Liquidity

9 Months Ended

Sep. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Liquidity

Liquidity

Since inception, the Company's operations have focused on organization and staffing, business planning, raising capital, establishing an intellectual property portfolio, conducting preclinical studies and clinical trials, pursuing regulatory approvals and most recently, commercializing XHANCE in the US. As of September 30, 2020, the Company had cash and cash equivalents of $143,134.

In addition, as discussed in Note 9, at the Company's option, $20,000 of Pharmakon Senior Secured Notes (the Third Delayed Draw Notes) may be issued between August 15, 2020 and February 15, 2021 as the Company exceeded XHANCE net sales and royalties for the quarter ended September 30, 2020 of $14,500. The Company expects to draw the $20,000 available to it from the Third Delayed Draw Notes by early 2021, subject to it continuing to meet certain eligibility requirements at the time of the draw.

The Company will likely require additional capital in the future secured through equity or debt financings, partnerships, collaborations, or other sources in order to meet its debt service obligations, including repayment, under the Company's outstanding senior secured notes, and to carry out the Company's planned development and commercial activities. The terms of the outstanding senior secured notes, including applicable covenants, are described in Note 9. If additional capital is not secured when required, the Company may need to delay or curtail its operations until additional funding is received.

The Company is subject to a number of risks similar to other life sciences companies, including, but not limited to, successful discovery, development and commercialization of its products and product candidates, raising additional capital, the development by its competitors of new technological innovations, protection of proprietary technology and market acceptance of the Company's products.