchased with warrants (in shares)						606,250
Exercise price of warrants (in dollars per share) \| $ / shares						$ 10.40
Exercisable term						6 months
Warrants and rights outstanding, term						1 year 6 months
2022 Preferred Stock Offering \| Series B Warrants \| Volatility
Sale of stock
Warrants, Measurement Input						0.697
2022 Preferred Stock Offering \| Series B Warrants \| Risk free interest rate
Sale of stock
Warrants, Measurement Input						0.016
2022 Preferred Stock Offering \| Series B Warrants \| Expected life
Sale of stock
Warrants, Measurement Input						1.5
At-the-market sales \| Common stock
Sale of stock
Issuance of common stock (in shares)													172,879		26,666,666	8,687,502	25,623	45,030	114,826	13,023
Proceeds from issuance of common stock in public offering, net of offering costs \| $																						$ 9.3
At-the-market sales \| Common stock \| Maximum
Sale of stock
Commission percentage													3.00%
Authorized value for shares issuance \| $													$ 50.0							$ 50.0
Public offering
Sale of stock
Issuance of common stock (in shares)										7,518,334
Common stock that can be purchased with warrants (in shares)										38,296,664		333,333
Share price (in dollars per share) \| $ / shares										$ 0.90
Public offering \| Common stock
Sale of stock
Issuance of common stock (in shares)									666,666	19,148,332
Common stock that can be purchased with one-half of warrant (in shares)												1
Share price (in dollars per share) \| $ / shares										$ 0.8999		$ 34.00
Proceeds from issuance of common stock in public offering, net of offering costs \| $										$ 22.0		$ 21.1
Public offering \| Warrants
Sale of stock
Common stock that can be purchased with warrants (in shares)										15,036,668
Public offering \| Pre-funded warrants
Sale of stock
Common stock that can be purchased with warrants (in shares)										7,518,334
2022 ATM
Sale of stock
Issuance of common stock (in shares)														8,687,502
Proceeds from issuance of common stock in public offering, net of offering costs \| $														$ 12.2
2022 ATM \| Common stock
Sale of stock
Issuance of common stock (in shares)																					25,623
Proceeds from issuance of common stock in public offering, net of offering costs \| $																					$ 0.3
2022 ATM \| Common stock \| Maximum
Sale of stock
Commission percentage							3.00%
Authorized value for shares issuance \| $							$ 50.0
2022 ATM \| New Warrant [Member]
Sale of stock
Warrant Exercisable Term			6 months
H.C. Wainwright & Co., LLC, Sales Agent [Member]
Sale of stock
Commission percentage		3.00%
H.C. Wainwright & Co., LLC, Sales Agent [Member] \| Common stock
Sale of stock
Issuance of common stock (in shares)		12,841,000
Series A Preferred Stock
Sale of stock
Conversion of stock shares converted					2,425
Series A Preferred Stock \| 2022 Preferred Stock Offering
Sale of stock
Issuance of common stock (in shares)						2,425
Series B Preferred Stock
Sale of stock
Issuance of common stock (in shares)				2,425
Conversion of stock shares converted								303,125
Series B Preferred Stock \| 2022 Preferred Stock Offering
Sale of stock
Issuance of common stock (in shares)						2,425

Summary of Significant Accounting Policies - Concentrations of Credit Risk (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($) customer	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) customer	Sep. 30, 2021 USD ($)
Concentration of risk, financial assets
Financial instruments with off-balance sheet risk of accounting loss, assets	$ 0		$ 0
Concentration risk, financial liabilities
Financial instruments with off-balance sheet risk of accounting loss, liabilities	0		0
Total revenue	$ 3,002	$ 1,287	$ 6,888	$ 2,587
Customer Concentration Risk \| Sales Revenue
Concentration risk, financial liabilities
Number of major customers \| customer	5		3
Customer Concentration Risk \| Sales Revenue \| Customer One
Concentration risk, financial liabilities
Total revenue	$ 800		$ 2,000
Customer Concentration Risk \| Sales Revenue \| Customer Two
Concentration risk, financial liabilities
Total revenue	700		1,800
Customer Concentration Risk \| Sales Revenue \| Customer Three
Concentration risk, financial liabilities
Total revenue	600		$ 1,600
Customer Concentration Risk \| Sales Revenue \| Customer Four
Concentration risk, financial liabilities
Total revenue	500
Customer Concentration Risk \| Sales Revenue \| Customer Five
Concentration risk, financial liabilities
Total revenue	$ 300
Customer Concentration Risk \| Sales Revenue \| Three Customers
Concentration risk, financial liabilities
Concentration risk, percentage			79.00%
Customer Concentration Risk \| Sales Revenue \| Five Customers
Concentration risk, financial liabilities
Concentration risk, percentage	95.00%
Customer Concentration Risk \| Accounts Receivable
Concentration risk, financial liabilities
Number of major customers \| customer			5
Customer Concentration Risk \| Accounts Receivable \| Customer One
Concentration risk, financial liabilities
Concentration risk, percentage			32.00%
Customer Concentration Risk \| Accounts Receivable \| Customer Two
Concentration risk, financial liabilities
Concentration risk, percentage			25.00%
Customer Concentration Risk \| Accounts Receivable \| Customer Three
Concentration risk, financial liabilities
Concentration risk, percentage			24.00%
Customer Concentration Risk \| Accounts Receivable \| Customer Four
Concentration risk, financial liabilities
Concentration risk, percentage			8.00%
Customer Concentration Risk \| Accounts Receivable \| Customer Five
Concentration risk, financial liabilities
Concentration risk, percentage			10.00%

Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 6,145	$ 19,143
Accounts receivable, net	3,711	1,533
Inventory, net	1,797	966
Prepaid expenses and other current assets	3,834	2,283
Total current assets	15,487	23,925
Property and equipment, net	203	12,447
Right of use asset	761	949
Other non-current assets	2,012	2,012
Total assets	18,463	39,333
Current liabilities:
Long-term debt, current portion	1,318	16,833
Accounts payable	4,906	8,707
Accrued expenses	5,152	3,563
Lease liability, current portion	277	175
Total current liabilities	11,653	29,278
Lease liabilities, long-term	550	784
Total liabilities	12,203	30,062
Commitments and contingencies (Note 10)
Stockholders' equity
Common stock, $.0001 par value, 300,000,000 shares authorized, 39,026,823 and 3,034,901 issued and outstanding at September 30, 2022 and December 31, 2021, respectively	4
Additional paid-in capital	437,027	396,388
Accumulated deficit	(430,771)	(387,117)
Total stockholders' equity	6,260	9,271
Total liabilities and stockholders' equity	$ 18,463	$ 39,333

Stockholders' Equity

9 Months Ended

Sep. 30, 2022

Stockholders' Equity

Stockholders' Equity

8. Stockholders’ Equity

On January 7, 2022, the Company’s stockholders approved an amendment to the Company’s Amended and Restated Certificate of Incorporation to increase the number of shares of common stock authorized for issuance from 150,000,000 shares to 300,000,000 shares.

On April 26, 2022, the Company filed with the Secretary of State of the State of Delaware a certificate of amendment, or the Certificate of Amendment, to the Company’s Amended and Restated Certificate of Incorporation, which became effective on April 26, 2022. The Certificate of Amendment implemented the Reverse Stock Split. On the effective date of April 26, 2022, the number of the Company’s issued and outstanding shares of common stock was decreased from 146,741,862 to 3,668,546 and the par value remained unchanged. No fractional shares were issued as a result of the Reverse Stock Split. Stockholders who would otherwise have been entitled to receive a fractional share received a cash payment in lieu thereof. The Reverse Stock Split affected all shares of the Company’s common stock outstanding immediately prior to the effective date of the Reverse Stock Split, as well as the number of shares of common stock available for issuance under the Company’s equity incentive plans. In addition, the Reverse Stock Split effected a reduction in the number of shares of common stock issuable upon the exercise of stock options, restricted stock units, or warrants outstanding.

Shelf Registration Statement

On October 2, 2020, the Company filed a universal shelf registration statement with the SEC for the issuance of common stock, preferred stock, warrants, rights, debt securities and units up to an aggregate amount of $200.0 million (the “2020 Shelf Registration Statement”). On October 14, 2020, the 2020 Shelf Registration Statement was declared effective by the SEC. In the future, the Company may periodically offer one or more of these securities in amounts, prices and terms to be announced when and if the securities are offered. At the time any of the securities covered by the 2020 Shelf Registration Statement are offered for sale, a prospectus supplement will be prepared and filed with the SEC containing specific information about the terms of any such offering.

