vrca-10q_20200930.htm

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November 5, 2020, the registrant had 25,865,542 shares of common stock, $0.0001 par value per share, outstanding.

	September 30,			December 31,
	2020			2019
ASSETS
Current assets:
Cash and cash equivalents	$	17,198		$	9,241
Marketable securities		54,683			52,776
Prepaid expenses and other assets		2,093			2,966
Total current assets		73,974			64,983
Property and equipment, net		2,708			2,090
Operating lease right-of-use asset		1,891			111
Other non-current assets		1,363			1,240
Total assets	$	79,936		$	68,424
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	179		$	1,185
Accrued expenses and other current liabilities		3,099			2,036
Operating lease liability		245			130
Deferred revenue		500			—
Current debt, net		34,980			—
Total current liabilities		39,003			3,351
Operating lease liability		1,751			58
Total liabilities		40,754			3,409
Commitments and Contingencies (Note 10)
Stockholders’ equity:
Preferred stock, $0.0001 par value; 10,000,000 shares authorized; no shares issued and outstanding as of September 30, 2020 and December 31, 2019		—			—
Common stock, $0.0001 par value; 200,000,000 authorized; 25,970,686 shares issued and 25,865,542 shares outstanding as of September 30, 2020 and 25,912,137 shares issued and 25,786,330 shares outstanding as of December 31, 2019		3			3
Treasury stock, at cost, 105,144 shares as of September 30, 2020 and December 31, 2019		—			—
Additional paid-in capital		130,528			126,594
Subscription receivable		(446	)		(410	)
Accumulated deficit		(90,909	)		(61,192	)
Accumulated other comprehensive gain		6			20
Total stockholders’ equity		39,182			65,015
Total liabilities and stockholders’ equity	$	79,936		$	68,424

The accompanying notes are an integral part of these condensed financial statements.

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2020			2019			2020			2019
Operating expenses:
Research and development	$	4,988		$	3,049		$	13,401		$	11,464
General and administrative		4,649			3,494			14,747			10,626
Total operating expenses		9,637			6,543			28,148			22,090
Loss from operations		(9,637	)		(6,543	)		(28,148	)		(22,090	)
Other income (expense):
Interest income		69			453			473			1,523
Interest expense		(918	)		—			(2,042	)		—
Other expense		—			—			—			(3	)
Total other (expense) income		(849	)		453			(1,569	)		1,520
Net loss	$	(10,486	)	$	(6,090	)	$	(29,717	)	$	(20,570	)

Net loss per share, basic and diluted	$	(0.42	)	$	(0.24	)	$	(1.19	)	$	(0.83	)
Weighted average common shares outstanding, basic and diluted		24,988,939			24,893,036			24,972,972			24,875,589

Net loss	$	(10,486	)	$	(6,090	)	$	(29,717	)	$	(20,570	)
Other comprehensive gain:
Unrealized gain on marketable securities		(26	)		(11	)		(14	)		44
Comprehensive loss	$	(10,512	)	$	(6,101	)	$	(29,731	)	$	(20,526	)

The accompanying notes are an integral part of these condensed financial statements.

																		Accumulated
																		Other			Total
	Common Stock				Additional			Subscription			Accumulated			Treasury Stock				Comprehensive			Stockholders’
	Shares Issued		Amount		Paid-in Capital			Receivable			Deficit			Shares		Cost		Gain (Loss)			Equity
January 1, 2020		25,912,137	$	3	$	126,594		$	(410	)	$	(61,192	)		105,144	$	—	$	20		$	65,015
Repayment of subscription receivable		—		—		—			410			—			—		—		—			410
Stock-based compensation		—		—		998			—			—			—		—		—			998
Exercise of stock options		7,500		—		7			—			—			—		—		—			7
Net loss		—		—		—			—			(9,822	)		—		—		—			(9,822	)
March 31, 2020		25,919,637		3		127,599			—			(71,014	)		105,144		—		20			56,608
Stock-based compensation		—		—		1,252			—			—			—		—		—			1,252
Net loss		—		—		—			—			(9,409	)		—		—		—			(9,409	)
Unrealized gain on marketable securities		—		—		—			—			—			—		—		12			12
June 30, 2020		25,919,637		3		128,851			-			(80,423	)		105,144		-		32			48,463
Subscription receivable		51,049		—		446			(446	)		—			—		—		—			—
Stock-based compensation		—		—		1,231			—			—			—		—		—			1,231
Unrealized loss on marketable securities		—		—		—			—			—			—		—		(26	)		(26	)
Net loss		—		—		—			—			(10,486	)		—		—		—			(10,486	)
September 30, 2020		25,970,686	$	3	$	130,528		$	(446	)	$	(90,909	)		105,144	$	—	$	6		$	39,182


January 1, 2019		25,809,900	$	3	$	122,526		$	—		$	(33,083	)		105,144	$	—	$	(17	)	$	89,429
Stock-based compensation		—		—		780			—			—			—		—		—			780
Exercise of stock options		3,729		—		3			—			—			—		—		—			3
Net loss		—		—		—			—			(7,479	)		—		—		—			(7,479	)
Unrealized gain on marketable securities		—		—		—			—			—			—		—		28			28
Adoption of ASU 2018-07 (See Note 2)		—		—		(98	)		—			98			—		—		—			—
March 31, 2019		25,813,629		3		123,211			—			(40,464	)		105,144		-		11			82,761
Stock-based compensation		—		—		846			—			—			—		—		—			846
Exercise of stock options		31,812		—		212			—			—			—		—		—			212
Unrealized gain on marketable securities		—		—		—			—			—			—		—		27			27
Net loss		—		—		—			—			(7,001	)		—		—		—			(7,001	)
June 30, 2019		25,845,441		3		124,269			-			(47,465	)		105,144		-		38			76,845
Stock-based compensation		—		—		905			—			—			—		—		—			905
Exercise of stock options		4,500		—		4			—			—			—		—		—			4
Unrealized loss on marketable securities		—		—		—			—			—			—		—		(11	)		(11	)
Net loss		—		—		—			—			(6,090	)		—		—		—			(6,090	)
September 30, 2019		25,849,941	$	3	$	125,178		$	—		$	(53,555	)		105,144	$	—	$	27		$	71,653

Delaware	46-3137900
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
10 North High Street, Suite 200 West Chester, PA	19380
(Address of principal executive offices)	(Zip Code)

Item 1.	Financial Statements (Unaudited)	1

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14

Item 3.	Quantitative and Qualitative Disclosures About Market Risks	22

Item 4.	Controls and Procedures	23

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	24

Item 1A.	Risk Factors	24

Item 2.	Recent Sales of Unregistered Securities and Use of Proceeds	26

Item 3.	Defaults Upon Senior Securities	26

Item 4.	Mine Safety Disclosures	26

Item 5.	Other Information	26

Item 6.	Exhibits	26

Signatures		28