Public Offerings

In October 2021, the Company completed a public offering of 666,666 shares of its common stock and warrants to purchase 333,333 shares of its common stock at a combined price of $34.00 per share of common stock and one-half of a warrant to purchase one share of common stock. Proceeds from the public offering, net of underwriting discounts, commissions and offering expenses were approximately $21.1 million.

In July 2022, the Company completed a public offering of (1) 19,148,332 shares of its common stock and warrants to purchase 38,296,664 shares of its common stock at a combined price of $0.90 per share of common stock and warrants and (2) 7,518,334 pre-funded warrants to purchase 7,518,334 shares of its common stock and warrants to purchase 15,036,668 shares of its common stock at a combined price of $0.8999 per share of common stock and pre-funded warrant. Proceeds from the public offering, net of underwriting discounts, commissions and offering expenses were approximately $22.0 million.

ATM Sales Agreement

In March 2021, the Company entered into a common stock sales agreement (the “2021 ATM Agreement”) under which the Company may sell up to an aggregate of $50.0 million in gross proceeds through the sale of shares of common stock from time to time in “at-the-market” equity offerings (as defined in Rule 415 promulgated under the Securities Act of 1933, as amended). The Company agreed to pay a commission of up to 3% of the gross proceeds of any common stock sold under the 2021 ATM Agreement. During the year ended December 31, 2021, the Company issued and sold 172,879 shares of common stock under the 2021 ATM Agreement resulting in net proceeds to the Company of approximately $9.3 million.

On January 10, 2022, the Company filed a prospectus supplement to its 2020 Shelf Registration Statement registering an at-the-market offering program (the “January 2022 ATM”) the Company entered into for the sale of up to $50.0 million of shares of its common stock. The Company agreed to pay a commission of up to 3% of the gross proceeds of any common stock sold under the January 2022 ATM. During the nine months ended September 30, 2022, the Company issued and sold 25,623 shares of common stock under the January 2022 ATM resulting in net proceeds to the Company of approximately $0.3 million. On April 26, 2022, the Company terminated the January 2022 ATM.

On April 27, 2022, the Company entered into a new at-the-market offering program (“April 2022 ATM”) with H.C. Wainwright LLC and Co. (the “Sales Agent”), under which the Company may, from time to time in its sole discretion, issue and sell through or to the Sales Agent, acting as the Company’s agent, up to $12,841,000 of shares of the Company’s common stock (the “Placement Shares”). The Company agreed to pay the Sales Agent a commission of up to 3.0% of the gross sales proceeds of any Placement Shares sold under the April 2022 ATM. Through September 30, 2022, the Company issued and sold a total of 8,687,502 shares of common stock under the April 2022 ATM Agreement, representing the entire capacity of the April 2022 ATM, resulting in net proceeds of approximately $12.2 million. On August 22, 2022, the Company increased the April 2022 ATM (“August 2022 ATM”). As increased, the Company may now offer and sell, from time to time through the Sales Agent, shares of the Company’s common stock having an aggregate offering price of up to$75.0 million.

Registered Direct Offering

On March 14, 2022, the Company filed a prospectus supplement to its 2020 Shelf Registration Statement registering a direct offering (the “2022 Preferred Stock Offering”) of 2,425 shares of Series A convertible preferred stock (the “Series A Preferred Stock”) and 2,425 shares of Series B convertible preferred stock (the “Series B Preferred Stock”) and Series A warrants (the “Series A Warrants”) to purchase up to an aggregate of 606,250 shares of the common stock of the Company and Series B warrants (the “Series B Warrants”) to purchase up to an aggregate of 606,250 shares of common Stock. Each share of Series A Preferred Stock and Series B Preferred Stock has a stated value of $1,000 per share and a conversion price of $8.00 per share. The shares of preferred stock issued in the 2022 Preferred Stock Offering are convertible into an aggregate of 606,250 shares of common stock. The Series A Warrants have an exercise price of $10.40 per share, will become exercisable six months following the date of issuance, and will expire 5 years following the initial exercise date. The Series B Warrants have an exercise price of $10.40 per share, will become exercisable six months following the date of issuance, and will expire one and one-half years following the initial exercise date. Proceeds from the 2022 Preferred Stock Offering, net of the placement

agent’s fees and offering expenses were approximately $4.1 million. A portion of the placement agent’s fees included warrants to purchase 30,313 shares of the common stock of the Company at a strike price of $10.00 per share. The warrants become exercisable six months following the date of issuance and will expire 5 years following the commencement of sales in the 2022 Preferred Stock Offering.

The Company allocated the net proceeds of $4.1 million in accordance with ASC 470 based on the relative fair values of the preferred stock and the Series A Warrants and Series B Warrants (collectively, the “Warrants”). The relative fair value of the Warrants of approximately $2.1 million at the time of issuance, which was determined using the Black-Scholes option-pricing model, was recorded as additional paid-in capital and reduced the carrying value of the preferred stock. The significant assumptions used in preparing the option pricing model for valuing the Warrants issued include (i) volatility of 111.9% for the Series A warrants and 69.7% for the Series B Warrants, (ii) risk free interest rate of 2.1% for the Series A Warrants and 1.6% for the Series B Warrants, (iii) strike price of $10.40, (iv) fair value of common stock ($9.48) and (v) expected life of 5.5 years for the Series A Warrants and 1.5 years for the Series B Warrants.

On March 15, 2022, 2,425 shares of the Series A Preferred Stock were converted into 303,125 shares of the Company’s common stock. On April 4, 2022, 2,425 shares of the Series B Preferred Stock were converted into 303,125 shares of the Company’s common stock.

On April 25, 2022, the Company entered into a letter agreement and waiver (the “Letter Agreement”) with Armistice Capital Master Fund Ltd. (“Armistice”), pursuant to which Armistice consented to the Company entering into and effecting an at-the-market (“ATM”) offering facility. On March 14, 2022, the Company entered into the 2022 Preferred Stock Offering with Armistice, under which agreement, the Company was restricted from entering into and effecting an ATM offering facility until the 180-day anniversary of the Closing Date. Pursuant to the Letter Agreement, the Company issued to Armisitice a new common stock purchase warrant (“New Warrant”), on the same terms and conditions as the Series A Warrants, provided that such New Warrant shall be exercisable into 212,188 warrant shares, subject to adjustment thereunder. The Series A Warrants have an exercise price of $10.40 per share, and will become exercisable six months following the date of issuance, and will expire 5 years following the initial exercise date. The New Warrant is exercisable 6 months after the date of the Letter Agreement.

Stock-Based Compensation Expense

Stock-based compensation expense was allocated as follows (in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Cost of goods sold	$	29	$	84	$	104	$	219
Research and development		90		134		284		362
Selling and marketing		40		31		120		109
General and administrative		377		638		1,461		1,782
Total	$	536	$	887	$	1,969	$	2,472

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

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+ Details

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2022	Nov. 04, 2022
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	001-36464
Entity Registrant Name	AGILE THERAPEUTICS INC
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	23-2936302
Entity Address, Address Line One	500 College Road East, Suite 300
Entity Address, City or Town	Princeton
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	08540
City Area Code	609
Local Phone Number	683-1880
Title of 12(b) Security	Common stock
Trading Symbol	AGRX
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		40,614,527
Entity Central Index Key	0001261249
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false

Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statements of Operations and Comprehensive Loss
Revenues, net	$ 3,002	$ 1,287	$ 6,888	$ 2,587
Cost of product revenues	1,425	2,711	5,183	5,017
Gross profit (loss)	1,577	(1,424)	1,705	(2,430)
Operating expenses:
Research and development	788	1,593	2,901	4,568
Selling and marketing	5,560	9,386	23,523	30,263
General and administrative	2,815	3,371	9,837	11,386
Loss on disposition of assets	11,122		11,122
Total operating expenses	20,285	14,350	47,383	46,217
Loss from operations	(18,708)	(15,774)	(45,678)	(48,647)
Other income (expense)
Interest income	46	1	50	24
Interest expense	(1,004)	(999)	(2,699)	(2,914)
Total other income (expense), net	(958)	(998)	(2,649)	(2,890)
Loss before benefit from income taxes	(19,666)	(16,772)	(48,327)	(51,537)
Benefit from income taxes			4,675
Net loss	$ (19,666)	$ (16,772)	$ (43,652)	$ (51,537)
Net loss per share (basic) (in dollars per share)	$ (0.53)	$ 7.20	$ (2.91)	$ (22.80)
Net loss per share (diluted) (in dollars per share)	$ (0.53)	$ 7.20	$ (2.91)	$ (22.80)
Weighted-average common shares (basic) (in shares)	36,997,836	2,343,930	14,998,534	2,251,205
Weighted-average common shares (diluted) (in shares)	36,997,836	2,343,930	14,998,534	2,251,205
Comprehensive loss:
Net loss	$ (19,666)	$ (16,772)	$ (43,652)	$ (51,537)
Other comprehensive income:
Unrealized loss on marketable securities				(3)
Comprehensive loss	$ (19,666)	$ (16,772)	$ (43,652)	$ (51,540)

Fair Value Measurements

9 Months Ended

Sep. 30, 2022

Fair Value Measurements

Fair Value Measurements

3. Fair Value Measurements

ASC 820, Fair Value Measurements and Disclosures, describes the fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value.

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Assets and liabilities that are measured at fair value are reported using a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy maximizes the use of observable inputs and minimizes the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

●

Level 1 — Quoted prices in active markets for identical assets or liabilities. The Company’s Level 1 assets consist of cash and cash equivalents. The Company has no Level 1 liabilities.

●

Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted market prices for similar assets or liabilities in active markets or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets and liabilities. The Company has no Level 2 assets or liabilities.

●

Level 3 — Unobservable inputs that are supported by little or no market data and which require internal development of assumptions about how market participants price the fair value of the assets or liabilities. The Company has no Level 3 assets or liabilities.

The following table sets forth the Company’s financial instruments measured at fair value by level within the fair value hierarchy as of September 30, 2022 and December 31, 2021 (in thousands):


	Level 1		Level 2		Level 3
September 30, 2022
Assets:
Cash and cash equivalents	$	6,145	$	—	$	—
Total assets at fair value	$	6,145	$	—	$	—


	Level 1		Level 2		Level 3
December 31, 2021
Assets:
Cash and cash equivalents	$	19,143	$	—	$	—
Total assets at fair value	$	19,143	$	—	$	—

There were no transfers between Level 1, 2 or 3 during 2022 or 2021.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Credit Agreement and Guaranty (Details)						3 Months Ended	9 Months Ended
Credit Agreement and Guaranty (Details)	Jul. 25, 2022 USD ($)	Jul. 08, 2022 USD ($)	Jan. 07, 2022 USD ($)	Feb. 26, 2021 USD ($) $ / shares shares	Feb. 10, 2020 USD ($) item Y $ / shares	Dec. 31, 2023 USD ($)	Sep. 30, 2022 USD ($) shares	Jul. 31, 2022 $ / shares shares	Jun. 30, 2022 $ / shares	Mar. 31, 2022 $ / shares shares	Feb. 28, 2022 $ / shares	Oct. 31, 2021 $ / shares shares	Sep. 30, 2021 $ / shares
Debt Instrument [Line Items]
Repayments of debt							$ 17,150,000
Interest rate (as a percent)					11.75%		11.75%
Percentage of annual interest rate					3.00%
Common stock that can be purchased with warrants (in shares) \| shares							1,242,813					333,333
Proceeds from warrant exercises					$ 20,000,000.0
Facility fee percentage							1.00%
Perceptive Credit Agreement
Debt Instrument [Line Items]
Repayments of debt		$ 5,000,000.0	$ 5,000,000.0
Prepayment of outstanding principal	$ 7,000,000
Monthly principal payments	$ 75,000
Minimum cash covenants					$ 3,000,000.0
Revenue generated under debt						$ 87,100,000	$ 53,000,000.0
Perceptive Credit Agreement \| Perceptive Warrants
Debt Instrument [Line Items]
Exercise price of warrants (in dollars per share) \| $ / shares				$ 114.80
Common stock that can be purchased with warrants (in shares) \| shares				11,250			35,000
Number of warrants issued \| item					2
Beneficial ownership percentage					19.99%
Facility fee percentage					1.00%
Perceptive Credit Agreement \| First Seven Lakhs Shares
Debt Instrument [Line Items]
Exercise price of warrants (in dollars per share) \| $ / shares					$ 149.60			$ 14.90	$ 105.52	$ 105.52	$ 141.60	$ 141.60	$ 186.80
Common stock that can be purchased with warrants (in shares) \| shares							17,500	17,500		17,500		17,500
Perceptive Credit Agreement \| Remaining Seven Lakhs Shares
Debt Instrument [Line Items]
Exercise price of warrants (in dollars per share) \| $ / shares					$ 186.80			$ 12.37	86.61	$ 86.61	115.20	$ 115.20	149.60
Common stock that can be purchased with warrants (in shares) \| shares							17,500	17,500		17,500		17,500
Perceptive Credit Agreement \| Warrants
Debt Instrument [Line Items]
Exercise price of warrants (in dollars per share) \| $ / shares								$ 10.03	$ 69.13	$ 69.13	$ 90.80	$ 90.80	$ 114.80
Common stock that can be purchased with warrants (in shares) \| shares								11,250		11,250		11,250
Senior secured delayed draw term loan facility \| Perceptive Credit Agreement
Debt Instrument [Line Items]
Maximum borrowing capacity					$ 35,000,000.0
Senior secured delayed draw term loan facility \| Perceptive Credit Agreement, Tranche One
Debt Instrument [Line Items]
Amount borrowed					5,000,000.0
Senior secured delayed draw term loan facility \| Perceptive Credit Agreement, Tranche Two
Debt Instrument [Line Items]
Amount borrowed					$ 15,000,000.0
Senior secured delayed draw term loan facility \| Perceptive Credit Agreement, Tranche Four
Debt Instrument [Line Items]
Amount borrowed				$ 10,000,000.0
LIBOR \| Perceptive Credit Agreement
Debt Instrument [Line Items]
Variable interest rate margin (as a percent)					10.25%
Interest rate for the base rate					1.50%
Prepayment Occur on or Before February, 10, 2022 \| Perceptive Credit Agreement
Debt Instrument [Line Items]
Prepayment premium percentage					4.00%
Prepayment Occur on or Before February, 10, 2023 \| Perceptive Credit Agreement
Debt Instrument [Line Items]
Prepayment premium percentage					2.00%
Two Thousand Twenty Perceptive Warrants [Member]
Debt Instrument [Line Items]
Fair value of warrants					$ 3,600,000
Two Thousand Twenty One Perceptive Warrants [Member]
Debt Instrument [Line Items]
Fair value of warrants					$ 1,100,000
Option pricing model \| Two Thousand Twenty Perceptive Warrants [Member] \| Perceptive Warrants
Debt Instrument [Line Items]
Warrants and rights outstanding, term					7 years
Option pricing model \| Two Thousand Twenty Perceptive Warrants [Member] \| Perceptive Warrants \| Volatility
Debt Instrument [Line Items]
Warrants, Measurement Input \| item					0.700
Option pricing model \| Two Thousand Twenty Perceptive Warrants [Member] \| Perceptive Warrants \| Risk free interest rate
Debt Instrument [Line Items]
Warrants, Measurement Input \| item					0.0147
Option pricing model \| Two Thousand Twenty Perceptive Warrants [Member] \| Perceptive Warrants \| Expected life
Debt Instrument [Line Items]
Warrants, Measurement Input \| Y					7
Option pricing model \| Two Thousand Twenty Perceptive Warrants [Member] \| Perceptive Warrants \| Fair value
Debt Instrument [Line Items]
Warrants, Measurement Input \| item					160.40
Option pricing model \| Two Thousand Twenty Perceptive Warrants [Member] \| Maximum \| Perceptive Warrants \| Strike price
Debt Instrument [Line Items]
Warrants, Measurement Input \| item					186.80
Option pricing model \| Two Thousand Twenty Perceptive Warrants [Member] \| Minimum \| Perceptive Warrants \| Strike price
Debt Instrument [Line Items]
Warrants, Measurement Input \| item					149.60
Option pricing model \| Two Thousand Twenty One Perceptive Warrants [Member] \| Perceptive Warrants \| Volatility
Debt Instrument [Line Items]
Warrants, Measurement Input \| item					1.035
Option pricing model \| Two Thousand Twenty One Perceptive Warrants [Member] \| Perceptive Warrants \| Risk free interest rate
Debt Instrument [Line Items]
Warrants, Measurement Input \| item					0.0115
Option pricing model \| Two Thousand Twenty One Perceptive Warrants [Member] \| Perceptive Warrants \| Strike price
Debt Instrument [Line Items]
Warrants, Measurement Input \| item					114.80
Option pricing model \| Two Thousand Twenty One Perceptive Warrants [Member] \| Perceptive Credit Agreement \| Expected life
Debt Instrument [Line Items]
Warrants, Measurement Input \| Y					7
Warrants and rights outstanding, term					7 years

Credit Agreement and Guaranty

9 Months Ended

Sep. 30, 2022

Credit Agreement and Guaranty

Credit Agreement and Guaranty

7. Credit Agreement and Guaranty

On February 10, 2020 (the “Closing Date”), the Company entered into a Credit Agreement and Guaranty with Perceptive Credit Holdings III, LP, a related party (“Perceptive”), for a senior secured term loan credit facility of up to $35.0 million, (the “Perceptive Credit Agreement”). A first tranche of $5.0 million was funded on execution of the Perceptive Credit Agreement. A second tranche of $15.0 million was funded as a result of the approval of Twirla by the FDA. On February 26, 2021 the Perceptive Credit Agreement was amended (the “Amended Perceptive Credit Agreement”) by creating a fourth tranche of $10.0 million that was to be available to the Company based on the achievement of a revenue milestone. The other tranches of debt under the Amended Perceptive Credit Agreement are no longer available to the Company. On January 7, 2022, the Company prepaid $5.0 million of the outstanding debt, and Perceptive waived the prepayment premium. On July 8, 2022, the Company prepaid $5.0 million of the outstanding debt, and Perceptive waived the prepayment premium. On July 25, 2022, the Company entered into a fifth amendment to the Amended Perceptive Credit Agreement, as amended (the “Fifth Amendment”). Pursuant to the Fifth Amendment, Perceptive agreed to release its security interest in certain assets being transferred from the Company to Corium in connection with an amendment to the Company’s Manufacturing and Commercialization Agreement with Corium and waive the Company’s obligations to comply with certain financial covenants through the end of 2022. In exchange, the Company agreed to prepay $7 million of outstanding principal under the Amended Perceptive Credit Agreement using the proceeds of recent sales under the Company’s ATM program with H.C. Wainwright & Co., LLC. Such payment was made on July 25, 2022.

The facility will mature on February 10, 2024 (the “Maturity Date”). Pursuant to the Fifth Amendment, beginning August 31, 2022, the Company began making monthly principal payments in an amount equal to $75,000, continuing until February 10, 2024, at which time all remaining principal amount outstanding is due.

Borrowings under the Fifth Amendment will accrue interest at an annual rate equal to the London Interbank Offered Rate for one-month deposits (“LIBOR”) plus 10.25%, provided that LIBOR shall not be less than 1.5%. The rate of interest in effect as of the Closing Date and at September 30, 2022 was 11.75%. Upon the occurrence and during the continuance of any event of default under the Fifth Amendment, the interest rate automatically increases by 3.0% per annum.

The Company may prepay any outstanding loans in whole or in part. Any such prepayment of the loans is subject to a prepayment premium of 4.0% if such prepayment occurs after February 10, 2022 and on or prior to February 10, 2023; and 2.0% if such prepayment occurs after February 10, 2023 and prior to the Maturity Date.

All of the Company’s obligations under the Amended Perceptive Agreement are secured by a first-priority lien and security interest in substantially all of the Company’s tangible and intangible assets, including intellectual property.

The Amended Perceptive Agreement contains certain representations and warranties, affirmative covenants, negative covenants and conditions that are customary for similar financings. The negative covenants restrict or limit the ability of the Company to, among other things and subject to certain exceptions contained in the Amended Perceptive Credit Agreement, incur new indebtedness; create liens on assets; engage in certain fundamental corporate changes, such as mergers or acquisitions, or changes to the Company’s business activities; make certain investments or restricted payments (each as defined in the Amended Perceptive Credit Agreement); change its fiscal year; pay dividends; repay other certain indebtedness; engage in certain affiliate transactions; or enter into, amend or terminate any other agreements that have the impact of restricting the Company’s ability to make loan repayments under the Amended Perceptive Credit Agreement. In addition, the Company must (i) at all times prior to the Maturity Date maintain a minimum cash balance of $3.0 million; and (ii) as of the last day of each fiscal quarter commencing with the fiscal quarter ending December 31, 2022, report revenues for the trailing 12-month period that exceed the amounts set forth in the Amended Perceptive Credit Agreement, which range from $53.0 million for the fiscal quarter ending December 31, 2022 to $87.1 million for the fiscal quarter ending December 31, 2023. In the event the Company does not pay off the remainder of the outstanding principal under the facility, the Company will need to negotiate for a waiver of its obligations to comply with the covenants relating to revenues for Twirla in the first quarter of 2023.

In connection with the Perceptive Credit Agreement, the Company issued to Perceptive two warrants to purchase an aggregate of 35,000 shares of the Company’s common stock (together, the “2020 Perceptive Warrants”). The first warrant is exercisable for 17,500 shares of common stock at an exercise price of $149.60 per share. The second warrant is exercisable for 17,500 shares of common stock at an exercise price of $186.80 per share. The 2020 Perceptive Warrants expire on February 10, 2027. In connection with the Amended Perceptive Credit Agreement, the Company issued to Perceptive a warrant to purchase 11,250 shares of the Company’s common stock (the “2021 Perceptive Warrant” and, together with the 2020 Perceptive Warrants, the “Perceptive Warrants”) at an exercise price of $114.80 per share. The 2021 Perceptive Warrant expires on February 26, 2028. The Perceptive Warrants contain anti-dilution provisions and other warrant holder protections and are not exercisable to the extent that Perceptive would beneficially own more than 19.99% of the Company’s common stock as a result of the exercise.

As a result of the public offering of the Company’s common stock completed in October 2021 (see Note 8), the anti-dilution provision of the Perceptive Warrants was triggered, resulting in a reduction of the strike price for the Perceptive Warrants. Warrants to purchase 17,500 shares of common stock that had an exercise price of $186.80 per share were reduced to $141.60 per share, warrants to purchase 17,500 shares of common stock that had an exercise price of $149.60 per share were reduced to $115.20 per share, and warrants to purchase 11,250 shares of common stock that had an exercise price of $114.80 per share were reduced to $90.80 per share.

As a result of the registered direct offering completed in March 2022 (see Note 8), the anti-dilution provision of the Perceptive Warrants was again triggered resulting in a further reduction of the strike price for the Perceptive Warrants. Warrants to purchase 17,500 shares of common stock that had an adjusted exercise price of $141.60 per share were reduced to $105.52 per share, warrants to purchase 17,500 shares of common stock that had an adjusted exercise price of $115.20 per share were reduced to $86.61 per share, and warrants to purchase 11,250 shares of common stock that had an adjusted exercise price of $90.80 per share were reduced to $69.13 per share.

As a result of the public offering of the Company’s common stock completed in July 2022 (see Note 8), the anti-dilution provision of the Perceptive Warrants was again triggered resulting in a reduction of the strike price for the Perceptive Warrants. Warrants to purchase 17,500 shares of common stock that had an exercise price of $105.52 per share were reduced to $14.90 per share, warrants to purchase 17,500 shares of common stock that had an exercise price of $86.61 per share were reduced to $12.37 per share, and warrants to purchase 11,250 shares of common stock that had an exercise price of $69.13 per share were reduced to $10.03 per share.

The Company allocated the proceeds of $20.0 million in accordance with ASC 470 based on the relative fair values of the debt and the Perceptive Warrants. The relative fair value of the Perceptive Warrants of approximately $3.6 million at the time of issuance, which was determined using the Black-Scholes option-pricing model, was recorded as additional paid-in capital and reduced the carrying value of the debt. The significant assumptions used in

preparing the option pricing model for valuing the Perceptive Warrants issued include (i) volatility (70.0%), (ii) risk free interest rate of 1.47% (estimated using treasury bonds with a 7-year life), (iii) strike prices of $149.60 and $186.80 for the common stock warrants, (iv) fair value of common stock ($160.40) and (v) expected life (7 years). The fair value of the 2021 Perceptive Warrants of approximately $1.1 million at the time of issuance, which was determined using the Black-Scholes option-pricing model, was recorded as additional paid-in capital and reduced the carrying value of the debt. The significant assumptions used in preparing the option pricing model for valuing the 2021 Perceptive Warrants issued include (i) volatility (103.5%), (ii) risk free interest rate of 1.15% (estimated using treasury bonds with a 7-year life), (iii) strike price of $114.80 for the common stock warrant, (iv) fair value of common stock ($114.80) and (v) expected life (7 years). The fair value of the warrants as well as the debt issue costs incurred in connection with the entry into the Perceptive Credit Agreement, including a facility fee of 1% of the total amount of loans available under the facility, are presented as a direct deduction from the carrying amount of the term loan on the consolidated balance sheet as detailed below (in thousands).


	September 30,		December 31,
	2022		2021
Notes payable	$	2,850	$	20,000
Debt issuance costs		(266)		(550)
Warrant discount		(1,266)		(2,617)
Total debt	$	1,318	$	16,833
Less, current portion		1,318		16,833
Long-term debt, less current portion	$	—	$	—

The fair value of the warrants and the debt issue costs are being amortized utilizing the effective interest method over the term of the loan. The Company recorded interest expense for the amortization of the fair value of the warrants and debt issue costs of $838,000 and $399,000 for the three months ended September 30, 2022 and 2021, respectively. The Company recorded interest expense for the amortization of the fair value of the warrants and debt issue costs of $1,635,000 and $1,132,000 for the nine months ended September 30, 2022 and 2021, respectively.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

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+ Details

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2022

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

The Company’s complete listing of significant accounting policies is described in Note 2 to the Company’s audited financial statements as of December 31, 2021 included in its Annual Report on Form 10-K filed with the SEC on March 30, 2022.

Reverse Stock Split

On April 26, 2022, the Company effectuated a one-for-forty reverse stock split of its outstanding shares of common stock (the “Reverse Stock Split”). The Reverse Stock Split reduces the Company’s shares of outstanding common stock, stock options, RSUs, and warrants to buy shares of our common stock. Fractional shares of common stock that would have otherwise resulted from the Reverse Stock Split were rounded down to the nearest whole share and cash in lieu of payments were made to stockholders. All share and per share data for all periods presented in the accompanying financial statements and the related disclosures have been adjusted retrospectively to reflect the Reverse Stock Split. The number of authorized shares of common stock and the par value per share remains unchanged.

Use of Estimates

The preparation of the Company’s financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The Company bases its estimates and judgments on historical experience and various other assumptions that it believes are reasonable under the circumstances. The amounts of assets and liabilities reported in the Company’s balance sheets and the amounts of revenue and expenses reported for each of the periods presented are affected by estimates and assumptions, which are used for, but not limited to, revenue recognition, costs of product revenues, inventory reserves, the accounting for common stock warrants, stock-based compensation, and accounting for

research and development costs. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates.

Risks and Uncertainties

While Twirla has been approved by the U.S. Food and Drug Administration, or FDA, other potential product candidates developed by the Company will require approval from the FDA prior to commercial sales. There can be no assurance that the Company’s other product candidates will receive the required approval. If the Company is denied approval or such approval is delayed, or is unable to obtain the necessary financing to complete development and approval, there could be a material adverse impact on the Company’s financial condition and results of operations.

It should be noted that current public health threats could adversely affect the Company’s ongoing or planned business operations. In particular, the ongoing COVID-19 pandemic has resulted in federal, state and local governments and private entities mandating various restrictions, including travel restrictions, access restrictions, restrictions on public gatherings, and stay at home orders. The most significant impacts to the Company’s business were encountered by sales representatives promoting Twirla in the field, as some offices limited opportunities for face-to-face interactions with healthcare providers. In many cases COVID-19 restrictions have recently eased, but re-implementation of such restrictions, if necessary in the future may disrupt the Company’s business and/or could adversely affect the Company’s commercialization plans and results. The Company cannot presently predict the scope and severity of any potential business shutdowns or disruptions, but if the Company or any of the third parties with whom it engages, including personnel at third-party manufacturing facilities and other third parties with whom the Company conducts business, were to experience shutdowns or other business disruptions, the Company’s ability to conduct its business in the manner and on the timeline presently planned could be materially and adversely impacted. It is unknown how long these conditions will last and what the complete effect will be on the Company. While to date the Company has been able to continue to execute its overall business plan, some of its business activities slowed and took longer to complete as the Company adjusted to the challenges of operating in a largely remote setting with its employees. While the Company has acclimated to a hybrid work model with its employees, another shut down necessitating work in a completely remote environment could result in delays to its business activities and commercialization plan. Overall, the Company recognizes the challenges of commercializing a new product in a pandemic, and it will continue to closely monitor events as they develop and plan for alternative and mitigating measures that it can implement if needed.

Cash and Cash Equivalents

The Company considers all highly-liquid investments with an original maturity of three months or less when purchased to be cash equivalents. All cash and cash equivalents are held in U.S. financial institutions. Cash and cash equivalents include money market funds that invest primarily in commercial paper and U.S. government and U.S. government agency obligations.

The Company maintains balances with financial institutions in excess of the Federal Deposit Insurance Corporation limit.

Trade Accounts Receivable and Allowances

Trade accounts receivable are amounts owed to the Company by its customers for product that has been delivered. The trade accounts receivable are recorded at the invoice amount, less prompt pay and other discounts, chargebacks, and an allowance for credit losses, if any. The allowance for credit losses represents the Company’s estimate of losses over the life of the receivables. The Company evaluates forward looking economic factors and uses professional judgment to determine the allowance for credit losses. The credit loss reserves are reviewed and adjusted periodically. Credit loss reserves were not material as of September 30, 2022 or December 31, 2021.

Trade accounts receivable are aged based on the contractual payment terms. When the collectability of an invoice is no longer probable, the Company will create a reserve for that specific receivable. If a receivable is determined to be uncollectible, it is charged against the general credit loss reserve or the reserve for the specific receivable, if one exists.

Fair Value of Financial Instruments

In accordance with Accounting Standards Codification (“ASC”) 825, Financial Instruments, disclosures of fair value information about financial instruments are required, whether or not recognized in the balance sheet, for which it is practicable to estimate that value. Cash and cash equivalents are carried at fair value (see Note 3).

Other financial instruments, including accounts receivable, accounts payable and accrued liabilities, are carried at cost, which approximates fair value given their short-term nature.

Inventory

Inventory is valued utilizing the weighted average costing method. The Company records an inventory reserve for losses associated with dated, expired, excess or obsolete items. This reserve is based on management’s current knowledge with respect to inventory levels, planned production and sales volume assumptions.

Property and Equipment

Property and equipment, consisting of manufacturing equipment, office equipment and computer equipment, is stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Expenditures incurred after the fixed assets have been put into operation, such as repairs and maintenance, are charged to earnings in the period in which costs are incurred.

In the third quarter, the Company transferred manufacturing equipment with a book value of $11.1 million to Corium in exchange for relief from minimum material purchase requirements. The Company recorded a loss of $11.1 million for both the three and nine months ended September 30, 2022 on this disposition.

Long-Lived Assets

In accordance with ASC 360, Property, Plant and Equipment, the Company’s policy is to review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. At September 30, 2022, no indicators of impairment were present.

Research and Development Expenses

Research and development expenses consist primarily of costs related to personnel, including salaries and other personnel-related expenses, expenses related to manufacturing, clinical trial expenses, consulting fees and support services used in product development. All research and development costs are charged to operations as incurred in accordance with ASC 730, Research and Development.

In certain circumstances, the Company is required to make advance payments to vendors for goods or services that will be received in the future for use in research and development activities. In such circumstances, the advance payments are deferred and are expensed when the activity has been performed or when the goods have been received.

Advertising Costs

The Company has elected to expense advertising costs when incurred. Advertising costs totaled $0.9 million and $2.7 million for the three months ended September 30, 2022 and 2021, respectively, and totaled $6.1 million and $8.8 million for the nine months ending September 30, 2022 and 2021, respectively.

Deferred Financing Costs

Costs directly attributable to the Company’s senior secured term loan (see Note 7) are deferred and reported as a reduction of the related term loan. These costs represent a 1% facility fee paid directly to the lender, legal fees and other costs related to the term loan and are being amortized over the term of the loan. Amortization of deferred financing costs charged to interest expense was $146,000 and $69,000 for the three months ended September 30, 2022 and 2021, respectively, and was $284,000 and $208,000 for the nine months ended September 30, 2022 and 2021, respectively.

Concentrations of Credit Risk

Financial instruments which potentially subject the Company to credit risk consist principally of cash, cash equivalents, marketable securities and accounts receivable. The Company invests its cash, cash equivalents and marketable securities in debt instruments and interest-bearing accounts in United States financial institutions, the balances of which exceed federally insured limits. The Company has not recognized any losses from credit risks on such accounts. The Company mitigates credit risk by limiting the investment type and maturity to securities that preserve capital, maintain liquidity and have a high credit quality. The Company has no financial instruments with off balance sheet risk of accounting loss.

Major customers of the Company are defined as those constituting greater than 10% of its total revenue. In the three months ended September 30, 2022, the Company had sales to five customers that individually accounted for more than 10% of its total revenue. These customers had sales of $0.8 million, $0.7 million, $0.6 million, $0.5 million and $0.3 million, respectively, which represented 95% of total revenues in the quarter. In the nine months ended September 30, 2022, the Company had sales to three customers that individually accounted for more than 10% of its total revenue. These customers had sales of $2.0 million, $1.8 million and $1.6 million, respectively,which represented 79% of total revenues for the nine months ended September 30, 2022. Accounts receivable related to the five customers comprised 32%, 25%, 24%, 8%, and 10%, respectively, as of September 30, 2022.

Revenue Recognition

The Company recognizes revenue from the sale of its product, Twirla, in accordance with ASC 606, Revenue from Contracts with Customers (ASC 606). The provisions of ASC 606 require the following steps to determine revenue recognition: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation.

In accordance with ASC 606, the Company recognizes revenue at the point in time when its performance obligation is satisfied by transferring control of the promised goods or services to a customer. In accordance with the Company’s contracts with customers, control of the product is transferred upon the conveyance of title, which occurs when the product is sold to and received by a customer. The Company’s customers are located in the United States and consist primarily of wholesale distributors. Trade accounts receivable due to the Company from contracts with its customers are stated separately in the balance sheet, net of various allowances as described in the Trade Accounts Receivable and Allowance policy.

The amount of revenue recognized by the Company is equal to the amount of consideration that is expected to be received from the sale of product to its customers. Revenue is only recognized when it is probable that a significant reversal will not occur in future periods. To determine whether a significant reversal will occur in future periods, the Company assesses both the likelihood and magnitude of any such potential reversal of revenue.

Twirla is sold to customers at the Wholesale Acquisition Cost (WAC). However, the Company records product revenue, net of reserves for applicable variable consideration. These types of variable consideration items reduce revenue and include the following:

•

Distribution services fees;

•

Prompt pay and other discounts;

•

Product returns;

•

Chargebacks;

•

Rebates; and

•

Co-payment assistance.

An estimate for each variable consideration item is made and is recorded in conjunction with the revenue being recognized. Generally, if the estimated amount is payable to a customer, it is recorded as a reduction to accounts receivable. If the estimated amount is payable to an entity other than a customer, it is recorded as a current liability. An estimated amount of variable consideration may differ from the actual amount. At each balance sheet date, these

provisions are analyzed, and adjustments are made if necessary. Any adjustments made to these provisions would affect net product revenue and earnings in the current period.

In accordance with ASC 606, the Company must make significant judgments to determine the estimate for certain variable consideration. For example, the Company must estimate the percentage of end-users that will obtain the product through public insurance such as Medicaid or through private commercial insurance. To determine these estimates, the Company relies on industry standard data and trend analysis as historical sales data for Twirla are not yet available based on the December 2020 launch date. Once historical data becomes available, the Company will incorporate Twirla specific data into its estimates of variable consideration.

The Company uses the following specific considerations to estimate variable consideration.

Distribution services fees – The Company pays distribution service fees to its wholesale distributors. These fees are a contractually fixed percentage of WAC and are calculated at the time of sale based on the purchase amount. The Company records these fees as contra trade accounts receivable on the balance sheet.

Prompt pay and other discounts – The Company incentivizes its customers to pay their invoices on time through prompt pay discounts. These discounts are an industry standard practice and the Company offers a prompt pay discount to each wholesale distributor customer. The specific prompt pay terms vary by customer and are contractually fixed. Prompt pay discounts are typically taken by the Company’s customers, so an estimate of the discount is recorded at the time of sale based on the WAC. Prompt pay discount estimates are recorded as contra trade accounts receivable on the balance sheet.

The Company may also give other discounts to its customers to incentivize purchases and promote customer loyalty. The terms of such discounts may vary by customer. These discounts reduce gross product revenue at the time the revenue is recorded.

Product returns – Customers have the right to return product that is within six months or less of the labeled expiration date or that is past the expiration date by no more than twelve months. Twirla was commercially launched in December 2020 and with limited historical sales data, an estimate for product returns as of September 30, 2022 was made based on industry-standard data and trend analysis. As time passes and historical data becomes available, the Company will use historical sales and return data to estimate future product returns.

Chargebacks – Certain government entities and indirect customers (for example group purchasing organizations and 340B covered entities) will be able to purchase the product at a price discounted below WAC. The difference between the price paid by the government or other indirect purchaser and the price paid by the wholesale distributor will be charged back to the Company. The Company estimates the amount in chargebacks based on the expected number of claims and related cost that is associated with the revenue being recognized for product that remains in the distribution channel at the end of each reporting period. Estimated chargebacks are recorded as contra trade accounts receivable on the balance sheet.

Rebates – The Company will be subject to mandatory discount obligations under the Medicaid and Tricare programs. The rebate amounts for these programs are determined by statutory requirements or contractual arrangements. Rebates are owed after the product has been dispensed to an end user and the Company has been invoiced. Rebates for Medicaid and Tricare are typically invoiced in arrears. The Company estimates the amount in rebates based on the expected number of claims and related cost that is associated with the revenue being recognized for product that remains in the distribution channel at the end of each reporting period. Rebate estimates are recorded as other current liabilities on the balance sheet.

Co-payment assistance - The Company offers a co-payment assistance program to commercially insured patients whose insurance requires a co-payment to be made when filling their prescription. This is a voluntary program that is intended to provide financial assistance to patients meeting certain eligibility requirements. The Company estimates the amount of co-payment assistance based on the expected number of claims and related cost that is associated with the revenue being recognized for product that remains in the distribution channel at the end of each reporting period. Co-payment assistance estimates are recorded as other current liabilities on the balance sheet.

Provisions for the revenue reserves described above totaled $3.2 million and $0.6 million for the three months ending September 30, 2022 and September 30, 2021, respectively, and $6.1 million and $0.9 million for the nine months ending September 30, 2022 and 2021, respectively. As of September 30, 2022, reserves on the balance sheet associated with variable consideration were $3.7 million.

Warrants

The Company accounts for its warrants to purchase common stock in accordance with ASC 480, Distinguishing Liabilities from Equity.

In connection with entering into a senior secured term loan facility in February 2020, the Company issued warrants to purchase 35,000 shares of its common stock. In connection with an amendment to that facility in February 2021, the Company issued a warrant to purchase 11,250 shares of the Company’s common stock. These warrant instruments qualify for equity classification and have been allocated based upon the relative fair value of the base instrument and the warrant. These warrants are subject to repricing in the event of an offering of securities at a price lower than the existing strike price before December 31, 2022. See Note 7 for additional information.

In connection with an underwritten public offering completed in October 2021, the Company issued warrants to purchase 333,333 shares of its common stock. This offering also triggered an adjustment to the exercise price of the existing warrants mentioned above, which resulted in a reduction of the strike price for these warrants. This reduction resulted in an immaterial increase to additional paid-in-capital. See Notes 7 and 8 for additional information.

In connection with a registered direct offering completed in March 2022, the Company issued warrants to purchase 1,242,813 shares of its common stock. This offering also triggered an adjustment to the exercise price of the existing warrants mentioned above, which resulted in a reduction of the strike price for these warrants. This reduction resulted in an immaterial increase to additional paid-in-capital. See Notes 7 and 8 for additional information.

In connection with a letter agreement and waiver entered into with an investor on April 2022, the Company issued warrants to purchase 212,188 shares of common stock, subject to adjustment thereunder. See Note 8 for additional information.

In connection with a public offering completed in July 2022, the Company issued warrants to purchase 54,666,665 shares of its common stock. This offering also triggered an adjustment to the exercise price of the existing warrants in connection with the senior secured term loan facility mentioned above, which resulted in a reduction of the strike price for these warrants.

Income Taxes

The Company accounts for deferred taxes using the asset and liability method as specified by ASC 740, Income Taxes. Deferred income tax assets and liabilities are determined based on differences between the financial statement reporting and the tax basis of assets and liabilities, operating losses and tax credit carryforwards. Deferred income taxes are measured using the enacted tax rates and laws that are anticipated to be in effect when the differences are expected to reverse. The measurement of deferred income tax assets is reduced, if necessary, by a valuation allowance for any tax benefits which are not expected to be realized. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in the period that such tax rate changes are enacted.

The Company has adopted the authoritative guidance on accounting for and disclosure of uncertainty in tax positions which prescribes a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns. The Company has no uncertain tax positions as of September 30, 2022 that qualify for either recognition or disclosure in the financial statements under this guidance.

Stock-Based Compensation

The Company accounts for stock-based compensation in accordance with ASC 718, Compensation-Stock Compensation. The Company grants stock options for a fixed number of shares to employees and non-employees

with an exercise price equal to no less than the fair value of the shares at grant date. Compensation cost is recognized for all share-based payments granted and is based on the grant-date fair value estimated using the weighted-average assumption of the Black-Scholes option pricing model based on key assumptions such as stock price, expected volatility and expected term. The Company elects to account for forfeitures when they occur. The equity instrument is not considered to be issued until the instrument vests. As a result, compensation cost is recognized over the requisite service period with an offsetting credit to additional paid-in capital.

The Company also awards restricted stock units (“RSUs”) to employees and its board of directors. RSUs are generally subject to forfeiture if employment terminates prior to the completion of the vesting restrictions. The Company expenses the cost of the RSUs, which is determined to be the fair market value of the shares of common stock underlying the RSUs at the date of grant, ratably over the period during which the vesting restrictions lapse.

Net Loss Per Share

Basic net loss per share is calculated by dividing the net loss attributable to common stockholders by the weighted average number of common shares outstanding for the period, without consideration for common stock equivalents. Diluted net loss per share is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding plus the effect of dilutive potential common shares outstanding during the period determined using the treasury-stock and if-converted methods. For purposes of the diluted net loss per share calculation, common stock warrants, unvested RSUs and stock options are considered to be potentially dilutive securities but are excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive, and therefore, basic and diluted net loss per share were the same for all periods presented.

The following table sets forth the outstanding potentially dilutive securities that have been excluded from the calculation of diluted net loss per share for both the three and nine months ended September 30, 2022 and 2021, respectively, because to do so would be anti-dilutive (in common equivalent shares):


	September 30,
	2022	2021
Common stock warrants	56,501,249	46,250
Unvested restricted stock units	7,125	6,342
Common stock options	278,854	258,808
Total	56,787,228	311,400

Recent Accounting Pronouncements

In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation— Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815- 40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (“ASU 2021-04”). The guidance is effective for the Company on January 1, 2022. The adoption of this standard did not have a material impact on its financial statements.

Statements of Cash Flows - USD ($)	9 Months Ended
Statements of Cash Flows - USD ($)	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities:
Net loss	$ (43,652,000)	$ (51,537,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Noncash inventory reserve		1,415,000
Depreciation	1,255,000	1,546,000
Amortization	188,000	102,000
Loss on disposition of assets	11,122,000
Noncash stock-based compensation	1,969,000	2,472,000
Noncash amortization of deferred financing costs	1,635,000	1,262,000
Changes in operating assets and liabilities:
Accounts receivable	(2,178,000)	(444,000)
Inventory	(831,000)	(4,875,000)
Prepaid expenses and other assets	(1,551,000)	(885,000)
Accounts payable and accrued expenses	(2,213,000)	2,462,000
Lease liability	(132,000)	(102,000)
Net cash used in operating activities	(34,388,000)	(48,584,000)
Cash flows from investing activities:
Sales and maturities of marketable securities		39,729,000
Acquisition of property and equipment	(133,000)	(214,000)
Net cash (used in) provided by investing activities	(133,000)	39,515,000
Cash flows from financing activities:
Proceeds from issuance of common stock in public offering, net of offering costs	21,971,000
Repayments of long-term debt	(17,150,000)
Proceeds from exercise of stock options		75,000
Net cash provided by financing activities	21,523,000	9,341,000
Net (decrease) increase in cash and cash equivalents	(12,998,000)	272,000
Cash and cash equivalents, beginning of period	19,143,000	14,463,000
Cash and cash equivalents, end of period	6,145,000	14,735,000
Supplemental disclosure of noncash financing activities
Warrants issued in connection with long-term debt		1,080,000
Warrants issued in connection with preferred stock offering	2,101,000
Supplemental cash flow information
Interest paid	1,078,000	1,782,000
Series A Convertible Preferred Stock
Supplemental disclosure of noncash financing activities
Conversion of Series preferred stock into common stock	897,000
Series B Convertible Preferred Stock
Supplemental disclosure of noncash financing activities
Conversion of Series preferred stock into common stock	887,000
Public offering
Cash flows from financing activities:
Proceeds from issuance of preferred stock in registered direct offering, net of offering costs	4,129,000
At-the-market sales
Cash flows from financing activities:
Proceeds from At-the-Market sales of common stock, net of offering costs	$ 12,573,000	$ 9,266,000

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2022

Summary of Significant Accounting Policies

Reverse Stock Split

Use of Estimates

research and development costs. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates.

Risks and Uncertainties

Risks and Uncertainties

Cash and Cash Equivalents

Cash and Cash Equivalents

The Company maintains balances with financial institutions in excess of the Federal Deposit Insurance Corporation limit.

Trade Accounts Receivable and Allowances

Trade Accounts Receivable and Allowances

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Other financial instruments, including accounts receivable, accounts payable and accrued liabilities, are carried at cost, which approximates fair value given their short-term nature.

Inventory

Inventory

Property and Equipment

Long-Lived Assets

Research and Development Expense

Research and Development Expenses

Advertising Costs

Advertising Costs

Deferred Financing Costs

Deferred Financing Costs

Concentrations of Credit Risk

Concentrations of Credit Risk

Revenue Recognition

Revenue Recognition

•

Distribution services fees;

•

Prompt pay and other discounts;

•

Product returns;

•

Chargebacks;

•

Rebates; and

•

Co-payment assistance.

provisions are analyzed, and adjustments are made if necessary. Any adjustments made to these provisions would affect net product revenue and earnings in the current period.

The Company uses the following specific considerations to estimate variable consideration.

Warrants

The Company accounts for its warrants to purchase common stock in accordance with ASC 480, Distinguishing Liabilities from Equity.

Income Taxes

Income Taxes

Stock-Based Compensation

Net Loss Per Share


	September 30,
	2022	2021
Common stock warrants	56,501,249	46,250
Unvested restricted stock units	7,125	6,342
Common stock options	278,854	258,808
Total	56,787,228	311,400

Recent Accounting Pronouncements

Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Preferred Stock Series A Convertible Preferred Stock	Preferred Stock Series B Convertible Preferred Stock	Preferred Stock Series A and B Convertible Preferred Stock	Preferred Stock	Common stock At-the-market sales	Common stock Series A Convertible Preferred Stock	Common stock Series B Convertible Preferred Stock	Common stock	Additional Paid in Capital. At-the-market sales	Additional Paid in Capital. Series A Convertible Preferred Stock	Additional Paid in Capital. Series B Convertible Preferred Stock	Additional Paid in Capital.	Accumulated Other Comprehensive Income	Accumulated Deficit	At-the-market sales	Series A and B Convertible Preferred Stock	Total
Balance at Dec. 31, 2020												$ 361,548	$ 3	$ (312,223)			$ 49,328
Balance (in shares) at Dec. 31, 2020								2,189,094
Increase (decrease) in stockholders' equity
Share-based compensation - stock options and RSUs												742					742
Issuance of common stock									$ 960						$ 960
Issuance of common stock (in shares)					13,023
Issuance of common stock upon exercise of options												75					75
Issuance of common stock upon exercise of options (in shares)								3,160
Vesting of RSUs (in shares)								1,316
Warrants issued in connection with long-term debt												1,080					1,080
Unrealized net gain on marketable securities													(3)				(3)
Net loss														(17,128)			(17,128)
Balance at Mar. 31, 2021												364,405		(329,351)			35,054
Balance (in shares) at Mar. 31, 2021								2,206,593
Balance at Dec. 31, 2020												361,548	$ 3	(312,223)			49,328
Balance (in shares) at Dec. 31, 2020								2,189,094
Increase (decrease) in stockholders' equity
Unrealized net gain on marketable securities																	(3)
Net loss																	(51,537)
Balance at Sep. 30, 2021												374,440		(363,760)			10,680
Balance (in shares) at Sep. 30, 2021								2,368,235
Balance at Mar. 31, 2021												364,405		(329,351)			35,054
Balance (in shares) at Mar. 31, 2021								2,206,593
Increase (decrease) in stockholders' equity
Share-based compensation - stock options and RSUs												843					843
Issuance of common stock									6,349						6,349
Issuance of common stock (in shares)					114,826
Vesting of RSUs (in shares)								1,786
Net loss														(17,637)			(17,637)
Balance at Jun. 30, 2021												371,597		(346,988)			24,609
Balance (in shares) at Jun. 30, 2021								2,323,205
Increase (decrease) in stockholders' equity
Share-based compensation - stock options and RSUs												887					887
Issuance of common stock									1,956						1,956
Issuance of common stock (in shares)					45,030
Net loss														(16,772)			(16,772)
Balance at Sep. 30, 2021												374,440		(363,760)			10,680
Balance (in shares) at Sep. 30, 2021								2,368,235
Balance at Dec. 31, 2021												396,388		(387,117)			9,271
Balance (in shares) at Dec. 31, 2021								3,034,901
Increase (decrease) in stockholders' equity
Share-based compensation - stock options and RSUs												764					764
Issuance of common stock									348						348
Issuance of common stock (in shares)					25,623
Registered direct financing costs, inclusive of warrants				$ (965)								244					(721)
Conversion of convertible preferred stock	$ (897)		$ 4,850							$ 897						$ 4,850
Conversion of convertible preferred stock (in shares)	(2,425)		4,850			303,125
Vesting of RSUs (in shares)								1,773
Warrants issued in connection with registered direct offering				(2,101)								2,101
Net loss														(11,769)			(11,769)
Balance at Mar. 31, 2022				$ 887								400,742		(398,886)			2,743
Balance (in shares) at Mar. 31, 2022				2,425				3,365,422
Balance at Dec. 31, 2021												396,388		(387,117)			9,271
Balance (in shares) at Dec. 31, 2021								3,034,901
Increase (decrease) in stockholders' equity
Net loss																	(43,652)
Balance at Sep. 30, 2022								$ 4				437,027		(430,771)			6,260
Balance (in shares) at Sep. 30, 2022								39,026,823
Balance at Mar. 31, 2022				$ 887								400,742		(398,886)			2,743
Balance (in shares) at Mar. 31, 2022				2,425				3,365,422
Increase (decrease) in stockholders' equity
Share-based compensation - stock options and RSUs												669					669
Fractional shares retired as a result of reverse split								(10)
Issuance of common stock					$ 1				12,225						12,226
Issuance of common stock (in shares)					8,687,502
Conversion of convertible preferred stock		$ (887)									$ 887
Conversion of convertible preferred stock (in shares)		(2,425)					303,125
Vesting of RSUs (in shares)								4,118
Net loss														(12,219)			(12,219)
Balance at Jun. 30, 2022								$ 1				414,523		(411,105)			3,419
Balance (in shares) at Jun. 30, 2022								12,360,157
Increase (decrease) in stockholders' equity
Share-based compensation - stock options and RSUs												536					536
Issuance of common stock					$ 3				$ 21,968						$ 21,971
Issuance of common stock (in shares)					26,666,666
Net loss														(19,666)			(19,666)
Balance at Sep. 30, 2022								$ 4				$ 437,027		$ (430,771)			$ 6,260
Balance (in shares) at Sep. 30, 2022								39,026,823

Credit Agreement and Guaranty - Carrying Amount Of term Loan (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Credit Agreement and Guaranty
Notes payable	$ 2,850,000		$ 2,850,000		$ 20,000,000
Debt issuance costs	(266,000)		(266,000)		(550,000)
Warrant discount	(1,266,000)		(1,266,000)		(2,617,000)
Total	1,318,000		1,318,000		16,833,000
Less, current portion	1,318,000		1,318,000		$ 16,833,000
Warrants and debt issue costs	$ 838,000	$ 399,000	$ 1,635,000	$ 1,132,000

Leases - Maturity of lease liabilities (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Operating Leases
2022	$ 66
2023	390
2024	398
2025	100
Total	954
Less: Interest	(127)
Present value of lease liability	$ 827

Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Prepaid Expenses and Other Current Assets
Prepaid insurance	$ 1,033	$ 775
Other	2,801	1,508
Total prepaid expenses and other current assets	$ 3,834	$ 2,283

Income Taxes - Sale of New Jersey Net Operating Losses (Details) - USD ($) $ in Millions	1 Months Ended
	Apr. 30, 2022	Jan. 31, 2021	Jan. 31, 2018
Sale of New Jersey Net Operating Losses
Additional cash benefit received	$ 4.7
Sale of unused NOLs \| New Jersey
Sale of New Jersey Net Operating Losses
Maximum lifetime benefit under the Program		$ 20.0	$ 15.0
Sale of unused NOLs \| New Jersey \| Minimum
Sale of New Jersey Net Operating Losses
Allowable sale of unused tax benefits as a percentage of total value			80.00%

Organization and Description of Business (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Nature of Operations
Accumulated deficit	$ 430,771	$ 387,117
Cash, cash equivalents and marketable securities	$ 6,100

Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2022	Apr. 26, 2022	Apr. 25, 2022	Dec. 31, 2021
Balance Sheets
Preferred stock, par value (in dollars per share)	$ 0.0001			$ 0.0001
Preferred stock, authorized (in shares)	10,000,000			10,000,000
Preferred stock, issued (in shares)	4,850			0
Preferred stock, outstanding (in shares)	0			0
Common stock, par value (in dollars per share)	$ 0.0001			$ 0.0001
Common stock, authorized (in shares)	300,000,000			300,000,000
Common stock, issued (in shares)	39,026,823			3,034,901
Common stock, outstanding (in shares)	39,026,823	3,668,546	146,741,862	3,034,901

Summary of Significant Accounting Policies - Net Loss Per Share (Details) - shares	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Anti-dilutive securities
Anti-dilutive securities excluded from the calculation of diluted net loss per share (in shares)	56,787,228	311,400
Common stock warrants
Anti-dilutive securities
Anti-dilutive securities excluded from the calculation of diluted net loss per share (in shares)	56,501,249	46,250
Unvested restricted stock units
Anti-dilutive securities
Anti-dilutive securities excluded from the calculation of diluted net loss per share (in shares)	7,125	6,342
Common stock options
Anti-dilutive securities
Anti-dilutive securities excluded from the calculation of diluted net loss per share (in shares)	278,854	258,808

Summary of Significant Accounting Policies - Warrants (Details) - shares	Sep. 30, 2022	Jul. 31, 2022	Apr. 30, 2022	Oct. 31, 2021	Feb. 28, 2021	Feb. 29, 2020
Warrants
Common stock that can be purchased with warrants (in shares)			212,188		11,250
Common stock that can be purchased with warrants (in shares)	1,242,813			333,333
Public offering
Warrants
Common stock that can be purchased with warrants (in shares)		54,666,665
Common stock that can be purchased with warrants (in shares)		38,296,664		333,333
Common stock warrants
Warrants
Common stock that can be purchased with warrants (in shares)						35,000
Warrants \| Public offering
Warrants
Common stock that can be purchased with warrants (in shares)		15,036,668

Summary of Significant Accounting Policies - (Details)	Apr. 26, 2022
Summary of Significant Accounting Policies
Stock split, conversion ratio	0.025

Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Accrued Liabilities
Accrued compensation	$ 1,955	$ 2,086
Accrued professional fees and other	3,197	1,477
Total accrued liabilities	$ 5,152	$ 3,563

Leases - Summary (Details)	3 Months Ended		9 Months Ended
Leases - Summary (Details)	Sep. 30, 2022 USD ($) lease	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) lease	Sep. 30, 2021 USD ($)
Leases
Number of finance leases \| lease	0		0
Number of operating leases \| lease	1		1
Lessee, Operating Lease, Existence of Option to Extend [true false]			true
Renewal term	5 years		5 years
Operating lease expense \| $	$ 90,000	$ 38,000	$ 271,000	$ 113,000
Operating lease expense information:
Cash paid for amounts included in measurement of lease liabilities \| $	$ 42,000	$ 35,000	$ 132,000	$ 102,000
Weighted-average remaining lease term (years)	2 years 6 months		2 years 6 months
Weighted-average discount rate	11.80%		11.80%

Fair Value Measurements - Financial Instruments Measured at Fair Value by Hierarchy Level (Details) - Recurring - Level 1 - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Assets:
Cash and cash equivalents	$ 6,145	$ 19,143
Total assets at fair value	$ 6,145	$ 19,143